According to a research report, the total packaged LED market in 2014 rose 7.6% to reach revenues of US$15.6 billion. Lighting accounted for 34% of total revenues, which was almost the same as display backlighting and mobile applications combined at 35%. The lighting share is expected to reach 45% of total revenues by 2019 with the largest growth of any sector at a 5-year CAGR of 14.3%.
The lighting applications that will see the largest growth are replacement lamps, commercial luminaries, and outdoor luminaires. Within lighting applications, the general lighting categories account for around 75% of the total lighting revenues. The replacement lamps market and luminaire market are very large, and as LED adoption grows, packaged LED revenues in these segments will also grow.
Prices for packaged LEDs in lighting saw some steep declines from 2013~2014. Most suppliers were seeing price declines of around 20%, while some were reporting declines as steep as 25~30%, especially so for COBs. However, despite these price declines, the continued adoption of LED lighting in homes and commercial applications has allowed for the largest growth of any sector.