Europe LED Packaging Market Size

Europe LED Packaging Market Analysis

The European revenue of the LED packaging market is expected to grow at a CAGR of 8.2 %. LED packaging refers to the usage of Light Emitting Diodes in the products under consideration. The LED technology has captured the imagination of the lighting industry by offering small and efficient lighting solutions to a diverse set of consumers, with power-saving features and enhanced efficiency. Thus, manufacturers are focusing on LED design for appropriate packaging and viability of the end product.

• The LED packaging market's growth is driven by the surge of demand for efficient UV LED packages amid the pandemic of disinfection systems. UV LEDs are also used in UV curing and biomedical research. UV radiation can be classified into UV-A, UV-B, and UV-C. The pandemic has boosted the demand for UV-C LEDs, with the light having germicidal properties by killing the bacteria and viruses by destroying their nucleic acids and disrupting the DNAs. Currently, UV-C LEDs are used in air, water, and surface disinfection systems while offering longer lifetimes and reliability.
• The recent government initiatives and regulations are promoting the use of LEDs for energy conservation, efficiency, and environmental benefits. This has driven the market for SMD LEDs that are versatile and can accommodate chips with complex designs. SMD LED packages used in luminaires are growing continuously due to the superior energy efficiency of these LEDs compared to other conventional light sources. This growth can also be attributed to the steep fall in the price of SMD LEDs, thereby making them affordable for consumers.
• LED packages market is also driven by the automotive interior and exterior lighting due to the high demand for central stack displays and instrument cluster displays. The latest trend in LED packaging technology is CSP technology, which has gained momentum in recent years in the automotive vertical owing to its features such as high optical density, good lumen maintenance, color stability, reduced current consumption, and reliability over conventional LED packages. 
• Additionally, the automotive display market in the region is expected to experience substantial developments in the coming years. For instance, the introduction of augmented reality-enabled OLED in the automotive display market and some of the major automotive manufacturers in Europe have started to integrate OLED displays in dashboards and other screens from 2020 in most of their vehicles due to the high demand for central stack displays and instrument cluster displays.
• The market is witnessing intense competition owing to the surged price pressure and increased number of manufacturers offering these LED packages. The global consumer base for TVs has reached saturation as consumers keep using old products as long as they serve their expectations, resulting in limited demand for new technology-based products. Additionally, the increased pricing competition in the LED packaging market has pressured LED manufacturers to develop innovative lighting solutions.
• The LED packaging business saw a decline in the European Market market due to the COVID-19 pandemic. Many countries in Europe implemented more stringent infection control measures because of the spread of COVID-19. Some of the primary critical players in the market saw an unprecedented slump in the LED packaging business. The ongoing trade disputes, geopolitical uncertainties, and the continued decline in automotive manufacturing are the other crucial challenges in the European LED packaging market.