|Study Period:||2018 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The LED Chips Market is expected to grow at a CAGR of 12.3% over the forecast period 2021 - 2026. The primary driver behind the investments has been the continuous evolution and application of new technologies to unlock enormous volumes that were previously considered non-commercial. With technological changes and advanced research and development, the cost of manufacturing LED has also decreased. Thus, this has significantly reduced the average selling price (ASP) of LEDs and making them a preferred choice among consumers.
- The automotive industry is at the forefront of the adoption of LED lighting both in the interior and exterior segments. OSRAM, one of the leading producers in the lighting industry and a pioneer in producing lighting for the automotive industry, has supplied lighting equipment to several manufacturers. The 3D printing capabilities resulted in a lightweight module being used for automotive applications, thus, helping the vendors. However, such applications have been limited to premium automobiles.
- A recent report published by LEDinside stated that Micro LED technology not only offers excellent performance in brightness and contrast that surpass OLED, it also has fast response time, low power consumption, and reliability, which makes it a perfect option for mobile and automotive applications.
- Recently, the Government of India supported the plan of deploying cost-effective LED’s across the country among different end users. According to the Indian government, LED adoption is driving to an annual energy savings of over 3,350 million kWh and resulting in avoidance of over 6,725 MW of peak demand. Moreover, according to a report released by the Minister of Urban and Housing Affairs, India, 148 projects have been completed until January 2020, under India’s Smart Cities Mission. Besides this, 407 projects have already been initiated, and another 237 projects are in the tendering stage.
- The other major driver behind global LED chip growth is the rise of LED niche lighting, in the fields of fishing lighting, healthcare lighting, marine, horticulture lighting, and harbor lighting. For signs and signals, LED chips are increasingly being used. These can operate with solar power or electricity, which can be used to control both vehicle and pedestrian traffic at intersections. The Signs and Signals lights are equipped with LED technology to have extremely low power consumption values.
- The companies are continuously investing in product innovation for expanding the applications of LEDs for high-end applications. Recently, in January 2020, Osram introduced its latest projector power series of LED chip, offering a brightness of 000 ANSI lumens. LED is crucial for the development of new video displays and sensors, with their high switching rates used for advanced communications technology. The growing applications indicate the need for a variety of LED chip.
- Therefore, the growth in the LED applications, like the consumer goods and automotive sectors, along with healthcare and biomedical instrumentation and forensic, supports the growth of the LED chips market. For the TV display application, the industry is moving from the usage of LED to OLED (Organic Light-emitting diode), which is the latest innovation and is expected to penetrate more into the market. This trend may cater the volume growth of the LED market and so the LED chip market.
- In the wake of the COVID-19 pandemic, the UVC LED sector has gained momentum. UVC products, mostly for surface disinfection, are flooding the market as a result of the COVID-19 outbreak. Disinfection is not included in the present norms and guidelines for the use of these devices. It is expected that UV LED market will expand at the same rate as the classic UV lamp market when the technology is on par with the traditional UV lamps. Such a change could also result in an increase in system value as a result of the transition.
Scope of the Report
The design process of LED chips has directly influenced by factors, such as temperature, luminescence efficiency, and wavelength, which has resulted in market vendors experiencing a reduction in the overall operational costs. Furthermore, with improvements in the lighting technology of power LED chips, there is increased adoption of LED solutions. The study for the LED chips market has considered the varied application of LED chips including, backlighting, automotive, illumination, and signs and signal, among others.
|Signs and Signals|
|Middle East and Africa|
Key Market Trends
Automotive is Expected to Hold Major Market Share
- Vehicle manufacturing is on the rise around the world, which has a positive impact on the automotive lighting industry. The automotive lighting market revenue is heavily influenced by the increasing production of electric automobiles due to lower fuel costs and detrimental environmental emissions. As ambulances and police cars increasingly rely on lighting systems for signalling purposes, the demand for lighting techniques in vehicles has increased. The worldwide car lighting market is primarily driven by government activities to maintain road safety, such as generating awareness about vehicle protection and illuminating roadways with appropriate usage of automotive lighting.
- Rising concerns about the need for a better lighting system, cost-effective, and less power consumption are the key factors driving the LED market in automotive end-users. LEDs are currently in the process of replacing classic bulbs in modern vehicles. They not only provide high luminous efficiency and increased safety, but also more design freedom and a great level of savings potential. Cree color LEDs are optimized for transportation lighting, including emergency-vehicle lighting.
- LED lamp mainly consumes only one-tenth of the electricity consumed by an incandescent lamp. In this context, the European Union has officially recognized LED headlamps as an energy-efficient technology. Companies like OSRAM offer a broad range of LEDs for Automotive industry; for example, Audi is using OSRAM LEDs in the Headlights of a new model of Audi A8. For general lighting, OSRAM has almost all types of SMD LEDs from 0.1W to 5W, in all dimension packages, i.e. 3030, 5050. 5630, 2835, and others.
- According to Clearwater International, by 2020, the global automotive LED lighting market was expected to grow to around USD 7.3 billion. In coming time, huge demands for LED Chips are expected from the United States and the Asian regions, like South Korea, China, and Taiwan, due to the significant productions of automotive and hybrid cars.
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Asia Pacific is Expected to Witness the Highest Growth Rate
- Geographically, the Asia-Pacific region has a positive demand for consumer electronics and automobiles, where rapid changes in technology are resulting in high performance. Thus, the need for high and medium-power LEDs is expected to grow. The region has been the largest market for consumer electronics, considering the rising disposable income, rapid urbanization, and a shift in spending habits.
- China is also amongst the major exporter of LED solutions across the world, along with this the country is home to numerous local vendors that cater to the local demand. In April 2020, Chinese LED companies, including chipmakers Sanan Optoelectronics and HC Semitek and LED packager MLS, claimed to have received government subsidies. For instance, Sanan Semiconductor, the subsidiary of Sanan Optoelectronics, received RMB 200 million from the local government based on investment collaboration. Such initiatives by the government are expected to boost the country’s development in the LED lighting industry, which will create significant demand for LED chips.
- Japan is eventually shifting towards deploying LED lighting solutions from conventional lighting solutions as part of the country's energy efficiency initiatives. For instance, in November 2019, about 600,000 LED lights were used to light up trees along Tokyo’s Shibuyakoen-dori street and zelkova trees in the park.
- In February 2020, MINEBEA MITSUMI Inc. and IWASAKI ELECTRIC CO., LTD. were provided the Suginami Ward demonstration field, as they jointly launched the "IoT Streetlight Demonstration Experiment" to support the country’s smart city project. The test site will be equipped with 11 smart streetlights and one environmental sensor near the north exit of Nishi-Ogikubo Station. Such instances addresses the growth of LED chip.
- Furthermore, in order to promote investments in the market, the Indian government has imposed a free tariff (basic tariff) on LED component imports, facilitating the LED products as well as LED chip to enter the market as semi-finished products. Further with the Indian government’s announcement of installing 2.1 lakh LED lights in Delhi, the state capital joined India’s LED revolution in full force. The growing need for LED technologies has also resulted in a sold-out edition for LED Expo New Delhi 2019 once again with 350 exhibitors further helping the LED chip to grow.
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The LED chips market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. The manufacturers are focussing on product differentiation, in order to gain a competitive advantage. The manufacturers are also trying to portray their products as superiors, in terms of quality, to achieve higher sales.
- March 2021 - SMART Global Holdings, Inc. announced the completion of its acquisition of Cree, Inc.'s Cree LED Products business unit ("Cree LED"). SGH's Cree LED business unit will operate as Cree LED. SGH expects to go over the Cree LED acquisition in greater depth at its increasing quarterly earnings.
- August 2021 - Lumileds announced its latest phosphor-converted (PC) LED, a PC Red-Orange LED that is part of the LUXEON 2835 Color Line. With the addition of PC-Red Orange, the LUXEON 2835 Color Line now includes 12 color options and 3 different white CCTs.
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 Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitute Products
4.4 Technology Snapshot
4.4.1 Lateral Chip
4.4.2 Vertical Chip
4.4.3 Flip Chip
4.5 MARKET DYNAMICS
4.5.1 Impact of Covid-19 on the Market
4.5.2 Market Drivers
126.96.36.199 Backlighting Application of Devices Boosting the LED Chips Market
188.8.131.52 R&D Investments and Government Initiatives
184.108.40.206 Power Efficiency of LED Chips
4.5.3 Market Restraints
220.127.116.11 Growing Adoption of OLEDs in Consumer Electronics
5. MARKET SEGMENTATION
5.1 By Application
5.1.4 Signs and Signals
5.1.5 Other Applications
5.2.1 North America
5.2.3 Asia Pacific
5.2.4 Latin America
5.2.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Key Vendor Profiles
6.1.1 OSRAM Opto Semiconductors GmbH
6.1.2 Nichia Corporation
6.1.3 Philips Lumileds Lighting Company
6.1.4 Epistar Corporation
6.1.6 Bridgelux Inc.
6.1.7 TOYODA GOSEI Co.
6.1.8 Seoul Viosys Co. Ltd
6.1.9 Samsung Electronics. Co. Ltd
6.1.10 Cree Inc.
6.1.11 Formosa Epitaxy
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The LED Chips Market market is studied from 2018 - 2026.
What is the growth rate of LED Chips Market?
The LED Chips Market is growing at a CAGR of 12.3% over the next 5 years.
Which region has highest growth rate in LED Chips Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in LED Chips Market?
Asia Pacific holds highest share in 2021.
Who are the key players in LED Chips Market?
OSRAM Opto Semiconductors GmbH, Nichia Corporation, Philips Lumileds Lighting Company, Epistar Corporation, SemiLEDS are the major companies operating in LED Chips Market.