GlacialLight
Releases 2015 LED Industry Outlook Report
Predicts
Profits will Move from LED Packages towards LED Drivers and Thermal
Modules
August
27, 2015 - Taipei Taiwan - GlacialLight, the
diversified LED technology provider, announces the availability of its
2015 LED industry outlook report – “LED Lighting Industry and Value
Chain Shift” – an in-depth look at the current state of the $27.5
billion LED lighting industry, and a forecast of upcoming changes based
on market trends. Authored by Shawn Hsieh, Chairman of GlacialTech, the
report makes a number of observations and predictions including: a
shift in profit margins from the core LED package to the thermal module
and LED driver, price competition in the LED package segment, the
growing popularity of CoB LEDs, and the opportunity for smaller
companies to grab market share.
“The LED industry is
currently around $27.5 billion and growing,” said Shawn
Hsieh, Chairman of GlacialTech. “Newer
technologies such as the CoB LED are driving this growth so opportunity
exists for emerging companies with strong business models and
innovative designs. Price competition within the LED package segment
will erode profit margins while LED driver and thermal module
manufacturers will stand to gain.”
Price
Competition Will Increase
The report predicts that price competition within the LED industry will
grow, especially in the LED package segment. Compared to the computer
industry, where high barriers to entry limit processor manufacturing to
a few key players, the LED package segment is more competitive with a
much larger number of providers large and small. GlacialLight predicts
that price-to-performance ratios of the most efficient LED lighting
modules will drop to $0.13USD/W by the end of the year.
The
COB Pacakage Has a Promising Future
With lower costs as well as carbon footprint per unit and product
quality increasing over time, the Chip On Board (CoB) LED is making a
huge impact on the industry. More compact than Metal Core PCB based
LEDs, the CoB LED’s small size makes it easy to integrate into a larger
variety of luminaire shapes and designs. Lighting fixture assembly with
CoB LEDs is simplified – a powerful lighting fixture can be built with
little more than a CoB LED, lens, thermal module, and LED driver,
making it easy for manufacturers to create new luminaires at lower
costs.
Profits
Will Shift to Drivers and Thermal Modules
While LED package innovations move the industry forward, the stiff
price competition in that segment and high capital costs of
manufacturing means profits will be cut thinner over time. On the other
hand, fixed per-unit material and labor costs involved in manufacturing
LED drivers and thermal modules will help these components retain their
value.
For the full report, see “LED Lighting Industry and Value Chain Shift”
on the GlacialLight website.
About
GlacialLight
GlacialLight, the lighting division of GlacialTech, manufactures LED
lighting solutions for indoor/outdoor applications and both residential
and commercial uses. As well as having a wide range of finished LED
lighting products, GlacialLight also offers its clients the option of
customizing products for specific needs. Please visit the company
homepage at www.GlacialLight.com