The LED lighting market has seen a boom in growth starting in the last half of 2013. Rapid growth is attributed to price drops, government policies, and rising cost in power usage, according to investment group CLSA. These three catalysts are anticipated to drive up LED lighting penetration rate from 20 percent in 2013 to 44 percent by 2016. LED lighting output value will also be affected, with compound annual growth rate estimated to increase 35 percent between 2013 and 2016. 

Global traditional lighting heavyweights have started expanding their LED lighting businesses, according to CLSA observations. European manufacturer Zumtobel’s LED lighting product retail proportions have already surpassed 30 percent. Osram LED lighting product proportions in 1Q14 increased to 32 percent. 

U.S. light fixture manufacturer Acuity Brands is also optimistic about LED lighting development in the North American market. The company estimates  LED fixtures will make up 50 percent of all lighting in the North American market by 2015. Yanking Lighting, China’s largest ODM, saw rapid growth in their LED lighting business starting in the last half of 2013. 

Traditional lighting manufacturers are not the only ones turning their sights to LED lighting, said CLSA. LED component manufacturers (including chip and package manufacturers) are also taking advantage of opportunities in the industry, including Korean manufacturers Seoul Semiconductor and LG Innotek. Taiwanese manufacturer Epistar has also expanded their LED lighting businesses, with revenues growing 20 to 25 percent from 2011 to 2012 and increasing 30 percent last year. The company anticipates its LED revenue proportion to reach 40 percent this year.