LED lighting penetration rate has been rapidly increasing recently. After penetration rate surpasses 10 percent, the industry will officially enter the S curve fast growth period, pushing LED lighting into a golden three year development period. 

Everlight Chairman Robert Yeh (left) and Epistar Chairman B.J. Lee (right) attend the Taiwan International Lighitng Show (TILS) 2014 on March 21st.

Taiwanese LED chip manufacturer Epistar’s Chairman B.J. Lee joined Taiwanese LED package manufacturer Everlight’s Chairman Robert Yeh at the opening ceremony for LED Taiwan 2014 and Taiwan International Lighting Show (TILS) 2014 on March 20th. 

During the ceremony, Lee mentioned that LED penetration rate is rising quickly with Japan in the lead, increasing from 50 percent in 2013 to 70 percent in 2014. The U.S. market is anticipated to increase from 10 percent in 2013 up to 20 percent. LED lighting will experience rapid growth from 2014-2017. 

The growth of the LED lighting industry and LED backlight is different, said Lee. Penetration rate for LED backlight grew quickly in a short period, but LED lighting’s is much slower. After penetration rate breaks 10 percent, the LED lighting market will enter into its S curve fast growth period which will last for three years. Growth will ease during 2017-2018. 

Manufacturers are enjoying strong growth as LED lighting demands increase. This increase however will lead to strong competition within the market. Lee admits that LED manufacturers will become key players in the lighting growth trend and that competition is inevitable.  

Epistar also revealed that the company is developing new products for release in 2017. Aside from smart lighting, the company declined to reveal a new secret weapon being developed. Epistar plans to strengthen their virtual vertical integration strategy by integrating Taiwanese manufacturer strength in wireless technology to break into the smart lighting market.