LED Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The LED Packaging Market has registered a CAGR of 6% over the forecast period 2021 - 2026. The LED technology has captured the imagination of the lighting industry, by offering small and efficient lighting solutions to a diverse set of consumers, with power-saving feature and enhanced efficiency. Thus, manufacturers are focusing on LED design for appropriate packaging and viability of the end product.

Key Highlights

• The design process of packaging has directly influenced factors, such as temperature, luminescence efficiency, wavelength, life span, and others, and has reduced the overall operational costs. Hence, owing to the improvements in the packaging technology of power LED chips, there is increased adoption of LED solutions.
• The requirements for LED packaging are very stringent. If LED chips are not placed into the package precisely, the luminescence efficiency of the overall packaging device may be affected directly. Any variation from the established position will prevent LED light to be entirely reflected from the reflective cup, affecting LED’s brightness.
• The rapid enhancement in the applications of LED packaging is expected to increase innovation and consumption in the upcoming years, driving the LED packaging market. On the other hand, high saturation may restrict product adoption, which ultimately may affect the growth of the market.
• The high competition in the market is restricting the margin, as there is a continuous decline in prices by players to gain market share.

Key Market Trends

Increasing Demand from Residential Segment to Drive the Market

• The residential sector outlook has largely been optimistic, driven by a shift in consumer demand toward energy-effective lightings, such as LEDs. Moreover, recent government initiatives and growing awareness among consumers are expected to have a significant impact on the industry.
• Out of all the lighting sources, LED lights hold a major share. The growing awareness and increasing policies of the various governments have globally increased the penetration rate of LEDs. The global LED penetration is on the continuous surge YoY. According to Goldman Sach, the penetration rate is expected to cross 60% by 2020.
• The increasing prominence of LEDs can also lead to the adoption of smart lighting systems (connected lighting) in industries. Owing to the flexibility of LEDs, in terms of color variation and brightness, the connected systems are more likely to benefit from the use LEDs over traditional lighting sources.

Asia-Pacific to Witness the Fastest Growth

• Currently, Asia-Pacific is experiencing a tremendous shift in lighting systems, as companies in this region are adopting LED lighting systems in the industries, owing to their improved efficiency.
• China had gradually reduced the sale of incandescent light bulb products, during the last five years. This ensures that outdated technology is soon to be replaced by more advanced and profitable technology.
• The Indian government's plan of deploying cost-effective LED’s across the end users received a decent response. The country is on the verge of replacing all street lamps with LED and adopting smart LEDs for traffic signals. This move is likely to increase the demand for local LED manufacturers, leading to the growth of the LED packaging market.
• Due to the high demand for LED lighting from consumers, new players are entering into manufacturing. Hence, the demand for LED packaging in the region is increasing rapidly.

Competitive Landscape

The LED packaging market is fragmented in nature, due to the presence of many players offering LED packaging.

• November 2018 - Nichia launched color temperature tunable COB LED series. It includes COB packaged, which itself controls the light emission color of the tunable LED series.
• January 2018 - Lumileds announced a new 5×5-mm packaged LED. The 2W product has high-power specifications and targets outdoor and industrial solid-state lighting (SSL) applications, which are typically served by high-power LEDs.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.