LED Packaging

Global LED Packaging Market to Reach US$25.6 Billion by 2030

The global market for LED Packaging estimated at US$19.4 Billion in the year 2024, is expected to reach US$25.6 Billion by 2030, growing at a CAGR of 4.7% over the analysis period 2024-2030. Surface-Mounted Device (SMD), one of the segments analyzed in the report, is expected to record a 4.7% CAGR and reach US$13.1 Billion by the end of the analysis period. Growth in the Chips-On-Board (COB) segment is estimated at 4.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$5.2 Billion While China is Forecast to Grow at 7.5% CAGR

The LED Packaging market in the U.S. is estimated at US$5.2 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$5.5 Billion by the year 2030 trailing a CAGR of 7.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.8% and 3.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.4% CAGR.

Global LED Packaging Market - Key Trends & Drivers Summarized

What Is LED Packaging and Why Is It Critical for LED Performance?
LED packaging involves encasing LED chips in a protective housing to provide physical stability and enhance their optical performance. This process is crucial as it protects the sensitive semiconductor materials from environmental factors such as moisture, dust, and mechanical stress, which can significantly degrade the LED`s performance over time. The package also plays a vital role in managing heat dissipation—a critical factor in maintaining the efficiency and longevity of LEDs. Innovations in LED packaging technology have improved the light output, color accuracy, and overall reliability of LED products, making them suitable for a wide range of applications, from general lighting to advanced automotive systems.

How Have Advances in Materials and Technology Shaped LED Packaging?
Recent advances in materials science and packaging technology have dramatically transformed the LED packaging landscape. The use of advanced substrates that offer better thermal management and light reflection properties has become more widespread. Silicone lenses and ceramic bases are now commonly used in LED packaging due to their superior thermal stability and light-diffusing capabilities. Additionally, the development of chip-scale packaging (CSP) and surface-mount technology (SMT) has allowed for smaller, more efficient, and easier-to-integrate LED solutions. These technological improvements not only enhance the performance of LED lighting systems but also contribute to the miniaturization trend in electronics, enabling the development of compact devices with high lighting efficiency.

What Challenges Does the LED Packaging Industry Face?
Despite its advancements, the LED packaging industry faces several challenges that could impede its growth. The rapid pace of technological change requires continuous research and development investments to stay competitive, which can strain the resources of smaller manufacturers. There is also a pressing need for standardization across the industry to ensure compatibility and interoperability between different LED products and systems. Furthermore, as the market for LED lighting becomes increasingly saturated, companies must innovate to differentiate their products in a crowded market, adding pressure to innovate in ways that significantly enhance value to consumers.

Growth in the LED Packaging Market Is Driven by Several Factors
The growth in the LED packaging market is driven by several factors, primarily the increasing demand for energy-efficient lighting solutions globally. As governments and regulatory bodies impose stricter energy consumption standards, the shift towards LED lighting is accelerating, boosting the demand for advanced LED packaging solutions that enhance performance and energy efficiency. The rising popularity of smart lighting systems, which often require sophisticated LED components, also contributes to market growth. Additionally, consumer behavior is shifting towards sustainable and long-lasting products, further fueling the demand for high-quality LED packaging. The automotive industry`s ongoing transition to LED-based lighting systems for both interior and exterior applications continues to open new avenues for growth, as these applications require highly reliable and durable packaging solutions to withstand harsh environments.

SCOPE OF STUDY:

The report analyzes the LED Packaging market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Package Type (Surface-Mounted Device (SMD), Chips-On-Board (COB), Chip Scale Package (CSP), Other Package Types); Wavelength (Visible & Infrared, Deep UV); Application (General Lighting, Automotive Lighting, Backlighting, Flash Lighting, Industrial, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 12 Featured) -

• Bilcare Ltd.
• Citizen Electronics Co., Ltd.
• ColorStars Group
• Epistar Corporation
• Everlight Electronics Co., Ltd.
• Kulicke & Soffa Industries, Inc.
• Lg Innotek Co., Ltd.
• Lumileds Holding BV
• Momentive
• Nichia Corporation

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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