The LED packaging market was valued at USD 17.08 billion in 2016 and is expected to reach USD 26.39 billion by 2023, at a CAGR of 6.2% during the forecast period. The base year considered for the study is 2016 and the forecast period is between 2017 and 2023.
Objectives of the Study:
- Define, describe, and forecast the overall market segmented, in terms of value, on the basis of package type, packaging material, application, and geography
- Forecast the size of the market segments, in terms of value, with respect to 4 major regions North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW)
- Provide detailed information regarding the major factors influencing the growth of the LED packaging market (drivers, restraints, opportunities, and challenges)
- Analyze the micromarkets with respect to individual growth trends, prospects, and contribution to the overall market
- Analyze opportunities in the market for various stakeholders by identifying high-growth segments of the market
- Benchmark players in the market using the proprietary competitive leadership mapping framework, which analyzes the market players on various parameters within the broad categories of strength of product portfolio and business strategy excellence
The major factors driving the growth of the market include increasing demand for high power grade LED packages for lighting applications, rising demand for LED packages in the display panel market, growing government initiatives and regulations to adopt energy-efficient LEDs, and increasing demand for smart lighting solutions. The value chain of market comprises R&D activity, original equipment manufacturers, system integrators, marketing and sales, and after-sale service.
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The market is segmented on the basis of package type: surface mount device packages (SMD), chip on board package (COB), chip scale package (CSP), and others. Currently, the market is dominated by SMD packaging LEDs; however, the market for CSP LEDs is expected to register the highest growth rate during the forecast period. Increased adoption of chip scale package is mainly due to its advantages, such as reduced package footprint, thin profile, reduced weight, better electrical performance, and area array distribution of connections, over SMD packages.
The LED packaging market is further segmented on the basis of packaging material: lead frames, substrate, ceramic packages, bonding wire, encapsulation resin, and other packaging materials. The substrates accounted as the largest segment in terms of materials used for packaging LEDs in 2016. Also, this segment is projected to witness growth at the highest CAGR during the forecast period. The factor that drives the market for substrates is the high power density of devices. The market for encapsulation resins is driven by the increased use of silicon material offering better reliability/lifetime than traditional epoxy materials.
LEDs are used in various applications such as general lighting, automotive lighting, backlighting, and others. LED packages in the general lighting application are expected to have the largest market size due to the growth in residential lighting and industrial lighting applications. The potential to save energy on a large scale is the major factor for the growth of LEDs used for general lighting applications. The market for the industrial lighting application is estimated to grow at the highest rate and is expected to drive the LED packaging market due to the increasing demand of LEDs for various industrial applications such as industrial bay areas, cold storage areas, and other functional areas.
