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LED Market Overview
The market
for LED is forecast to reach $102.6 billion by 2026, growing at a CAGR of 15.3% from
2021 to 2026. The LED Market is estimated to witness a sustainable growth over
the forecast period majorly because of the different environment friendly
features it offers in different applications. Rise in Environmental concerns is
one of the major driving factor of LED market in global level. Moreover, with
the ongoing governmental regulations in global market for deploying energy-efficient
lighting such as LED lighting tend to create a major impact in the
rapid adoption of LEDs. Ultraviolet light occurs between the visible and x-ray electromagnetic spectrum. The Ultraviolet wavelength range is specified between 10 nm to 400
nm which categorizes LEDs into three different types. However, many photoelectric
manufacturers also consider wavelengths as high as 430 nm to be in the UV
range. The replacement of CCFL with LEDs
made of Silicon Carbide, Gallium Nitride and other materials will drive the
demand in UV Curing and medical phototherapy applications. The wide electromagnetic spectrum of LED lighting across Infrared through to Ultraviolet will be a major driver of adoption. However potential electromagnetic interference of LEDs in TVs and Radio will hinder market growth.
LED Market Report Coverage
The
report: “LED Market– Forecast (2021-2026)”,
by IndustryARC covers an in-depth analysis of the following segments of the
LED Market.
By Type – UV (Ultraviolet
A (UV-A), Ultraviolet B (UV-B) and Ultraviolet C (UV-C)), IR LED and Visible Light LED.
By Material – Indium
gallium nitride (InGaN), Aluminium gallium indium phosphide (AlGaInP), Aluminium
gallium arsenide (AlGaAs), Gallium phosphide (GaP) and Others.
By Applications – UV Curing,
Adhesive Coating, Lacquer Coating, Sterilization, Forensic Application, In-Line
Coating, Counterfeit Detection, Sensing, Lighting, Display and Others.
By End-Use Industries – Healthcare, Research, Industrial, Residential,
BFSI, Security, Consumer Electronics, Automotive and Others.
By Geography - North America (U.S, Canada, Mexico), Europe (Germany,
UK, France, Italy, Spain, Russia, Netherlands and Others), APAC(China, Japan
India, SK, Australia, Indonesia and Others),
South America(Brazil, Argentina, Chile, Colombia and
others), and RoW (Middle East and Africa).
Key Takeaways
- The LED Market is estimated to witness a
sustainable growth over the forecast period because of the rising environmental
concerns for adopting eco-friendly lighting systems at various
industries.
- The other factor responsible for the
growth of LED Market are the various environmental friendly features it
offers to the sterilization industry and different disinfection processes
such as of water, air and different surfaces.
- In addition, increasing safety concerns
over water-borne diseases have brought an increase in people's awareness
of consuming treated water. The growing awareness of the benefits of
treated water consumption has impacted the applications LED that tend to
propel its market growth.
- The scope for a LED is becoming abundant in sterilization applications, as it is being proved to be one of the cheapest way to provide safe drinking water across the globe. This safety benefits are expected to enhance the demand of LEDs in global market further uplifting its market growth.
LED Market, By Region, 2020
LED Market Segment Analysis - By
Type
Ultraviolet LED is set to be fastest growing
segment of the LED Market with a CAGR of 20.9% in 2020. In general, UV-C LEDs have
wavelength range of 275 nm (280-100 nm) and they are available in different
power levels and styles. Offering different operations in various industries,
UV-C is available in different light sources such as single, chip-on-board and strip
module of different specifications. Longer strip lengths with higher outputs is
one of the widely used type. LED's have been increasingly used in applications
where UV lamps (mercury, xenon, amalgam, excimer) have operated for decades. Improvements
in UV-LED flux density, stability and life hours have made LEDs a viable
solution for replacing traditional UV light sources such as mercury arc lamps, arch
lamps, hot and cold cathode lamps and grid lamps. LEDs are more environment
friendly as they do not contain harmful mercury, they do not produce ozone and consume
less energy as well. These major advantages uplift the demand of LEDs,
particularly using Silicon Carbide and Gallium Nitride materials which is
expected to propel its market growth in forecast period. UV-C LED usage is
rapidly growing in applications such as germicidal (UVGI) for air, surface and
water purification.
LED Market Segment Analysis - By
End Use Industry
LEDs are widely used for different
Healthcare and Sterilization applications and are projected to grow at a CAGR
of 18.4%. LED Curing uses light-emitting
diodes which convert electrical current into light. When the electrical current
flows through an LED, it gives off ultraviolet radiation. The ultraviolet light
causes chemical reactions in the molecules within the liquid, forming chains of
polymers until the liquid becomes a solid. This process is a new technology which
was designed to provide solutions to many of the issues found in traditional UV
curing and heat-set drying. LED curing offers all the benefits of traditional
curing, but also provides solutions to the negative environmental impact. This
new technology reduces heat radiation and offers instant on-and-off switching. LED
curing also does not require the use of moving parts which further reduces the
amount of energy required. All these advantages tend to boost its demand in
Healthcare and Purification industries which uplift its market growth.
LED Market Segment Analysis - By
Geography
Asia-Pacific accounts for being the
highest market at 39.6% in 2020. The market growth in this region is
predominantly rising due to leading economies such as China, India, Japan and
Others. As Asia-Pacific region holds the largest population and is covered by
largest ocean, the demand for freshwater has been high at different industrial
as well as residential sectors. Thus, the demand for water sterilization and
purification processes is of great extent. This demand enhances the market growth
of LED in this region. According to World Bank Reports, investments done in water
and sanitation in Asia-Pacific region is highest and has been increasing
rapidly from $50M to $910M in recent years. These tend to propel the market
growth of LEDs using Silicon Carbide and Gallium Nitride materials in forecast
period as freshwater demand will always be high. Asia-Pacific is closely
followed by North America in the LED Market growth due to presence of major
market players in this region which provides technology upgrades in LEDs.
LED Market Drivers
Rise in Environmental concerns drives market growth
With the rising Environmental concerns at global level, the adoption of LEDS for various applications in different industries tend to drive its market growth. LED's have been increasingly used in applications where UV lamps (mercury, xenon, amalgam, excimer) have operated for decades. Improvements in UV-LED flux density, stability and life hours have made LEDs a viable solution for replacing traditional UV light sources such as mercury arc lamps, arch lamps, hot and cold cathode lamps and grid lamps. With the rising Environmental concerns, the adoption of LEDs came into play. LEDs are more environment friendly as they do not contain harmful mercury, they do not produce ozone and consume less energy as well. These major advantages uplift the demand of LEDs which is expected to propel its market growth in forecast period. UV-C LEDs is rapidly growing in applications such as germicidal (UVGI) for air, surface and water purification. LED curing provides solutions to the negative environmental impact as it offers improved flux density, stability and long-life hours which makes LEDs a viable solution for replacing traditional UV light sources such as mercury arc lamps, arch lamps, hot and cold cathode lamps and grid lamps which drives its market growth in the forecast period.
LEDs offers compactness and long durability
LEDs do not contain toxic mercury and
are often found in CCFL technology. They are much smaller and more durable than
CCFLs and are more resistant to vibration and impact, resulting in less product
breakage and reduced waste and maintenance expense as well. These advantages
tend to drive its market growth in forecast period. The overall heat generated
by the LEDs is considerably low. The LED lamps based on Silicon Carbide and
Gallium Nitride materials reaches a maximum of 40 degree Celsius, whereas
mercury lamps heat up to more than 60 degree Celsius. Low-pressure germicidal
lamps which are traditionally used in these applications are typically
associated with lifetime claims of 8000 to 10,000 hours. As a solid-state
device, UV-C LEDs can be cycled on/off tens of thousands of times with little
or no observable difference or degradation in performance. UV-C LEDs also offer
a near-instant capability to provide full rated output, requiring no warmup
time which makes it available for 25,000 to 100,000 hours. These advantages
tend to drive its market growth in global market.
LED Market Challenges
High Installation Cost
One of the major
challenges faced by LED Market globally is the high installation cost. LEDs are
comparatively costlier than other alternatives. This tend to restrain its
demand of LEDs thus bring major challenge in its market growth. Several other challenges
have been expected to hinder the market growth by hampering the adoption of LEDs
using Silicon Carbide and Gallium Nitride
materials, specifically for those in the UV-B
(280nm – 315nm) and UV-C (100nm-280nm) spectral regions. LED manufacturers are
struggling to improve the light output and efficiency while at the same time
increase the reliability and useable life of the LED. Improvements are being
made, but this has brought an exponential rise in the overall cost of these LEDs.
This brings a major challenge in the market growth of LEDs in forecast period.
LED Market Landscape
Product launches, acquisitions, and R&D activities are key
strategies adopted by players in the LED Market. The LED Market is dominated by
major companies such as Lumileds Holding BV, Nordson Corporation, Seoul Viosys
Co.Ltd., Honle UV America Inc., LG Innotek Co. Ltd, Halma Plc, Heraeus Holding
Gmbh, Hnle Group, OSRAM, Koninklijke Philips N.V., Crystal IS, Sensor
Electronic Technology, Phoseon Technology.
Acquisitions/Technology Launches/Partnerships
- In January 2021, Sensor Electronic Technology (SETi) and Seoul Viosys, the leading global providers of LED technology and subsidiaries of Seoul Semiconductor, partnered together to launch their new Violeds technology that can quickly and effectively kill 99.437% of SARS-CoV-2 in less than one second. The testing was conducted in December 2020 through KR Biotech, a South Korea-based research institute specializing in sterilization testing of the new coronavirus.
- In January 2021, OSRAM launched their new portable UV-C air purifier that fight against viruses and bacteria in this pandemic situation of Covid-19. The invisible, ultraviolet light destroys viruses and bacteria with a reliability of 99.9 percent.
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