According to a new study from ABI Research, by 2010 the global LED market may consist of two segments: a highly commoditized market in simple, inexpensive LEDs for mass-produced goods, and another sector dealing in high-end, high-tech innovations.

Oyster Bay, NY - February 24, 2005 - Energy-efficient LEDs penetrate all corners of daily life in industrialized countries. From traffic lights to mobile phones, the versatile light emitting diode is an increasingly commoditized product even as it develops high-end specialist uses.

According to a new study from ABI Research, by 2010 the global LED market may consist of two segments: a highly commoditized market in simple, inexpensive LEDs for mass-produced goods, and another sector dealing in high-end, high-tech innovations.

According to ABI Research vice president Edward Rerisi, the lower "general lighting" end of the market is already characterized by price-cutting, low margins, and intellectual property disputes that are disruptive to supply chains. "The lower half of the market is likely to experience a period of consolidation," says Rerisi.

"Meanwhile higher-tier, higher-technology companies that can protect their intellectual property and guarantee delivery will capitalize on that strength to search for new applications that will let them escape the intense competition."

We can expect to see high-quality LEDs in complex (and more expensive) systems such as stage lighting, automotive headlights and large TVs, according to the research. Fortunately for the industry, these are among the markets that are going to see the most growth through the end of the decade.

Meanwhile, because of the technology's energy-saving nature, governments are adding to the mix with significant support for the LED industry, both in contracts and in funding new research.

The study, "LEDs and Laser Diodes", analyzes major LED and laser diode markets, technologies, and players. It also reviews external factors that may effect the growth of the LED industry, such as the burgeoning OLED industry and the current shortage of Indium.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. For more information please visit www.abiresearch.com, or call 516.624.2500.