Global Chip-on-board (CoB) Light Emitting Diode (LED) Market 2023-2030

Global Chip-on-board (CoB) Light Emitting Diode (LED) Market 2023-2030

Global Chip-on-board (CoB) Light Emitting Diode (LED) Market Size, Share & Trends Analysis Report by Material (Metal Core Printed Circuit Board (MCPCB) and Ceramics), and by Application (General Lighting, Backlighting, Automotive Lighting, and Others) Forecast Period (2023-2030)

The global CoB LED market is anticipated to grow at a considerable CAGR of 4.1% during the forecast period. The growth of the market is attributed to factors such as the increasing demand for energy-efficient lighting solutions and advancements in lighting technology. Further, the automotive sector's adoption of CoB LEDs for various applications is expected to fuel the demand for CoB LEDs. According to International Energy Agency (IEA), compared to incandescent, LED lamps offer 80-90% energy savings. Compared to fluorescent, they achieve 50-60% savings. Chip-on-board LEDs lumens per watt (lm/W) offer efficacies over 150 lm/W – double the efficacy of the fluorescent technology – with high color rendering and stability. Thus, the growth of the market is attributed to factors such as increasing demand for energy-efficient lighting solutions and advancements in lighting technology. Further, the growth of the automotive sector coupled with the adoption of CoB LEDs for various applications in the automotive segment, such as headlights, interior lighting, and displays is anticipated to propel the growth of the market.

Segmental Outlook

The global CoB LED market is segmented based on material and application. Based on material, the market is bifurcated into MCPCB and ceramics. Based on application, the market is sub-segmented into general lighting, backlighting, automotive lighting, and others (illumination). Among the material, the others sub-segment including Illumination is anticipated to hold a prominent share of the global CoB LED market. The growth is attributed to the growing demand for energy-efficient and long-lasting lighting solutions in residential, commercial, and industrial sectors.

Automotive Lighting Sub-Segment is Expected to Hold a Considerable Share of the Market

Among the application segment, the automotive lighting sub-segment is anticipated to register significant growth over the forecast period. According to IEA, cars and vans accounted for about 8.0% of global direct CO2 emissions in 2021. The demand for more fuel-efficient vehicles is increasing owing to various steps taken by governments and organizations across the region. For instance, in Europe, the EU Commission has proposed to bring the CO2 emission standard for new cars to zero by 2035. The growth of the automotive sub-segment is attributed to the factors such as the growing demand for efficient lighting in automotive industries and the growth of the electric vehicles (EVs) market. According to IEA, around 3 million electric vehicles (EVs) were sold in 2020 and the number of EVs sold doubled in 2021 to reach 6.6 million units. This represents a significant increase in market share in recent years. The growth of electric and hybrid vehicles is becoming more popular and lighting is an important component of them.

Regional Outlooks

The global CoB LED market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Among these, North America is projected to experience considerable growth in the CoB LED market during the forecast period. The market growth is attributed to various advancements in efficient lighting technology along with the growing emphasis on efficient lighting in residential and commercial applications. However, Europe is anticipated to cater to a prominent growth over the forecast period.

Global Chip-on-Board (CoB) Light Emitting Diode (LED) Market Growth by Region 2023-2030

Source: OMR Analysis

The Asia-Pacific Region is Anticipated to Hold a Significant Share in the Global Chip-on-board (CoB) Light Emitting Diode (LED) Market

Among all the regions, the Asia-Pacific region is anticipated to hold a significant share of the chip-on-board (CoB) LED market. With the increasing per capita income, and the reducing cost of lighting products, householders can afford more lighting services, especially in the Asia-Pacific region. This increase in demand for chip-on-board LED in Asia-Pacific is being driven by a large population and the number of households. Lighting services in the commercial sector are being driven by larger spaces that need to be lit. According to International Energy Agency, China is the world’s largest producer, consumer, and exporter of LED lighting products. China has implemented a series of fiscal and taxation policies to incentivize LED technologies. For instance, LED lighting is on China’s compulsory government procurement list and is eligible for government green bond support. Also, India's bulk procurement programs have driven down the cost of LED lamps and made them affordable in the region. India’s lighting industry association has published a roadmap called ELCOMA Vision 2024, to convert India’s lighting market to LEDs by 2024. Thus all these factors combined are contributing positively to the growth of the chip-on-board LED market in Asia Pacific.

Market Players Outlook

The major companies serving the global chip-on-board (CoB) LED market include Lumens Co., Ltd., OSRAM GmbH, Samsung Electronics Co., Ltd., Citizen Electronics Co., Ltd., Wolfspeed, Inc., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in March 2021, SMART Global Holdings, Inc. acquired Wolfspeed, Inc. (earlier Cree Inc.). Through this acquisition, the company has been benefitted with increase in the customer relationships and improved product development capabilities. Wolfspeed LED business segment focuses on specialty lighting which fits well with other specialty businesses in computing and memory.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global chip-on-board (CoB) Light Emitting Diode (LED) market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.