By 2010, the global LED market may consist of sectors for high-technology innovations and for simple, inexpensive devices for mass-produced goods, according to a report from ABI Research of Oyster Bay, N.Y. The study, titled LEDs and Laser Diodes: Solid State Lighting Applications, Technologies and Market Opportunities, provides analyses of various aspects of the industry and reviews factors that may affect its growth, such as the organic LED industry and the current shortage of indium.

The report predicts that the "general lighting" end of the market will experience a period of consolidation. It is now characterized by price cutting, low margins and intellectual property disputes that disrupt supply chains. ABI says that the high-technology companies that protect their intellectual property and guarantee delivery will find new applications to help them maintain a competitive edge.

High-quality LEDs will be incorporated into complex systems such as stage lighting, automotive headlights and large televisions. These markets are expected to experience high growth by 2010. Also, because of the technology's energy-saving benefits, governments are adding significant support to the industry through contracts and research funding.