Chip Scale Package (CSP) LED Global Market Report 2025

The chip scale package (csp) led market size has grown rapidly in recent years. It will grow from $1.85 billion in 2024 to $2.17 billion in 2025 at a compound annual growth rate (CAGR) of 17.4%. The growth in the historic period can be attributed to growing adoption of miniaturized LED components, increasing demand for high-power density lighting solutions, rising use of CSP LEDs in automotive lighting, government incentives for energy-efficient lighting, increasing penetration of CSP LEDs in consumer electronics.

The chip scale package (csp) led market size is expected to see rapid growth in the next few years. It will grow to $4.24 billion in 2029 at a compound annual growth rate (CAGR) of 18.1%. The growth in the forecast period can be attributed to rising demand for smart lighting solutions, increasing integration of CSP LEDs in microLED displays, growing use in UV and IR applications, expanding deployment in horticulture lighting, increasing demand for ultra-thin lighting solutions. Major trends in the forecast period include increasing adoption of CSP LEDs in wearable devices, rising preference for tunable and dynamic lighting, expanding role in automotive adaptive lighting, integration with Internet of Things (IoT) ecosystems, increasing R&D investments in quantum dot-based CSP LEDs.

The forecast of 18.1% growth over the next five years reflects a modest reduction of 0.6% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through constrained supply of miniaturized Light-Emitting Diode(LED) components from China and the Netherlands, impacting production of high-efficiency lighting and display technologies. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing demand for energy efficiency projects is expected to drive the expansion of the chip scale package (CSP) LED market. Energy efficiency projects are initiatives aimed at reducing energy consumption while maintaining or improving performance, comfort, and output levels. These projects focus on optimizing energy use in buildings, industries, transportation, and infrastructure to lower costs, minimize environmental impact, and enhance sustainability. The rising demand for such initiatives is driven by increasing environmental concerns, higher energy costs, and the push for sustainable building practices. CSP LEDs contribute to these projects by offering high luminous efficacy with minimal power consumption. Their compact design enhances thermal management, reducing energy loss and extending lifespan, ultimately lowering maintenance costs. For instance, in September 2022, a report by Energy UK, a UK-based trade association, projected that the number of energy efficiency projects would increase from 150,000 annual installations in 2021 to 1 million per year by 2030 to support the government's decarbonization objectives. As a result, the demand for energy efficiency projects continues to fuel the growth of the CSP LED market.

Leading companies in the CSP LED market are prioritizing the development of innovative products, such as soft light chip-scale LEDs, to facilitate thinner, lighter, and low-glare lighting fixtures. Soft light chip-scale LEDs are compact light sources with integrated components that emit diffused illumination, reducing harsh shadows and creating a softer lighting effect. In January 2024, Nichia Corporation, a Japan-based fine chemicals and luminescent materials company, introduced the NFSWL11A-D6 chip-scale LED. This LED achieves horizontal light distribution, producing a more uniform and gentle illumination while reducing glare. The low-glare lighting creates a comfortable ambiance, making it ideal for environments that require soft lighting. Additionally, the design enables the production of thinner and lighter lighting fixtures, reducing material usage in both the fixtures themselves and the buildings where they are installed.

In April 2023, Inventronics Inc., a China-based LED driver manufacturer, acquired OSRAM Digital Systems in Europe and Asia for approximately $580 million. This acquisition allows Inventronics to expand its regional footprint and enhance its portfolio of LED drivers, power supplies, and smart lighting solutions. It also strengthens Inventronics' position in the lighting industry by integrating advanced digitalization capabilities and intelligent, connected lighting technologies. OSRAM Digital Systems, a Germany-based technology company, specializes in LED power supplies, light modules, smart lighting solutions, and chip scale package (CSP) LEDs.

A Chip Scale Package (CSP) LED is a type of light-emitting diode (LED) with a package size almost equal to that of the LED chip. It is designed for high efficiency, compactness, and superior thermal performance. CSP LEDs are widely utilized in high-power lighting, display backlighting, and mini/micro LED technologies due to their efficiency and versatility.

The primary types of CSP LEDs include low and mid-power and high-power variants. A mid-power CSP LED is a compact, wire-bond-free diode that offers a balance between efficiency and performance, making it ideal for general lighting and display applications. These LEDs are used in various applications, such as automotive lighting, backlighting units (BLU), flash lighting, general lighting, and more, serving end users in residential, commercial, and industrial sectors.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp escalation of U.S. tariffs and resulting trade tensions in spring 2025 are significantly affecting the electrical and electronics sector. Key components such as semiconductors, display panels, and rare-earth metals crucial for batteries and motors are now facing heavy duties. Consumer electronics companies are seeing profit margins shrink, as fierce competition makes it difficult to pass on rising costs to consumers. At the same time, industrial electronics firms are experiencing project delays due to shortages of tariff-impacted parts like printed circuit boards. In response, businesses are shifting assembly operations to tariff-exempt nations, building up inventory reserves, and redesigning products to reduce reliance on restricted materials.

The chip scale package (CSP) LED market research report is one of a series of new reports that provides chip scale package (CSP) LED market statistics, including chip scale package (CSP) LED industry global market size, regional shares, competitors with a chip scale package (CSP) LED market share, detailed chip scale package (CSP) LED market segments, market trends and opportunities, and any further data you may need to thrive in the chip scale package (CSP) LED industry. This chip scale package (CSP) LED market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major players in the chip scale package (csp) led market are Samsung Electronics Co. Ltd., Toshiba Corporation, Sharp Corporation, LG Innotek Co. Ltd., Lite-On Technology Corporation, Rohm Semiconductor, Shenzhen MTC Co. Ltd., Lumileds Holding B.V., Harvatek Corporation, Everlight Electronics, Smart Global Holdings company, Lextar Electronics Corporation, Epistar Corporation, Dpower Opto-Electronic Co. Ltd., Luminus Devices Inc., Bridgelux Inc., Plessey Semiconductors Ltd., Genesis Photonics Inc., Nichia Corporation, Lumens Co. Ltd., Seoul Semiconductor, Semileds Corporation.

Asia-Pacific was the largest region in the chip scale package (CSP) LED market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in chip scale package (CSP) LED report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the chip scale package (CSP) LED market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The chip scale package (CSP) LED market consists of sales of chip scale package LED modules, heat sinks, drivers, and optical lenses. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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