A Market research company says that the decline in the price of LED light sources helped to trigger growth in the market. According to the company revenues grew from $7.3 billion in 2011 to $9.4 billion in 2012, a growth of 28%. The company forecasts that the CAGR for revenues for LED Luminaires in all applications for 2012-2016 is 18%.

By 2012, LED luminaires had penetrated variety of applications. The Market research company says that large scale adoption of downlighting in commercial applications drove revenues up 76% between 2011 and 2012. The Japanese commercial application market as the one of the contributors to the high growth rate. The Japanese market growth is expected to continue but at a slower rate while all other regions are expected to increasingly adopt LED luminaires in commercial applications.

The company says that the market for LED luminaires grew across with most regions at a CAGR of more than 15%. According to the company, The rest of the world (besides the United States and Japan) will be the fastest growing region at a CAGR of 23%.

Other than consumer portable and emergency lighting applications, the company predicts all other applications will have CAGR in double digits. The research company forecasts that commercial lighting will dominate other applications and predicts a CAGR of 31%. Residential lighting applications starting from a small base and with help from the sale of ceiling lights in Japanese homes will have a CAGR of 23%. Because of a cost per unit price decrease for outdoor lighting, the revenues for outdoor lighting are expected to grow on an average of 17% between 2012 and 2016, despite an impressive CAGR of 37% for units.