LED Engin raised $12 million to expand operations, with an option to receive even more from its investors. According to Yole Developpement’s new report UV LEDS: Technology & Application Trends, UV LEDs are expected to be a $270M business by 2017, and even up to $300M based on application potential.

The report cites the compact size, low cost of ownership, and environmentally friendly composition of UV LEDs for their potential to continue to replace such incumbent technologies as mercury. Expectations are, according to the research, that this segment will grow from $45M in 2012 to $270M in 2017, a CAGR of 43%, compared with a CAGR of 10% for traditional UV lamps over the same period.

Why such a disparity? Yole says that in 2012, UVA/UVB applications represented 89% of the overall UV LED market, with UV curing the most dynamic and most important market. The whole supply chain is pushing for the technology’s adoption: from UV LED module and system manufacturers to ink formulators. With Heraeus Noblelight’s recent purchase of Fusion UV, major UV curing system manufacturers are involved in the UV LED technology transition.