In 2019, approximately half of all light sources in the world were LEDs. That number is expected to climb to 87% by the year 2030.
LED lights are taking over the world — and for good reason. They consume less energy, they last longer, and they produce more attractive colors than traditional incandescent lights.
If you are a brand or retailer that is new to the LED lighting industry, or you are considering entering the space, you’ll want to check out these important statistics first.
Important LED Lighting Statistics You Need To Know
The market for LED lighting products is full of potential. But before you dive headfirst into manufacturing LED lights, you need to be familiar with these important facts and statistics:
- The LED lighting market will reach $160 billion by 2026
- LED light failure rates can be as high as 20% in some cases
- Driver circuitry is the cause of LED light failures 60% of the time
The LED Lighting Market Will Reach $160 Billion by 2026
In 2020, the global market for LED lighting was estimated to be around $76 billion USD. Analysts predict that the market will continue to grow at approximately 13% annually over the next few years and will reach $160 billion USD by the year 2026.
Needless to say, the market for LED lighting is growing and attracting more and more players every year. Well-known brands such as Signify, Osram, Cree, and Nichia are currently dominating the market and generating around $2 billion USD annually from sales of LED lighting products.
As the space grows more competitive, brands and retailers will need to focus on delivering high-quality products at an affordable price if they want to claim a share of the market.
LED Light Failure Rates Can Be as High as 20% in Some Cases
The industry standard for LED lamp failure is considered to be three percent but can be as high as 10 percent depending on the product application.
However, some surveys have shown failure rates up to 20 percent or higher. That means two out of every ten lamps can be expected to fail. So what is behind these exceptionally high numbers of defects?
In most cases, high failure rates can be attributed to a few factors:
- Poor quality materials - LED lights comprise several different components. If any of these components are not functioning properly, the entire lamp could fail.
- Inadequate testing - Some manufacturers will fail to test the product thoroughly before shipping. Make sure to ask your manufacturer about their LED light testing procedures and consider hiring a third-party quality control company for extra assurance.
- Use of counterfeit components - Counterfeit components are usually lower quality and less expensive to obtain than OEM parts. They can be hard to identify at first glance because they look very similar to the original components so it’s important to work only with reputable suppliers and take steps to identify counterfeits before manufacturing.
Driver Circuitry is The Cause of LED Light Failures 60% of the time
According to the Lifetime and Reliability Fact Sheet provided by the US Department of Energy (DoE)’s solid-state lighting program, LEDs themselves are responsible for only about ten percent of failures.
After surveying the failure rate of 5,400 outdoor lamps over 34 million hours of operation, it was determined that the overwhelming majority of LED lamp failures were directly caused by the driver circuitry.
New brands and retailers that are looking to break into the LED lighting space and create a name for themselves should start here. Improving driver circuitry is a great way to reduce failure rates and boost confidence in your brand name.
It Starts With Quality Control
The LED lighting space is full of potential for both new and seasoned brands. However, with so much competition afoot, brands and retailers need to prove their products are reliable if they want to boost consumer confidence and maintain loyalty.
Creating an effective quality control system and performing on-site tests on finished products goes a long way in preventing and minimizing defects.
AQF offers product-specific lighting quality control services worldwide. Our expertise extends to outdoor lights, indoor lights, ceiling lights, chandeliers, table lamps, floor lamps, desk lamps, and lighting controls, as well as LED bulbs and conventional bulbs. Contact our LED experts and improve your LED product quality today.