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LED Encapsulation Market Size (2024 - 2029)

The LED encapsulation market is experiencing growth driven by the increasing demand for enhanced performance and long-term reliability in various applications, including consumer electronics, automotive, and telecommunications. This demand is largely due to the need for protection against moisture, physical damage, and chemical exposure, which are critical for extending the lifespan of LEDs. The market's expansion is supported by technological advancements in LED packaging, although the shift from LED to OLED in TV displays may pose challenges to its growth.

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Market Size of LED Encapsulation Industry

led encapsulation market
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 4.20 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration Medium

Major Players

encapsulation resin market size

*Disclaimer: Major Players sorted in no particular order

LED Encapsulation Market Analysis

The LED encapsulation market was valued at USD 1.49 billion in 2020, and it is expected to reach USD 1.92 billion by 2026, registering a CAGR of 4.24% during the forecast period (2021 - 2026). The growth of LEDs in segments such as handheld devices, mobile phones, display backlights, automotive, and electronic signs, has led to an increase in demand for enhanced performance and long-term reliability, which is further dependent on the technological advancement of the LED packaging market.

  • LEDs have been accepted as an integral part of electronics as a low powered light source. The semiconductor chip in a LED is sensitive and needs protection from moisture, physical damage, and outside elements. Moreover, electrodes may undergo oxidation and work inefficiently if not protected from moisture and oxygen.
  • Encapsulation primarily caters to these problems and effectively elongates the life of the LEDs. Special encapsulation materials allow heat dissipation through them while providing protection from fluids and chemicals. Owing to these properties, LED Encapsulation has found its application in various industries such as consumer electronics, automotive, and telecommunication.
  • Moreover, global warming has created a huge need for conserving energy, especially for lighting which represents roughly 19% of the world's electricity annual consumption (European Commission, 2018). With LED systems being frequently used in a much broader range of applications, encapsulation is continually providing support for this ever-evolving industry, with continuous advancement and development specifically for the LED market.
  • The growth of the market is driven by demand for longer life of LEDs and the need for protection from moisture & chemicals. Moreover, protection from solder joint fatigue in chip-based LED is expected to further augment the growth of this market.
  • With regard to TV display application, the industry is shifting from the usage of LED to OLED (Organic Light-emitting diode), which is the most advanced innovation and is supposed to penetrate more into the market. This inclination might hinder the volume growth of the LED packaging market and, thus, the encapsulation market.

LED Encapsulation Industry Segmentation

LED Encapsulation is a technique used for enhancing the safety of LEDs under diverse environmental conditions, that reduces light coupling losses and directs the LED light towards a specific viewing angle and protect the LED chip and lead frame against certain external stress. It is recognized for its operational advantages like protecting LED chip from being damage, light extraction (couple light from the chip), withstanding low wavelength (high energy) light, and is stable over a wide temperature range. 

Encapsulant
Epoxy
Silicone
End-user Application
Commercial Lightning
Automotive
Consumer Electronics
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
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LED Encapsulation Market Size Summary

The LED encapsulation market is experiencing growth driven by the increasing demand for enhanced performance and long-term reliability of LEDs used in various applications such as handheld devices, mobile phones, display backlights, automotive, and electronic signs. The encapsulation process is crucial in protecting the sensitive semiconductor chips in LEDs from moisture, physical damage, and external elements, thereby extending their lifespan. This protection is essential as LEDs are integral to electronics, serving as low-powered light sources. The market is further supported by the need for energy conservation, as LED systems are widely adopted across industries like consumer electronics, automotive, and telecommunications. However, the shift from LED to OLED technology in TV displays may pose challenges to the volume growth of the LED packaging and encapsulation markets.

Silicone encapsulation has gained popularity due to its flexibility and ability to operate over a wide temperature range, although it may face reliability issues in cold conditions. Silicones are preferred for their transparency and stability, and they also serve as a polymer matrix for phosphors to convert blue LEDs to white. The demand for silicone encapsulants is driven by the commercial LED lighting sector, particularly for mid- and high-power LEDs. The Asia-Pacific region is anticipated to witness significant growth, fueled by the robust demand from consumer electronics and automotive industries, with countries like China, South Korea, and Taiwan playing pivotal roles. The market is moderately concentrated, with key players like Dow Corning Corporation, NuSil Technology LLC, H.B. Fuller Company, Shin-Etsu Chemical Co., Ltd., and Henkel AG & Co. KGaA actively innovating to meet the rising demand.

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LED Encapsulation Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Growing Demand of High Power LED Applications

      2. 1.2.2 Growing Automotive Lightning Needs

    3. 1.3 Market Restraints

      1. 1.3.1 Volatile Prices of Encapsulant Material

      2. 1.3.2 Growing Adoption of OLED in Consumer Electronics

    4. 1.4 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Encapsulant

      1. 2.1.1 Epoxy

      2. 2.1.2 Silicone

    2. 2.2 End-user Application

      1. 2.2.1 Commercial Lightning

      2. 2.2.2 Automotive

      3. 2.2.3 Consumer Electronics

    3. 2.3 Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 Latin America

      5. 2.3.5 Middle East and Africa

LED Encapsulation Market Size FAQs

The LED Encapsulation Market is projected to register a CAGR of 4.20% during the forecast period (2024-2029)

Dow Corning Corporation, NuSil Technology LLC, H.B. Fuller Company, Shin-Etsu Chemical Co., Ltd. and Henkel AG & Co. KGaA are the major companies operating in the LED Encapsulation Market.

LED Encapsulation Market Report Snapshots

LED Encapsulation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)