LED Packaging Market Size, Share, Industry Growth & Trends

Updated on : Sep 18, 2024

LED Packaging Market Size & Share

[225 Pages Report] The LED packaging market is estimated to be worth USD 16.0 billion in 2024 and is projected to reach USD 19.4 billion by 2029, at a CAGR of 3.9% during the forecast period. The acceleration adoption of mini and micro-LED technologies and growing demand for smart lighting systems are some of the major factors driving the market growth of LED packaging industry.

LED Packaging Market Forecast to 2029

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LED Packaging Market Trends & Dynamics

Driver: Growing demand for smart lighting systems

The increasing demand for smart lighting solutions is expected to be a key driver in the LED packaging market. Smart lighting solutions presents a compelling proposition for businesses and homeowners as it offers substantial energy savings in comparison to traditional lighting alternatives. This energy efficiency, coupled with the growing awareness of sustainability, makes smart lighting a preferrable choice. The integration of artificial intelligence (AI) and machine learning (ML) into smart lighting systems further enhances their appeal, that provides personalized and efficient lighting solutions that can adapt to user preferences and environmental conditions. Therefore, the growing demand for smart lighting systems is expected to drive the growth of LED packaging market.

Restraint: Saturation of LED packaging market

The market saturation of LED packaging gives rise to various challenges that create challenges towards product acceptance, market growth, and profit margins. As the LED packaging market is a saturated market due to numerous manufacturers that are offering similar LED packaging solutions, the differentiation between these products may diminish. This will lead to a situation where customers may restrain themselves towards adopting new products, due to the large number of existing options that fulfill the basic requirements. This decline in product adoption is a key factor that restricts the overall growth of the LED packaging market.

Opportunity: The escalating adoption of mini and micro-LED technologies

The surge in demand for mini and micro-LED technologies is attributed to several factors such as technological advancements, energy efficiency, and IoT connectivity which propels the growth of the LED packaging market. This ongoing transition towards the adoption of mini and micro-LED technologies requires specialized packaging solutions to accommodate the smaller form factors, advanced technological features, and precise requirements. Furthermore, the technological advancements in chip design and assembly processes for mini and micro-LED have led to the growing need for innovative LED packaging.

Challenge:  Absence of common open standards

The absence of common open standards for LED packaging can impact growth and adoption of the LED packaging market. The lack of standardized specifications and protocols creates a fragmented landscape wherein different component suppliers may use diverse standards or proprietary formats which leads to a lack of coordination and compatibility among various elements of LED packaging systems. This lack of coordination can result in inefficiencies in LED performance that hinders the overall advancement and acceptance of LED packaging technologies.

LED Packaging Market Ecosystem

The prominent players in the LED packaging market are NICHIA CORPORATION (Japan), ams-OSRAM AG. (Austria), Samsung (South Korea), Lumileds Holding B.V. (US), and Seoul Semiconductor Co., Ltd. (South Korea). These companies perform organic and inorganic growth strategies to expand themselves globally by providing new and advanced packaged LED solutions.

High-power LED packages to register highest CAGR in the LED packaging market during forecast period

The high-power LED packages market experiences a surge in demand driven by the increasing need from smartphone manufacturers to integrate high-power LEDs into flash lighting modules. This integration allows smartphone cameras to deliver excellent image quality in low-light environments. Additionally, factors such as lower power consumption, enhanced luminescence efficiency, and the growing prevalence of high-brightness applications contribute significantly to the expansion of the LED packaging market.

Others segment that includes applications such as disinfection, counterfeit detection, sensing devices, and keyboards is expected to have the highest CAGR in the LED packaging market during the forecast period.

The growing need for UV LEDs is anticipated to boost the market demand for LED packages in the future. UV LEDs in the UV-C band have the potential to revolutionize sterilization and disinfection practices that contribute towards safer conditions in medical facilities. Therefore, others segment that include applications such as disinfection, counterfeit detection, sensing devices, and keyboards is expected to have the highest CAGR in the LED packaging market during the forecast period.

Europe is expected to register for the second highest CAGR in the LED packaging during the forecast period

The expansion of the LED packaging market in Europe is attributed to the substantial growth in automotive and general lighting applications marked by technological advancements within these industries. Additionally, the increasing demand for emerging technologies like microLED, particularly in backlighting applications drives the market growth of LED packaging in Europe.

LED Packaging Market by Region

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Key Market Players - LED Packaging Market

The major players in the LED packaging companies include

• NICHIA CORPORATION (Japan),
• ams-OSRAM AG. (Austria),
• Samsung (South Korea),
• Lumileds Holding B.V. (US), and
• Seoul Semiconductor Co., Ltd. (South Korea). These companies have used both organic and inorganic growth strategies such as product launches, partnerships, and agreements to strengthen their position in the market.

Scope of the LED Packaging Market Report

LED Packaging Market Highlights

The study segments the LED packaging market based on packaging component, package type, power range, wavelength, application, and region at the regional and global level.

Recent Developments

• In August 2021, NICHIA CORPORATION announced a joint-product development and collaboration with Zumtobel, an international supplier of holistic lighting solutions, to manufacture LED lighting with advanced human-centric lighting benefits.
• In September 2023, ams-OSRAM AG. And Malaysian Investment Development Authority (MIDA) announced a collaborative agreement in which MIDA significantly supports the initiative of ams-OSRAM AG to expand in Malaysia.
• In May 2023, Lumileds Holding B.V. announced the broadening of its CoB offerings by introducing LUXEON Core and LUXEON CX and the new LUXEON CS board sizes for enhanced design flexibility,
• In May 2023, Seoul Semiconductor Co., Ltd. announced the launch of the 2nd-generation LED technology, WICOP Pixel microLED technology, for future displays such as WICOP-Pixel-based microLED displays and Low Blue Light (LBL) displays that maintains the health of the users’ eyes.
• In September 2023, Samsung announced the launch of a new LED solution for outdoor lighting, 5050 LED. The 5050 LED possess enhanced reliability, performance, and cost efficiency.

Frequently Asked Questions (FAQs):

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