Taiwan Industrial Economics and Knowledge Center (IEK) forecasts that the global LED general lighting market may grow to US$1.4 billion by 2012. IEK mentioned that although the LED general lighting market is not expected to see explosive growth, growth will remain steady over the next few years. The LED general lighting market grew 60% in 2007 to US$330 million, IEK indicated, while adding that growth was driven by increased demand in Asia emerging markets, such as from China for infrastructure projects for the 2008 Beijing Olympics. However, with such projects coming to an end, growth in the LED lighting market this year is estimated to slow to about 50%. LED lighting applications vary, but landscape lighting is the top segment. IEK pointed out. Architectural landscape lighting accounted for 45% of the total LED lighting market in 2006, on related sales of US$93 million. Sales for the segment may grow to US$470 million, and account for about 50% of the total LED lighting by 2011, IEK estimates. The channel letter (for words used in signage) segment ranked second with a 17% market share in 2006, on sales of US$34 million. Orders for channel letters chiefly are from companies such as McDonald's and Wal-Mart and IEK estimates the market may reach US$79 million in 2010. The number three segment is the consumer portable segment, with flashlight being the major application. The segment accounted for 14.6% of the market in 2006, on sales of US$30 million. IEK estimates that the market may reach US$99 million in 2011.

While LED players' revenues in July rebounded sequerntially, they were still far from the peak levels seen early this year and the end of last year, though Taiwan LED packaging companies such as Bright LED and Everlight Electronics are also seeing improvement in thier August orders as well. LED packaging company Bright LED is benefitting from recovering demand for sideview LEDs and its current orders have reached NT$350 million (US$11 million), topping its overall sales from one month ago by 6% already. Everlight has benefited from the growth of surface mounted device (SMD) LED orders and sources estimate its August orders have reached NT$950 million and the company's August revenues should exceed its July revenues of NT$926 million. In the first half of the year, average selling prices (ASP) for sideview LED applications dropped 25% while AlGaInP LED ASPs fell 10%. Still, Bright LED posted second quarter revenues of NT$979 million, up 18.1% on year. With the recent depreciation of the NT dollar, revenues for traditional industries in the peak season are expected to increase and the market forecast is for Bright LED's sales to increase in the third quarter. Everlight indicated that its SMD LED orders are growing and its third quarter revenues should increase sequentially as well, despite infrafrared LED demand remaining weak. Investors estimates that Everlight's revenues in the third quarter may increase by 6%, reaching NT$3 billion and its gross margins may reach 29%.