Chip Scale Package (CSP) LED Market Report 2026

The chip scale package (csp) led market size has grown rapidly in recent years. It will grow from $2.17 billion in 2025 to $2.57 billion in 2026 at a compound annual growth rate (CAGR) of 18.2%. The growth in the historic period can be attributed to growing demand for energy-efficient lighting, advancements in semiconductor materials, increased adoption in consumer electronics, development of automotive led lighting, expansion of display technologies.

The chip scale package (csp) led market size is expected to see rapid growth in the next few years. It will grow to $4.99 billion in 2030 at a compound annual growth rate (CAGR) of 18.1%. The growth in the forecast period can be attributed to rising adoption of micro-led displays, demand for high-power automotive leds, growth in industrial & outdoor lighting, integration in smart city infrastructure, innovations in thermal management and packaging. Major trends in the forecast period include miniaturization & compact lighting solutions, high-efficiency thermal management, advanced display backlighting technologies, integration in automotive lighting systems, adoption in micro-led & next-gen displays.

The growing demand for energy efficiency projects is expected to drive the growth of the chip scale package (CSP) LED market going forward. Energy efficiency projects are initiatives aimed at reducing energy consumption while maintaining or improving output, performance, or comfort. These projects focus on optimizing energy use across buildings, industries, transportation, and infrastructure to lower costs, minimize environmental impact, and promote sustainability. The demand for such projects is driven by rising environmental concerns, increasing energy costs, and the need for sustainable building practices. Chip scale package (CSP) LEDs support energy efficiency projects by delivering high luminous efficacy with minimal power consumption. Their compact design enhances thermal management, reduces energy loss, and extends lifespan, thereby lowering maintenance costs. For example, in December 2023, the International Renewable Energy Agency (IRENA), a UAE-based intergovernmental organization, reported that annual average investment in renewable power generation must increase to USD 1.3 trillion by 2030, up from USD 486 billion in 2022. Therefore, the demand for energy efficiency projects is driving the growth of the chip scale package (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.

Major companies operating 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.

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.

Tariffs have impacted the CSP LED market by increasing import costs and disrupting global supply chains for semiconductor chips and packaging materials. The rise in production costs has affected high-power and display backlighting segments, particularly in Asia-Pacific regions like China and Taiwan, which are major manufacturing hubs. While the tariffs have posed challenges, they have also encouraged local manufacturing and innovation in cost-efficient CSP LED solutions, helping some regions reduce dependency on imports.

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.

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.Asia-Pacific was the largest region in the chip scale package (CSP) LED market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the chip scale package (csp) led market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the chip scale package (csp) led market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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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