LED Chip Market Growth Spurred by Increasing Awareness About Cost and Energy-Efficiency of LED Light
Posted: Aug 03, 2019
LED chip forms a core component of Light Emitting Diodes (LED), a solid-state semiconductor device. Its assists in converting electric energy into light energy and is responsible for greater luminous efficacy of the LED device it is used in. The chip is attached to a stent on one side while the other side connects the positive terminal of the power. LED chips comprise P- and N-type semiconductor, forming a PN junction when connected. The PN junction material determines the wavelength or the color of the light. Some of the primary types of LED chips include surface mounted diode (SMD), chip on board (COB) and multiple chips on board (MCOB). They are extensively utilized in phones, laptops, LCD TVs, street lighting and automotive illumination. As per the latest study by IMARC Group, the global LED chip market size reached US$ 16.4 Billion in 2018.Reduced Average Selling Price (ASP) of LED Lights to Foster Market Growth
Growing awareness regarding the adverse effects of traditional lighting technologies like halogen and incandescent lights is one of the major factors driving the market growth. LED lights are continually replacing conventional lighting systems as they are highly energy-efficient and produce low carbon emissions. This has positively influenced the sales of LED Lights across the globe which, in turn, has propelled the demand for LED chips. In addition to this, manufacturers are continually engaging in research and development (R&D) activities to introduce efficient and cost-effective variants in the market, which has resulted in the reduction of manufacturing costs of LED lights. This has significantly reduced their average selling price (ASP), thereby creating a positive outlook for the market. Furthermore, these chips form a crucial element of consumer electronics for backlighting purposes. Escalating demand for 4K TVs and the easy availability of smartphones at an affordable rate is providing thrust to the market growth further. On account of the aforementioned factors, the market is anticipated to exceed a value of US$ 37.0 Billion by 2024, growing at a CAGR of around 14% during the forecast period (2019-2024).Market Summary:
- Based on the product type, the market has been categorized into blue, red, green, infrared, yellow, and white LED chips, along with others. At present, blue LED chips exhibit a clear dominance in the market, representing the most preferred segment.
- On the basis of the application, the market has been segregated into backlighting, illumination, automotive, signs and signal, and others.
On the geographical front, the market has been divided into Asia Pacific, Europe, North America, Middle East and Africa, and Latin America. Amongst these, Asia Pacific holds the leading position in the market, accounting for the majority of the total market share. Inflating per capita incomes, rising population growth and rapid urbanization has impelled the sales of consumer electronics which, in turn, is bolstering the demand for LED chips in this region. Apart from this, LED chips form an essential component of automotive lighting. Since several manufacturers of hybrid and electric cars are based in Asia Pacific, specifically in China and South Korea, the sales of LED chips are experiencing significant growth in the region.Competitive Landscape:
The competitive landscape of the market has also been analyzed in the report with the detailed profiles of the key player operating in the market. Some of these players include AVA Technologies Inc., Bright LED Electronics Corporation, Cree, Bridgelux, Hitachi Cable, Huga Optech, Dowa Electronics Materials Co Ltd, Epistar Corporation, Nichia Corporation, Formosa Epitax, Goldeneye INC., Kingbright, Optek Technology Ltd, Osa Opto Light Gmbh and Osram Opto Semiconductors.
Other Report by IMARC Group:
About IMARC Group: IMARC Group is a leading market research and consulting company that offers management strategy and market research worldwide. The company has done multiple projects on the LED chip industry, which has enabled clients to set up and expand their businesses successfully. Some of the company’s offerings include:
- Market Research
- Plant setup
- Plant Expansion
- Marketing and sales
- Procurement and Distribution
- Innovation and Product Development
Imarc Group is a leading market research and consulting company that offers management strategy and market research worldwide.