Market research firm Trendforce said that it will be worth $30.5 billion and while it accounts for 31 percent of the lighting market in 2015, that share will rise to 36 percent next year.
Joanne Wu, a research manager at Trendforce, said sharp price drops have hit the market for replacement LED light bulbs. So the companies are targeting large enterprises and commercial customers for growth.
Demand in the USA is particularly strong, said Wu, particularly in lighting for industry, horticulture and the maritime market.
New applications for LED lights include so called smart lighting and light communication.
India, she said, plans to buy 200 million LED light bulbs by the end of 2016.