LED Packaging Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
*Disclaimer: Major Players sorted in no particular order
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LED Packaging Market Analysis
The LED Packaging Market is expected to grow at a CAGR of 7% during the forecast period. The growing demand and adoption of LED packaging by several industries like automotive, including surged demand for display panel market, CSP LEDs, healthcare, and others, are driving the market's growth. Further, the growing initiatives and regulations to promote LEDs for environmental benefits and energy-efficient solutions fuel market growth.
- LED technology has been capturing the imagination of the lighting industry by offering small and efficient lighting solutions to a diverse set of consumers with enhanced efficiency. Innovations in the industry are saturated, and at the same time, the market has overcapacity. For TV display applications, the industry is moving from OLED to QLED (Quantum dot Light-emitting diode), the latest innovation. This is expected to penetrate more into the market.
- The design process of packaging has directly influenced factors such as temperature, luminescence efficiency, wavelength, life span, and others and has reduced the overall operational costs. Hence, owing to the improvements in the packaging technology of power LED chips, there is increased adoption of LED solutions.
- The requirements for LED packaging are very stringent. If LED chips are not placed into the package precisely, the luminescence efficiency of the overall packaging device might be affected directly. Any variation from the established position will prevent LED light from being entirely reflected from the reflective cup, affecting LED’s brightness.
- Rapid advancements in LED package applications are projected to boost innovation and consumption in the coming years, propelling the LED packaging market. On the other hand, high saturation may limit product acceptance, which, in turn, limits market growth.
- The demand for new LEDs that provide improved night vision and enhanced side visibility is anticipated to outpace existing LEDs in the coming years. CSP LEDs are commonly used in automotive applications such as headlights, cabin illumination, ambient lighting, indicator lights, headlight clusters, driver monitoring systems, and parking-assistance system camera lights. LED package's demand is also driven by high demand for central stack displays, instrument cluster displays, and the introduction of augmented reality-enabled OLED in the automotive display market.
- Since the outbreak of COVID-19, various businesses have faced challenges in the supply chain. The LED industry is no exception; as a significant share of the raw materials for producing LEDs and Drivers originated from Asian countries, the industry was significantly influenced during March and April as the region was under severe clutches of the pandemic. Further, the pandemic led to a decline in demand for display panels from the automotive and consumer electronics industries. Consumers have reduced spending on expensive products, such as high-end smartphones and OLED TVs, negatively impacting the market.
- The rapid enhancement in the applications of LED packaging is expected to increase innovation and consumption in the upcoming years, driving the LED packaging market. On the other hand, high saturation may restrict product adoption, which may affect the market's growth.
- The high competition in the market is restricting the margin, as there is a continuous decline in prices by players to gain market share.
LED Packaging Industry Segments
The LED Packaging Market is Segmented by Packaging Type (Chip-on-board, Surface-mounted Device, Chip Scale Packaging) and Geography.
|Surface-mount Device (SMD)|
|Chip Scale Package (CSP)|
|Rest of the World|
LED Packaging Market Trends
This section covers the major market trends shaping the LED Packaging Market according to our research experts:
Government Initiatives and Regulations to Adopt Energy-efficient LEDs will Drive the Market
- The residential sector outlook has largely been optimistic, driven by a shift in consumer demand toward energy-effective lighting, such as LEDs. Moreover, recent government initiatives and growing awareness among consumers are expected to have a significant impact on the industry.
- For instance, UJALA, a Government of India initiative launched in 2015 to promote energy efficiency in the country, has already distributed over 36 crores of LED light bulbs as of August 2021. such initiatives will show a substantial effect on the LED Packaging Market.
- Out of all the lighting sources, LED lights hold a major share. The growing awareness and increasing government policies have increased LEDs' penetration rate. According to the International Energy Agency (IEA), the penetration rate of LEDs into the lighting market is expected to reach 75.8% in 2025.
- The increasing prominence of LEDs can also lead to the adoption of smart lighting systems (connected lighting) in industries. Owing to the flexibility of LEDs in terms of color variation and brightness, connected systems are more likely to benefit from the use of LEDs over traditional lighting sources.
- In October 2021, the US Department of Energy (DOE) announced that it would invest USD 61 million in ten pilot projects that will use new technologies to turn thousands of homes and businesses into cutting-edge, energy-efficient structures. This involves switching out incandescent and halogen bulbs for more energy-efficient LED lighting. As a result, with the increase in the LED market, the LED Packaging Market in the United States will grow in the forecasted time period.
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Asia-Pacific to Witness the Fastest Growth
- Currently, Asia-Pacific is experiencing a tremendous shift in lighting systems, as companies in this region are adopting LED lighting systems in the industries, owing to their improved efficiency.
- China has gradually reduced the sale of incandescent light bulb products during the last five years. This ensures that outdated technology is soon to be replaced by more advanced and profitable technology.
- The Indian government's plan of deploying cost-effective LED’s across the end users received a decent response. The country is on the verge of replacing all street lamps with LED and adopting smart LEDs for traffic signals. This move is likely to increase the demand for local LED manufacturers, leading to the growth of the LED packaging market.
- Multiple governmental and private initiatives have been driving the need for smart and efficient lighting systems in the modernization and development of infrastructure, such as smart cities across the region, which directly boosts the market for LED packages in the region.
- Government energy efficiency initiatives in the Asia Pacific region have made a significant contribution to the growth of the LED packaging market. Several government schemes and plans to promote energy efficiency are currently in the works in countries such as India and China. Unnat Jyoti by Affordable LEDs for All (UJALA), an initiative launched by the Government of India in 2015 to encourage energy efficiency in the country, has already distributed over 36 crores of LED light bulbs as of August 2021.
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LED Packaging Market Competitor Analysis
The LED packaging market is moderately fragmented in nature due to the presence of several players offering LED packaging.
- September 2021 - Lumileds launched the new Luxeon 7070 (7.7-mm) LED with a lead frame and plastic package aimed at high-performing, ceramic, high-power LEDs in applications such as street lights and sports-venue lighting. Furthermore, developers working on color solid-state lighting (SSL) systems continue to get more options in their tool chest, including a Lumileds phosphor-converted, PC Red-Orange LED.
- August 2021 - Citizen Electronics Co. Ltd announced the development of “Upward-lighting Multicolor LEDs.” Small, high-brightness LED packages that feature an improved color mixing property. They are intended for illumination and indicators for game devices, keyboards for personal computers, home appliances, hobby goods, displays, ambient lighting for automobiles, colored lighting, etc.
LED Packaging Market Top Players
Samsung Electronics Co. Ltd
OSRAM Opto Semiconductors GmbH
*Disclaimer: Major Players sorted in no particular order
LED Packaging Market Recent Developments
- May 2022 - Lumileds LLC launches high-power CSP (chip-scale package) LED. The LUXEON HL1Z is an un-domed, single-sided emitter that delivers high luminous efficacy (137lm/W or more) from a very small package, just 1.4mm square.
- April 2022 - Lumileds LLC has launched the LUXEON HL2Z, an un-domed, CSP (chip-scale package), single-sided, high-power LED that is said to significantly reduce system costs while delivering high flux density, high luminance, and precise beam control. It provides luminous flux of more than 315 lumens and efficacy of more than 160 lumens per Watt from a compact 2.3mm-square package just 0.36mm high.
LED Packaging Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitute Products
4.3 Industry Value Chain Analysis
4.4 Assessment of the COVID-19 Impact on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Government Initiatives and Regulations to Adopt Energy-efficient LEDs
5.1.2 Increasing Demand for Smart Lighting Solutions
5.2 Market Restraints
5.2.1 High Level of Competition in the Market
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Chip-on-Board (COB)
6.1.2 Surface-mount Device (SMD)
6.1.3 Chip Scale Package (CSP)
6.2 By Geography
6.2.1 North America
6.2.3 Asia Pacific
6.2.4 Rest of the World
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Samsung Electronics Co. Ltd
7.1.2 OSRAM Opto Semiconductors GmbH
7.1.3 Nichia Corporation
7.1.4 LG Innotek
7.1.5 Seoul Semiconductor Co. Ltd
7.1.6 Stanley Electric Co. Ltd
7.1.7 Lumileds Holding BV
7.1.8 Everlight Electronics Co. Ltd
7.1.9 Toyoda Gosei Co.
7.1.10 Dow Corning
7.1.11 Citizen Electronics Co. Ltd
7.1.12 TT Electronics PLC
8. INVESTMENT ANALYSIS
9. FUTURE TRENDS
LED Packaging Market Research FAQs
What is the study period of this market?
The LED Packaging Market is studied from 2018 - 2028.
What is the growth rate of LED Packaging Market?
The LED Packaging Market is growing at a CAGR of 7% over the next 5 years.
Which region has highest growth rate in LED Packaging Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in LED Packaging Market?
Asia Pacific holds highest share in 2021.
Who are the key players in LED Packaging Market?
Samsung Electronics Co. Ltd, OSRAM Opto Semiconductors GmbH, Nichia Corporation, LG Innotek, Seoul Semiconductor are the major companies operating in LED Packaging Market.
LED Packaging Industry Reports
In-depth industry statistics and market share insights of the LED Packaging sector for 2020, 2021, and 2022. The LED Packaging research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the LED Packaging report PDF.