Global LED industry divided

Energy-efficient LEDs penetrate all corners of daily life in industrialised countries. From traffic lights to mobile phones, the versatile light emitting diode is an increasingly commoditised product even as it develops high-end specialist uses.

According to a study from ABI Research, by 2010 the global LED market may consist of two segments: a highly commoditised market in simple, inexpensive LEDs for mass-produced goods, and another sector dealing in high-end, high-tech innovations.

According to ABI Research vice president Edward Rerisi, the lower 'general lighting' end of the market is already characterised by price-cutting, low margins, and intellectual property disputes that are disruptive to supply chains. "Meanwhile higher-tier, higher-technology companies that can protect their intellectual property and guarantee delivery will capitalise on that strength to search for new applications that will let them escape the intense competition."

Because of the technology's energy-saving nature, governments are adding to the mix with significant support for the LED industry, both in contracts and in funding new research.