Growing demands in the LED lighting market were fueled by decreasing product prices, government ban on incandescent light bulbs, and the shift away from traditional lighting to LED energy efficient lighting. Financial service company Credit Suisse believes that from the current state of the industry, LED manufacturers have already begun moving into two different directions, with manufacturers like Philips Limileds, OSRAM, CREE, Samsung LED, and Innotek mainly moving towards products and manufacturers like Epistar, Lextar, and Seoul semiconductor towards OEM.

Credit Suisse has a positive outlook for the OEM positioning strategy of Epistar and Lextar. At the same time they believe that compared to the horizontal labor division system that was established in the past due to increased growth in LED backlight demand, the move towards vertical integration upon entering into the LED lighting era has given LED manufactures more advantages. Epistar has therefore adopted a virtual integration strategy while Lextar chose to adopt vertical integration strategy from LED epitaxial wafers to packaging. The switch to vertical integration for both manufactures was looked at positively by Credit Suisse.

According statistics provided by Credit Suisse, LED permeability rate for LED lighting in 2013 rose to 21 percent compared to 16 percent from 2012. The rate is expected to rise to 37 percent by 2015. Production value in 2013 is roughly US $18 billion and is predicted to reach US $34.3 billion by 2015, with a total growth rate of 40 percent. Credit Suisse is confident about the growth characteristics for operational use of commercial and architectural applied lighting.

They believe that these applied fields have the highest permeability for 2013. However, residential lighting is still lagging and according to Credit Suisse, this applied lighting field will only see a rise in permeability rate if light bulb prices drop and government subsidies are issued.