LED Chips Market Size (2024 - 2029)

LED Chips Market Analysis

The LED Chips Market size is estimated at USD 27.86 billion in 2024, and is expected to reach USD 52.46 billion by 2029, growing at a CAGR of 11.90% during the forecast period (2024-2029).

The increasing demand for cost, energy-efficient lighting, and various other factors drive up demand for LED chips. As a result, most developments in the LED chip market aim to provide more efficient and advanced products that offer more brightness and consume less power.

• The automotive enterprise is at the forefront of LED lighting adoption, both internally and externally. OSRAM, a leading lighting manufacturer and pioneer in producing lighting for the automotive industry has supplied lighting equipment to several manufacturers. The ability to 3D print resulted in a lightweight module for automotive applications, aiding vendors. However, such applications have been limited to high-end vehicles.
• Moreover, a recent report published by LEDinside stated that Micro LED technology offers excellent performance in brightness and contrast that surpasses OLED and has a fast response time, low power consumption, and reliability, making it a perfect option for mobile and automotive applications. Considering such trends, vendors are increasing their investment in Micro LED production. For instance, in April 2023, AUO, a provider of LED solutions, announced its plans to convert its LCD 5A fab in Taiwan into a microLED production line. According to the company, the new production line is anticipated to go live by 2025 and will target applications such as wearable displays, TVs & signage displays, and automotive displays.
• The Government of India recently supported a plan to deploy low-cost LEDs nationwide among various end users. According to the Indian government, LED adoption drives annual energy savings of over 3,350 million kWh, avoiding over 6,725 MW of peak demand. Hence, such trends are anticipated to drive investment in LED chip manufacturing in the country.
• Furthermore, the other primary driver behind global LED chip growth is the advancement of LED niche lighting in fishing, healthcare, marine, horticulture, and harbor lighting. For signs and signals, LED chips are increasingly being used. These can operate on solar power or electricity and can be used to control both vehicle and pedestrian traffic at intersections. The Signs and Signal lights use LED technology with shallow power consumption values.
• Companies keep putting money into new products to increase the number of ways LEDs can be used in high-end applications. In April 2022, Ams Osram announced a USD 850 million investment to expand its LED production plant in Kulim, Malaysia. The new fab will produce LED chips and microLED chips on 8-inch wafers.
• However, a higher heat sensitivity of LED chips, which reduces their efficiency and life span, especially in industrial units and manufacturing plants, remains among the major challenging factors for the studied market's growth.
• Further, the ongoing conflict between Russia and Ukraine will significantly impact the electronics industry. The conflict has already exacerbated the semiconductor and energy supply chain issues and the chip shortage that have affected the industry for some time. The disruption may result in volatile pricing for necessary raw materials, resulting in material shortages. Furthermore, the US-China trade dispute is also anticipated to influence the studied market's growth as China is among the leading suppliers of LED chips.

LED Chips Industry Segmentation

LED is an abbreviation for a light-emitting diode. A diode is a two-way electronic component that allows an electrical current to float through the light bulb to emit light. LED chips are constructed of semiconductor layers that will enable protons and electrons to flow freely. LED chips have a significant impact on light quality.

The LED chips market is segmented by application (backlighting, illumination, automotive, signs and signal) and geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). Further, the disturbance of the factors affecting the market's evolution in the near future has been covered in the study regarding drivers and constraints. 

The market sizes and forecasts are provided in terms of value in USD for all the above segments.