LED market will experience robust growth, over the next five years, fueled by increasingly more-powerful and energy-efficient offerings that will help businesses and consumers lower their Total Cost of Ownership (TCO), accelerate Return on Investment (ROI) and be more environmentally friendly, according to a recent report.

It’s known that LEDs have powerful and vocal proponents among local, state and federal governments, commercial industries and private citizens. These groups all are encouraging widespread acceptance and adoption of LEDs as a viable mainstream and green technology.

The report forecasts the overall SSL market will achieve worldwide revenues topping $33 billion by 2013. The illumination segment of the LED market will light the way with a compound annual growth rate (CAGR) of nearly 22% in the 2009-2013 timeframe. The display portion of the market also will shine brightly, achieving a five-year CAGR of over 14% as cities worldwide shift their streetlights to these more energy-efficient and ecologically friendly solutions.

A number of trends have intersected to make this one of the most dynamic periods in the history of LEDs. They include bifurcation of the market between commoditized consumer LEDs and higher-end, leading-edge applications; transition of applications from incandescent to LED usage; standardization and green initiatives; consolidation within the industry; the emergence of new niche illumination applications, and new markets for mature applications.

In addition, the report notes that LED industry faces several challenges. Vendors must work with legislators and industry groups to foster a smooth, orderly transition from incandescent bulbs to the more efficient LEDs.