The U.S. Department of Energy has enacted the appliance/lighting efficiency standards under its Energy Independence and Security Act of 2007 (EISA) to steer the country toward greater energy security and independence. The EISA encourages the adoption of light emitting diodes (LEDs) to reduce energy consumption by around 25%. Such regulations, which aim at curtailing energy consumption, are expected to augment the adoption of high-power LEDs in the forthcoming years. In comparison to conventional lights, these lights work for longer hours at lower maintenance costs.
Moreover, the upcoming sports events, such as the 2022 Winter Olympics, 2023 ICC Cricket World Cup, and 2022 FIFA World Cup, will also help the high-power LED market to grow at a CAGR of 5.3% during the forecast period (2019–2024). According to P&S Intelligence, the market was valued at $12,647.2 million in 2018, and it will generate $17,581.5 million revenue by 2024. Stadiums and other sports venues are deploying LED-based floodlights and other lighting systems, due to their high durability and energy efficiency.
High power LED lights can be used in automotive, general lighting, ultraviolet (UV) LEDs, backlighting, signs and signals, infrared emitter, and camera flash lighting applications. In the preceding years, the maximum quantity of high-power LED lights were used for general lighting applications due to the increasing deployment of downlights, spotlights, area lights, tunnel lights, and industrial lights. In the coming years, a considerable quantity of high-power LED lights will be used in backlighting applications such as portable appliances, gaming, and channel letter lighting.
The wattage segment of the high-power LED market is categorized into >10 W, 5–10 W, 3–4.9 W, and 1–2.9 W. Among these, the 3–4.9 W category generated the highest revenue in 2018, due to the large-scale adoption of 3–4.9 W high-power LED lights in sign and signal, general lighting, and automotive applications. Additionally, the increasing installation of these lights in outdoor and indoor lighting systems in residential, commercial, and industrial structures will fuel the dominance of this category during the forecast period.