Global LED Driver Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global LED Driver Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global LED Driver Market is expected to register a CAGR of 25.3% during the forecast period. LED drivers have become the bottleneck of LED lighting, both in terms of size and reliability. They provide fundamental advantages for LED lighting with smaller form factors, higher reliability, and improved efficiency over the dimming curve.

Key Highlights

• The increasing energy-efficient policies by the federal government and councils across the countries have deliberately motivated investments in energy-efficient practices and technologies. The display devices, such as smartphones, tablets, laptops, and television, have widely adopted LED backlighting systems due to their low power consumption and small and thin packing ability. Despite the wide adoption, the manufacturers continue investing in backlighting systems to enhance the user experience.
• The increasing penetration of LEDs, due to the energy-efficient and cost-saving nature, is impacting the market's growth, as the LEDs are highly controllable when integrated with a driver, and the intensity can vary based on the requirement.
• Additionally, in recent years, the increasing industrial development and population growth led to a surge in global demand for energy. The decreasing amount of resources and increasing demand for power led to the energy crisis in the world. Various countries have passed regulations on energy consumption to overcome this crisis, which state the use of energy-saving consumer electronics.
• Even though there is a strong global movement toward the use of more energy-efficient lighting solutions, with predictions mentioning that LED and compact florescent lamps replacing 90% of the global indoor lighting by 2022, the usage and acceptance of LED light depends on the individual, their awareness, decision-making and lifestyle, and related environmental issues. The adoption of LED solutions is increasing due to stringent regulations, but the consumer awareness about LEDs' benefits is significantly lower but rising significantly. Meanwhile, consumers should avoid spending on new lighting solutions based on benefits.
• Further, the demand for external drivers is also expected to increase significantly across the globe owing to various smart city initiatives under which governments worldwide are looking to reduce energy consumption and gain cost benefits. According to this, the demand for external LED drivers for street lights and outdoor lighting solutions is expected to increase.
• According to International Energy Agency, in November 2021, over 50% of buildings sector lighting markets globally will be covered by LEDs. LED Driver vendors are expected to focus on increasing the offering's capabilities by enabling flicker-free output, supporting dimming, smooth dimming, and long-lasting life for the residential sector; for outdoor lighting solutions, the focus will be on environmental protection and tunability. Moreover, the driver vendors are expected to increase the efforts in innovations related to human-centric lighting solutions.
• Various prominent vendors in the market are increasingly focusing on offering innovative solutions targeted at the residential sector. For instance, in August 2020, ERP Power LLC, which offers small, smart, and connected LED drivers and light engines for the lighting industry, announced one of the world's smallest programmable output drivers with industry-leading power efficiency and broad dimmer compatibility.
• Since the outbreak of COVID-19, various businesses have faced challenges in the supply chain. The LED industry is no exception. As a prominent share of the raw materials for producing LEDs and drivers originated from Asian countries, the industry was significantly influenced during March and April, as the region was under the severe clutches of the pandemic.

Key Market TrendsWireless Control Feature to show Significant Growth

• The wireless segment includes BLE, EnOcean, Li-Fi, and Zigbee. LED drivers are becoming smart with wireless controls added, operated by remote, mobile applications, and even through the voice. Protocols supported are Zigbee, 6LowPAN, ZWave, and Wi-Fi.
• In March 2022, the Yangtze River International Conference Center lighting design relied on DALI dimmable LF-AADxxx series LED drivers to meet energy efficiency demands. Meanwhile, due to the precise control of the lighting energy of the DALI lighting control system and its combination with the building’s high-performance curtain walls and environmental protection landscapes, the Yangtze River International Conference Center has been awarded the highest grade mark of China Green Building Evaluation and Certification System.
• Zigbee is an open standard for wireless technology that uses digital radio signals for lighting and other building automation. An alternative to Bluetooth, Zigbee uses the IEEE 802.15.4 wireless standard for wireless personal area networks (WPANs) and operates on 2.4 GHz, 900 MHz, and 868 MHz frequencies. However, these frequencies can be very congested, which can interfere with signals or cause them to drop.
• ZigBee is the most common protocol for wireless communication in networked lighting. This technology is relatively mature after a long time of development. Besides advantages in network architecture, ZigBee is also more power-saving. Zigbee LED driver is a professionally designed power supply for LED luminaires, compliant with the Zigbee 3.0 protocol. LED luminaires can be controlled by a gateway or remote controller to turn on/off, brightness dimming, color temperature tunable, RGB color changing after connecting with Zigbee LED driver. ​
• According to the Department of Telecommunications (DoT), in June 2022, the PLI (Production Linked Incentive) scheme was amended to facilitate Design-Led Manufacturing of telecom equipment to develop the 5G ecosystem in India. LED drivers in the market are increasingly becoming efficient at power fluctuations and getting new and improved components. For instance, in June 2020, Infineon released the BCR431U Constant-Current Linear LED Driver IC. The new IC provides low-voltage drop performance for regulating LED current, and the drop at the integrated driver IC can go down to 105 mV at 15 mA.

Asia Pacific Region is Expected to Witness the Fastest Growth Rate

• China is also among the major exporter of LED solutions worldwide; the country is home to numerous local vendors that cater to local demand. Apart from this, vendors operating in the country export LED solutions to North America and other countries in the Asia-Pacific region. The increasing penetration and demand in the country for LED solutions are expected to impact the region’s market growth significantly. Additionally, the government encourages the adoption of lighting technology for roadway and highway applications to save energy and maintenance costs. Such government and organizational initiatives are expected to significantly increase the country's adoption of LED lighting in the country, thereby creating growth opportunities for the LED driver in the country.​
• According to Unnat Jyoti by Affordable Light Emitting Diode (LED), as of March 2022, the Distribution of 36.79 Crore LED bulbs resulted in energy saving of 47,784 million units of electricity per annum, peak demand reduction of 9,566 MW and 38.70 million tonnes of CO2 emission reduction annually.
• In April 2021, Osram Gmbh launched OTi DALI DT6/DT8 indoor LED driver family. This new generation of DALI-2-certified constant-voltage LED drivers combines the benefits of up to four channels with state-of-the-art Tunable White functionality. By merging the previous 1-4CH and TW LED drivers, each of the three new OTi DALI DT6/DT8 LED drivers now provides the power, efficiency, and versatility of both devices – with DT6 standing for multi-channel operation and DT8 for Tunable White.
• In India, due to rapid urbanization, the growing adoption of LED lighting in general lighting applications, increasing demand for energy-efficient lighting systems, integration of IoT and lighting, and acceptance of standard lighting control protocols are driving the market growth. IoT-compatible LED drivers are growing in demand in the country against the backdrop of rising popularity and growing penetration of IoT-based smart lighting systems. In the year 2018, the IoT-Ready Alliance released a new standard for ensuring LED driver compatibility with IoT.​
• Southeast Asia is an increasingly important market for light-emitting diodes (LED). Most of the growth comes from municipal, commercial, and home consumers across the country, particularly in Indonesia. While Vietnam has seen the highest growth in LED lighting, with a year-on-year increase of more than 60 percent between 2013 to 2015, the transportation lighting market in Indonesia is enormous.​

Competitive Landscape

The Global LED Driver Market is very competitive in nature. The market is highly concentrated due to the presence of various small and large players. Some of the significant players in the market are Signify Holding, Lutron Electronics Co. Inc, Hubbell Incorporated, Eaton Corporation Plc, Acuity Brands Lighting Inc., Crestron Electronics Inc., ERP Power LLC, MEAN WELL Enterprises Co. Ltd, Cree Inc, AC Electronics (ACE), Osram GmbH, and many more. The companies are increasing the market share by forming multiple partnerships and investing in introducing new products to earn a competitive edge during the forecast period.

• March 2022 - Signify Holdings and Perfect Plants expand collaboration on cannabis on grow lights. As an LED driver is the brain of an LED lighting system, Signify supplies flexible GreenPower LED systems. Two new climate cells are equipped with dimmable Philips GreenPower LED toplighting compact grow lights and the Philips GrowWise Control System, providing a light system that can be used effectively and efficiently in every growth phase.
• January 2022 - Acuity brands inc is expanding its collaboration with Microsoft to bring new capabilities to Acuity Brands' smart lighting, lighting controls, and building automation solutions. Acuity Brands has a bold goal to avoid 100m metric tons of carbon emissions due to projected 2020-2030 sales of LED luminaires, lighting controls, LED drivers, and building management systems replacing older technologies in existing buildings.

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