IHS Predicts GaN LED Shipments to Exceed 100 Billion Units in 2013

More than 100 billion Gallium Nitride GaN LED units are expected to ship in
2013, according to IMS Research, now part of IHS Inc. IHS says that revenue
from GaN LEDs will reach over $10 billion this year. The company predicts that
the total revenue for GaN LEDs in lighting is will reach $3.4 billion this year
and climb to $6.7 billion by 2016.

IHS notes that GaN LEDs, which dominate key applications such as TVs and
lighting, account for 85 percent of total revenues in the LED industry. The GaN
LED market is part of the total global LED market, including AlInGaP and other
LEDs, the company said.

“If we consider the total LED market—including AlInGaP, GaN
and other LED types—the $10 billion revenue and the 100 billion unit
shipment levels were actually reached in 2010. But now in 2013, both of these
thresholds are predicted to be attained by the GaN LED market alone, showing
how large the segment has become.”

Revenue for GaN LEDs, according to IHS, is expected to double in 2013
compared to only four years ago. Also, IHS predicts that unit shipments this
year will have more than tripled since 2009.

The growth has been uneven, with record growth in 2010, then flat revenue in
2011, and 15 percent growth in 2012. IHS predicts that 2013 revenue will remain
flat. Strong growth is predicted in 2014 via general lighting along with other
applications, but IHS says revenues will flatten again in 2015.