LED Companies Diversify with Moves into the Module Market

According to the latest research from IHS, Inc., leading suppliers of LED components are increasingly diversifying, in order to produce LED modules and light engines. Many companies, known only as packaged LED providers in the past, have expanded their product offerings, and are now also supplying LED modules. The competition in this market is particularly diverse, not only because suppliers are located all over the world, but also because of competition from companies with backgrounds in power devices and other backgrounds.

These suppliers are moving into the module market, in order to diversify their portfolio and protect against component LED profit margins potentially lowering further, as the packaged LED market becomes increasingly commoditized. With Chinese companies beginning to gain share, companies in the West and Korea (among others) are moving up the supply chain to minimize the effects of this competition. With modules and light engines becoming more common, there is a growing trend for lighting companies to purchase LED modules, rather than component-packaged LEDs, in order to shorten and simplify the supply chain; however, in-house production by lighting companies is still common and will remain so.

The combined market for LED modules and light engines in lighting applications is projected to reach $1.3 billion in 2014, according to the latest IHS Next Generation Lighting report. In addition to providing insight into modules and light engines, the report also features analysis of the emerging markets for LiFi, indoor positioning and OLED.

One Response to LED Companies Diversify with Moves into the Module Market

  1. Pingback: LED Companies Diversify with Moves into the Module Market | LED New Source