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Thanks to superior performance and continuous cost reduction, the LED lighting market will grow 12 times in the next decade, that is, the annual recurrence rate will be 25, and the market will increase from the current 2 billion US dollars to 25 billion US dollars by 2023.
The division predicts that embedded modules will become the largest LED lighting market, with the market increasing from 1.5 billion in 2013 to $14.5 billion in 2023.
As the cost of LED packaging is greatly reduced and the light efficiency is improved, the cost structure of LED lamps will be changed, and market opportunities will be brought to other devices such as secondary optics and drivers. According to christopher Hwang of LuxResearch, this trend has also affected the adoption rate of new technologies for embedded modules, high-bay lights and street lights, such as ACLED and high-index LEDs.
LuxResearch analysts expect that efficiency will reduce the cost of LED packaging, due to efficiency gains, yield improvement and high-volume use, LED packaging costs will drop by 80, down to $ 4 / thousand lumens. As a result, by 2023, the material cost of a standard 3,500 lm embedded module luminaire will drop by 35, from $85 in 2013 to $55.
ACLED luminaires will become cost competitive products in 2018, but their advantages are still only in low-power applications, such as embedded module luminaires. On the contrary, the high-definition lamps will still be special products, and the cost will still be high by 2023.
Optical products have huge market opportunities. The secondary optical market will reach $6.9 billion in 2023 and the drive market will be $4.9 billion.