Declining Manufacturing Cost of LEDs to Boost the Market Growth

The global LED market size is poised to grow by USD 25.78 billion during 2020-2024, progressing at a CAGR of almost 13% throughout the forecast period, according to the latest report by Technavio.

One of the key factors contributing to the growth of the global LED market is the declining manufacturing cost of LEDs. The manufacturing cost of LEDs has declined since 2012 and will continue to decrease during the forecast period primarily because of the declining ASP of chips and components used in the manufacturing process.

The decrease in the installation costs drives the installation of the LED lamps and fixtures across all application segments. Megacities concentrate on investing in infrastructure development to meet the needs of the growing population. Governments of these countries are planning to install energy-efficient lighting sources to reduce electricity consumption. This will lead to the growth of the LED market.

The global led market is still highly fragmented. Acuity Brands Inc., Bridgelux Inc., Cree Inc., Eaton Corp. plc, GENERAL ELECTRIC, LG INNOTEK, Lumileds Holding BV, NICHIA Corp., OSRAM GmbH, and Signify Holding. are some of the major market participants.