Global LED Chip Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global LED Chip Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

LED stands for light emitting diode, which is a two-lead semiconductor light source. These are used in a wide range of applications that vary from backlighting in electronic products such as LCD TVs, laptops, and phones, as well as in street lighting and automotive lighting, and general illumination. This can be attributed to the better picture quality offered by LEDs due to their higher degree of power efficiency and brightness. The LED chip, also known as the die, represents the most essential and cost-intensive component of the LED. It is a critical factor in determining the light quality. The chips have different ratings for brightness, wavelength and voltage. After installing the LED chip and passing current through an electrical source, a particular color of light is emitted, which is determined by the dominant wavelength.

Market Overview:

The latest research study on the global LED Chip market finds that the global LED Chip market reached a value of USD 21239.91 million in 2022. It’s expected that the market will achieve USD 29021.01 million by 2028, exhibiting a CAGR of 5.34% during the forecast period.

Marketing channel sales will be affected differently

The distribution channel segment is divided into offline and online, the offline segment is dominating the market currently, and due to emergence of COVID-19, the online market witnessed a significant growth in 2020. The COVID-19 Outbreak has led to a decline in offline passenger flow, and the advantages of e-commerce companies have become prominent. During the epidemic prevention and control period, some LED Chip enterprises did not carry out internet marketing and promotion for their business, so they encountered great resistance in undertaking business. For enterprises that fail to make good use of network promotion means, there is almost no market development during the epidemic period, and the original offline market development plan is disrupted, and the epidemic will face fierce market homogenization competition, which is expected to have a great impact on the company's business throughout the year.

Upstream and downstream interactions will lead to disruption of business

The epidemic will have a short-term impact on LED Chip industry, but it is relatively limited. Due to the impact of the epidemic, the production of raw materials and equipment procurement and transportation supply are difficult to be in place, and upstream enterprises affect the work schedule of downstream enterprises. Equipment manufacturing and product manufacturing enterprises in LED Chip industry are affected to different degrees, and the production and delivery work may be delayed to some extent. Meanwhile, if it fails to meet the customer's delivery time requirements according to the contract, it may lead to the customer looking for another enterprise and lose business.

Mini LED technology accelerates chip consumption

Mini LED technology accelerates chip consumption, and the industry ushered in a new impetus for development. Mini LED backlight technology has improved the edge-lit backlight with dozens of LED lamp beads into direct-type backlight, and the number of LED lamp beads has increased to thousands or even tens of thousands, making the LED backlight market demand for LED chips geometrically multiples With the large-scale application of Mini LED in the backlight market, the consumption of LED chips will also increase significantly, which will further increase the demand for LED chips and the level of industry prosperity. Various manufacturers have also increased MiniLED through strategic cooperation, capital increase and other means.

Heat-sensitivity of LED chips

The heat-sensitivity of LED chips reduces their efficiency and lifespan, especially in applications such as industrial units and manufacturing plants, where there is a high degree of ambient heat. In general, the cooler the environment, the higher an LED's light output will be. Higher temperatures generally reduce light output. In warmer environments and at higher currents, the temperature of the semiconducting element increases. The light output of an LED for a constant current varies as a function of its junction temperature. Prolonged heat can significantly shorten the useful life of many LED systems. Higher ambient temperature leads to higher junction temperatures, which can increase the degradation rate of the LED junction element, possibly causing the light output of an LED to irreversibly decrease over the long term at a faster rate than at lower temperatures.

Region Overview:

North America dominated the LED Chip market in 2022, with a market share of 29.32%.

Company Overview

Nichia is one of the major players operating in the LED Chip market, holding a share of 10.02% in 2022.

Nichia

Nichia Corporation is a Japanese chemical engineering and manufacturing company headquartered in Anan, Japan with global subsidiaries. It specializes in the manufacturing and distribution of phosphors, including light-emitting diodes (LEDs), laser diodes, battery materials, and calcium chloride. The Nichia Corporation comprises two divisions Division 1, responsible for phosphors and other chemicals, and Division 2, responsible for LEDs. Nichia is the worlds largest supplier of LEDs. It designs, manufactures, and markets LEDs for display, LCD backlighting, automotive and general lighting applications with the many different leds across the entire visible spectrum. The main business is: cathode materials, magnetic materials, phosphors, LED (light emitting diode), LD (laser diode) and optical semiconductor devices, etc.

OSRAM Opto Semiconductors

OSRAM Opto Semiconductors GmbH of Regensburg, Germany, a wholly owned subsidiary of Osram GmbH, is the world's second largest manufacturer of optoelectronic semiconductors after Nichia and followed third place by Cree Inc. One of the main products of the company are light-emitting diodes (LEDs), other products are high power laser diodes, infrared components and optical sensors. The company was founded in 1999 as a joint venture between Osram and Infineon Technologies.

Segmentation Overview:

As for product types, the SMD LED Chip segment held the largest market share in 2022.

SMD LED Chip

SMDs are ceramic-based single chips that can be paired with multiple packages to form linear LED strips or downlights. This technology employs complex designs such as SMD 5050 chips - with RGB capabilities on a single chip. The chip is designed like a computer chip. The chip can support 2, 4 or 6 contacts based on the multiple diodes used on the chip. There are numerous types of SMD LEDs, which comes in varied shapes and sizes. The most common and popular ones being SMD 3528, SMD 5050 and SMD 2835. TOP-LED Chip is one kind of SMD LED Chip.

COB LED Chip

The chip on board LED is a led packaging where numerous LED packaging chips are bound up directly along with the substrate leading to the formation of the module. Led chips when in small size increase the packaging density as compared to the use of other technologies which include surface mounting which results in large lightning intensity. Moreover, the chip on board lightning devices is widely used for spot lightning along with directional lighting. These come under the general lightning segment where it occupies a dominant position. The rise in adoption of using solid-state lighting technology has helped in COB LED Chip market growth as compared to the application of traditional technology.

LED DIP

LED DIP is highly recognizable by its pill or bullet shaped design (<=5mm wide), and the long contacts that extend from the bottom of the LED which can be welded on a circuit board making it more durable against impacts and blows. LED DIP is heavier and wider than the newer types of LED chips. LED DIP is also known as Lamp-LED Chip.

Micro LED Chip

As the name suggests, micro-LED uses much smaller LED chips than its predecessors. There is no formally agreed definition, but generally a micro-LED chip is less than 100 micrometres (i.e. has an LED emission area per pixel below 100 X 100 micrometres).

Application Overview:

By application, the Illumination segment occupied the biggest share from 2017 to 2022.

Backlighting

In terms of color display, LED backlight can provide unprecedented color reproduction, and can also take advantage of the instant start-up of LED to eliminate the smearing and blurring phenomenon that ordinary liquid crystal displays appear when displaying fast-moving objects, and the picture quality will be significantly improved. At present, the penetration rate of LED has reached 100% in the small and medium-sized backlight market dominated by mobile phones, tablet computers, notebook computers, and the large-sized backlight market dominated by LCD TVs.

Illumination

LED chips for illumination to include applications, such as residential, industrial, and commercial lighting. When used for illumination purposes, LEDs are also more cost-effective than traditional lighting sources. The global LED chips market is thus witnessing an increasing demand, and companies are expanding their manufacturing capabilities to meet this demand. High brightness LED chips currently enjoy high growth as the backlighting application in TVs is shifting from traditional CCFL technology to LED technology.

Automotive

Vehicle manufacturing is on the rise around the world, which has a positive impact on the automotive lighting industry and brings opportunities to the development of the LED chip industry.

Signs and Signal

For signs and signals, LED chips are increasingly being used. These can operate with solar power or electricity, which can be used to control both vehicle and pedestrian traffic at intersections. The Signs and Signals lights are equipped with LED technology to have extremely low power consumption values.

Key Companies in the global LED Chip market covered in Chapter 3:

Shenzhen Jufei OptoelectronicsEverlight ElectronicsSamsung ElectronicsSeoul SemiconductorsVishayLumiledsEnnostarStanley electricLite-OnTT Electronic PLCNichiaBroadcomBridgeluxCreeFoshan NationstarOSRAM Opto SemiconductorsHarvatek CorporationMLSBright LED Electronics CorporationKingbright Electronic Co. Ltd.Toyoda GoseiDowa Electronics Materials Co., Ltd.

In Chapter 4 and Chapter 14.2, on the basis of types, the LED Chip market from 2018 to 2029 is primarily split into:

SMD LED ChipCOB LED ChipLED DIPMicro LED ChipOthers

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the LED Chip market from 2018 to 2029 covers:

BacklightingIlluminationAutomotiveSigns and SignalOthers

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)Latin America (Brazil, Mexico, Argentina)Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)