LED manufacturers are having a tough time keeping up with demand, says market research iSuppli, who warns that the market might be on the verge of a shortage.
"It is clear that demand is outstripping supply," said Jagdish Rebello, senior director and principal analyst for wireless research at iSuppli. "With LED market growth forecasted to rise by double-digit percentages for at least the next three years, including 2010, a drastic undersupply situation could occur this year unless additional capacity is brought online to meet the increased demand."
The shortage mostly applies to LED LCD TVs, which employ anywhere from 300 to 500 LEDs per panel. Notebooks use about 50 LEDS, while monitors require about 100 LEDs.
"On the demand side, the shortage is being spurred by strong consumer desire, given the growing popularity of LED-backlit LCD TVs due to their super-slim form factors and improvements in pictures quality," said Sweta Dash, senior director for LCD research at iSuppli.
Still, LED manufacturers have a little bit of wiggle room, but not much. Total consumption of LEDs climbed to 63 billion units in 2009, up from 57 billion in 2008, while the industry's total capacity sits at about 75 billion.