The invention of light-emitting diodes is one of the most important developments in the consumer electronics industry. These devices are made using semiconductors which convert electricity into light energy. The advent of LEDs has completely transformed the electronic gadget manufacturing sector. The growing demand for these advanced lighting components from residential and commercial spaces across the globe, especially in India, the US, and China, has contributed to the rise of the LED industry. Moreover, the high energy efficiency and longer shelf life offered by light-emitting diodes have led to a shift away from traditional products such as compact fluorescent lamps (CFL) and cold cathode fluorescent lamps (CCFL)[KG1] [AP2] . As a result, the applicability of LEDs has increased drastically in different end-use sectors, thereby opening new investment opportunities.
The emergence of smart LEDs strengthening the foothold of the industry
Recently, Allied Market Research published a report on the LED market which highlighted that the industry is anticipated to gather a revenue of $192.68 billion by 2030. The sector accounted for $78.69 billion in 2020 and is projected to rise at a CAGR of 8.2% during 2020-2030. The emergence of human-centric lighting solutions is estimated to be the main factor behind the growth of the landscape. Also called circadian lighting, HCL refers to the use of illumination systems that focus on human health and well-being. These lighting solutions help in balancing and maintaining the circadian rhythm, i.e., they aid in streamlining the physical, mental, and behavioral patterns of the body, thereby ensuring a healthy lifestyle.
Smart LEDs which are used as part of HCL have capabilities to change light intensity, color, and angles as per the outdoor natural light or according to the user preferences. A study published by the Clinical Sleep Medicine journal highlights that human-centric lighting is directly associated with increased productivity. Many commercial spaces and industries have started using smart lighting devices to enhance workers’ cognitive performance, improve memory, and boost confidence. At the same time, HCL is widely used in residential spaces as it is known to improve the sleep cycles and daily routines of individuals. In the long run, this reduces the risk of heart disease and other lifestyle ailments such as cancer and diabetes.
In the past few years, psychological research has shown that lack of exposure to sunlight can cause seasonal affective disorder (SAD) wherein the patient feels low and depressed during a particular time of the year or season. In such cases, smart LEDs can play an important role in setting up lighting solutions that resemble natural sunlight, thus helping maintain serotonin levels and reduce the risk of SAD.
Ingenious product launches by LED manufacturers opening new avenues for growth
Recently, several consumer electronics companies unveiled innovative products that aid in the expansion of the LED industry. For instance, in June 2023, URC Automation, a home automation systems manufacturer, announced the launch of a new LT-3300, an all-in-one LED lighting solution. The smart LED product allows users to switch between different configurations and select illumination patterns and colors as per the mood and atmosphere inside the house. This LED lighting bar features a simple touch screen which helps the user control and customize the lighting.
In conclusion, the advent of light-emitting diodes has significantly revolutionized the consumer electronics sector. Moreover, the shift toward smart LEDs and human-centric lighting solutions has opened new investment opportunities in the landscape. Additionally, the launch of innovative products by several multinational giants is expected to strengthen the position of the industry in the near future.
