Packaged LED Market size was valued at USD 7 billion in 2021 and is poised to reach USD 27 billion by the end of 2031, registering around 7% CAGR during the forecast period i.e., between 2022-2031. 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.
Growth Drivers
Challenges
Base Year |
2021 |
Forecast Year |
2022-2031 |
CAGR |
7% |
Base Year Market Size (2021) |
USD 7 Billion |
Forecast Year Market Size (2031) |
USD 27 Billion |
Regional Scope |
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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.
Our in-depth analysis of the global packaged LED market includes the following segments:
By Type |
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By Application |
-Retail Lightning -Office Lightning -Hotel Lightning -Decoration Lightning -Industrial Lightning
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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.
Citizen Electronics Cx`xxo., Ltd., - entered into a collaboration with Valoya Oy (Helsinki, Finland) to promote the development and marketing of LED products for horticulture lighting.
Cree LED, a subsidiary of Smart Global Holdings Inc., - launched XLamp Element G (XE-G) LEDs, in 17 colors and 3 white options available in the comprehensive XE-G LED family, giving enhanced light output and efficiency.
Author Credits: Dhruv Bhatia
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