LED Packaging Market - Growth, Trends, and Forecast (2022 - 2030)
Market Overview
The LED packaging market is expected to witness a CAGR of 6.0% during the forecast period of 2019 - 2024. The LED technology has captured the imagination of the lighting industry by offering small and efficient lighting solutions to a diverse set of consumers with power saving and enhanced efficiency. Thus, it has led manufacturers to focus on LED design for appropriate packaging and viability of the end product.
- The design process of the packaging has directly influenced factors such as temperature, luminescence efficiency, wavelength, life span, and others, and has reduced the overall operational costs. Hence, with the improvements in the packaging technology of power LED chips, there is increased adoption of the LED solutions.
- The requirements for LED packaging are very stringent. If LED chips are not placed into the package precisely, the luminescence efficiency of the overall packaging device would be affected directly. Any variation from the established position will prevent LED light to be entirely reflected from the reflective cup, affecting LED’s brightness.
- With the rapid enhancement in the applications of LED packaging, innovation and consumption are expected to increase in the upcoming years, driving the LED packaging market. On the other hand, high saturation may restrict product adoption which ultimately may affect the market growth.
- The high competition in the market is restricting the margin as there is a continuous decline in prices by players to gain market share.
Scope of the Report
LED Packaging determines the ease of use, product quality and also protects the LED components. The scope of our study for the LED packaging market is limited to hardware product types and their wide area of end-user applications.
Key Market Trends
Increasing Demand from Residential Segment to Drive the Market
- The residential sector outlook has largely been optimistic, driven by a shift in consumer demand towards energy-effective lightings such as LEDs. Moreover, recent government initiatives and growing awareness among consumers is expected to have a significant impact on the industry.
- Of all the lighting sources, LED lights hold a major share. The growing awareness and increasing policies of the various governments have globally increased the penetration rate of LEDs. The global LED penetration is on the continuous surge year on year. According to Goldman Sach, it is expected to cross 60% by the year 2020.
- The increasing prominence of LEDs can also lead to the adoption of smart lighting systems (connected lighting) in industries. Given the flexibility of LEDs in terms of color variation and brightness, it makes more sense for connected systems to use LEDs than traditional lighting sources.
Asia-Pacific to Witness the Fastest Growth
- The Asia-Pacific is currently experiencing a tremendous shift in lighting systems where companies in these regions are adopting LEDs in the industries owing to the improved efficiency of LED lighting systems.
- China has been gradually reducing the sale of incandescent light bulb products during the last five years, ensuring that outdated technology is soon to be replaced by something more advanced and profitable.
- In India, the government supported the plan of deploying cost-effective LED’s across the end-users has received a decent response. The country is on the verge of replacing all the street lamps with LED and adopting smart LEDs for traffic signals. Ultimately increasing the demand for local LED manufacturers and hence LED packaging market is growing.
- Due to high demand from the consumer side for the LED lighting, new players are entering into manufacturing, and hence the demand for LED packaging in the region is on rapid growth.
Competitive Landscape
The LED packaging market trend is towards the fragmentation because of the presence of many players offering the LED packaging.
- November 2018 - Nichia launched color temperature tunable COB LED series. It is comprised of COB packaged which itself controls the light emission color of the tunable LED series.
- January 2018 - Lumileds announced a new 5×5-mm packaged LED. The 2W product has high-power specifications and targets outdoor and industrial solid-state lighting (SSL) applications that are typically served by high-power LEDs.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
The LED packaging market is expected to witness a CAGR of 6.0% during the forecast period of 2019 - 2024. The LED technology has captured the imagination of the lighting industry by offering small and efficient lighting solutions to a diverse set of consumers with power saving and enhanced efficiency. Thus, it has led manufacturers to focus on LED design for appropriate packaging and viability of the end product.
- The design process of the packaging has directly influenced factors such as temperature, luminescence efficiency, wavelength, life span, and others, and has reduced the overall operational costs. Hence, with the improvements in the packaging technology of power LED chips, there is increased adoption of the LED solutions.
- The requirements for LED packaging are very stringent. If LED chips are not placed into the package precisely, the luminescence efficiency of the overall packaging device would be affected directly. Any variation from the established position will prevent LED light to be entirely reflected from the reflective cup, affecting LED’s brightness.
- With the rapid enhancement in the applications of LED packaging, innovation and consumption are expected to increase in the upcoming years, driving the LED packaging market. On the other hand, high saturation may restrict product adoption which ultimately may affect the market growth.
- The high competition in the market is restricting the margin as there is a continuous decline in prices by players to gain market share.
Scope of the Report
LED Packaging determines the ease of use, product quality and also protects the LED components. The scope of our study for the LED packaging market is limited to hardware product types and their wide area of end-user applications.
Key Market Trends
Increasing Demand from Residential Segment to Drive the Market
- The residential sector outlook has largely been optimistic, driven by a shift in consumer demand towards energy-effective lightings such as LEDs. Moreover, recent government initiatives and growing awareness among consumers is expected to have a significant impact on the industry.
- Of all the lighting sources, LED lights hold a major share. The growing awareness and increasing policies of the various governments have globally increased the penetration rate of LEDs. The global LED penetration is on the continuous surge year on year. According to Goldman Sach, it is expected to cross 60% by the year 2020.
- The increasing prominence of LEDs can also lead to the adoption of smart lighting systems (connected lighting) in industries. Given the flexibility of LEDs in terms of color variation and brightness, it makes more sense for connected systems to use LEDs than traditional lighting sources.
Asia-Pacific to Witness the Fastest Growth
- The Asia-Pacific is currently experiencing a tremendous shift in lighting systems where companies in these regions are adopting LEDs in the industries owing to the improved efficiency of LED lighting systems.
- China has been gradually reducing the sale of incandescent light bulb products during the last five years, ensuring that outdated technology is soon to be replaced by something more advanced and profitable.
- In India, the government supported the plan of deploying cost-effective LED’s across the end-users has received a decent response. The country is on the verge of replacing all the street lamps with LED and adopting smart LEDs for traffic signals. Ultimately increasing the demand for local LED manufacturers and hence LED packaging market is growing.
- Due to high demand from the consumer side for the LED lighting, new players are entering into manufacturing, and hence the demand for LED packaging in the region is on rapid growth.
Competitive Landscape
The LED packaging market trend is towards the fragmentation because of the presence of many players offering the LED packaging.
- November 2018 - Nichia launched color temperature tunable COB LED series. It is comprised of COB packaged which itself controls the light emission color of the tunable LED series.
- January 2018 - Lumileds announced a new 5×5-mm packaged LED. The 2W product has high-power specifications and targets outdoor and industrial solid-state lighting (SSL) applications that are typically served by high-power LEDs.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
Frequently Asked Questions
This market study covers the global and regional market with an in-depth analysis of the overall growth prospects in the market. Furthermore, it sheds light on the comprehensive competitive landscape of the global market. The report further offers a dashboard overview of leading companies encompassing their successful marketing strategies, market contribution, recent developments in both historic and present contexts.
- By product type
- By End User/Applications
- By Technology
- By Region
The report provides a detailed evaluation of the market by highlighting information on different aspects which include drivers, restraints, opportunities, and threats. This information can help stakeholders to make appropriate decisions before investing.
Please Select a Format
