Market Trends of North America LED Packaging Industry
This section covers the major market trends shaping the North America LED Packaging Market according to our research experts:
Growing Commercial Segment Demand is Expected to Boost the Studied Market
- LED lighting products are known for their performance, efficiency, and long-term savings, as the light output efficiency of LED packages can generally reach 80 to 90%. The benefits of LED lighting in offices, workplaces, or commercial buildings are limited to the above factors, and 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 are 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 the 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 metalized 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 a 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 use 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 to deliver 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 applications. For instance, OSRAM designs 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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