Preliminary research of Fairfield Market Research indicates a promising growth outlook for global LED packaging market during the course of next few years.
Rising Display Panels Sector to Ensure a Positive Scenario for LED Packaging Market
Display panel space has been gaining high momentum since several years and is expected to flourish paving an opportunistic pathway for LED packaging market. This has resulted in industry- leading players to improve and optimize their own display technologies such as quantum dot LEDs, OLEDs and microLEDs. For instance, South Korean company Samsung is focusing on optimizing its microLEDs and quantum dot LEDs whereas LG is emphasizing development of OLEDs. In addition, rising demand for power-efficient, and bright display panels in applications such as mobile devices and smart watches are key aspects driving the adoption of microLEDs. In this backdrop, major LED packaging companies are focusing on improving their microLED capabilities by adopting strategies such as expansions and collaborations. For instance, in October 2020, a partnership was signed between X Display (United States), and Taiwan’s Lextar. As per this collaboration, the companies would co-develop new microLED packages with a view to meet growing demand from customers. That said, surging demand for packaging of LEDs in the display panel space is expected to bolster the growth of the LED packaging market.
Favourable Government Initiatives Largely Influence LED Packaging Market Expansion
With a shift towards energy-efficient lighting solutions such as LEDs, the LED packaging market is likely to witness an optimistic scenario. In addition, favourable government initiatives coupled with rising awareness of customers regarding energy effective lighting is expected to have a positive influence on the LED packaging market growth. For instance, in 2015, the Government of India had launched UJALA initiative to promote use of energy-efficient lighting in the country. This has resulted in the launch and distribution of more than 36 crore LED light bulbs from 2015 to 2021. Furthermore, the penetration rate of LEDs is expected to increase significantly in the forthcoming years. For instance, according to International Energy Agency (IEA), LED penetration rate in the lighting market is poised to cross 78% by end of 2025.
In addition, the adoption of smart lighting or connected lighting across industries can have a positive impact on the LED packaging market. Use of LEDs in connected lighting can benefit the lighting system over traditional lighting in terms of brightness and colour variations and energy optimization. Government authorities in this regard are focusing on investing in new projects to promote energy-efficient LED lighting. For instance, in October 2021, an investment of US$61 Mn was announced by the US Department of Energy (DOE) in 10 pilot projects. These projects would use novel technologies to transform business enterprises and residential places into energy-efficient structures. This conversion would include switching from incandescent bulbs towards use of LED lighting solutions, thus giving a push to the overall LED lighting industry. This factor continues to influence the growth of the LED packaging market.
SMD Packaging to Largely Contribute Towards Revenue Growth of LED Packaging Market
The sale of SMD LED packaging is expected to increase significantly backed by increasing demand from residential and commercial customers. This is mainly due to the steep fall in pricing of SMD LEDs, thus making them easily affordable for customers. In addition, technology specific aspects of SMD LED packaging such as improved packing density and low production costs are further driving their demand, consequently boosting the value and volume growth of the LED packaging market.
Asia Pacific to Reflect an Optimistic Scenario for LED Packaging Market
A significant shift towards adoption of LED lighting across emerging nations in Asia Pacific has been witnessed since past few years. Companies are also opting for energy-efficient LED lighting systems to obtain enhanced efficiency, and optimized power consumption. This has resulted in a decrease in the sales of incandescent light bulbs, portraying an inclination towards adoption of new technologies by replacing outdated ones. Emerging economies such as China, and India are reflecting high growth potential apropos to the use of LED packaging. This is mainly owing to the increase in the use of LED lighting in these economies backed by rising customer awareness and government initiatives. Research suggests that this will remain a vital influencer for LED packaging market.
For instance, the Indian Government has been planning to deploy cost effective LED bulbs across residential and commercial end users in the country. Energy Efficiency Services Limited (EESL), a PSU under the Government of India, in association with Assam Hydrocarbon and Energy Company Limited have been taking initiatives for the promotion of LED bulbs, and energy-efficient tube lights and the distribution of LED bulbs is being carried out under UJALA initiative. In this backdrop, the country is likely to witness a complete replacement of traditional bulbs and using LED bulbs for applications such as traffic signals and streetlamps apart from residential and commercial users. Such activities are expected to bode well for the LED packaging market growth in the region.
LED Packaging Market: Competitive Landscape
New product launches, acquisitions and collaborations have been witnessed in the LED packaging market. For instance, in October 2020, SMART Global Holdings (SGH) announced its plan to acquire Cree LED and the acquisition concluded in January 2021. Under this, Cree LED will operate as Cree LED SGH. In April 2022, Lumileds launched high power chip scale package LED that can significantly reduce costs while offering high flux density, precise beam control and high luminance.
A few of the major players in the LED packaging market include Samsung Electronics Co. Ltd., Seoul Semiconductor, OSRAM Opto Semiconductors GmbH, LG Innotek, Nichia Corporation, Lumileds Holding BV, Dow Corning, and TT Electronics PLC.
The Global LED Packaging Market is Segmented as Below:
By Package Type
By Material Used
By Power Range
Key Elements Included In The Study: Global LED Packaging Market
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