The Worldwide LED Packaging Industry is Expected to Reach $22.1 Billion by 2026 - ResearchAndMarkets.com

The "LED Packaging Market With COVID-19 Impact by Package Type (SMD, COB, CSP), Application (General Lighting, Automotive Lighting, Backlighting, Flash Lighting, Industrial), Wavelength, Power Range, and Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.

The global LED packaging market is estimated to grow from USD 17.6 billion in 2021 to USD 22.1 billion by 2026, at a CAGR of 4.6%.

The market has a promising growth potential due to several factors, including the risen demand for IoT-enabled lighting fixtures and smart lighting solutions, surged demand for LED packages in display panel market, increased demand for UV LED-based disinfection systems amid COVID-19, and recent government initiatives and regulations promoting use of LEDs for energy efficiency and environmental benefits.

COVID-19 sent both demand-side and supply-side shocks across the global economy. Leading LED package providers, such as OSRAM (Germany) and Seoul Semiconductor (South Korea), have incurred significant losses owing to the pandemic. Both companies have reported a decline of approximately 9% and 10%, respectively, in their 2020 half-year revenue as compared to the previous year. Governments worldwide have cut down their spending on various areas to focus on improving healthcare infrastructure, and therefore, the demand for LED packages from national lighting projects is expected to shrink. Also, as commercial spaces in most parts of the world would run at a significantly low capacity in 2021, companies might delay a potential upgrade of their lighting solutions. This has resulted in a decline in the demand for LED packages, further weakening the financial position of most of the key manufacturers.

Deep UV: The fastest-growing wavelength segment of the LED packaging market.

Deep UV LEDs are the fastest-growing segment of the LED packaging market, by wavelength. Based on their wavelength range, UV LEDs are classified as UV-C (100-280 nm), UV-B (280-315 nm), and UV-A (315-400 nm). UV-A LED packages are expected to be the dominant tool in printing, coatings, and adhesive applications, as longer wavelength ranges easily penetrate very deeply into the material. Also, diode performance in this wavelength range is highly complemented with an excellent lifetime of as high as 20,000 hours. On the other hand, UV-B LEDs are used for biomedical research purposes. UV-C based LEDs are a popular choice for sterilization and disinfection and are currently experiencing a surge in demand owing to their high application during the global COVID-19 pandemic. UV-C light has germicidal properties and kills bacteria and viruses by destroying their nucleic acids and disrupting DNAs. Today, these LEDs are commonly used in air and water purification systems.

General Lighting: The largest growing segment of LED packaging market, by application.

The general lighting applications of LEDs mostly include residential, outdoor, and commercial lighting areas. The increase in infrastructure building activities is the major factor contributing to the high growth of the market for the residential lighting application. LEDs have higher efficiency, longer lifespan, low power consumption, better color rendering, and lower maintenance requirements compared with traditional light sources, making them ideal for outdoor lighting environments such as street lighting, and lighting for public places. According to the International Energy Agency (IEA) (France), commercial buildings should be in line with the clean energy transition, minimizing the carbon footprint. LEDs could be used in these commercial spaces to reduce the carbon footprint significantly as compared to incandescent bulbs and CFLs, thus contributing to the growth of the LED packaging market for commercial lighting applications.

APAC is projected to be the largest and fastest-growing regional market between 2021 and 2026

APAC is a leading region in terms of production and consumption of LEDs and display panels. The region has witnessed significant advancements in the display devices space, along with rapid changes in terms of the adoption of new technologies. The surge in demand for applications such as general lighting, automotive, and backlighting is driven by high economic growth in the region. This, in turn, favors the growth of the LED packaging market in this region. These factors are encouraging many established market players to expand their reach in the region.

Market Dynamics

• Increased Demand for Disinfection Systems Amid COVID-19 to Drive Demand for Efficient Uv LED Packages
• Surged Demand for LED Packages in Display Panel Market
• Government Initiatives and Regulations Promoting Use of LEDs for Energy Efficiency and Environmental Benefits

• Saturation in LED Packaging Market Owing to the Presence of a Large Number of Manufacturers

• Development of Human-Centric Lighting Solutions and Horticulture Lights
• Surged Adoption of CSP LEDs in Automotive Lighting Applications
• Preference for Uv LED-Based Curing Systems for Print Label and Packaging Solutions Owing to COVID-19

• Lack of Common Open Standards
• Slowdown in Production of Manufacturing Facilities Worldwide Caused by COVID-19

Companies Mentioned

• Bree Optronics
• Citizen Electronics
• Cree
• Crescent Optoelectronic
• Dow Chemical Company
• Edison
• Epistar
• Everlight
• Flory Optoelectronic Materials
• Honglitronic
• Lextar
• Lg Innotek
• Lite-On
• Lumileds
• LuminUS
• Mls (Forest Lighting)
• Nationstar
• Nichia
• Osram
• Plessey
• Prolight
• Samsung
• Schott
• Seoul Semiconductor
• Stanley Electric
• Tdk Corporation
• Toyoda Gosei
• Tslc
• Violumas

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