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LED Materials Market Research Report – Forecast to 2030

LED Materials Market, By Type (Wafers, Substrates/Semiconductors, and Others), By Application (General Lightings, Consumer Electronics, Automotive Exterior Lighting, Automotive Interior Lighting) - Forecast till 2030

ID: MRFR/CnM/4767-CR | July 2018 | Region: Global | 133 pages

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LED Materials Market Overview


LED Materials Market capitalization is slated to touch USD 21.45 Billion by 2024, as per an in-depth report by Market Research Future (MRFR), and mature at a 10.92% CAGR over the assessment period (2018-2024) owing to the growing demand for energy-efficient lights. 


COVID-19 Analysis


The COVID-19 pandemic has seriously impacted the LED lighting sector by upsetting the supply chain, slowing production and impacting the lighting industry. The building sector has also seen a downturn, leading to a slump in demand for lighting goods. Although countries such as Australia have not halted building, schemes have been closed for a significant amount of time around the U.S., India, and several European countries. Moreover, the downturn in retail, manufacturing and other sectors has led to a decrease in demand due to a decreased budget for new factories or commercial premises. The adoption of LED lighting products will also be influenced as the vendors are preparing to raise the price of the items.


Market Dynamics


Drivers


Growing Adoption from Automotive Sector to Drive Market Growth


The growing use and demand for LEDs in energy-efficient and high-resolution displays in mobile phones and high-definition televisions is mainly driving the global market for LED materials. The growing acceptance of technical advances, such as artificial intelligence, the Internet of Things (IoT), and automation, is strongly motivated by the demand for LED materials. In applications such as a high-definition television monitor, video, camcorder, telephone, and optical fibre networking, LEDs are gradually being used. The growing application of LEDs in the requirements for vehicle lighting and show, home and industrial lighting further boosts the LED market, which in turn drives demand for LED materials. In addition, favourable government regulations, including different labelling and credential schemes, provide the LED industry with new opportunities for expansion. Compared to standard lights, one of the key reasons for the accelerated adoption of LED lights is their comparatively lower power usage. The power consumption is as minimal as one-third in some situations.


Opportunities


Growing R&D Investments to Create Growth Avenues for Market Players


By introducing and designing energy-efficient devices, policymakers worldwide are focused on reducing energy prices. The ban on the use of incandescent bulbs would fuel the market's growth. In addition, the rising demand for energy-efficient lighting is leading to market growth.


Restraints


Growing Adoption of Alternatives to Impede Market Growth


However, factors such as raw material price volatility, the availability of alternative goods, high costs associated with LED materials, the absence of universal compliance guidelines on the use of LEDs in different end-user sectors and less penetration in many underdeveloped countries restrict demand growth over the prognosis period. Moreover, the lifespan of the LED devices is restricting the growth of the market. Moreover, the lack of awareness about the advantage of LEDs is hindering the growth of the market.


Segmental Analysis


By Type


The market for LED materials has been categorised into wafers, substrates/semiconductors, epitaxy powder, phosphorus, and others by type. The wafers are sub-segmented into silicon, sapphire, silicon carbide, and others. During the forecast span, the sapphire segment is proposed to extend at a CAGR of 8.25 percent. Due to the high usage of wafers in microelectronic devices, the silicon segment is projected to experience robust growth.


By Application


The market is segmented by application into general lighting, consumer electronics, interior automotive lighting, exterior automotive lighting, healthcare, display and billboards, and others. By 2024, the residential lighting market is projected to hit a value of USD 9.65 billion due to the development of different infrastructure projects in residential areas.


Regional Analysis


The geographical overview of the global market has been conducted in four major regions, including the Asia Pacific, North America, Europe, and the rest of the world.


APAC to Lead with Expansion of End-use Sectors


Directed content demand in Asia Pacific is driven largely by the large-scale LED manufacturing industries in China, South Korea, and Taiwan. In addition, Asia-Pacific is also a centre for makers of original equipment (OEMs) of different lighting items. Due to the significant investment in R&D in new LED products in countries such as Vietnam, South Korea and Taiwan, the other driving force for the LED demand growth in this region.In addition, with rising focus on the IT sector, improving the power generation and distribution system of developing economies and declining LED rates, primarily due to developments in manufacturing technology, a higher growth rate is projected during the forecast period. In expectation of this boom, some countries like China have advocated for the construction of more productive LED manufacturing capability to be correctly placed to grab market share in the future. China has begun to take the lead in the production of LEDs as rates, benefiting from the government's major financial subsidies and incentives.


U.S. to be the Major Contributor for North America


Owing to increasing building rebuilding and increasing automobile production in the United States and Canada, North America held the second largest market share in the global LED material market. In this area, the United States is leading the market as its electrical and electronics business is flourishing.


Growing R&D Investments to Drive Europe


Due to new European Union policies and guidance relating to the use of light emitting diode technologies and strong investments in R&D for energy-efficient lighting solutions in several European countries, Europe is projected to have the third largest market share over the forecast period. The increasing use of LEDs in various display technologies is projected to bring moderate growth to the European market for LED materials. In addition, through direct policy initiatives, several countries are attempting to quickly expand the use of LED bulbs in homes.


Competitive Landscape



  • AkzoNobel N.V.

  • Intematix

  • OSRAM Opto Semiconductors GmbH

  • Nichia Corporation

  • Epistar Corporation

  • EpiGaN

  • Plessey

  • Sumitomo Electric Industries, Ltd

  • Cree, Inc.

  • MACOM

  • UBE INDUSTRIES, LTD

  • DOWA Electronics Materials Co., Ltd (DOWA Materials Co., Ltd)

  • II-VI Incorporated


Recent Development


December 2020: The Korea Institute of Science and Technology (KIST) reported that the joint research team headed by Yonsei University's Dr Yong-Chae Jung and Hak-soo Han has been able to create a self-healing colourless electronic material that can fix the material's cracks or impaired functions.


December 2020: KONKA, a leading technology firm in China, unveiled the world's first micro-LED watch, the APHAEA Watch. KONKA also featured the upcoming APHAEA collection of Micro LED display devices, showcasing the company's micro-pitch LED display R&D strengths and its devotion to introducing high-precision manufacturing to the consumer market.

Scientists at the U.S. Naval Research Laboratory are focusing on halide perovskites to enhance the efficiency of LED lights. Cesium lead halide perovskites possess the potential to emit light at a rapid velocity as compared to standard LED materials. The success of these materials can lead to the development of stronger and efficient LEDs and lasers.

November 21, 2019 -Chip maker Epistar double its investment in Mini LED boosting its capacity so as to tap the growing demand.


Report Overview


In order to include the most reliable estimates and forecasts, this study covers current events and developments in the LED materials industry. Our researchers were able to render extremely detailed predictions in the study by correlating the historical evidence with key industry dynamics. A detailed segmental review of the global market for LED materials segmented on the basis of form, application, and area with astute insights is included in the MRFR report.


The study includes a detailed overview of the worldwide LED materials industry for the scope of review.


By Type



  • Wafers

  • Substrate/Semiconductor

  • Epitaxy Material

  • Phosphor

  • Others


By Application



  • Consumer Electronics

  • General Lighting

  • Specialty Lighting

  • Automotive Interior Lighting

  • Automotive Exterior Lighting

  • Healthcare

  • Displays & Billboards

  • Others



Report Scope:
Report Attribute/Metric Details
  Market Size

  • 2024: USD 21.45 Billion
  • 2030 : Significant Value
  •   CAGR

  • 10.92% (2018-2024)
  • 2030: Significant Value
  •   Base Year   2021
      Forecast Period   2022 to 2030
      Historical Data   2019 & 2020
      Forecast Units    Value (USD Million)
      Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
      Segments Covered   Type, Application and Region
      Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
      Key Vendors   AkzoNobel N.V., Intematix, OSRAM Opto Semiconductors GmbH, Nichia Corporation, Epistar Corporation, EpiGaN, Plessey, Sumitomo Electric Industries, Ltd, Cree, Inc., MACOM, UBE INDUSTRIES, LTD, DOWA Electronics Materials Co., Ltd (DOWA Materials Co., Ltd), II-VI Incorporated
      Key Market Opportunities   Growing R&D Investments to Create Growth Avenues for Market Players
      Key Market Drivers   Growing Adoption from Automotive Sector to Drive Market Growth


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    Frequently Asked Questions (FAQ) :

    The valuation of the global LED materials market is projected to grow to USD 21,457.3 MN by 2024, registering 10.92% CAGR during the assessment period (2018-2024).

    LED materials finds their applications in consumer electronics, automotive interior & exterior lighting, and general lightings.

    Asia Pacific holds the largest share in the global LED materials market followed by North America and Europe, respectively.

    Strategic initiatives such as mergers & acquisitions, collaborations, expansion, and technology/ product launch are some of the growth strategies that players operating in the global LED materials market adopt to gain a larger competitive advantage.

    Epistar Corporation, EpiGaN, AkzoNobel N.V., DOWA Electronics Materials Co., Ltd. (DOWA Materials Co., Ltd), Plessey, Sumitomo Electric Industries, Ltd., II-VI Incorporated, Nichia Corporation, Intematix, MACOM, UBE INDUSTRIES, LTD., OSRAM Opto Semiconductors GmbH, and Cree, Inc., are some of the leading players in the global LED materials market.

    Global LED Materials Market: Competitive Landscape


    The prominent players in the LED materials market are AkzoNobel N.V., Intematix, OSRAM Opto Semiconductors GmbH, Nichia Corporation, Epistar Corporation, EpiGaN, Plessey, Sumitomo Electric Industries, Ltd, Cree, Inc., MACOM, UBE INDUSTRIES, LTD, DOWA Electronics Materials Co., Ltd (DOWA Materials Co., Ltd), and II-VI Incorporated.


    Cree, Inc., OSRAM Opto Semiconductors GmbH, Nichia Corporation, II-VI Incorporated, and Epistar Corporation collectively hold the majority share of the LED materials market. The global LED materials market is fragmented and market players are focused on product innovation, acquisitions, product development using new LED materials and business expansion to strengthen their presence across nations.


    Cree, Inc. is a market leader in manufacturing lighting-class LEDs, LED lighting, and semiconductor materials for power and radio frequency applications. The company operates through its lighting products, LED products, and Wolfspeed segments. The company offers LED lighting systems for indoor and outdoor applications, LED components and LED chips for displays and automobile applications, silicon carbide material, power, and RF devices. In 2018, Cree, Inc., acquired Infineon Technologies AG’s radio frequency business. This acquisition will help Cree, Inc. strengthen its RF GaN-on-SiC technology.


    OSRAM Opto Semiconductors GmbH delivers high-quality products in the field of illumination, visualization, and sensor technology. The company manufactures high-performance light-emitting diodes for automotive and general lighting applications, infrared diodes (IRED), miniature LEDs for mobile devices, semiconductor lasers, and detectors. The company is well known for its high-performance LEDs and chip technologies such as the UX:3 stand and thin-film for light efficacy and excellent light extraction. OSRAM is focused on product innovation and business expansion. In 2017, the company began operations at its new LED chip factory in Kulim, Malaysia. The company will manufacture 6-inch LED chips at this plant.


    Nichia Corporation deals in the development, manufacture, and sale of fine chemicals, especially inorganic luminescent materials (phosphors) and LEDs. The company offers light emitting diodes, ultraviolet diodes, compound semiconductor materials, laser diodes, battery materials, magnets, coating materials, metal powders, and fine chemicals. The company is focused on manufacturing mini and micro LEDs, with mini LEDs available in the market by the end of 2018 and micro-LED production beginning in 2022. Also, in 2018, the company introduced discrete color options including royal blue, green, amber, and red in its direct mountable chip series. This innovation will make the direct mountable chip suitable for all lighting applications including color tuning, architectural lighting, and other commercial and residential applications with improved flexibility.


    II-VI Incorporated is a leading manufacturer and supplier of engineered materials and optoelectronic components for a broad range of applications in the optical communications, military, life sciences, semiconductor equipment, and consumer markets. The company manufactures epitaxial wafers and gallium arsenide under its laser solution business segment for application in optical components, wireless devices, and high-performance lasers and integrated circuits. In 2018, II-VI Incorporated opened a new facility for epitaxial wafer manufacturing in Illinois, U.S. This step has been taken to meet the growing demand from the optical networking, wireless communication, power electronics, and 3D sensing sectors.


    Epistar Corporation is one of the largest manufacturers of epitaxial wafers and dies and a premier supplier of LED lights for various applications including cell phone screens, laptops, and televisions. The company’s product line covers LED epi-wafers and dies, including the InGaN line of blue, green, and ultraviolet light LEDs and the AlGalnP series with red, orange, yellow, and yellow-green LEDs. Epistar Corporation focuses on developing and manufacturing high brightness light emitting diodes using its own proprietary metal organic vapor phase epitaxy (MOVPE) technology.