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.
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.
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.
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:
Our in-depth analysis of the global packaged LED market includes the following segments:
Ans: The rising total consumption of electricity is resulting in the upsurged demand for LED lightning products along with increasing demand from multiple industries are some of the major factors anticipated to drive the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2022 – 2031.
Ans: Development of inefficient LEDs attributed to the lack of common open standards as well as lack of co-ordination among various component suppliers are some of the factors estimated to hamper the market growth.
Ans: The market in North America is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.
Ans: The major players in the market are Citizen Electronics Co. Ltd., Smart Global Holdings, Inc., Everlight Americas Inc., LG INNOTEK, Merck KGaA, Lumileds Holding B.V., Nichia Corporation, OSRAM GmbH, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company
Ans: The market is segmented by type, by application and by region.
Ans: The SMDs segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.