LED Materials Market Insights, Trends & Growth Outlook 2022-2029

SKU: DM1963 | Last Updated On: Jun 23 2022 | Available Formats

> Global LED Materials Market Expected to reach a high CAGR of 4.2% By 2029 | DataM Intelligence

Global LED Materials Market is segmented By Application (Automotive Lighting, General Lighting, Consumer Electronics, Agriculture, Others), By Type (Phosphor, Epitaxy, Semiconductors, Wafer, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

 

Market overview

The Global "LED materials market" is expected to grow at a CAGR of 4.2% during the forecast period 2022-2029

Indicator lights on stereos and automobiles are made of light-emitting diodes (LEDs). They are also used in telecommunications for short-range optical signal transmissions, such as TV remote controls, jewelry, and clothing, as seen in sun visors with a series of blinking-colored lights adorning the brim.

 

Market Dynamics

Drivers:

Increasing LED penetration in the growing automotive industry is expected to propel the LED materials market.

As lighting technology advances, we are seeing an increasing number of vehicles equipped with LED headlights and taillights. This is due to the various benefits that come with using LED lightings. LEDs have a much longer lifespan than incandescent bulbs. The average lifespan of an LED, for example, is approximately 15,000 hours, which is significantly longer than the average lifespan of an incandescent light bulb, which is approximately 1,000 hours. While they are more expensive, their durability more than compensates. According to data, LED penetration in the global lighting market has been increasing between 2012 and 2019, and it is expected to reach approximately 76% by 2025. A majority of this demand can be attributed to the growth of the automotive industry. In 2019, over 80% of the global vehicles produced making use of LED lightings. LED lightings are also being used in electric vehicles, as their main objective is to be efficient and save energy. The growing demand for electric vehicles also boosts the LED market. For instance, according to the International Energy Agency, sales of electric vehicles surpassed 2.1 million globally in 2019, surpassing the previous year's record of 7.2 million electric vehicles. In 2019, electric cars accounted for 2.6 percent of global car sales and about 1 percent of global car stock, representing a 40 percent year-on-year increase. These factors discussed above are expected to drive the LED materials market during the forecast period.

Favorable government initiatives and policies are expected to boost the LED materials market.

Governments in various economies are focusing on lowering energy consumption and costs by implementing and developing energy-efficient devices. For example, in 2018, an EU Member decided to saturate the entire European Union with LEDs by 2021, by establishing some policy guidelines and regulations in order to phase out halogen and bright lamps. For instance, the Union Ministry of India launched an LED street lighting project in Delhi in January 2019, in which over one lakh conventional street lights were upgraded to LEDs at no cost. In comparison to previous energy bills, the project resulted in energy savings of approximately 78%. The US government provides incentives and rebates for replacing traditional lamps with LED products, which increases their production rate and demand. Under the Domestic Efficiency Lighting Program (DELP), launched by the government of India, the government provides a seven-watt LED bulb in place of a 14-watt CFL or a 60-watt incandescent bulb, which results in an increase of approximately 20% in lighting efficiency and reduces annual electricity bill costs by over Rs. 160 per family.

Restraints:

The restraining factors to the LED Materials market include environmental issues created by using LEDs and the small life cycle of LEDs.

COVID-19 Impact Analysis

The COVID-19 pandemic has impacted various industries on a global scale, including the LED materials market. For instance, the impact of COVID-19 on the LED market has resulted in lower adoption of LED lighting in the residential sector in the United States. According to Energy Information Administration data, the residential sector's electricity consumption for lighting in 2019 was approximately 75 billion kWh, or about 5%. Another significant impact has been observed through the automotive industry as LED lightings form a crucial part of vehicles due to their efficiency and cost-saving benefits. According to data, global automobile sales fell to approximately 70 million units in 2021, from a high of nearly 80 million units in 2017. Commercial vehicle sales fell by approximately 9% in 2020, while passenger car sales fell by nearly 16% in 2020, compared to sales in 2019. This drop in sales has affected the LED materials market significantly. We expect an increase in

 adoption of LEDs in the residential lighting sector, since households all over the world have been affected financially due to the pandemic, the use of LEDs will help them cut costs with greater efficiency.

Segment Analysis

Based on Application

The Global LED materials market based on application is segmented into Automotive Lighting, General Lighting, Consumer Electronics, and others.

 

 

According to research, general lighting applications accounted for more than 30 percent of global LED market revenue streams in 2021, while automotive applications were estimated to account for around 20 percent. The global LED lighting market is expected to grow during the forecast period, rising from approximately 70 million US dollars in 2019. Due to the widespread use of LEDs in televisions, digital watches, cameras, wearables, and other consumer electronics, consumer electronics are expected to hold the lion's share of the market during the forecast period. Companies are incorporating LED technologies into televisions and other electronic devices, which is fueling the global growth of the LED materials market. Samsung, for example, has used Quantum Dot (QLED) color technology in its 6-Series and 8-Series models. In recent years, global revenue from OLED panels has steadily increased. According to data, the majority of OLED panel revenues were generated by smartphone screens, accounting for nearly seven billion US dollars of the 8.1 billion generated by OLED panels in the 4th quarter of 2019. In 2020, approximately 4 million OLED TVs were shipped globally, and this figure is expected to rise during the forecast period.

Based on Region

 

The Global LED Materials market based on region is segmented into North America, Europe, South America, Asia-Pacific, Middle East and Africa

Due to the growth in various industries such as electrical and electronics construction, and automotive, the Asia Pacific LED materials market is expected to grow at a high CAGR during the forecast period. The Asia Pacific region is expected to be dominated by China, followed by India and Japan. According to data, China is the world's largest passenger car manufacturer, producing more than 20 million cars in 2020, thus accounting for nearly one-third of global passenger vehicle production. China is followed by Japan as the next largest manufacturer of passenger vehicles. Because of the high demand from end-users, companies in the Asia-Pacific region are establishing new manufacturing hubs for LED and its materials. For example, BluGlass announced the opening of a new manufacturing and demo lab in Australia in August 2019, where it will develop LEDs for automotive and overhead LED lighting, micro-LEDs for wearables, and power electronics for efficient power consumption. The North American region is expected to grow at the highest CAGR after the APAC region during the forecast period. According to data, the number of LED light installations in the United States is expected to increase, rising from approximately 1.5 billion units installed in 2017 to approximately 8 billion units in the next decade. During the forecast period, the US residential sector is expected to have the most LED light installations. LEDs were used in nearly 30% of all indoor lighting and more than 50% of all outdoor lighting in the United States by 2018. In 2018, LED technology was used in the majority of the parking garages and lot lighting. These factors are expected to contribute to the growth of the LED materials market in North America during the forecast period.

 

Competitive Landscape

With existing and new players entering the market, the LED materials market is highly fragmented and competitive. Sumitomo Electric Industries, Ltd, MACOM, DOWA Electronics Materials Co., Ltd, Cree, Inc., Nichia Corporation, EpiGan, Plessey, OSRAM Opto Semiconductors, AkzoNobel N.V., and Intematix are among the major players. The key players are implementing various key strategies, such as product launches, collaborations, mergers, and acquisitions, to contribute to the growth of the LED Materials Market. Companies are incorporating LED technologies into televisions and other electronic devices, which is driving the global LED materials market forward. TCL, for example, announced the release of 8-Series 4K Roku TVs with QLED and Mini LED Tech in August 2019.

Company Profile: Plessey Semiconductors Ltd.

Overview: Plessey Semiconductors Ltd. Based in United Kingdom, was founded in December 2000. The company operates in the Technological Hardware and Semiconductors domain.

Product Portfolio: The company specializes in manufacturing electronic and semiconductor products and Micro LEDs that are used in sensing and control applications in the healthcare and communications industry.

Recent Developments:

1) In March 2020, Plessey announced a collaboration with Facebook in which the company will provide Facebook with their LED manufacturing operations to help Facebook develop prototype AR/VR technologies in the future.

2) In December 2019, it was announced that Plessey was awarded the “enterprise of the year” at the Elektra awards, hosted by Electronics Weekly.

Why Purchase the Report?

  • Visualize the composition of the LED materials in terms of various types of applications and their types highlighting the key commercial assets and players.
  • Identify commercial opportunities in the LED materials market by analyzing trends and co-development deals.
  • Excel data sheet with thousands of data points of LED materials market-level 4/5 segmentation.
  • PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
  • Product mapping in excel for the key product of all major market players.

The LED materials market report would provide access to approximately, 53 data tables, 60 figures, and 200 pages.

 

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