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LED lighting to drive USD 10bn power supply market in 2016

February 03, 2012 // Julien Happich

LED lighting to drive USD 10bn power supply market in 2016

The global market for power supplies used in LED lighting is forecast to reach USD10 billion in 2016, according to a new report from IMS Research, “Opportunities for Power Components in LED Lighting”. The report revealed that rapid uptake of LED lighting, driven by legislation and rising costs of electricity, will result in a potential market of 4 billion power supply units by 2016, worth an astounding USD10 billion.


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Report co-author and senior market analyst, Ryan Sanderson, commented Demand for LED lighting solutions is increasing rapidly for all applications from low-power residential retrofit LED lamps and bulbs to high-power commercial and industrial LED luminaires for applications such as street lighting.

The report also found that the traditional lamp and luminaire market is well established. Manufacturers are faced with new challenges when it comes to powering LED lamps and luminaires and often require significant power electronics expertise, opening up opportunities for power supply manufacturers. The requirements to power new LED lighting products varies widely, depending on design factors including power rating, the number of LEDs or LED strings and the environment in which the solution will be placed. Sanderson added, These design requirements, coupled with the lack of clear standards for LED lighting means that LED lamp and luminaire manufacturers need considerable power electronics expertise, either via employing specialists or from a merchant power supply manufacturer.

The market report found that LED lighting would become a unique opportunity, despite the fact that general lighting has always been a relatively small and low-growth market for the power supply industry. Competition in lighting, however, is already fierce and some of the largest manufacturers of LED lamps and luminaires are positioning themselves to cope with these challenges internally. Report co-author and market analyst, Jonathon Eykyn, commented Some of the largest manufacturers of LED lamps and luminaires already have the capability to design and manufacture power circuitry in-house, either via subsidiaries or through the acquisition of power supply manufacturers. Philips Advance is a prime example.

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