Analysis of the Global LED Materials Market

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Light emitting diodes (LEDs) are rapidly taking the place of older, less durable and energy-efficient lighting technologies around the world. As chemicals and materials are needed at all stages of the LED fixture’s manufacturing process, chemical companies will play a critical role in the future success of the LED industry. The breadth of material requirements means that few market participants have visibility across the entire market, creating the need for a holistic vision of market potential.

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Analysis of the Global LED Materials Market

  1. 1. Frost & Sullivan: Raw Materials in LED Production Provide Robust Opportunities for Chemical Companies Research PREVIEW for the Analysis of the Global LED Materials Market (NCFD-39)
  2. 2. Key Highlights • Of the four primary value chain tiers associated with light-emitting diode (LED) lighting, the most additional value is created in the final stage, assembling the fixture. • The packaging tier has some of the greatest requirements for innovative solutions from chemical companies. However, this tier is under the greatest amount of price pressure. • The creation of a finished LED fixture requires a wide range of chemicals and materials, typically including the following: • Eight chemical types designed for this specific purpose. • Two to three types of general chemical for which there has not yet been any development of LED-specific grades. • Frost & Sullivan forecasts that between 2013 and 2018 the market for LED materials will experience revenue growth at a CAGR of 18.5%. • The leading suppliers of materials to the LED industry include Dow, Intematix, DuPont, and Sabic. Source: Frost & Sullivan analysis.
  3. 3. Executive Summary — CEO’s Perspective Source: Frost & Sullivan analysis. 2 Revenue growth in chemicals demand is forecast to be ahead of growth in the LED industry itself. 3 The biggest market segment is fixture assembly chemicals, though many of these represent like- for-like replacements of materials used in traditional lighting. 4 While some market segments, especially phosphors, have large barriers to entry, others offer opportunities for new market entrants. 5 Lighting OEMs are increasingly looking to produce their own chemicals in-house, increasing market competitiveness. 1 All major chemical companies have a role to play in supplying raw materials to the LED industry.
  4. 4. Chemicals Demand Along the LED Value Chain Source: Frost & Sullivan analysis. Total LED Materials Market: Value Chain Analysis, Global, 2013 Note: *Chemical Vapour Deposition (CVD) Key Takeaway: Chemicals represent the highest percentage of added value at the packaging stage, but fixture assembly provides the largest revenue opportunities for chemical companies. Total value addition in LED fabrication Chemicals & materials market within that tier of the production process Value addition in US Dollar Chip Package Module Fixture CVD* precursors Phosphors Thermal interface materials Plastics for secondary optics Example chemicals: LEDs represent a total market, after assembly of the fixture, of $51.8 billion in 2013. This represents the sum total of value added through all tiers of the value chain.
  5. 5. The Full Analysis Features the Following Content Section Slide Numbers Executive Summary 4 Market Overview 9 Mega Trends and Industry Convergence Implications 19 Total LED Materials Market - • Forecasts and Trends 24 • Market Share and Competitive Analysis 37 Chip Fabrication Chemicals Breakdown 44 Packaging Chemicals Breakdown 59 Module Construction Chemicals Breakdown 79 Fixture Assembly Chemicals Breakdown 91 The Last Word (Conclusions and Implications) 108 Appendix 111
  6. 6. Key Questions the Full Analysis Answers Source: Frost & Sullivan analysis. How do revenues in the LED value chain translate into added value per tier? How much of this added value is provided by products from the chemicals industry? Will the industry rely on existing chemicals used in other related markets, or will there be significant development of products specifically for LED applications? How are chemical companies reacting to the development of this high-growth application market? Will falling prices of LEDs create challenges for suppliers of raw materials? Are there areas of the market that are very competitive and others that are ripe for attention? How rapidly is the LED market itself growing, and how will this translate into growth opportunities for suppliers of chemicals as raw materials?
  7. 7. Associated Multimedia Analyst Blogs GIL Community Blog bit.ly/1sFn2gm Analyst Briefings Chemicals, Materials & Foods bit.ly/1pBH6e4 SlideShare Presentation What’s Hot in Chemicals, Materials & Foods slidesha.re/1v6jyiN Market Research Chemicals, Materials & Foods bit.ly/1qavceK GIL Community Growth, Innovation & Leadership bit.ly/TjGOxv
  8. 8. Interested in Full Access? Connect With Us Ariel Brown Associate Corporate Communications (210) 247-2481 ariel.brown@frost.com Research Authors Dr. Brian Balmer Industry Principal Chemicals, Materials & Foods bit.ly/1lpW4V6 Leo Dokos Research Director Chemicals, Materials & Foods bit.ly/1v6ry3B Facebook https://www.facebook.com/FrostandSullivan LinkedIn Group https://www.linkedin.com/company/frost-&-sullivan SlideShare http://www.slideshare.net/FrostandSullivan Twitter https://twitter.com/Frost_Sullivan Frost & Sullivan Events http://bit.ly/1lpWmeE GIL Community http://visionary-it.gilcommunity.com/
  9. 9. Global Perspective 40+ Offices Monitoring for Opportunities and Challenges
  10. 10. Industry Convergence Comprehensive Industry Coverage Sparks Innovation Opportunities Automotive & Transportation Aerospace & Defense Measurement & Instrumentation Information & Communication Technologies HealthcareEnvironment & Building Technologies Energy & Power Systems Chemicals, Materials & Food Electronics & Security Industrial Automation & Process Control Automotive Transportation & Logistics Consumer Technologies Minerals & Mining

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