North America LED Packaging Market - Growth, Trends and Forecast (2020 - 2025)

The North America LED Packaging Market is segmented by Type (Chip-on-board(COB), Surface-mount Device (SMD), Chip Scale Package (CSP)), End-User Vertical (Residential, Commercial, Other End-User Verticals), and Country (United States, Canada)

Market Snapshot

Study Period:

2020-2025

Base Year:

2019

CAGR:

7.28 %

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Market Overview

The North America LED Packaging Market was valued at USD 3.8 billion in 2019, and it is projected to reach USD 5.4 billion by 2025, registering a CAGR of 7.28% during the forecast period (2020 - 2025).

  • In the past few years, LEDs have attracted tremendous attention for their excellent performances of increased luminous efficiency and improved color rendering for the solid-state lighting application, such as street illumination, display backlighting, and automotive lighting. This has led to the increased awareness and importance of LED packaging that makes it possible to achieve high luminous efficiency, controllable light patterns, and high color uniformity simultaneously.
  • The growing popularity of LEDs will also contribute to the introduction of intelligent lighting (connected lighting) systems in industries. As, the versatility of the LEDs, the powered devices are more likely to benefit from the use of LEDs than conventional light sources in terms of color variability and brightness.
  • Further, the growing demand for energy-efficient lighting systems, declining prices of LED products, and stringent government regulations are some of the major factors driving the adoption of LED lighting in North America and is also expected to drive the LED packaging market in the forecast period.
  •  For instance, in September 2019, the US Department of Energy (DOE) made a new policy into the Federal Register that may eliminate the looming policy that would have required a broader transition to LED sources, starting January 2020. The policy requires ubiquitous A-lamps to be manufactured using LEDs, but other specialty lamps, such as reflector lamps and candelabra- and globe-shaped lamps, may not be required to use LEDs.​
  • Since the outbreak of Covid-19, various businesses are facing challenges pertaining to the supply chain. The LED industry is no exception; as a prominent share of the raw materials for the production of LEDs and Drivers originated from Asian countries, the industry was significantly influenced during the months of March and April as the region was under the severe clutches of the pandemic.
  • Owing to the supply chain issues, the prices of LEDs are expected to go up for a short period of time and may last till mid of 2021. According to the industry body ELCOMA, prices of LED bulbs and lights may see an increase of up to 10% from March due to supply chain shortages.
  • In addition, the demand for LEDs is expected to be hit, and vendors may see a shrinking in their revenues. For instance, due to the pandemic, OSRAM is not expecting to achieve its corporate targets in 2020, and the company is forecasting between plus to minus 3% revenue growth.

Scope of the report

LED packaging determines the ease of use, product quality, and protects the LED components. The scope of the study is limited to hardware product types and their wide area of end-user applications.

Type
Chip-on-board (COB)
Surface-mount Device (SMD)
Chip Scale Package (CSP)
End-user Vertical
Residential
Commercial
Other End-user Verticals
Geography
North America
United States
Canada

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Key Market Trends

Growing Commercial Segment Demand is Expected to Boost the Studied Market

  •  LED lighting products are known for its performance, efficiency, and long term savings as light output efficiency of LED packages can generally reach 80 to 90%. The benefits of LED lighting in the offices, workplaces, or commercial buildings are not only limited to the above factors but also to the fact that installing high-quality LED lights creates a healthy work environment and increases employee productivity.
  • For any commercial space, power requirement, dimming status, IP ratings, efficiency, and power rating is most important before choosing the right LED packages as per requirement. For instance, different occasions and LEDs with different sizes, heat-dissipation methods and luminescence efficiency will have different types of LED packages such as Lamp-LED, TOP-LED, Side-LED, SMD-LED, High-Power-LED, Flip Chip-LED, etc.
  • Commercial buildings like offices account for almost twenty percent of the United States' total energy consumption, and thirty-eight percent of this energy consumption is attributed to lighting. ​In the historical market period, widely-utilized lighting methods were compact fluorescent, linear fluorescent, high-intensity discharge, and incandescent lightings. ​
  • Further, the high-end commercial lighting market mainly includes museums, galleries, and other exhibition lighting applications that primarily use downlights, projectors, and reflectors. ​Major American manufacturers are also actively developing LED lighting business, with the rising LED lighting penetration rate. ​
  • LED lighting manufacturers are further anticipated to witness lucrative market opportunities in the commercial construction segment. The rising cost of energy and increased focus on strong cost management have also supported the strong take-up of energy-saving products, like LED lighting in different commercial settings and is expected to drive the studied market. For instance, in Aug 2020, The YMCA of Greater Nashua announced that it had taken a large step in improving its carbon footprint by upgrading and converting the Y's three facility branches to full LED lighting.
  • The project cost to the YMCA after rebates and incentives was USD 190,000, and it further anticipates that in 24 months, the project will pay for itself in cost savings. In the current market scenario, LEDs lead to around 50% to 70% energy savings and are expected to penetrate almost every niche of commercial lighting.

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Chip Scale Package is Expected to Grow Significantly in the Forecast Period

  • A chip scale package (CSP) LED package has a close-ratio between the volume of the LED chip and the total volume of the LED package. It is essentially a bare LED die on which a phosphor layer is coated, with the underside of the die metallized with the P and N contacts to form the electrical connection and thermal path.
  • The growing demand for CSP LED architecture which is the latest incarnation of flip-chip LEDs and prevents light loss due to the mounting of electrode pad on the upside of P-type GaN layer while improving heat transfer efficiency and package reliability, due to significant cost saving in commercial infrastructure is expected to augment the studied market.
  • Vendors in the market are introducing new products to maintain their competitive advantage. For instance, Samsung introduced LM101B CSP LEDs that uses a film phosphor in the conversion layer to reduce surface roughness and enable uniform control of thickness with small color dispersion. The fillet-enhanced CSP (FEC) technology forms TiO₂ (Titanium dioxide) walls around the chip surface to reflect its light output toward the top, allowing the mid-power CSP delivers an industry-leading efficacy of up to 205 lm/W (65mA, CRI 80+, 5000K).
  • Moreover, some of the vendors offer Chip Scale Package (CSP) LEDs to specific application. For instance, OSRAM design CSP LEDs for high class retail lighting in brand fashion boutiques and jewelry stores. Professional designs for customized CoB and small luminaires are the main applications being supported by CSP.

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Competitive Landscape

North America LED packaging market is competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability. The companies operating in the market are also acquiring start-ups to strengthen their product capabilities.

  • December 2020 - Everlight Electronics has expanded its monthly packaging capacity for IR and UV-C LED devices by 200 million chips, and has reached more than one billion chips in total in 2020.
  • November 2020 - BIOS, a Human Centric Lighting innovator, and Lumileds have joined forces to create a new SkyBlue LED that doubles previously available chip performance. The new 3030 mid-power LED dramatically reduces the lumen per dollar development barrier facing luminaire manufacturers and eliminates a key barrier to bringing better, healthier lighting solutions to market.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Growing Demand For High-Speed Network

      2. 4.2.2 Increasing Demand for Energy-efficient

    3. 4.3 Market Restraints

      1. 4.3.1 Lack of Awareness and Higher Capital Investment Required

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Impact of Covid-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Chip-on-board (COB)

      2. 5.1.2 Surface-mount Device (SMD)

      3. 5.1.3 Chip Scale Package (CSP)

    2. 5.2 End-user Vertical

      1. 5.2.1 Residential

      2. 5.2.2 Commercial

      3. 5.2.3 Other End-user Verticals

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Lumileds Holding B.V.

      2. 6.1.2 Dow Silicones Corporation

      3. 6.1.3 Citizen Electronics Co.,Ltd.

      4. 6.1.4 Cree, Inc.

      5. 6.1.5 Epistar Corporation

      6. 6.1.6 OSRAM Licht AG

      7. 6.1.7 Everlight Electronics Co., Ltd.

      8. 6.1.8 LG Corporation (LG Innotek)

      9. 6.1.9 Samsung Electronics Co. Ltd

      10. 6.1.10 Nichia Corporation

  7. *List Not Exhaustive
  8. 7. INVESTMENT ANALYSIS

  9. 8. FUTURE OF THE MARKET

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