Market Size of LED Chips Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 27.86 Billion |
Market Size (2029) | USD 52.46 Billion |
CAGR (2024 - 2029) | 11.90 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | Asia-Pacific |
Major Players*Disclaimer: Major Players sorted in no particular order |
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LED Chips Market Analysis
The LED Chips Market size is estimated at USD 27.86 billion in 2024, and is expected to reach USD 52.46 billion by 2029, growing at a CAGR of 11.90% during the forecast period (2024-2029).
The increasing demand for cost, energy-efficient lighting, and various other factors drive up demand for LED chips. As a result, most developments in the LED chip market aim to provide more efficient and advanced products that offer more brightness and consume less power.
- The automotive enterprise is at the forefront of LED lighting adoption, both internally and externally. OSRAM, a leading lighting manufacturer and pioneer in producing lighting for the automotive industry has supplied lighting equipment to several manufacturers. The ability to 3D print resulted in a lightweight module for automotive applications, aiding vendors. However, such applications have been limited to high-end vehicles.
- Moreover, a recent report published by LEDinside stated that Micro LED technology offers excellent performance in brightness and contrast that surpasses OLED and has a fast response time, low power consumption, and reliability, making it a perfect option for mobile and automotive applications. Considering such trends, vendors are increasing their investment in Micro LED production. For instance, in April 2023, AUO, a provider of LED solutions, announced its plans to convert its LCD 5A fab in Taiwan into a microLED production line. According to the company, the new production line is anticipated to go live by 2025 and will target applications such as wearable displays, TVs & signage displays, and automotive displays.
- The Government of India recently supported a plan to deploy low-cost LEDs nationwide among various end users. According to the Indian government, LED adoption drives annual energy savings of over 3,350 million kWh, avoiding over 6,725 MW of peak demand. Hence, such trends are anticipated to drive investment in LED chip manufacturing in the country.
- Furthermore, the other primary driver behind global LED chip growth is the advancement of LED niche lighting in fishing, healthcare, marine, horticulture, and harbor lighting. For signs and signals, LED chips are increasingly being used. These can operate on solar power or electricity and can be used to control both vehicle and pedestrian traffic at intersections. The Signs and Signal lights use LED technology with shallow power consumption values.
- Companies keep putting money into new products to increase the number of ways LEDs can be used in high-end applications. In April 2022, Ams Osram announced a USD 850 million investment to expand its LED production plant in Kulim, Malaysia. The new fab will produce LED chips and microLED chips on 8-inch wafers.
- However, a higher heat sensitivity of LED chips, which reduces their efficiency and life span, especially in industrial units and manufacturing plants, remains among the major challenging factors for the studied market's growth.
- Further, the ongoing conflict between Russia and Ukraine will significantly impact the electronics industry. The conflict has already exacerbated the semiconductor and energy supply chain issues and the chip shortage that have affected the industry for some time. The disruption may result in volatile pricing for necessary raw materials, resulting in material shortages. Furthermore, the US-China trade dispute is also anticipated to influence the studied market's growth as China is among the leading suppliers of LED chips.
LED Chips Industry Segmentation
LED is an abbreviation for a light-emitting diode. A diode is a two-way electronic component that allows an electrical current to float through the light bulb to emit light. LED chips are constructed of semiconductor layers that will enable protons and electrons to flow freely. LED chips have a significant impact on light quality.
The LED chips market is segmented by application (backlighting, illumination, automotive, signs and signal) and geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). Further, the disturbance of the factors affecting the market's evolution in the near future has been covered in the study regarding drivers and constraints.
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
By Application | |
Backlighting | |
Illumination | |
Automotive | |
Signs and Signals | |
Other Applications |
By Geography | |
North America | |
Europe | |
Asia | |
Australia and New Zealand | |
Latin America | |
Middle East and Africa |
LED Chips Market Size Summary
The LED chips market is poised for significant growth, driven by the increasing demand for energy-efficient and cost-effective lighting solutions across various sectors. The automotive industry is a key player in this market, with companies like OSRAM leading the charge in providing advanced lighting solutions for vehicles. The adoption of Micro LED technology is gaining momentum due to its superior performance in brightness and contrast, making it an attractive option for mobile and automotive applications. This trend is further supported by government initiatives, such as India's plan to deploy low-cost LEDs nationwide, which is expected to drive investment in LED chip manufacturing. Additionally, the market is witnessing advancements in niche lighting applications across sectors like healthcare, marine, and horticulture, further propelling the demand for LED chips.
The Asia-Pacific region, with its rapid technological advancements and increasing disposable income, is a major market for LED chips, particularly in consumer electronics and automobiles. Government initiatives in countries like India and China are promoting the adoption of LED lighting solutions, creating a favorable market outlook. Despite challenges such as heat sensitivity and geopolitical tensions affecting supply chains, the market remains competitive with key players like OSRAM, Nichia, and Lumileds focusing on product differentiation and innovation. Recent developments, such as the launch of new LED technologies and investments in production facilities, underscore the dynamic nature of the market, which is expected to continue its upward trajectory in the coming years.
LED Chips Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitutes
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Assessment of Impact of Macroeconomic Trends on the Market
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2. MARKET SEGMENTATION
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2.1 By Application
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2.1.1 Backlighting
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2.1.2 Illumination
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2.1.3 Automotive
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2.1.4 Signs and Signals
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2.1.5 Other Applications
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2.2 By Geography
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2.2.1 North America
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2.2.2 Europe
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2.2.3 Asia
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2.2.4 Australia and New Zealand
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2.2.5 Latin America
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2.2.6 Middle East and Africa
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LED Chips Market Size FAQs
How big is the LED Chips Market?
The LED Chips Market size is expected to reach USD 27.86 billion in 2024 and grow at a CAGR of 11.90% to reach USD 52.46 billion by 2029.
What is the current LED Chips Market size?
In 2024, the LED Chips Market size is expected to reach USD 27.86 billion.