29 July 2020
Mini-LED market to expand by 7.5x, at 22% CAGR, by 2030
Although demand for mini-LEDs has been hit by the COVID-19 outbreak due to decreased production by end-use industries and dwindling demand from consumers, the mini-LED market is still poised to expand 7.5-fold, at a compound annual growth rate (CAGR) of 22%, through 2030, forecasts a new study from Fact.MR. Standard mini-LEDs are estimated to account for 26% share of total market revenue in 2020, but are forecast to lose 2000 base points (BPS) in market share by 2030.
In recent years, the increasing popularity of organic light-emitting diode (OLED) TVs in China and India has been significantly influencing growth of the mini-LED market. With an increase in disposable income of a majority of the population in these countries, the inclination towards smart screens with higher lifespan and better performance is expected to open up numerous growth opportunities for the mini-LED market. Moreover, aspiring and affluent households have increased their spending on consumer electronics products and smart gadgets, which is set to drive demand from end-use industries in the mini-LED market.
Consumer electronics applications therefore continue to influence the growth strategies of market players, and are expected to contribute revenue of US$150m in 2020 and US$1150m by 2030, growing at a CAGR of 23%.
As the focus on the Internet of Things (IoT) and smart devices becomes stronger worldwide, market players are eyeing potential opportunities in unexplored markets. Highly populous Asian countries, in particular, offer a huge customer base for leading manufacturers of mini-LEDs (with East Asia projected to hold a prominent share of global mini-LED market value, although North America is projected to see the highest growth rate during the forecast period).
High adoption of digitalization and a surge in the number of end-use industry product manufacturers are opening up new avenues for the mini-LED market. For example, the automotive segment is expected to grow at a 21.5% CAGR and create an absolute dollar opportunity of US$230m during the forecast period.
“Collaboration with end-use industry players and vertical integration for gaining market share and increasing brand awareness are important to gain traction as competition increases in the mini-LED market,” says a Fact.MR analyst.
Prominent players in the mini-LED market include Cree, Vishay, Revolution Lighting Technologies Inc, Orion Energy Systems Inc, Deco Lighting, and Epistar. Such key players are hence focusing on capacity expansion and vertical integration. Furthermore, companies are expanding their market reach with the help of e-Commerce and numerous digital platforms to reach their target customers. In addition to the above strategies, companies are also collaborating with end-use industry players, notes the study.