29 November 2016

High-brightness LED production value to grow at 3.7% CAGR to $15.25bn in 2021

The value of global high-brightness LED chip production will rise at a compound annual growth rate (CAGR) of 3.7% from $13.179bn in 2017 to $15.25bn in 2021, according to Digitimes Research.

While Germany's Osram Opto Semiconductors and China-based first-tier manufacturers will expand production capacity for high-brightness LED chips, China-based makers are expected to trigger price-cut competition, and hence global production value for such chips will grow moderately during 2017-2021, Digitimes Research says. In particular, overall production of LEDs in China is forecast to grow rapidly at a CAGR of 16.2% from CNY620bn ($92.5bn) in 2017 to CNY1300bn in 2021.

In terms of high-brightness LED chip applications, lighting and automotive lighting/displays will grow at a CAGR of 12% and 11.3%, respectively, in global production value during 2017-2021. In contrast, handset and LCD TV backlighting applications will remain flat in 2017 and then begin declining in 2018. IT product backlighting will slip 5-10% each year, whereas indoor/outdoor display applications will rise 0-5% each year.

For LED lighting in particular, the global market will grow from $40.424bn in 2017 to $70.51bn in 2021, with the penetration of all lighting products rising from 36.7% to 70.2%, forecasts the report.

In addition to visible-light LED chips, infrared (IR) LED chips have niche market applications including sensing in gaming, biometrics, distance measurement, IoT (Internet of Things) and automotive sensors. Meanwhile, ultraviolet (UV) LED chips are mostly used for industrial purposes. The global production value of IR LED chips will grow at a CAGR of 30% during 2017-2021 while that for UV LED chips will grow at a CAGR of 18%, adds the report.

Tags: LEDs Lighting market Automotive LED lighting

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