The LED market is currently characterised by very rapid growth and extremely short product life cycles. The short life cycles of LED products demand increased expenditure on development, production and marketing. Luminaires become uncompetitive after a relatively short time and have to be replaced by successor products. This speeds up activity in the lighting sector and ties up large amounts of capital and resources.
Because costs are relatively high and volumes are comparatively low, LED light sources and luminaires are still fairly expensive. However, the high production costs and prices of LEDs are expected to drop in the medium term, thus making LED products even more attractive.