How are LEDs used in illumination?

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The physics of LED lighting need to  be matched to application need.  LEDs are a point source; their light spreads in a beam pattern, which makes it more challenging in some applications where 360 degree illumination. On the other hand, being a point source is an advantage in applications like a street light.  Chip size impacts design as size of optics needs to be scaled to chip size.  Options with LED lights include diffusion films, TIR lens, and light pipe.  The beam pattern, efficiency, and uniformity of light are considerations undertaken by the lighting engineer.  Off the shelf optics are available from vendors like Arrow and Future Electornics.  For higher volume and design ownership, design is favored.  Once a rayset is obtained from a vendor, the lighting engineer can generate a design.  Part pricing ranges between 20 cents and $2.5 and tooling costs range between $7000 and $40000.

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