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Mechanism
Electrons inside an LED interact with other electrons when they are switched on. This interaction releases energy stored in photons -- often as light electroluminescence. The color of this released light is based on the specific energy of the photons, and can be controlled by how many -- and how quickly -- electrons are allowed to interact.
History
The origin of the LED lies with a Soviet research scientist, Oleg Vladimirovich Losev, who died in obscurity and poverty in 1942. In the 1920s, Losev observed that light was emitted from zinc and silicon diodes when a current was passed through them. By 1968, commercial LED lights were introduced, although these LEDs produced weak amounts of luminescence, measured in lumens, and burned out quickly. However, research continued on the LED, and in 2006, according to "Forbes Magazine," manufacturers produced an LED light that produced an output of 1,000 lumens, similar to the output of a standard light bulb.
Industry
As LEDs gain lumen strength, their demand is expected to grow exponentially. "Forbes Magazine" stated in 2006 that "...annual global sales of high-brightness LEDs already total $4 billion." According to LED researcher Nikolay Zheludev, the value of the LED market will exceed $15 billion per year in the next decade. They are cost-effective, durable and environmentally friendly, and are already replacing comparable light bulbs in lighting displays in the White House and in Buckingham Palace, as well as in household holiday decorations.
Environmental Support
LEDs are being championed by environmental activists and government agencies because of their reduced energy and carbon-emission footprint. An LED requires less energy to produce equivalent amounts of light -- while also emitting less than 1/4 the amount of carbon -- as that of an average light bulb.