VFrom $45M in 2012 to $270M in 2017, the UV LED market is booming - but we’re just scratching the surface of the technology’s true potential.
THANKS TO UV CURING, UV LEDs SHOULD BECOME A $270M BUSINESS BY 2017 - AND COULD HIT $300M IF NEW APPLICATIONS BOOM
Thanks to its compactness, low cost of ownership and environmentally-friendly composition, UV LED continues to replace incumbent technologies like mercury. Hence, the UV LED business is expected to grow from $45M in 2012 to nearly $270M by 2017, at a CAGR of 43% - whereas the traditional UV lamps market will grow at a CAGR of 10% during the same time period.
In 2012, UVA/UVB applications represented 89% of the overall UV LED market. Amongst these applications, UV curing is the most dynamic and most important market, due to significant advantages offered over traditional technologies (lower cost of ownership, system miniaturization, etc.). This trend is reinforced by the whole supply chain, which is pushing for the technology’s adoption: from UV LED module and system manufacturers to ink formulators and (of course) the associations created to promote the technology. And with Heraeus Noblelight’s recent acquisition of Fusion UV (Jan. 2013), all major UV curing system manufacturers are now involved in the UV LED technology transition.
Concerning UVC applications, they are still in their infancy and their sales are mainly for R&D purposes and analytic instruments like spectrophotometers. But given some newly published results (increase of EQE over 10%, etc.) and the recent commercialization of the world’s first UVC LED-based disinfection system (2012), the market should kick into gear within the next two years.
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• XXX (USA and TW) is more and more installed in the UV LED business (growth relay since competition has increased in visible LED market) and continue to take market shares over Nichia.
• XXX is loosing market shares since the company still continue to focus mainly on packaged LED that are not optimally suitable for UV curing arrays and since competition begin to develop (entry of Chinese and Taiwanese players).
• UV LED packagers (LED Engin…) also develop strong revenues.
UV LED (package and chip) sales only
It does not include:
• Revenues from R&D contracts
• Revenues from regional/national
funding
• Other funding
Over a market of nearly $XXM
1. Including CREE and Fox Group who have exited now
UVA / UVB Applications Lamp Specifications and Market Highlights
Although UV curing application represents < 3% of total UVA lamp volume, associated revenues represents > 50% (biggest UVA market).
Biggest UVA / UVB lamp market ($M) is UV curing which represent more than 50% of all UVA / UVB lamp revenue… However the application represent less 3% of total UVA lamp volume
(Munits). λ Application
Lamp Size
(m)
Wall-Plug
Input Power
(W)
Lamp ASP
($)
2012 UV
Lamp
Volume
(Munits)
2012 UV
Lamp Market
($M)
UV Lamp
Market
Growth
(2011 -2012)
UV LED
Time to
Market1
UVA
/
UVB
Application A 0.3m to 2m 10W to 20kW $250 to $300 0.53 149.7 +13.4% 2003
Application B 0.5m to 2m 15W to 200W $5 to $15 10.59 84.9 +3.5% > 2015
Application C 0.2m to 2m 10W to 100W $40 to $100 0.62 30.8 +7.2% 2015
Application D 0.1m to 0.3m 10W to 40W $5 to $10 0.57 4.3 +2.4% 2006
Application E 0.1m to 0.2m 4W to 10W $5 to $10 0.53 2.7 +3.6% 2003
Application F 0.2m to 1.2m 4W to 40W $1 to $15 10.52 31.0 +1.1% > 2015
1. UV LED time to market = Time when UV LED penetration rate > 1%.
In red are presented the most challenging specifications for UV LEDs.