Silicon Nitride Market Share Analysis
The escalating demand for energy-efficient lighting systems has significantly impacted the global LED materials market, which was valued at approximately USD 83.44 billion in 2017 and is projected to exhibit substantial growth in the foreseeable future. This surge in demand is predominantly attributed to the increasing preference for energy-saving illumination solutions. LED lights present numerous advantages, including reduced carbon footprint, enhanced durability, and robustness. Their operation at low voltages without emitting UV radiation, thanks to their mercury-free composition, contributes to their environmental friendliness. The pressing concerns about escalating environmental issues, particularly the surge in greenhouse gas emissions, are significant catalysts propelling the expansion of this market.
The upsurge in demand for LED materials stems from various industries, primarily the construction sector, witnessing a notable rise in both residential and commercial construction activities. The pivotal role of LED lighting in the burgeoning concept of green buildings across developed and developing nations amplifies market growth. The increasing emphasis on energy conservation and reduction in fossil fuel consumption aligns with the adoption of LED lighting solutions. For instance, the introduction of the IGBC green building rating system by the Indian Green Building Council incentivizes designers to integrate energy-efficient practices, thereby minimizing environmental impact.
In the United States, LED material consumption has surged due to the prevalent adoption of energy-efficient lighting systems in buildings, aiming to attain LEED certification. According to estimates by the U.S. Department of Energy, the utilization of LED lights has the potential to save a substantial amount of electricity, estimated at approximately 348 TWh, resulting in savings of around USD 30 billion, considering prevailing electricity prices.
Government initiatives in various nations, both developed and developing, are driving the manufacturing of LED lights through sustainable means on a broader scale. Notably, schemes like India's Unnat Jeevan by Affordable LEDs and Appliances for All (UJALA) program, the world's largest subsidy-free LED bulb program initiated in 2015, have stimulated investments in LED bulb manufacturing. Furthermore, governmental certifications, including Energy Star, LEED, DesignLights Consortium, and lighting design certificates, are fostering market growth by incentivizing the adoption of energy-efficient practices among designers and manufacturers.
Another significant driver for the LED materials market is the expanding automotive industry. LED lighting has found extensive application in various automotive components like headlamps, rear lighting, interior lighting, small lamps, and fog lamps due to their energy efficiency, durability, superior color quality, and flexible lighting design. The escalating automotive production rates in countries like Japan, China, and India, propelled by increased spending on automobiles, are fueling the demand for LED lighting materials.
For instance, China's automotive production surged by 31% over the past five years, from 220 million units in 2013 to 290 million units in 2017. This sector witnessed a 4.5% growth in 2016 compared to the previous year, indicating a global automotive market anticipated to grow at a Compound Annual Growth Rate (CAGR) of nearly 5% during the forecast period. Moreover, stringent environmental regulations in developed nations aiming to curtail carbon emissions will likely drive the LED lighting market due to their contribution to reduced energy consumption and mitigating toxic emissions.
