Wellingborough, UK LED lighting driver ICs will account for 55 percent of the $3.5 billion LED driver IC market in 2016, up from 16 percent of the $1 billion market in 2010, according to IMS Research. The largest lighting segment in 2010 was street/parking lighting, followed by residential lighting.
However, IMS analysts say indoor lighting, including office and commercial, will lead growth in the lighting segment. Lower costs, higher efficiencies, government subsidies and a LED oversupply is expected to result in significant price reductions, which will drive up demand, said IMS Research.
IMS projects that LED retrofit bulbs will account for the majority of all LED driver ICs in lighting. The strongest suppliers in lighting last year include NXP, Power Integrations, STMicroelectronics, ON Semiconductor, Diodes, and Texas Instruments.
“Most LED driver ICs suppliers now agree that this lighting market will be huge and new products are continually coming to market,” said Mitess Nandha, LED driver ICs analyst at IMS Research, in a statement. “In the coming years, this shift to LED lighting could cause a continued shake up of the leading suppliers.”
Still, backlighting will remain a significant portion of the market, said Nandha. IMS expects continued strong growth for LED backlit TVs, monitors and notebooks until 2013.