Led Chips Market Overview:
Led Chips Market size was worth USD 19.3 Billion in 2021, accounting for a CAGR of 12.4% during the forecast period (2022-2030), and the market is expected to be worth USD 55.2 Billion by 2030.
LED Chipss, also known as LED dies or LED wafers, are the small semiconductor devices that are used to produce light in LED (light-emitting diode) lamps and fixtures. They are more energy efficient, have a longer lifespan, and produce less heat. They also offer a wide range of colors and beam patterns, making them suitable for a variety of lighting applications. They are made from a variety of materials, including semiconductor compounds such as gallium nitride (GaN) and indium gallium nitride (InGaN). These properties of LED Chipss makes them suitable for a variety of applications across various industries and devices for instance LED are extensively used in automobiles , TV’s , laptops and other general illuminating devices . LED Chipss are typically mounted onto a printed circuit board (PCB) or a heat sink and are connected to a power source through electrical wires or pads. LED’s are anticipated to gain massive market share in coming years as they are way more cost efficient than conventional incandescent lights due to their low power consumption attributes.
One of the main driver pushing this market to new highs is demand for efficient lighting devices which consume less power and are more ecofriendly. Led bulbs provide this solution as they are 90% more efficient than conventional incandescent lights. At the same time they also have 25 times more life span then that of florescent bulbs. These two attributes significantly reduces the carbon footprint thus are at great demand.
For instance, according to government of India 105 billion KWh energy with reduction of peak load by 20,000 MW Annually (estimate) could be achieved just by switching to LED’s from traditional light bulbs. It is estimated that this will result into reductions of 79 million tonnes of CO2 emission which is a greenhouse gas. To achieve this Indian government have started to distribute bulbs at 40% less than market rates.
- Demand from Automotive industry:
One of the major driver for the demand of LED’s Chips is directly associated with the demand for automobiles. LED’s have various applications in a car or bike both externally in the form of headlights and tail lights. They also have applications internally in form of led displays and internal lighting. In 2021 80 million car units were sold this number is set to rise with technological advancements as cars became more accessible. With rising car sales the demand for LED’s is also set to rise.
- Demand from electronic industry :
LED’s Chipss are capable of displaying a millions of colors and at the same time they are energy efficient. These properties make them suitable for making display screens. As a result they are widely adopted by TV’s and monitors makers to develop high regulations displays. The demand for monitors and TV’s is rising exponentially and is estimated to continue this trend.
The main constraint for this market is involvement of high cost in research and development of new products. The production aspect is comparatively easy but the development of new technologies and products is very complex procedure and requires high level engineering Excellency. The research and development actives are restricted to only large organizations which is major restraint limiting this market advancements. Apart from this electronic tech industry is fast paced with technologies getting obsolete in no time therefore continuous research is must which perquisite high investments.
COVID -19 had a negative impact similar to various other industries initially that to for very short term. Mainly it was due to government restrictions which disrupted the global supply chain and production activities as raw material was hard to get. Furthermore due to shut down of economy and semiconductor Chips shortage automobile sale took a massive blow. This resulted into cessation of LED’S sales. But currently the condition have improved with reopening of the market. The demand for antivehicle is surging this is set to drive the demand for LED’s too. Moreover, the pandemic have fueled the demand for electronic devices even more. The reason being business’s participation in e-commerce. Most of these electronic devices use LED’s in their displays.
Led Chips market Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||55.2 Billion|
|By Product Type||Blue LED Chipss, Red LED Chipss, Green LED Chipss, Infrared LED Chips, Yellow LED Chips, White LED Chips Others|
|By Application||Backlighting, Illumination, Automotive and Signal, Others|
|By Geography||North America, Europe, Asia Pacific, Latin America, Middle East and Africa.|
|Key Players||Bajaj Electricals Ltd, American Electric Lighting, Juno Lighting Group,
Koninklijke Philips N.V, Lsi Industries, Zumtobel Lighting Gumby, Cooper Lighting Llc, Acuity Brands Lighting Inc.,
By Product Type
The product type segment is bifurcated into Blue LED Chipss, Red LED Chipss, Green LED Chipss, Infrared LED Chips, Yellow LED Chips, and White LED Chips. In the product segment the largest market share is captured by the blue LED Chipss because they have a plethora of applications in backlighting and illumination. Blue LED’s have highest degree of brightness in them making them most suitable for backlighting applications in displays. Apart from blue LED’s the red led also has significant market share due to its application in taillight of auto vehicles. Government rules make red LED’s application concrete in to auto vehicles giving it its market demand. Remaining segment are also expected to gain significant market share in coming years.
The application segment is categorized into Backlighting, Illumination, Automotive, Signal and Others. In this segment the largest market share is captured by backlighting application. The main employer for LED’s were TV’s and monitors due to their higher degree of brightness and contrast which helps manufacturers with development of displays which have superior picture quality. Moreover, this segment is expected to grow at highest CAGR during the forecasted period.
On the other hand the illumination segment is anticipated to gain significant marketshare in coming years. The reason for this growth could be directly attributed to the support and push from the governments for the adoption of LED lights. As they are effective in reducing the energy consumption from residential areas. Automobile segment will also witness good growth especially in developing economies where the demand for personal automobiles is rising due to surge in disposable incomes.
The regional segment includes Asia Pacific, Europe, North America, the Middle East, and Africa& Latin America. The Asia pacific region is estimated to hold largest market share for LED market. Moreover, this region is also estimated to showcase highest growth rate in the forecasted period. This demand for LED’s will be fueled by soaring demand for devices like TV’s, monitors and others. Demand for auto vehicles from developing countries like India and south East Asian countries will also play a significant role in pushing the demand for LED’s.
North American region is also estimated to showcase significant growth. The reason will be consumer spendings and demand for superior quality displays. Middle East region will witness significant growth. As LED’s are engaged actively in rooftop billboard on mega structures in order to attract tourists and advertisers.
Led Chips market Competitive Landscape:
The competitive landscape of the Led Chips market has been comprehensively evaluated in this report. Along with in depth profiles of the major players operating in this industry. Surge in R&D, product innovation, business strategies, product launches were found to be propelling the growth of this market. The report also includes company overviews, financials, revenues, market potential, global presence, production sites and capacities, strengths and weaknesses. Following are some of the key market players:-
- Bajaj Electricals Ltd
- American Electric Lighting
- Juno Lighting Group
- Koninklijke Philips N.V
- LSI Industries
- Zumtobel Lighting GmbH
- Cooper Lighting LLC
- Acuity Brands Lighting Inc.
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