LED Packaging Market to be worth 26.39 Billion US$ by 2023
According to the new research report by MarketsandMarkets, the LED packaging market is expected to grow from US$ 18.41 Billion in 2017 to US$ 26.39 Billion by 2023, at a CAGR of 6.2% between 2017 and 2023. Increased government initiatives and regulations to adopt energy-efficient LEDs, growing demand for smart lighting solutions, and growing demand from horticulture markets are the key driving factors for the LED packaging market.
Advanced packaging technologies such as chip on board (COB) and chip scale package (CSP) are driving the growth of LED packaging market
The market for COB packages is expected to increase owing to its growing use for lighting applications, rising focus on smart lighting, and increasing focus on building technologies. Strong growth is projected for COB LED packages in the long run driven by the technologies deliverability of superior flexibility and versatility. Development of CSPs in silicon ICs is driven by miniaturisation, improved thermal management, higher reliability, and the need to connect to an ever-increasing pin-count on an ever-shrinking die. Chip scale packages also enabled reduction in device parasitic and allowed ease of integration into level 2 packaging. The increased adoption of CSP packages is mainly due to the advantages such as reduced package footprint, thin profile, reduced weight as well as better electrical performance and area array distribution of connections.
General lighting is expected to drive the LED packaging market during the forecast period
The general lighting application is likely to continue to hold the largest size of the LED packaging market during 2017–2023. The potential to save energy on a large scale is one of the most attractive aspects of LED technology. The market for the general lighting application is experiencing high growth at the backdrop of lesser energy consumption. Considering that governments and other bodies are focusing on lesser consumption of energy through schemes and regulations, especially in residential and industrial use, the said market is expected to witness high growth during the forecast period.
APAC is expected to hold the largest market share and is expected to witness the highest growth rate between 2017 and 2023
APAC is expected to hold the largest share and dominate the LED packaging market between 2017 and 2023. The growth of the market in APAC is mainly driven by China, Japan Taiwan, and South Korea as these countries account for the largest market share of LED packaging in this region. The demand for these materials in China has increased exceptionally and is expected to witness growth in the near future owing to continuous efforts by the Chinese government by introducing subsidies and incentives to increase domestic LED production capacity. The market in Taiwan is also expected to grow at a rate higher than other countries in the region because of the rise in demand for backlighting applications of LED packages.
The major players in the LED packaging market include Nichia (Japan), Samsung (South Korea), Osram (Germany), LG Innotek (South Korea), Cree (US), Lumileds (Netherlands), Seoul Semiconductor (South Korea), Stanley Electric (Japan), Everlight Electronics (Taiwan), Epistar (Taiwan), Toyoda Gosei (Japan), TT Electronics (UK), Kulicke and Soffa (Singapore), Dow Corning (US), and Citizen Electronics (Japan).