According to the industry insider, The LED market is a complex but promising market. However, there is still overcapacity. This is causing many changes in the supply chain, first at the chip level, then at the module/system level.
The LED industry’s complexity results from numerous technical issues, its many players and a multitude of lighting applications. Its promise comes thanks to especially large volume lighting opportunities. It is estimated that global business reaching almost $516 million at the system level by 2016.
Today, LED technology’s average penetration rate is from 10% to 20% depending on geographic area. Each country has its own policy and has set up different measures to help LED implementation. For example, penetration has reached 30% in Japan, thanks to government involvement.