Optoelectronics is the fastest growing semiconductor product segment and is making significant advances into many markets, according to a report from Databeans.

The push for energy efficiency across the entire industry has led to new developments and applications for LEDs, image sensors and other light controlling products.

In 2010, optoelectronics will represent the fifth largest semiconductor market by global sales behind logic, memory, microprocessors and analogue, with US$20.6bn in projected total revenue, or 7% of the total semiconductor market share.

Unit shipments are expected to increase this year as demand for LEDs and OLEDs in new products drives a shift in share from higher priced image sensors to these energy efficient lamps that are now often used for backlighting electronics displays.

Over the next five years, the report predicts optoelectronics to experience the industry’s highest average growth of 12% annually, reaching $36.5bn by 2015, at which time it will account for 9% of the total projected $421.5bn semiconductor industry.

In revenue and shipments, it is the LED product category that is driving growth in the optoelectronics market. Databeans projects that this segment will reach $6.9bn in 2010 with average annual growth rates of 20%, culminating in sales of $17.4bn by 2015. The forecast calls for strong demand for these components that will be used to replace less efficient lighting in many applications.