North America LED Packaging Market Size

North America LED Packaging Market Analysis

North America LED Packaging Market is expected to register a CAGR of 7.28% during the forecast period (2021 - 2026). In the past few years, LEDs have attracted tremendous attention for their performances of increased luminous efficiency and improved color rendering for solid-state lighting applications, such as street illumination, display backlighting, and automotive lighting. This has led to the increased awareness and importance of LED packaging, making it possible to simultaneously achieve high luminous efficiency, controllable light patterns, and high color uniformity.

• The growing popularity of LEDs would 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, according to the US Department of Energy, the price of cool white LED lamps in the United States was USD 0.88 per Kilolumen and is forecasted to drop to USD 0.3 Kilolumen by 2035.
• Additionally, Since the past decade, the use of LEDs for residential and commercial lighting has increased exponentially, with a wide range of features that incandescent and fluorescent lighting systems are unable to deliver.
• Since the outbreak of COVID-19, various businesses have been 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 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 their spending on expensive products, such as high-end smartphones and OLED TVs, which has negatively impacted the market.
• 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-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.