Forecast and Trends in LED Technologies Market

Chief editor - Vladimir Krylov, PhD
Deputy chief editor - Michael Nikulichev, PhD

Samsung 55” Transparent OLED display Samsung 55” Transparent OLED display

LED screens came first in the battle with neon signs. LED screens are winning the fight against static billboards. LED and LCD screens become leaders in the in-window advertising throughout the world. Energy-saving LED lamps are getting cheaper and push the incandescent and luminescent lamps from the shops. The advance of digital advertising continues.

For several years our Magazine has been covering the trends in the market of LED and LCD displays. The forecasts of reputable international consulting companies show that LED and LED-related applications will have established the leading position in the world markets by 2020. Several factors of efficiency prove this statement: the LED-based products are getting cheaper from year to year; the coefficient price-quality is improving; the dynamic luminous efficiency is growing while the power consumption is falling (which becomes a key factor in conditions of the ever-growing prices on energy-resources).

The research analytical and consulting firm GBI Research evaluated the volume of LED requirements for digital signs and displays in the advertising industry in 2015 at the level of 2.63 billion USD. Compared to the previous three years the numbers demonstrates consistent 12-14% growth annually. Future forecasts show that by 2017 the consumption of LEDs for advertising purposes will reach 3.5 billion USD level.

Managing director of Philips Taiwan Ltd. Mr. Edward Poe estimates that by 2020 LEDs will account for 75% of the lightning industry and 100% of the digital advertising (since even LCD displays are currently using LED backlight). Asian countries and North America are displaying especially high rates of growth in the number of digital advertising carriers.

At the same time the market of LED screens is galloping forward at neck-breaking speed. The experts are talking about LED screen market at the level of 7.4 billion USD by 2017. This is a direct result of the growing demand for LED displays and digital signage that are developing new applications and functions every year.

Such a high demand is the main factor behind development of new LED technologies. The annual 13th Exhibition of computer systems, TV and audio systems and informational technologies Integrated System Europe (ISE 2016 – Amsterdam) attended by the leading manufacturers and developers of LED screens, is overflowing with innovative products some of which may quickly move from the development stage into mass production.

Leyard-Planar 8K LED screen 7680x4320 resolution Siliconcore LED screen with 0.95 mm pixel pitch
Leyard-Planar 8K LED screen 7680x4320 resolution Siliconcore LED screen with 0.95 mm pixel pitch

The consulting company Digitimes Research predicts that not only the prices for LEDs and LED-based products will continue to fall but their technical characteristics will improve, so that they become even more attractive for lighting and screen industries.

For example, the luminous capacity of LED-based lighting equipment in 2020 will reach 243 lm/W. The current value of LED lamps sold in the Russian market never exceeds 50-80 lm/W. Analysts of Digitimes Research believe that the prices on LED-based products will annually become cheaper by 20-30%.

The use of LED lamps in house lighting systems is growing, too. In 2014 specialists from McKinsey & Company estimated that the portion of LED lighting was at the level of 7% from the total market of lighting systems. But this year this index is supposed to reach 50% already. While the forecast for 2020 is 70%.

The numbers for the lighting systems in office buildings is somewhat lower due to the popularity of luminescent lamps. The luminescent lamps are also getting better in quality and are characterized by high luminous capacity. However such important factors as power consumption, service life and flickering effect speak in favor of LED lighting.

Modern electronics technologies are not lagging behind. New attractive high-tech gadgets with dozens of useful and not so useful functions are coming into our daily routine lives. Just a few years ago most of us bought standard LCD TV.

Soon enough these were replaced by sensor displays: in smartphones, in tablets, in informational kiosks. Then the manufacturers of electronics started paying more attention to one specific characteristic – transparency. As industry specialists write, in the near future transparent screens will become a mass product that will be used everywhere.

Today the leading companies started producing transparent screens (displays) and some commercial users are lured to start using them. The factor of transparency in LCD screens is only 10%, but the displays promoted at ISE-2016, for example, 55” OLED display reaches the transparency level of 45%. Such displays have all the characteristics of standard display: brightness, contrast, high quality of displayed images, wide viewing angle.

But transparent displays lack the backlight. They are based on the principle of white inversion into the transparent part of the display. As a result, the real objects may become part of the virtual content. It means that you may see through the screen. First samples of transparent screens were small in size but currently large-format screens are becoming available and will soon appear as part of numerous informational and advertising systems.

Some noticeable trends and innovations of 2016 include new context strategies in advertising, the use of LED digital signage as part of corporate communication systems, integration of online and offline sales channels.

An important trend is the use of in-window advertising that is helpful in promoting brands and increasing sales traffic. Apart from the standard LCD and LED screens the new technology of glass screens is gaining recognition. In fact these are virtual fitting rooms, a combination of the looking glass and smart screen that are capable of transforming our image at will.

To sum up, LED technologies are winning over more and more of the market place. Our Magazine is carefully monitoring the current trends and will continue to offer forecasts and overviews of other innovations in the area.