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22 October 2018

CSP LED market to grow at 18.2% CAGR from $757.7m in 2018 to $1744.8m in 2023

© Semiconductor Today Magazine / Juno PublishiPicture: Disco’s DAL7440 KABRA laser saw.

The chip-scale package (CSP) LED market will rise at a compound annual growth rate (CAGR) of 18.2% from $757.7m in 2018 to $1744.8m by 2023, according to a report from MarketsandMarkets.

With a low bill of materials due to the manufacturing process (where several packaging steps are omitted), the low-cost potential of CSP LEDs is a major factor driving growth. Small form factor and wide beam angle (due to high package density) coupled with low thermal resistance and uniform current spreading are other factors that are contributing significantly to the adoption of CSP LEDs in different applications. Heightened competition in the packaged LED market has led to the development and launch of new and innovative CSP LEDs with improved designs and high-end specifications, notes the report.

General lighting and automotive segments to define growth

The adoption of CSP LEDs in the general lighting and automotive segments will play a crucial role in market growth during the forecast period. Demand for CSP LEDs is expected to increase rapidly in the next five years mainly from these two segments offering growth opportunities to CSP LED makers. The automotive segment is expected to grow at the fastest CAGR. There is currently negligible adoption of CSP LEDs in the automotive segment, mostly in replaceable headlights (supplied by local/regional vendors by using CSP LEDs from manufacturers such as Seoul Semiconductor). Although the market for CSP LEDs in the automotive segment is very small, demand for mid- and high-power CSP LEDs is expected to rise exponentially from 2018 onwards when automotive manufacturers and automotive lighting suppliers begin adopting CSP LEDs for new installations.

High-power CSP LEDs to be main focus

High-power CSP LEDs are expected to dominate the CSP LED market during the forecast period. With the exponential growth in demand in the automotive and general lighting segments, high-power CSP LEDs will find use in several applications such as automotive headlights, high-bay lighting, street lighting and architectural lighting, it is reckoned.

APAC to account for most demand

Most LCD displays are produced in the Asia-Pacific (APAC) region, which registered the most shipments of CSP LEDs. APAC’s dominance is due mainly to South Korea, followed by China, Japan and Taiwan, with high demand for CSP LEDs for display backlighting, mobile flash and other applications. CSP LEDs reduce the total number of LEDs required per backlighting panel along with the form factor of the back-light unit (BLU). The presence of leading CSP LED makers and customers (i.e. smartphone vendors, backlighting panel integrators, and display panel makers) in APAC is the reason for the region’s dominance in the market.

APAC’s growth will also be driven by the rise of newer CSP LED applications in general lighting and automotive, for which the surge in demand will driven by high economic growth rates in the region and the focus of governments on energy-efficient lighting.

Major players in the market are cited as Lumileds (The Netherlands), Samsung (South Korea), Seoul Semiconductor (South Korea), LG Innotek (South Korea), Osram (Germany), Nichia (Japan), Epistar (Taiwan), Cree (USA), Genesis Photonics (Taiwan) and Lumens (South Korea).

Tags: LED market

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