Sales of Light Emitting Diodes (LEDs) Surged in 2012

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Sales of light emitting diodes (LEDs) surged in 2012 and are expected to continue in 2013. The LED grow light segment of the industry continues to benefit from the global increase in demand for this technology.

Amid a weak economy, sales of light emitting diodes (LEDs) surged in 2012 and are expected to continue in 2013. With advances in LED technology, these small light emitting diodes are now used in numerous applications and in a variety of products. The LED market is expected to reach $6.9 billion in 2012, up a robust 19 percent from $5.8 billion in 2011 and expected to grow even more in 2013 according to HIS Electronics Supply Chain Service. Driven by markets including LED displays, traffic signals, automotive use, LCD backlighting, handset key pads, digital still camera flashlights, decorative lighting, street lighting and general illumination, LEDs have become a hot item for manufacturing and an attractive investment.

Another less known segment of the market that is making tremendous gains is the full spectrum LED grow light market. After NASA reported it has tested LEDs for growing food in space, many universities put forth numerous studies showing how LEDs can be a sustainable energy source for indoor growing of plants. As more and more indoor hobbyist and commercial growers become aware of LED grow lights, this new industry has seen an incredible boom in the last five years. Several LED factories in 2012 reported expanding their manufacturing operations to keep up with the global demand for LEDs. One LED grow light company, G8LED has positioned itself to benefit from this global increase in demand. “As the market for indoor LED grow lights grows, we are not only seeing increased sales, but we are capturing a larger percentage of the market share within the industry” says Robert Patterson, marketing director of G8LED. “We have been successful in doing so by being at the forefront of the technology and sharing in the economies of scale of the production of diodes. By doing so, we have been able to constantly reduce prices and attract new customers who were previously priced out of the market”.

In the last five years, several companies have started producing LED grow lights for indoor gardening. Although the design of the lighting panels and the total intensity of the grow lights vary from company to company, all companies use diodes manufactured in the USA or Japan and have a local factory in China assemble the lights for them. Coupled with the fact that diode prices have steadily gone down, LED indoor growing lights have also seen a sharp reduction in price. With prices coming down, LED grow lights have become affordable enough to become a viable substitute for inefficient traditional lighting sources such as grow bulbs. “The LED grow light market will continue to grow over the next several years” reports Patterson. “As the customer base becomes aware and more comfortable with the new technology, we will see an ever expanding market with potential for new products lines”.

LED grow lights for indoor plants emit 90% less heat than HID systems and save customers 50% on electricity. The lights have built in fans and power supplies which eliminates the necessity for expensive ballasts and reduces the need to vent excess heat in the grow room.

Peter Grind
Electronic Supply Chain Service

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