The first LED was developed in the 1960s by combining three primary elements: Gallium, Arsenic and Phosphorus (GaAsP) to obtain a red light source, primarily used as indicators.

As LED technology progressed through the 1970s, additional colors and wavelengths became available. The most common materials were GaP green and red, GaAsP orange or high efficiency red and GaAsP yellow, all of which are still used today. During this decade, the trend towards more practical applications began to develop.

In the 1980s, a new material, GaAlAs (Gallium Aluminum Arsenide) was developed. A rapid growth phase in the use of LEDs began to occur. Although GaAlAs was a major breakthrough in LED technology, there were still significant drawbacks, especially when LEDs were exposed to high temperature and/or high humidity environments. During this time, yellow, green and orange only made a minor improvement in brightness and efficiency, primarily due to lack of improvements in crystal growth and optics design.

In the late 1980s, laser diodes with output in the visible spectrum began to be commercially produced for applications. The use of InGaAlP (Indium Gallium Aluminum Phosphide) as the luminescent material allowed flexibility in the design of LED output color; thus, green, yellow, orange and red LEDs could all be produced using the same technology. Additionally, light output degradation of InGaAlP material is significantly improved even at elevated temperature and humidity level.

The growth for LEDs in the 1990s was concentrated in three areas: traffic control devices, variable message signs, and automotive applications.