The Main Challenge of LED Industry

In last article, we talk about that there’s a consensus that most of those barriers. They should be removed in the next 2-3 years. Impressive energy efficiency progress are announced on a regular basis by LED manufacturers and reliability is improving as engineers become aware of the challenges posed by the design of a flawlessly integrated LED luminaire (GE recently identified more than 100 possible failure mode in LED light engines).

Multiple standardization organization are working on defining and implementing testing and performance standards and communicating them to the public. Solid state lighting is progressing niche by niche.  More municipalities are testing LED streetlight and some have already committed to massive retrofits (200,000 street lights in Los Angeles). Adoption in commercial and retails lighting, while still low in volume is progressing fast (announcements from Wall Mart, Starbucks…). While we all have our eyes focused on residential applications, it’s important to realize that homes are the smallest segments (in term of lumens) compared to industrial, commercial and municipal lighting. However, for most, it remains the ultimate frontier.

But even this application now seems within reach and LED replacement bulbs might come to your home faster that you expected. Don’t rush yet though, as low quality products are still flooding the market and might create a negative initial perception of the technology, a risk that the industry is aware off and trying to control by working on performance standard (make sure you get products meeting or exceeding the Energy star criteria for solid state lighting). In Japan, the largest electronic manufacturers are making a strong push with quality products. Toshiba Lighting and Technology introduced a 60W equivalent replacement LED bulb for JPY9,000 in late 2008. The same product now goes for less than JPY4,000. Sharp launched similar offers and the price is now expected to reach  JPY2,000 in 2010. At this pace, most now expect the cost of LED replacement bulbs to reach the $10 for 1000 lumen target commonly accepted as the “magic” number that will trigger massive adoption by 2012.

In the US, Philips released the first LED bulb to participate to LPrize contest organized by the US Department Of Energy to reward the first 60W replacement LED bulb to meet aggressive performance targets.  A lot of credible light bulb replacements could be seen at the recent Strategies In Light conference exhibition floor and CREE is planning to release a retail version of its award winning LR6. The price point at which it will be released will send a strong signal to the industry.

Accelerated Growth of LED Industry

The LED industry has entered a period of accelerated growth driven by faster and broader adoption of the technology for large LCD TV.

After riding the cell phone keypads and LCD screen backlight wave during the previous decade, the industry is on for a spectacular growth thanks to large LCD backlight applications. While similar in essence to the smaller LCD screens, the larger displays found in laptops and large flat panel TVs were until recently more difficult to illuminate with LEDs because of their large surface. One must give credit to Sony and Lumileds, now a subsidiary of Philips, for pioneering the field in 2005. However, while delivering outstanding performances, the price of those LED backlit TVs were out of reach (>$10,000) for most consumers. A strong push by Apple, Dell and other brands allowed LEDs to start being adopted in laptops in 2007. In 2010, the adoption of LED for the segment should exceed 80%. But until 6-8 months ago, the industry consensus was that broad adoption of LEDs for large displays (20” and above) was still at least a couple years away. Samsung shook the industry in the second half of 2009 by bringing into the market a flurry of breakthrough products at affordable prices. Thanks to various engineering breakthrough and a strong marketing push (LED TVs anyone??), the unexpected success of the product put large LCD TV 2 years ahead of the initial roadmap and rescued the LED industry from what was going to be its first year ever of negative growth in 2009 (2001 was a flat year).

Since then, All TV manufacturers have jumped into the bandwagons, and LG, Sony, Sharp, Vizio, Toshiba all lined up an impressive series of new LED backlit LCD TV for 2010 with aggressive pricing. The cost of LED backlit TV remains marginally higher than “old fashion” cold cathode fluorescence lamp (CCFL) TV. However the price gap is shrinking and the consumers are falling for those ultra-slim TV with high contrast ratio and in some cases, improved color gamut and reduced motion blur. However, because of the engineering tradeoffs necessary to keep cost under controls however, not all the potential benefits of LED backlit TVs are offered on every set.  But, as technology improves, LED cost decrease and economy of scale become significant, the adoption rate of LEDs in LCD TV is expected to jump from 2-3% in 2009 to more than 20% in 2010 with the most optimistic forecasting 39 millions LED TV sets for the year. The adoption rate should further increase to 70% by 2013 and volumes exceed 150 millions. The exact impact on the LED industry is difficult to quantify though: because of the mix of panel size and the variety of design options (edge lit vs. backlit, white LEDs vs. RGB), estimating the exact number of LED chip per TV set is challenging (it varies from 250 to more than 1,000 on certain models). The one sure thing however, is that LCD TV will carry the LED industry through what analysts call it second growth cycle, possibly slightly restrained by tensions on the Sapphire substrate market and the ability of equipment manufacturers to deliver the record amount of MOCVD reactors to be shipped in 2010 and of the chip manufacturer to install and qualify them on time (it takes3 months to start production on a new reactors and in some cases another 4-6 months is needed get the chips from the new reactor validated by the final customer).

So what about the next big thing for LED: General Illumination? The main barriers to a broad and immediate adoption are still here. Those are essentially:
- Energy efficiency.
- Reliability.
- Color consistency and stability.
- Lack of standardization.
- Confusing supply chain.
- Upfront cost.

PITTSBURGH Considers LED Streetlights

It was said from a new study that Pittsburgh needs to replace 40,000 streetlights, and officials have the option of installing LED lights.

According to officials, this would be a big expense now, but could mean big savings later.

The city has already begun to test LED lights by installing 150 in Shadyside and South Side.

Researchers at the University of Pittsburgh concluded that the city could save millions of dollars by switching to LED lights.

The lights may be a bit more expensive, but they last longer and they’re much more energy efficient than the current lights.

Researchers studied several different options but concluded that LED offered the best bang for the buck. “An average streetlight would last about two years before you have to replace it; an LED light would last 15 years,” said Councilman Bill Peduto. “The energy costs associated with it are about 70 percent less than the regular streetlights. Put those together and you will see savings of nearly $2 million annually.”

Peduto said his goal is for Pittsburgh to become a leader in LED lighting. He hopes the city will begin installing more LED lights by the end of this year.

Fantastic Motion Sensing LED Light

There are times when it’d make life a lot easier if lights would just come on.  Be it because you usually have your hands full in that area or any other reason, it’d just be nice.  Now this little motion sensor won’t turn on all the lights in the room, but it will turn on a small light to help you find your way.  Plus it could be used as a security device, so you’ll know if someone is moving around where they shouldn’t.

This simple little light could even be used in other areas besides in your home.  It could also be grabbed for when you go camping if you need some small lights to keep you from tripping over anything.  On the light itself you can adjust the sensitivity of the motion sensor.  You can also just shut off the light entirely.  It runs on 4 AAA batteries which aren’t actually included.

LED Makers Promise to Shake up Global Market

LEDs, once confined to the tiny red indicator lights on TV remote controls, have now grown to illuminate TV screens themselves and promise to shake up the global lighting market.

LED (light emitting diode) backlit TVs were heavily featured at the Consumer Electronics Show in Las Vegas this month, as manufacturers announced products intended to emulate the success seen by Samsung in 2009.

Samsung, which has 80 per cent of the US market for LED TVs, aims to quadruple global sales in 2010 to more than 10m.

But manufacturers such as LG, another Korean player, say Samsung will not have things all its own way as LED-backlit TVs become available at entry-level as well as premium prices. LG will offer cheaper edge-lit LED technology, which requires fewer arrays of diodes, on its entry-level TVs and full LED backlights on premium models.

LEDs have graduated from use in mobile phone screens to backlights for notebooks, PCs and now TVs and monitors.

They offer better brightness and contrast, energy savings and slimmer screens than those using the established cold cathode fluorescent lamps (CCFLs) now used for backlighting.

LED technology was first introduced in 1962, beginning with a low-intensity red light. Semiconductor-based diodes or valves produce light from the excitation of electrons as they are moved over a “light” bridge by a direct electrical current. LEDs differ from traditional incandescent light bulbs, which produce their light from heat generation.

Over the years, white LEDs have been developed by combining chips that produce different colours into a single package, or by adding a yellow phosphor layer. Improvements in light intensity and cost reductions are now resulting in wider adoption of LEDs.

Pete Moran of the DCM venture capital firm says LEDs have advantages such as longer life and greater efficiency compared with both incandescents and the energy-saving compact fluorescents with which consumers are currently replacing them.

As well as the green argument, there are manpower savings from LED’s longevity. Cities such as San Francisco, San Jose, New York and Minneapolis are testing LED street lamps that will not need regular bulb replacement by lighting crews. In retail, Walmart and Starbucks are replacing lighting in their US stores with LED bulbs to cut energy consumption.

But as big semiconductor makers such as Samsung and Micron begin to take an interest in the LED industry, it could eventually take on the same characteristics as the DRAM, or flash memory, industries, according to analyst Daniel Amir.

The LED industry will then become cyclical, with a period of oversupply as early as the second half of 2011, according to Lazard, although demand should still be growing at rates of 20 to 30 per cent a year.

Copyright The Financial Times Limited 2010. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web.

Rockler Recalled LED light kits

Legal news for product liability attorneys. A voluntary recall of LED light kits was announced after discovery of defective wiring.

CPSC alerts product liability lawyers- Rockler Companies Inc. announced voluntary recall of LED light kits.

Washington, D.C.—Rockler Companies, Inc., of Medina, Minnesota and the U.S. Consumer Product Safety Commission (CPSC) have announced a voluntary recalled of LED light kits. Nearly 2,200 LED light kits were recalled on January 12, 2010, as reported by the CPSC.

The CPSC has urged consumers to stop using the recalled LED light kits immediately unless otherwise instructed after the discovery of defective wiring in the light kits. The defective wiring can cause the battery pack to overheat and explode, which poses a risk of burn and fire. At this time no injuries and/or instances have been reported. This recalled product is described as Rockler LED lights with either an interchangeable spotlight head, or a magnifying head. The recalled product models have stock numbers 26429 (spotlight or 27017 (magnifying). The stock numbers are printed on the products packaging. The LED light kits were sold at Rockler Woodworking and Hardware and other specialty stores across the country from March 2009 through October 2009 for the retail price of $60. All consumers who have purchased the product can contact Rockler Companies at (800) 260-9663 to receive a fee repair kit and installation instructions.

Nanosys Do Efforts to Improve LEDs

As we all know that in this struggling economy, businesses as well as the general populace are all struggling to do more with less. In the case of LED and nanotechnology, however, that may not be necessarily a bad thing.

Take for example the work showcased at CES by Nanosys, a company that has developed a method to add nanomaterials to blue LEDs that improves the appearance of LED lighting. Their efforts have created an LED light that combines the energy efficiency of a blue LED; with a nanotechnology layer that alters its blue appearance into a warm white light that is better than standard LED lighting.

The benefits of the added nanotech material not only means improving the quality of the emitted light for backlit LED displays
, but doing so while still maintaining a low power profile. Plus Nanosys claims, the process can be added to a company’s assembly line for electronic products without the need for major retooling.

So expect to see better looking LED lighting in the near future as Nanosys nanotechnology starts to appear in televisions and other lighting products beginning later this year.

Decorating a Green New Year

The New Year holidays are just around the bend! For all you holiday planners with decorating on the brain, make sure to light up your holiday nights this year with the greenest lights available – LEDS.

If you made the switch from traditional energy-sucking holiday lights to efficient LED ones this year, we applaud you. But we also know that they aren’t the cheapest thing in the world. That’s why were absolutely delighted to receive this clever tip from reader SleepySyrup that lets you leverage your LED light investment into something that can provide you with light year-round instead of just around the holidays:

“A string of LED holiday lights, combined with a two-dollar socket adapter from your local home-improvement store, can transform a lamp or overhead light into an eco-friendly light source. A 50-bulb string uses less than 5 watts of electricity, and, this time of year, they can be had for a fraction of the price of a commercial LED bulb.”

LEDs use 10% the electricity of incandescents, and are 90% more efficient than their old-school tungsten counterparts. They’re perfect for strings of holiday lights, because they don’t get hot, they last forever and when one burns out, it doesn’t take the whole chain with it! You’ll get a full 100,000 hours out of most LEDs, they’re made with less nasty chemicals, and come in all kinds of festive shapes! What more could you ask for? Read on for some suggestions on where to buy…

LED light Prices Dropped

Since prices dropped by half, LED lights are selling like hot cakes this year.

The surge in demand for the new generation of light bulbs has quickly emptied store shelves, prompting more manufacturers to jump into the market.

LED lights first appeared about a decade ago, but their poor brightness limited them to emergency use. Recent advances in longevity and brightness, however, have turned their fortunes around completely.

Today’s LED bulbs cost as little as ?4,000 but boast a longevity of 40,000 hours, which is about 40 times the life span of incandescent bulbs. They also consume nearly 90 percent less electricity than incandescent bulbs.

Compared with fluorescent light bulbs, LED lamps are six times more durable and use at least 40 percent less energy.

Rising public awareness of environmental issues is also boosting LED sales. Countries embarking on “green” initiatives are letting incandescent bulbs fall by the wayside as they move to save energy.

Under the previous government led by the Liberal Democratic Party, then Economy, Trade and Industry Minister Akira Amari announced a plan last year to cease production and sales of incandescent bulbs by 2012.

As a result, demand for LED bulbs is outpacing supply.

“We are swamped by orders and just can’t keep pace with demand,” said Takahisa Uzumaki, senior manager at Toshiba Lighting & Technology Corp., a unit of Toshiba Corp., which developed LED bulbs in 2007.

Sales of LED lights spiked this summer as prices began to come down. At one large store in Tokyo’s Akihabara electronics shopping district, “Sold Out” signs were seen at the LED light section.

“Many customers buy LED bulbs just to try them out,” said a shop clerk.

In June, Sharp Corp. unveiled a plan to sell LED bulbs for about ?4,000, less than half the price of products made by other companies. Then more manufacturers, including Panasonic Corp. and NEC Corp., entered the fray.

Competition is heating up because startups founded only five or six years ago have entered the market, since it doesn’t take large facilities to mass-produce LED bulbs. That’s one of biggest differences of LEDs over incandescent and fluorescent lamps.

As new companies crowd into the LED business, Toshiba Lighting is taking on the challenge by halving its prices. Their bulbs now retail for under ?5,000.

The Toshiba group is fostering the business and betting it will turn into a hot sector.

“We intend to boost annual LED lighting sales to ?350 billion by March 2016 from the current ?20 billion,” said Masashi Muromachi, a senior executive at the parent firm.

Sharp aspires to raise annual sales to ?50 billion in the near future.

With energy conservation a matter of global concern, manufacturers also anticipate brisk demand abroad. Toshiba aims to get overseas sales to account for 30 percent or more of its total LED sales by the year ending in March 2016.

Panasonic is also setting its eyes on foreign markets.

While they are experiencing a sudden burst of popularity, LED bulbs still leave something to be desired technologically. They are more expensive and less bright than their fluorescent counterparts.

The new type of light bulb can become standard in every household only when manufacturers address and overcome these weaknesses.

The Future of LED Lighting Industry

Even better, the industry offers a superior product with an earth-first attitude. The LED light bulb, which use current passed through a diode to provide light, is in the midst of serious growth. Databeans, a leader in electronics market research, estimates that the global LED market will grow to $5.3 billion by the need of this year. An impressive figure by itself, this number is all the more striking when taken into account that very few consumers are using LEDs, as they are currently far more common in commercial applications.

The rate of growth is remarkable, but the fact that the size of the energy efficient light bulb industry is growing should come as a surprise to no one. These bulbs provide significant financial savings by reducing energy costs up to 75% compared to incandescent bulbs. Maintenance costs are also lowered due to a far longer life (up to 50 times longer than incandescent lamps. This also means less time spend climbing ladders, recycling bulbs, and dealing with outages. Other benefits of LED light bulbs include a much cooler operating temperature and more flexible color options.

The most important reason for the growth of the LED light bulb industry is that these bulbs have a much smaller environmental footprint. Less energy used due to an efficient product and less trash in our landfills due to a longer life and fewer replacements are both very compelling reasons for eco-conscious companies to make the shift today. LEDs are great as part of your commercial lighting plan, which should be developed with a lighting consultant or expert.

Many vendors offer affordable LED light bulbs. Where suppliers really differentiate themselves is in the level of expertise which they bring to the table. Companies such as Superior Lighting, Ft. Lauderdale’s energy efficient lighting experts, understand this entirely. Their wealth of knowledge enables them to work with their clients to develop cost-effective energy-efficient lighting plans for both commercial and residential applications. Anyone thinking about going green should give them a call today to see what they can do for you.

Superior Lighting’s, Ft. Lauderdale’s (South Florida) energy efficient lighting expert, mission is to help our customers choose the most energy efficient lighting. We lead the lighting industry by providing the best value in products and services to all of our customers, and we differentiate ourselves on the basis of our honesty and expertise.