LED Lighting Market Consolidation Will Continue, According to Navigant Research

  LED Lighting Market Consolidation Will Continue, According to Navigant

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

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

* 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.


Navigant Research
Richard Martin, +1-303-493-5483
Laverne Murach, +1-202-481-7336
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