, LED packaging market to grow at 6.2% CAGR from $18.41bn in 2017 to $26.39bn in 2023

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8 January 2018

LED packaging market to grow at 6.2% CAGR from $18.41bn in 2017 to $26.39bn in 2023

© Semiconductor Today Magazine / Juno Publishing

The LED packaging market will increase at a compound annual growth rate (CAGR) of 6.2% from $18.41bn in 2017 to $26.39bn in 2023, forecasts a report ‘LED Packaging Market - Global Forecast to 2023’ from MarketsandMarkets. The key driving factors are increased government initiatives and regulations to adopt energy-efficient LEDs, growing demand for smart lighting solutions, and growing demand from horticulture markets.

Advanced packaging technologies such as COB and CSP driving growth

The market for chip-on-board (COB) packages is expected to increase due to its growing use for lighting applications, and increased focus on smart lighting and building technologies. Strong growth is projected for COB LED packages in the long run, driven by the technologies delivering superior flexibility and versatility.

Chip-scale package (CSP) development in silicon ICs is driven by miniaturization, improved thermal management, higher reliability, and the need to connect to an ever-increasing pin-count on an ever-shrinking die. CSP also enables a reduction in device parasitic and ease of integration into level 2 packaging. The increased adoption of CSP packages is mainly due to advantages such as reduced package footprint, thin profile, reduced weight and better electrical performance and area array distribution of connections.

General lighting to drive market

General lighting applications are likely to continue to hold the largest share 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, notes the report. General lighting is experiencing high growth, driven by reduced energy consumption. Considering that governments and other bodies are focusing on cutting energy consumption through schemes and regulations (especially in residential and industrial use), the market is expected to see high growth during the forecast period.

APAC to be largest market region and to see fastest growth

APAC is expected to dominate the LED packaging market between 2017 and 2023. Growth is driven mainly by China, Japan, Taiwan and South Korea, as these countries account for the largest market share in the region.

Demand in China has increased exceptionally and is expected to see growth in the near future due to continuous Chinese government effort by introducing subsidies and incentives to boost domestic LED production capacity.

The market in Taiwan is also expected to grow faster than other countries in the region because of the rise in demand for backlighting applications.

Major players in the LED packaging market are listed as 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).

Tags: LED market

Visit: www.marketsandmarkets.com/Market-Reports

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