The LED materials market has earned revenue of $5.01 billion in 2013 and is expected to reach $11.71 billion in 2018, says a new analysis of the Global LED Materials Market published by Frost & Sullivan.
According to the report, revenue growth in chemical demands will lead the growth of LED industry.
The analysis was conducted on chip fabrication, packaging, module construction, and fixture assembly, different stages of LED manufacturing value chain where application of chemicals mostly take place. The largest need for chemicals comes in the final stages of manufacturing of LED, for assembling the fixture.
On the other side, demand for LEDs in electronics applications has driven the demand for chemicals. In future, demand from the general lighting sector will dominate, with the mature tendency displayed by the market, the report said.
Moreover, the price of LED is falling down through the value chain. The price pressure is reflected mostly on the packaging stage. As a result, only the chemical companies who offer quality products that enable cost savings for LED manufacturers are surviving in the market.
Unlike previous lighting technology, market investors have to leverage design opportunities offered by LED companies. LED light sources cannot be designed like a conventional bulb and the possibilities for latest designs and material options will invite more investment opportunities, suggested the report.