G lobal Packaged LED Market Size, Forecast, and Trend Highlights Over 2022 – 2031
The global packaged LED market is estimated to garner a revenue of ~USD 27 billion by the end of 2031 by growing at a CAGR of ~7% over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of ~USD 7 billion in the year 2021. The growth of the market can primarily be attributed to the increasing consumption of electricity worldwide. For instance, the world’s total final consumption of electricity was estimated to be ~80.2 EJ in the year 2019.
A plastic casing that carries an LED chip and phosphor is called an LED package. The LED chip, being a semiconductor material that emits light (blue light) and this light is converted into green and red wavelengths by phosphor material. This mixture results in the white light that is emitted by the LED package. LED packaging is done to protect the LED chips and lead wires from coming in direct contact with the outside environment and also to secure the diode chip with LED phosphors and epoxy silicone resin. The demand for packaged LED is on the rise amongst the building sector, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global packaged LED market during the forecast period. According to a recent data, LEDs are currently used in an estimated 6 billion commercial buildings in the United States.
Global Packaged LED Market: Growth Drivers and Challenges
Compliance with New Regulations Mandating the Use of High-Efficacy LED Lamps – In order to achieve net zero emissions by 2050 that ensures that all countries sell only LEDs by 2025 has increased the use of packaged LEDs. For instance, the LED accounted for ~51% of global lighting sales in 2020, with integrated LED luminaires making up an increasing share.
Rising Demand for LED Lightning Products – The demand for LEDs is escalating owing to its affordability as well as the wider choice of innovative products it makes available for consumers. This rise in the demand for LEDs is responsible for boosting the demand for packaged LEDs. For instance, as per 2021 statistics, more than 40 billion cumulative sales of LED lighting products were recorded in the past five years, generating economies of scale.
Increased Demand in the Automotive Industry -As per estimates, in 2020 in the United States, ~42,000 deaths were registered on the road, out of which almost 50% of all accidents occurred at night despite 25% less traffic on the road due to limited visibility. The packaged LED enables significantly smaller vehicle headlights with new dynamic functions and high luminance.
Increasing Number of Digital Signage –For instance, in 2020, digital signage aided in increasing the average purchase amount by 29% and also resulted in 45% customer satisfaction, creating 32% growth in repeat buyers in the United States.
- Development of Inefficient LEDs Attributed to the Lack of Common Open Standards
- Lack of Coordination among Various Component Suppliers
- Limited Adoption of LED Packaging Owing to High Prices
The global packaged LED market is segmented and analyzed for demand and supply by type into F5, COB, SMDs, high power. Out of these segments, the SMDs segment is anticipated to garner the largest revenue by the end of 2031, backed by its excellent versatility and its growing industrial demand, along with its rising usage of LEDs in hotels to curb the carbon emission level worldwide. For instance, LED lighting consumes 40% less power than fluorescents and 80% less power than incandescent bulbs to produce the same amount of light, and the hotel industry is expected to reduce carbon emissions by 66% and 90% by 2030 and 2050, respectively.
Major Macro-Economic Indicators Impacting the Market Growth
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Global Packaged LED Market Regional Synopsis
Regionally, the global packaged LED market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these, the market in North America is projected to hold the largest market share by the end of 2031, backed by the increasing adoption of LEDs in common applications in the region. According to the U. S. Department of Energy, Office of Energy Efficiency and Renewable Energy statistics, approximately 2,325 million LED product installations were recorded in various applications, uplifting LED penetration to 30% of all general illumination lighting in the United States from 2016 to 2018.
The global packaged LED market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
Our in-depth analysis of the global packaged LED market includes the following segments:
Top Featured Companies Dominating the Global Packaged LED Market
- Citizen Electronics Co. Ltd.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Smart Global Holdings, Inc.
- Everlight Americas Inc.
- OSRAM GmbH
- Nichia Corporation
- Lumileds Holding B.V.
- Merck KGaA
- LG INNOTEK
- Seoul Semiconductor Co. Ltd.
- Stanley Electric Co.
- Toyoda Gosei Co. Ltd.