Yole Developpement Research analysts estimate that the global open LED lighting module market, which includes flexible LED strips, will reach US$ 3 billion in 2015 and will grow to more than US$ 10 billion by 2020
The LED modules market in India is currently at its budding stage. However, it is likely to increase its footprint in relation to the non-LED segment of this market with significant momentum in the next few years. This is due to the growing gap in the energy demand-supply scenario, favourable government policies, growing awareness about clean energy and the local manufacture of LED products in the country.
In this regard, the government recently decided to end the subsidy on CFL-based solar lighting systems in a bid to promote the use of LEDs.
According to a report by US-based consulting firm, Frost & Sullivan (F&S), the Indian LED market is expected to grow by over US$ 1 billion in the next four years. The market is likely to witness a growth rate of more than 40 per cent by next year. F&S has also predicted that the LED lighting market in India will move towards high quality, adaptable lighting with more efficient output.
Barriers
Meanwhile, there are major barriers which LED manufacturers and suppliers are currently facing in the country.
- There is very limited availability of LED technology in India
- The high initial cost of LEDs makes the pay-back period very long
- In India, there are no national standards for LEDs; as a result, the industry is prone to import and supply sub-standard products to the market
- At present, Indian consumer awareness about LEDs is very low
- There is a lack of testing protocols, facilities and accredited laboratories at the national level
- There is less incentive to set up manufacturing facilities in India as compared to China and other developing countries
Chinese manufacturers
In the absence of major LED product manufacturers in India, Chinese firms like MassBlue Lighting Company Limited, which specialises in LED lighting products, are aiming to cash in on the huge opportunities in the Indian LED market.
MassBlue’s sales director Jerry Yang sees India as a growing market due to the huge demand, and adds that demand for LED modules has been growing rapidly for the last few years, especially in developing countries.
However, Yang admits that there are many challenges in the form of competition, quality, entry standards and less awareness about LEDs in the LED module market.
“Lighting, the screen and electronics sector are major consumers of LED modules,” says Yang.
Many of the largest names in the LED industry now offer modular light engines, alongside specialty vendors that have nurtured the segment. In many cases, simplicity of system design drives solid state lighting (SSL) manufacturers to utilise modules. But the module makers believe that the technology can also deliver superior performance, especially in areas such as colour consistency.
Modules are available for products ranging from streetlights and ceiling troffers to track heads and more. They require tools and fasteners to attach them into a fixture or, in some cases, can be snapped or twisted into place.
Classification of LED modules
Standard classification methods of LED modules. These can be categorised into single colour, RGB and full colour single point control variants. Single colour means a single lighting colour module, usually red, green, yellow, white and so on.
RGB LED modules are made up of seven different colours. They can be divided into low power (below 0.3W), medium power (0.3W – 0.5W) and high power (1W and above). High power modules have higher brightness than low power ones, as well as a longer lifespan.
They can be then classified as leak-proof, which can be further divided into waterproof and non-waterproof items. Usually, waterproof modules are higher priced and used in outdoor lighting. The non-waterproof variants are mainly used indoors.
Industry needs
Standard LED lighting modules are the main answer to the SSL (solid state lighting) industry’s needs. Such modules are the basic ‘plug and play’ components of the lighting system, allowing new luminaires to be easily and rapidly introduced to the market. These modules significantly contribute to system performance, quality and safety.
The LED lighting modules that are currently available include mid-power and high-power modules. Mid-power LED modules offer low power consumption and high flux, whereas high-power LED modules deliver more flux and offer a larger light emitting surface (LES). Chip-on-board (COB) LED modules provide a compromise between the size of the light beam, LES, flux power and power consumption. However, they need additional components to give the light effect desired, such as clamp holders and reflectors. The choice of LED module technology will depend on an application’s system requirements with regard to power consumption, LES and light flux.
Market trends
According to a report by Yole Developpement Research, a French multinational consulting and analyst firm working in the domain of emerging technologies, titled ‘LED Lighting Module Technology, Industry & Market trends’ (2015 edition), the value is today mainly located at the module level.
Yole’s analysts estimate that the global open LED lighting module market, including flexible LED strips, will reach US$ 3 billion in 2015 and will grow to more than US$ 10 billion by 2020. Yole’s market metrics take into account mid- and high-power modules, as well as COB and flexible strips sold on the open market.
Most LED lighting module suppliers are packaged LED manufacturers that have used vertical integration to capture more value within the supply chain. These players have a strong competitive advantage in terms of mastering the LED binning strategy.
However, some other types of players are also involved in this business, including driver and connector manufacturers. They mainly want to diversify their activities, and define new strategies to support the development of their primary business.
By Belal Khan
