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

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

The LED driver market is valued at USD 4,527.2 million in 2020, and is expected to reach USD 16,440 million in 2026, registering a CAGR of 25.53% during the forecast period (2021 - 2026). 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. The increasing energy-efficient policies by the federal government and councils across the countries have deliberately motivated the 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 their wide adoption, the manufacturers are continuing to invest in backlighting systems to enhance the user experience.

Key Highlights

• The global demand for LED lighting solutions is growing at a fast pace, and with the advent of smart LED solutions, the adoption rate of LED is expected to increase further. According to the IEA, in 2019, the global LED sales reached over 10 billion units, including both light sources and luminaires, and expects that the LEDs are expected to make up over 90% of sales by 2030.
• The increasing penetration of LEDs, due to their energy-efficient and cost-saving nature, is impacting the growth of the market, as the LEDs are highly controllable when integrated with a driver and their intensity can be varied based on the requirement.
• The residential market demand for the solutions is significant; according to the US Energy Department, there were at least 500 million recessed downlights installed in the US homes, and over 20 million are sold each year. Owing to this, the demand for drivers from the segment are expected to increase significantly over the coming years.
• Aditionally, 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 energy led to the energy crisis in the world. To overcome this crisis, governments of various countries have passed regulations on energy consumption, 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 the 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 the stringent regulations but the consumer awareness pertaining to the benefits of LEDs is significantly lower, but increasing significantly. Meanwhile, the consumers are expected to avoid spending on new lighting solutions on the basis of benefits.
• Since the outbreak of COVID-19, various businesses are facing challenges pertaining to the supply chain. The LED industry is no exception. As a prominent share of the raw materials for the production of LEDs and drivers originated from Asian countries, the industry was significantly influenced during the months of March and April, as the region was under the severe clutches of the pandemic.
• Owing to the supply chain issues, the prices of LEDs are expected to go up for a short period of time and may last till mid of 2021. According to the industry body ELCOMA, prices of LED bulbs and lights may see an increase of up to 10% from March due to supply chain shortages.

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 though the voice. Protocols supported are Zigbee, 6LowPAN, ZWave, and Wi-Fi.
• 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.
• Magtech also introduced the ZigBee Wireless-ready LED driver series at the Strategies in Light event. The innovative and multi-function wireless LED driver is designed to work flawlessly within ZigBee H.1.2 communication systems. These highly reliable and fully compatible drivers are designed to meet industry standards. The output wattage ranges from 12 Watts to 70 Watts with multiple forward voltages. The Q-XM and Q-LM LED driver series can help lighting fixture manufacturers efficiently and quickly deploy ZigBee ready products without having to re-tool existing designs.
• MEAN WELL, a prominent standard LED driver manufacturer, continues to promote the wireless building automation technology for making a green and sustainable society. The company’s wireless LED control portfolio is ideal for both new buildings and retrofits. It provides LCM-40/60EO series wireless EnOcean LED driver. The LCM-EO drivers can be controlled directly with EnOcean technology. The power supply units are suitable as a replacement for leading-edge phase dimmers or trailing-edge phase dimmers without control lines or for integration in the complex, wireless building services control systems. These drivers can be integrated without additional components in EnOcean systems.

Asia Pacific Region is Expected to Witness the Fastest Growth Rate

• China is expected to witness significant growth in the demand for LED Drivers over the forecast period due to the rise in demand for commercial launches, owing to an increased demand for LED lighting solutions from the commercial as well as industrial sectors. nThe significant increase in the adoption of LED technology by the municipal end-users, such as the local governments for open public spaces, streets, bridges, public parking areas, walkways, and highways, drives the country's market.
• In February 2020, Minebea Mitsumi Inc. and Iwasaki Electric CO., Ltd. were provided the Suginami Ward demonstration field, as they jointly launched the IoT Streetlight Demonstration Experiment to support the Japan's smart city project. The test site will be equipped with 11 smart streetlights and one environmental sensor near the north exit of Nishi-Ogikubo Station.
• Street Lighting National Programme (SLNP), India, installed over 7.574 million LED lights in 28 States/ Union Territories. The estimated energy saving was 5.08 billion kWh. According to the Power Minister of India, the country has around 134 million LED lights by March 2020. These lights have been installed under SLNP. It is being implemented by Energy Efficiency Services Ltd (EESL).
• In March 2020, Seoul’s violeds UV LED technology was adopted by Maltani, the largest Korean lighting company, for sterilization lighting applications, and by RGF Environmental Group, the leading in-duct air treatment supplier for its Halo-LED indoor air quality system launched in November of 2019.

Competitive Landscape

The LED driver market is fragmented in nature. It is a highly competitive market with the presence of several players in the market. The market many dominant players.

February 2020 - Acuity’s eldoLED LED driver business unit announced the first driver products to receive Digital Illumination Interface Alliance (DiiA) certification to DALI (Digital Addressable Lighting Interface)-2 Tc, with Tc referring to white-point color temperature control along the black-body line. Such drivers will generally be multi-channel products, yet a single DALI address and command stream will control two or more driver outputs.

August 2020- Mean Well Enterprises Co. Ltd launched programable output drivers, with high-power efficiency and broad dimmer compatibility. The new PTB Series drivers are scheduled to be available from ERP Power distributors in Q3 2020 from Arrow, DigiKey, Future, Mouser, and WPG in the Americas.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

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
Autec Power Systems
Enedo Plc
Hatch Lighting
Allanson International

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