Shortage of LEDs in 2010 caused by high demand

Shortage of LEDs in 2010 caused by high demandNew statistics suggest that the worldwide LED manufacturing market is ill-equipped to deal with the rising demand for LED systems, which could lead to serious shortfalls and unmet demand this year, unless drastic action is taken.

In 2009 over 63 billion LED units were sold, which is six billion more than in the previous year and experts believe that the figure could be even higher in 2010.

The current annual capacity for global LED production is 75 billion, which means that in 2009 many of the leading industry producers were working at close to 100 per cent of capacity.

A report conducted by analyst iSuppli concluded that the supply of LEDs would not be able to keep up with the increased demand and growth within the industry is set to reach double-digit figures for many years to come.

iSuppli's Jagdish Rebello said that LED manufacturers would need to rapidly open new avenues for production if they are to meet the growing requirements for LED technology.

Mr Rebello revealed that it is the growing popularity of LED displays which use energy and space-saving LED backlighting technology which is set to contribute significantly to the shortage. LED TVs require three or four times as many units as laptops or computer monitors and thus the LED display industry will be hardest hit in the event of limited availability.

Residential and commercial lighting is also becoming a bigger element of the LED industry, with advanced Ultra High Brightness LEDs making roads and city centres safer around the world.

LED manufacturers and suppliers are working feverishly to bridge the gap between supply and demand. Two of the world's largest LED firms from Germany and the US are gearing up to double their output potential, although this will take until the end of the year to reach critical mass.

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