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Module development lights up the future LED value-chain
As the LED revolution causes major disruption in the lighting industry, many companies, particularly those in the LED sector, are contemplating how to position themselves for future growth and profitability. McKinseys comprehensive research shows that current LED industry dynamics favor LED moduling, as MICHAEL VIERTLER, DOMINIK WEE, and OLIVER VOGLER discuss.
As in other industries that have been derailed by disruptive technology, the "LED revolution" is forcing the lighting industry to redefine itself. Many lamp and luminaire players are realigning their strategies, deciding how and when to adopt the new and innovative LED technology.
McKinsey's proprietary research on the professional lighting industry, this article discusses how the profit pool around today's traditional lighting value-chain will develop into the LED lighting value-chain of 2020, and the implications this has for companies at different steps of the value-chain. McKinsey's research shows that "moduling"•the development of LED-based modules•will be the most attractive value-chain step going forward
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