News: Markets
27 February 2024
LED packaging market to grow at 3.9% CAGR from $16bn in 2024 to $19.4bn in 2029
The LED packaging market will rise at a compound annual growth rate (CAGR) of 3.9% from US$16bn in 2024 to US$19.4bn in 2029, forecasts a new report from MarketsandMarkets.
The major factors driving the growth of the LED packaging equipment market include the growing adoption in automotive lighting solutions and the surging prices of packaged LEDs. Additionally, the ongoing development of advanced LED packaging technologies is expected to create growth opportunities for the LED packaging market in the future.
CSP package type to see highest CAGR
The widespread adoption of chip-scale package (CSP) LEDs over surface-mounted device (SMD) LEDs is attributed to their numerous advantages such as minimized footprint, slim profile, cost-effectiveness, elevated lumen output, reduced weight, improved electrical performance, and an enhanced organized distribution of connections. These attributes contribute to effective utilization of the epitaxial manufacturing process. High-performance CSP LEDs can be used for applications that require high output, such as automotive, where conventional mid-powered LEDs were previously utilized. The CSP package type is hence expected to register the highest CAGR in the LED packaging market during the forecast period.
General lighting to have largest market size
The general lighting application is projected to dominate the LED packaging industry due to the increasing demand for LED lighting in commercial settings and the widespread adoption of LED technology as a replacement for traditional light sources, which results in reduced energy consumption. The prominence of this market is growing further due to the efforts of governments and regulatory bodies to promote energy conservation, particularly in the residential and industrial sectors.
Asia Pacific to see highest CAGR by region
The Asia Pacific region’s substantial share of the LED packaging market can be attributed to rapid infrastructure development, particularly in China. These infrastructure projects prioritize efficiency, paving the way for modernization. The ongoing modernization and expansion of infrastructure, which includes the establishment of smart cities, is expected to fuel demand for smart street-lighting, boosting the market for LED packages in the region. Additionally, Asia Pacific has become a central hub for investment and business expansion in the LED packaging market, which is supported by favorable economic conditions and cost-effective labor. The Asia Pacific is hence expected to be the region with the highest CAGR in the LED packaging market during the forecast period.
The report profiles key players in LED packaging such as Nichia Corp (Japan), ams-OSRAM AG (Austria), Samsung (South Korea), Lumileds Holding B.V. (US), Seoul Semiconductor Co Ltd (South Korea), MLS Co Ltd (China), Everlight Electronics Co Ltd (Taiwan), SMART Global Holdings Inc (USA), Foshan NationStar Optoelectronics Co Ltd (China), and LITE-ON Technology Inc (Taiwan).
