By Martina Jung
The application of light-emitting diode (LED) technology in consumer products is increasing rapidly. In particular, the consumer electronics industry is demonstrating a very aggressive approach towards integrating the latest technological advances into new products, thereby offering customers more attractive and energy-efficient solutions.
When Samsung launched a range of energy-efficient LED TV products last April, it triggered a surge in LED chip production, and left competitors such as Philips, Sharp and LG scrambling to follow suit. The resulting mass production of LED chips and the continued development of LED technology have paved the way for other advanced LED applications.
Another attractive area is LED lighting. Although LED lighting has struggled to hold its own against significantly less costly—but less energy-efficient—conventional lighting solutions, Cree, a US-based leader in LEDs for lighting, indicated with the release of its results in January that LED lighting is gaining traction.
Furthermore, a new screen technology – organic light-emitting diodes (OLEDs) – is about to emerge. OLED screens are far more energy-efficient than current LCD screens and, what’s more, OLED screens are flexible. Last April, Japan-based Kyocera presented a flexible OLED cell phone concept, which users can fold like a wallet.
If LED technology continues to develop at the current pace, its market penetration and energy savings potential is set to outpace all prior expectations. Already, Bank of America/Merill Lynch expects the proportion of TVs with LED backlighting to rise to 32 % by 2012, from just 1 % in 2008.
Some governments have drafted energy efficiency regulations that will boost LED technologies. Under new legislation in the EU, for example, homeowners must replace inefficient incandescent bulbs with more efficient alternatives, including LED lights. And last year, China installed more than 100,000 LED lamps across ten cities in a pilot project; the next stage will be 1 million LED lamps across 20 cities.
Policy makers such as those in China and the EU, and beyond, may soon realise that the contribution of LED technologies to climate protection is accelerating far beyond their expectations. For investors, this could mean there will be growing numbers of compelling investment opportunities in the LED market.
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