Infrared LED Market Growth Drivers and Challenges:
Growth Drivers
- Growing Demand for Automotives with ADAS– Lane-keep assist feature was installed in 52% of Japanese vehicles in the first half of 2021, 30% in Mainland China, and 63% in the United States. Moreover, around 75 million cars with ADAS features were sold in 2021. Infrared LEDs can be employed in proximity sensors used in ADAS applications. These LEDs emit light and the sensor detects the reflected light.
- Growing Demand for Smart Home Devices– In the world, around 130 million and 73 million households have smart speakers and smart big appliances, respectively. Moreover, by 2027, this number is expected to reach 335 million, and 178 million, respectively. IR LEDs can be integrated into home automation hubs of smart home controllers. These hubs act as central control units for various smart devices in the home, including TV, audio devices, and other IR-enabled devices.
- Development of Smart cities- By 2030, the globe is predicted to contain 43 megacities with populations of more than 10 million people, the majority of which will be in developing countries. Smart cities aim to improve transportation efficiency, public lighting, and others. IR LEDs can be integrated into smart lighting systems used in smart cities. These LEDs can provide additional functionality, such as motion detection and occupancy sensing which enable energy-efficient lighting solutions
- Advancement in the Technology of IR LED- Scientist of the University of Melbourne, Australian Research Council Centre of Excellence for Transformative Meta-Optical Systems (TMOS), the Lawrence Berkely National Laboratory, and the University of California jointly engineered an IR LED that can be tuned to different wavelengths of light. The device can detect a variety of gases, including possibly hazardous ones, boosting the safety of firefighters, coal miners, the military, and even your neighborhood plumber.
Challenges
- Huge Competition from Alternative Technologies- The IR LED market faces competition from alternative technologies, such as laser diodes, organic LEDs (OLEDs), and quantum dots. These technologies offer unique advantages and are continually advancing, posing a challenge to the growth of IR LEDs.
- High Cost of Manufacturing and Procuring
- Lack of Standardization Leading to Interoperability and Compatibility Issues
Infrared LED Market Size and Forecast:
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
11.2% |
|
Base Year Market Size (2025) |
USD 1.58 billion |
|
Forecast Year Market Size (2035) |
USD 4.57 billion |
|
Regional Scope |
|
Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2026, the industry size of infrared LED is estimated at USD 1.74 billion.
The global infrared LED market size crossed USD 1.58 billion in 2025 and is likely to register a CAGR of over 11.2%, exceeding USD 4.57 billion revenue by 2035.
The North America infrared LED market is projected to capture a 37% share by 2035, driven by the rising development of IoT infrastructure and smart city building advancements.
Key players in the market include GJD Manufacturing Ltd., Epistar Corporation, Lite-On Technology Corp, Ams-Osram AG, Ushio America, Inc., Vishay Intertechnology, Inc., Lextar Electronics Corp., Luminous India, Lumileds Holding B.V., Kingbright Company, LLC.
