The overall solid-state lighting (SSL) market will achieve worldwide revenues topping $33 billion by 2013, forecasts an industry research institute in its new report. The illumination segment of the LED market will light the way with a compound annual growth rate (CAGR) of nearly 22% from 2009 to 2013 as cities worldwide switch to more energy-efficient and ecologically friendly SSL solutions. The display portion of the market also will shine brightly, achieving a five-year CAGR of over 14 percent, according to the report.

The LED market will grow rapidly over the next five years, boosted by increasingly more-powerful and energy-efficient offerings that will help businesses and consumers lower their Total Cost of Ownership (TCO), accelerate Return on Investment (ROI) and be more environmentally friendly, said the research institute.

Since the second half of 2007, LED market has recovered from the sluggish sales and unit shipments that characterized the market from 2004 to mid-2007. LEDs – especially certain fast-emerging niche segments like High Brightness (HB) for specialized applications.

With improvements in the technology and significant extensions of product lifespans, LEDs now have been widely accepted by government agencies, municipalities, utilities and even private citizens.

A number of trends have combined to make this one of the most dynamic periods in the history of LEDs. These include: bifurcation in the market between commoditized LEDs and higher-end, leading-edge applications; the speed at which LED technology is advancing; standardization and green initiatives; industry consolidation; the emergence of niche market illumination applications, and new markets for mature applications, according to an analyst of the research hourse.

Meanwhile, the LED industry still faces challenges, the analyst added. Vendors must work with legislators and industry groups to foster a smooth, orderly transition from incandescent bulbs to the more efficient LEDs, said him.