The led light-emitting diode market - France

1.2 The global market: a growing market

In ****, the global LED market was estimated at $**.** billion. Forecast data indicates that the market is expected to grow at a CAGR of **.*% over the period ****-****, reaching a market of nearly $*** billion in ****. [***]

The data below includes both LEDs as a simple electronic component but also all their derivatives and applications.

Source: ****

In ****, LED lamps already accounted for **% of the total value of the global lamp market, far ahead of neon lamps (***).

Source: ****

1.3 The domestic market is experiencing double-digit growth

In ****, the French lighting market was estimated at *.* billion euros. Considering that the market shares previously given at the global level also apply to France, it can be estimated that the French LED market (***) is worth approximately * billion euros.

In terms of volume, in ****, the number of LED lamps sold in France grew by **%, from ** million units to *** million units. [***]

Foreign trade

Two distinct product codes of the French customs nomenclature are distinguished here:

********: Light emitting diodes, including laser diodes ********: Light-emitting diode (***) lamps and tubes

LED (***)

In the LED segment, the French trade balance is structurally in deficit, with a coverage rate barely reaching **% in ****. In that year, French exports amounted to **.** million euros, compared with imports of more than ** million euros. [***]

Source: ****

The main destination countries for French LED exports in **** are China (***). [***]

Source: ****

Source: ****

*. LED lamps (***)

As with the product previously considered, the French trade balance is also in deficit in the LED Lamp segment, with nevertheless a coverage rate closer to ***% (***). In the same year, French exports amounted to ***.** million euros, for imports of ***.** million euros.

Source: ****

Source: ****

The main recipients of French LED lamp exports are Germany (***).

Source: ****

Source: ****

National production

The data provided by ...

2.1 Lighting in France

The primary interest of a LED is its creation of light, and as such, one of the main sectors determining demand is that of lighting. Lighting in France covers many segments and types of users: from residential to public lighting, including industry, commerce and offices.

Worldwide, total electricity consumption for street and building lighting is *,*** TWh. In France, lighting represents a total annual consumption of approximately ** TWh. [***]

Source: ****

As mentioned above, a wide range of actors can be distinguished in this demand, including :

The residential sector (***) The tertiary sector The public sector Industry

Street lighting and the challenges of switching to LEDs

Because of its extensive stock of urban luminaires, public lighting has a particular stake in the transition to LEDs. Indeed, there will be *.* million light points in France in ****, of which nearly **% will be more than ** years old (***). The annual consumption of these light points represents approximately *.*TWh.

The potential of the transition to LEDs is therefore considerable, especially as the penetration rate of LEDs in public lighting remains low: it was estimated at around **% in ****. [***]

Thus, the necessary renewal of urban lighting constitutes a reservoir of demand with high potential but also high economic stakes. Annual expenditure on ...

2.2 The development of connected objects drives the demand for LEDs

LEDs, as an electronic component, are a central part of connected objects, and the worldwide demand for LEDs is therefore taking full advantage of the boom in these objects. Unlike other types of lamps, LEDs are electronic components and as such can be integrated into circuits and thus into many connected objects. In particular, they can interact with software and programs to manage their activity remotely, be connected to sensors or collect and transfer data.

In ****, the French market for connected objects exceeded one billion euros, reaching *.** billion euros, up **% compared to ****. This double-digit growth is notably driven by the "Smart Home" part, which grew by **% and represented **% of the market.

Source: ****

Source: ****

3.1 Structure of the electronic component manufacturing activity in France

The manufacture of light-emitting diodes falls within Class **.**Z of the current NAF classification entitled "Manufacture of electronic components". This category includes several activities, including the manufacture of LEDs, but also the manufacture of electronic resistors, printed circuits, transformers, etc. [***]

The scope associated with the data provided below is therefore broader than the subject of this study; nevertheless, it is still interesting to consider them, as they provide a trend and an overview.

The electronic components manufacturing activity is declining in France, with a drop in the number of establishments but also in the number of employees registered under the NAF **.**Z code. In ****, France had *** establishments compared with *** in **** (***). There was also a slight contraction in the average size of structures through this *.* point difference in the latest figures cited.

Source: ****

Source: ****

The **.**Z business is mainly concentrated in Ile de France (***).

Source: ****

The **.**Z business is mainly concentrated in Ile de France (***).

Workforce distribution by region France, ****

Source: ****

3.2 The world's LED manufacturing giants

While there are a few French players specialising in the manufacture of LEDs and derivative solutions, LED production remains concentrated in the hands of a few global giants. Indeed, the very heavy investments in R

Among the global giants in the sector are Nichia, Osram (***) and Seoul Semiconductor.

Source: ****

Signify, world leader in LED lighting

Signify, the former Lamps and Lighting Division of Philipps, is now a leader in LED lighting, with more than **% of its sales generated by this technology.

Source: ****

Source: ****

3.3 French LED start-ups

Although France is still weak in the production of LEDs, the country has an increasing number of companies and start-ups specialising in their use.

Aledia

The Grenoble-based start-up Aledia, founded in ****, has developed a *D LED solution based on more than *** patents that could revolutionize the display. This technology offers both greater energy efficiency and better brightness than traditional LED technology, or even some OLEDs. Currently, the solutions used in mobile displays and screens offer an energy efficiency of around *%, while Aledia relies on an efficiency of **-**% for equal or even better brightness performance.

Aledia offers three declinations of its technology, to conquer three segments:

Augmented reality Telephone, tablet and computer screens Big screens

To support research on this innovation, Aledia has raised a total of more than ** million euros since its creation, including ** million in January ****. The company's next objective is to reach a mass production level by ****. [***]

Lucibel

The Lucibel Group is one of the pioneers in the use of LED technology in areas other than their primary use in lighting. Thus, Lucibel has notably developed solutions allowing the application of LEDs in wellness or communication. Its three main offers are as follows:

Cronos: using LED light for ...

4.1 A complex and innovative technological product

An LED (***). [***]

Classification of LEDs

LEDs can be classified according to different criteria:

Their colour: LEDs can be white or coloured Their power: LEDs can be said to be low power (***). High-power LEDs provide more light, with a ratio of up to *** lumens per Watt of power.

Composition of LEDs

Semiconductor material: this material is organized in layers separating an electron-deficit zone and an electron-surplus zone. Different semiconductor materials can be used, which conditions the wavelength emitted during electrical activation, and thus ultimately the colour of the LED. Substrate: this is the base on which the upper layers are made, including the semiconductor and electron layers. The most commonly used materials are sapphire (***), diamond or graphite. Luminophore: the LED emits monochromatic light, which is then transformed by the phosphor to cover almost the entire colour spectrum. In the case of white LEDs, the monochromatic light emitted is blue and the phosphor yellow to complete the spectrum of light and return a white light.

Source: ****

LED product typology

When talking about LEDs, it is important to distinguish between different products, which correspond to different levels of the processing chain :

The LED chip, the central component. The LED chips themselves can be of ...

4.2 The price competitiveness of LEDs is constantly improving

Price is a key element in understanding the LED market: indeed, the growth of this market is largely conditioned by the evolution of the price competitiveness of LEDs compared to other types of lighting.

The data provided by INSEE for category **.** (***), entitled "Electronic components", are considered below. This category includes LEDs but also various other components: thus, the scope taken into account is broader than that of our study, but it is still interesting to consider the underlying trend that these data illustrate. Thus, in base *** in January ****, the producer price index reached **.** in November ****, reflecting a sharp drop in the producer price of electronic components in France.

Source: ****

4.3 Spin-off technologies

OLED

The acronym OLED stands for organic LED. This technology is used extensively in televisions because it has many advantages: the screens are brighter and more contrasting, and the TV consumes less energy than an LCD TV.

In addition, these components offer increased flexibility, allowing the development of new designs: for example, transparent or foldable screens are gradually being developed. Smartphones and televisions with curved screens also use OLED technology.

AMOLED

AMOLED stands for Active Matrix OLED. AMOLED technology is widely used in particular in smartphone displays. Samsung Display is the world's leading producer of AMOLED. It is estimated that by ****, more than *** million AMOLED displays will have been produced worldwide. [***]

UV LED

UV LEDs are a technology derived from conventional LEDs, emitting UV A, B or C rays. These properties make it a highly sought-after product in medicine and industry in particular.

The UV LED market is a highly promising market, with market size estimates of up to $*.** billion by ****. In ****, the global market was estimated at $***.* million, with analysts forecasting growth of more than ***% over the period. [***]

Source: ****

LED market favoured by strict regulations in the lighting market

Since the beginning of the ****s, several successive directives have excluded different bulb models from the European markets, particularly the French market. In ****, incandescent light bulbs will first be withdrawn from the markets. [***]

Similarly, halogen bulbs were withdrawn from the market as of * January **** er september ****. This decision is mainly based on these ecological criteria, as more than **% of the energy consumed by halogen bulbs is dedicated not to the production of light but to the production of heat. The only halogen bulb models tolerated will be R*s and G*. However, distributors and wholesalers are entitled to continue selling halogen bulbs from their stock until it is exhausted.

As a result of these two consecutive bans, the options still available on the markets are mainly compact fluorescent bulbs and LED bulbs. The regulatory framework is therefore a key factor in the transition to LED lighting in France. The two previous legislations are in line with the European directive on ecodesign. [***]

5.2 Technical criteria and labelling

In France, LED bulbs and lights must comply with the NF EN *****/A* of **** standards which define the technical criteria that LED luminaires must meet. The standard NF de ****: EN *****, defines the requirements of sécurité́ for LED luminaires. The operating voltage of a LED lamp must not exceed **V alternating current and ***V direct current. LED luminaires must also meet performance criteria. (***).

In addition, European legislation (***) imposes strict labelling of LED light bulbs, which must indicate the components and energy efficiency for the final consumer. Producers are also required to indicate the energy class in all their advertising and offers.

6.1 Segmentation

• Cree
• Signify
• Lucibel
• Clareo Lighting
• ELC Electric Lighting Concept
• Thomson
• Thomson lighting
• Trilux
• OLEDCOMM
• Feel Lighting