The outlook for the light-emitting diode, or LED, market is bright and poised to grow to a $71.35 billion industry by 2021, according to Scalar Market Research.

The market’s estimated growth rate, from $28.89 billion in 2016 to $71.35 billion in five years, amounts to a 19.8 percent compound annual growth rate.

“The key players in the LED market are set to witness impressive growth over the next three to four years,” said the Scalar research. “The market is expected to gain major traction across the emerging geographic regions, thanks to the steady rise in demand. Rapidly decreasing costs of the LED products, longevity, and trending energy-efficient lifestyle are expected to be the major drivers for the LED market.”

Growth in the large-screen backlighting and display segment will play a significant role in the overall growth of the market, the report said.

Looking to the declining cost of LED products, the U.S. Department of Energy predicts the cost per kilolumen for warm white LEDs will decline from $1.70 per klm in 2014 to about $0.36 per klm in 2020.

The global LED market will be dominated by Europe, which has a strong production and distribution model. The Asian-Pacific will become the fastest-growing region thanks to a rising demand for the technology. Government initiatives about energy conservation are expected to create growth opportunities across emerging economies.

Photo Credit: U.S. Department of Energy