The Financial Times believes LED technology is reaching a tipping point

A glut of manufacturing capacity and near-collapse in rare earth metal prices is driving down the cost and hence encouraging the rapid take-up of light-emitting diode (LED) lighting.

LED lights are based on semiconductors and therefore do not require traditional lamp manufacturing expertise. This has opened opportunities for LED chipmakers to challenge the incumbent incandescent light bulb manufacturers such as Philips, Osram and General Electric (GE), who have enjoyed a near-monopoly of the market according to an FT article.

The Financial Times believes LED technology is reaching a tipping point, particularly for the commercial sector, as price declines bring forward the payback time on the initial cost of investment. According to McKinsey, quoted in the article, LEDs are set to account for 41 percent of the overall value of the lighting market in 2016 and 63 percent by 2020, versus 12 percent last year.