Market Trends of LED Packaging Industry
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 This ensures that outdated technology is soon to be replaced by more advanced and profitable technology.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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