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Consumer Demand for LED Backlight Falters as Demand for LED Lighting Rises
LIGHTimes News Staff
While demand for LED chips for backlight applications in display screens is expected to decline, both LED lighting sales and total shipments of LED chips are increasing. According to NPD DisplaySearch, worldwide LED lighting chip sales are expected to rise from $1.1 billion in 2013 to $3.4 billion in 2017. The company forecasts that overall LED chip demand (measured in standard units of 500 × 500 micron chip size) is expected to grow from 17 billion in 2012 to 61 billion in 2014. However, NPD Display Search predicts the market for LED backlight chips for TVs and other display applications will begin declining after 2014.
The company says a combination of slower growth in LED-backlit LCD TV sales and efficiency increases have resulted in a reduction in the number of chips used per backlight and the demand. LED backlight chip sales reached $2.0 billion in 2013, but are NPD DisplaySearch expects them to decrease to $1.4 billion in 2017. However, the company points out that consumer demand for LED lighting has increased since 2012, and the company expects it to continue growing through 2017. "LED market observers have been expecting huge growth in the LED lighting market for a long time, and it's finally here," said Steven Sher, LED backlight and lighting analyst for NPD DisplaySearch. "Significant growth in consumer lighting is helping to keep the LED market on an upward trajectory, even with ongoing declines in backlight demand."