Press Releases

LED Lighting to Drive $10bn Power Supply Market in 2016
Date: 02 February 2012

The global market for power supplies used in LED lighting is forecast to reach $10 billion in 2016, according to a new report from IMS Research, a leading independent provider of market research and consultancy to the global electronics industry.

IMS Research’s recent report “Opportunities for Power Components in LED Lighting”, revealed that rapid uptake of LED lighting, driven by legislation and rising costs of electricity, will result in a potential market of 4 billion power supply units by 2016, worth an astounding $10 billion. Report co-author and senior market analyst, Ryan Sanderson, commented “Demand for LED lighting solutions is increasing rapidly for all applications from low-power residential retrofit LED lamps and bulbs to high-power commercial and industrial LED luminaires for applications such as street lighting.”

The report also found that the traditional lamp and luminaire market is well established. Manufacturers are faced with new challenges when it comes to powering LED lamps and luminaires and often require significant power electronics expertise, opening up opportunities for power supply manufacturers. The requirements to power new LED lighting products varies widely, depending on design factors including power rating, the number of LEDs or LED strings and the environment in which the solution will be placed. Sanderson added, ”These design requirements, coupled with the lack of clear standards for LED lighting means that LED lamp and luminaire manufacturers need considerable power electronics expertise, either via employing specialists or from a merchant power supply manufacturer.”

The market report found that LED lighting would become a unique opportunity, despite the fact that general lighting has always been a relatively small and low-growth market for the power supply industry. Competition in lighting, however, is already fierce and some of the largest manufacturers of LED lamps and luminaires are positioning themselves to cope with these challenges internally. Report co-author and market analyst, Jonathon Eykyn, commented “Some of the largest manufacturers of LED lamps and luminaires already have the capability to design and manufacture power circuitry in-house, either via subsidiaries or through the acquisition of power supply manufacturers. Philips Advance is a prime example”. This means that a portion of the total power supply opportunity is absorbed by these vertically integrated companies and becomes “captive”. Eykyn added, “Designing and manufacturing the power solution in-house, however, only really makes sense in high-volume, low-cost markets and where the design is simple; for example, LED retrofit lamps. In medium and high-power applications, design becomes more complex and it often makes more financial sense to outsource the power supply design to a merchant vendor.” As a result, the report from IMS Research forecasts that more than 50% of the market in 2016 will be controlled merchant power supply manufacturers.

“Opportunities for Power Components in LED Lighting”, was compiled following more than 40 hours of interviews with leading suppliers to the industry and is available immediately from IMS Research. 

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IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs more than 6,000 people in 31 countries around the world.

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