Demand For LED-Based Luminaires To Spur Secondary Optics Growth
10 February 2014
The market for light-emitting diode (LED) products is tipped to hit $25 billion by 2023, presenting vast opportunities for growth in the secondary optics segment, Lux Research says in a new report.
According to the analysis and consultancy firm, the market will expand at a compound annual growth rate of 25% over the next decade, improving by more than a factor of 12 from $2 billion in 2013.
Growth in the market will be primarily driven by the declining costs of LED-based luminaires, with recessed modular lighting leading the improvement, Lux Research said, basing its forecast on the potential pace of LED adoption across office, industrial, street lighting and other core market applications. This segment is predicted to outperform the market of incumbent lighting technologies, which includes fluorescent lamps, and to reach $14.5 billion by 2023 from $1.5 billion last year.
Optics will gain more importance within luminaires as LED lighting cost reduction and energy efficiency credentials improve, Chris Hwan from Lux Research commented. This will bring along opportunities in other fields such as secondary optics and drivers and also contribute to the rate of adoption of newer technologies such as alternating current LEDs and high-color rendering index (CRI) LEDs in recessed modular, high-bay and roadway luminaires, he said. According to Hwan, the secondary optics market will present the strongest growth opportunity in components, hitting $6.9 billion in 2023. The drivers market will also deliver solid growth, coming in at $4.9 billion within ten years.