LED Lighting Market Consolidation Will Continue, According to Navigant Research Business Wire BOULDER, Colo. -- April 22, 2013 The lighting industry is in the early stages of shifting away from established technologies – fluorescent, incandescent, and high-intensity discharge (HID) lighting – toward light-emitting diodes (LEDs). Adoption rates of LED lighting are expected to grow in the coming years as the efficacy and quality of LEDs surpass those of competing technologies and as prices fall to enable reasonable payback periods. According to a new research brief from Navigant Research, however, the total number of vendors involved in the LED supply chain will shrink over the remainder of this decade. “Driven by a desire for vertical integration among the larger lighting companies – fueled, in turn, by the relentless demand for lower prices and higher quality – consolidation in this sector is likely to continue,” says Jesse Foote, research analyst with Navigant Research. “Other factors, including the expiration of existing patents, new interchangeability standards, new technologies, and an expected upsurge in creative product designs, will create opportunities for new entrants at each level of the supply chain.” The first step in the manufacture of LEDs is an ultra-thin substrate onto which a layer of gallium nitride (GaN) is deposited. This is a highly technical and exacting process. While LED manufacturers in China have attempted to master this process, they have had only limited success with the high-quality wafers needed for the high lumen output LEDs used for lighting, according to the report. The market is led by U.S., German, Japanese, and Taiwanese companies such as Cree, OSRAM, Nichia, and Epistar. The report, “LED Supply Chain Dynamics”, examines the specific trends that affect the manufacture of the primary components of an LED light, as well as the broad trends reshaping the industry. Regional influences and applicable international standards are detailed, and an industry map shows how some of the larger vendors fit within the supply chain. Recommendations for how industry players can best take advantage of the global opportunity presented by the shift toward LED lighting are also included in the report. An Executive Summary of the report is available for free download on the Navigant Research website. About Navigant Research Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Navigant Research can be found at www.navigantresearch.com. About Navigant Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com. * The information contained in this press release concerning the report, “LED Supply Chain Dynamics,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report. Contact: Navigant Research Richard Martin, +1-303-493-5483 email@example.com or Laverne Murach, +1-202-481-7336 firstname.lastname@example.org
LED Lighting Market Consolidation Will Continue, According to Navigant Research
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