Emission mechanisms of a device-quality quantum well (QW) structure and bulk three dimensional (3D) InGaN materials grown on sapphire substrates without any epitaxial lateral overgrown GaN base layers were investigated. The InxGa1−xN layers showed various degrees of in-plane spatial potential (band gap) inhomogeneity, which is due to a compositional fluctuation or a few monolayers thickness fluctuation. The degree of fluctuation changed remarkably around a nominal InN molar fraction x=0.2, which changes to nearly 0.08–0.1 for the strained InxGa1−xN. This potential fluctuation induces localized energy states both in the QW and 3D InGaN, showing a large Stokes-like shift. The spontaneous emission from undoped InGaN single QW light-emitting diodes (LEDs), undoped 3D LEDs, and multiple QW (MQW) laser diode (LD) wafers was assigned as being due to the recombination of excitons localized at the potential minima, whose lateral size was determined by cathodoluminescence mapping to vary from less than 60 to 300 nm...