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Leds in Signage and Professional Displays Announcement – ElectroniCast Consultants Signage/Display LEDs Market Forecast - April 2015 Announcement Signage & Professional Display LEDs Global Market Review & Forecast 2014-2019 This is the ElectroniCast review and forecast of worldwide use of Dual In-line Package (DIP), Surface Mount Diode (SMD), and Chip on Board (COB) packaged LED chips. The forecast for each type, in turn, is segmented the major signage/display types and into geographical region. Announcement – ElectroniCast Consultants Signage/Display LEDs Market Forecast - April 2015 PUBLISHED IN APRIL 21, 2015 ELECTRONICAST CONSULTANTS SPDLED.0415 All data and other information contained in this report are proprietary to ElectroniCast and may not be distributed or provided in either original or reproduced form to anyone outside the client's internal employee organization, without prior written permission of ElectroniCast. ElectroniCast, in addition to multiple client programs, conducts proprietary custom studies for single clients in all areas of management planning and interest. Other independent consultants, therefore, are considered directly competitive. ElectroniCast proprietary information may not be provided to such consultants without written permission from ElectroniCast Consultants. Announcement – ElectroniCast Consultants Signage/Display LEDs Market Forecast - April 2015 FOREWORD This is the ElectroniCast review and forecast of global market consumption of LEDs in selected signage and professional displays. This market forecast of the consumption is presented Dual In-line Package (DIP), Surface Mount Diode (SMD), and Chip on Board (COB) packaged LED chips. The forecast for each type, in turn, is segmented the major signage/display types and into geographical region. The information is presented in easy-to-follow illustrations and text. Profiles of selected manufacturers and related companies are provided. Light emitting diodes LED technology overviews, trends and analysis are presented. Terms, acronyms, and abbreviations used are defined. We believe you will find this report useful for your planning of product and market development. Please contact us with any questions or comments. Jeff D. Montgomery Stephen Montgomery Chairman and Founder President LED Project Manager Announcement – ElectroniCast Consultants Signage/Display LEDs Market Forecast - April 2015 Signage & Professional Display LEDs Global Market Review & Forecast 2014-2019 Published: April 21, 2015 Text Pages: 592 Also Included: Excel worksheets and PowerPoint slides Fee: $4,400 The worldwide consumption of packaged light emitting diodes in signage and professional displays reached $2.011 billion in 2014. In the year 2019, consumption is forecast to reach $3.56 billion. The consumption value in Dual In-line Package (DIP) LEDs is forecast to increase in value at over 20 percent per year; however, Surface Mount Diode (SMD) LEDs are forecast with negative growth as Chip-On-Board LEDs (COB) and Multiple-Chip COB LEDs (MCOBs) in signage and display applications are set for explosive growth. DIPs are single-color; however, for use in digital boards they are often placed in a LED “block” that accommodates 2 or 3 DIPs together in 1-block when installed in a sign/display board tile. SMD and COB LEDs are often multiple-chip LEDs (3-in-1 Red/Green/Blue. The multi-chip LEDs are quantified (counted) as ONE LED, not three. In 2015, SMD LEDs holds the leadership position in consumption value; however, in terms of volume (quantity), the DIP category dominates the worldwide marketplace The use of Chip-On-Board LEDs (COB) and Multiple-Chip COB LEDs (MCOBs) in signage and display applications is relatively new. Typically, COBs are considered the next-generation LED package technology for General Lighting applications; however, COBs are (now) finding there way into LED Channel Letter and Panel/Box signage, Back Lighting Units (BLUs) for LCD display screens, as well as R&D efforts and new product introduction in the digital signage/display applications. Announcement – ElectroniCast Consultants Signage/Display LEDs Market Forecast - April 2015 This study report details the use of LEDs, segmented by the following package-type: • Dual In-line Package (DIP) • Surface Mount Diode (SMD): Single/Multi-Chip • Chip on Board (COB)/MCOB: Single/Multi-Chip The market forecast data are segmented by the following Applications (uses): • LEDs Used in Digital and Open-Face Signage/Display • LEDs Used in Backlit Signage/Display • LEDs Used in Backlighting Professional LCD Display Screens The market forecast data are segmented by the following functions: • Consumption Value (US$, million) • Quantity (number/units: Million) • Average Selling Prices (ASP $, each) The forecast for each type, in turn, is segmented into geographical region. The market data are segmented into the following geographic regions, plus a Global summary: • America (North America, Central and South America) • EMEA (Europe, Middle Eastern countries, plus Africa) • APAC (Asia Pacific) Below, are four levels (or “food chain”) of LEDs. For the purposes of this ElectroniCast study, we quantify and provide a market forecast for “Level 2” Level 1 - The chip or die Level 2 – Packaged LED Chips Level 3 - LED array; sign/display module, lamps Level 4 - LED sign, luminaire/fixture or display system Announcement – ElectroniCast Consultants Signage/Display LEDs Market Forecast - April 2015 Information Base for the Market Forecast Primary Research This market study is based on analysis of information obtained through mid-April 2015. ElectroniCast analysts performed interviews with authoritative and representative individuals in the LED lighting product manufacturing, LCD display screen manufacturing, and advertisement, mass transit and airport authorities, transportation/infrastructure, R&D, display and retail industry, government, and other. The interviews were conducted principally with: . Engineers, marketing personnel and management at manufacturers of LEDs (chips, components, display screens and modules, lamps and fixtures), as well as other lighting technologies. Design group leaders, engineers, marketing personnel and market planners at major users and potential users of LED and other lighting. Other industry experts, including those focused on standards activities, trade associations, and investments. The interviews covered issues of technology, R&D support, pricing, contract size, reliability, documentation, installation/maintenance crafts, standards, supplier competition and other topics. Customers and distributors also were interviewed, to obtain their estimates of quantities received and average prices paid. Customer estimates of historical and expected near term future growth of their application are obtained. Their views of use of new technology products were obtained. Analysis The analyst then considered customer expectations of near term growth in their application, plus forecasted economic payback of investment, technology trends and changes in government regulations and funding/tax-break legislation/rules in each geographical region, to derive estimated growth rates of quantity and price of each product subset in each application. These forecasted growth rates are combined with the estimated baseline data to obtain the long-range forecasts at the lowest detailed level of each product and application. In analyzing and forecasting the complexities of the regional markets for light emitting diode products, it is essential that the market research team have a good and a deep understanding of the technology and of the industry. ElectroniCast members who participated in this report are qualified. Secondary Research A full review of published information was also performed to supplement information obtained through interviews. The following sources were reviewed: . Professional technical journals and papers . Trade press articles . Technical conference proceedings . Product literature . Company profile and financial information . Additional information based on previous ElectroniCast market studies . Personal knowledge of the research team. Announcement – ElectroniCast Consultants Signage/Display LEDs Market Forecast - April 2015 Bottom-up Methodology ElectroniCast forecasts, as illustrated in the forecast data structure, are developed initially at the lowest detail level, then summed to successively higher levels. The background market research focuses on the amount of each type of product used in each application in the base year (2014), and the prices paid at the first transaction from the manufacturer. This forms the base year data. ElectroniCast analysts then forecast the growth rates in component quantity use in each application, along with price trends, based on competitive, economic and technology forecast trends, and apply these to derive long term forecasts at the lowest application levels. The usage growth rate forecasts depend heavily on analysis of overall end user trends toward equipment usage and economic payback Cross-Correlation Increases Accuracy The quantities of packaged LEDs, LED Driver ICs, LED materials/wafer/die/chips, LED Lamps and LED fixtures (luminaries) and other LED-based components, manufacturing processes/quality control/yields, and end-use products used in a particular application are interrelated. Since ElectroniCast conducts annual analysis and forecast updates in each LED component field, accurate current quantity estimates are part of the corporate database. These quantities are cross- correlated as a "sanity check". ElectroniCast,
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