Industry News

The LED market is booming, and six major market potential growth applications are decrypted

Author : CROWNDALED

Update time : 2022-08-22 13:11:57

According to the latest data from TrendForce, in 2021, as the impact of COVID-19 gradually eases and various economic activities fully recover, the global LED market will reach US$17.65 billion (+15.4% YoY), with a high growth rate than expected.

With the penetration rate of automotive LEDs' continuous increase, the Mini LED backlight and display's increase, the continuous increasing demand for high-end lighting, and the display applications' further expansion, TrendForce estimates the LED market in 2026. The output value is expected to grow to US$30.312 billion, with a compound growth rate of 11% from 2021 to 2026.

1. Micro/Mini LED market

In 2021, the need for Mini LED direct display and Mini LED backlight will increase outstandingly. Driven by leading manufacturers such as Apple and Samsung, more and more manufacturers will launch Mini LED-related products.

In the Micro LED market, after a comprehensive analysis of the current state of the industry, TrendForce trusts that the general position of indicators such as cost structure, technical challenges, and providers capable of mass production are much more conservative than before, and the Micro LED industry may need to be more conservative. A long time to achieve mass production. However, Micro LED is still the most important development direction of the LED industry in the future, among which the market potential of large-scale displays, wearable devices, and head-mounted devices is unlimited.

2. Automotive LED market

With the dual growth drivers of the whole automotive market delivery and the increasing rate of LED lighting, the worldwide automotive LED market will grow rapidly in 2021. LED Headlights and automotive LED displays are the biggest driving strength for the increase of the automotive LED lighting market.

The intelligent ambient light adopts an RGB LED with a built-in driver IC, which not only simplifies the circuit design but also improves the flexibility of the product application. Intelligent ambient lighting will be applied to high-end car models from 2022, resulting in annual growth in the overall ambient lighting market output value, which will grow to US$248 million in 2026.

3. Display market

The demand for the global LED display market recovered as various business activities and various sports events recovered. Although the market demand has declined in 2H21 due to factors such as rising overseas transportation costs and government budget reductions, overall, the display LED market size will still grow significantly in 2021.

And also, the LED displays are being used for many cross-border scenarios, like home theaters, conference spaces, and fictitious shootings, which will drive the increase of the small-pitch display market in the next few years.

Meanwhile, Outdoor LED Displays are mainly applied in transportation, advertisements, sports areas, Live Activities, and other marketing areas. More markets will be applied from 2022 to 2026. It is worth noting that the 2022-2023 "hundred cities, thousand screens" plan are expected to promote the growth of the outdoor display screen market.

4. Invisible light market

Mainly include UV LED and IR LED.UV LEDs consist of DUV LEDs and UV-A LEDs. As the vaccines are applied universally and the prices of UV-C LED decline, the requirements of the UV-C LED market will drop obviously. Because of the requirement for LCD lamination, 3D printing, and wafer applications, the UV-A LEDs market grow remarkably.

In the long term, air disinfection and broad-scale surface disinfection are still the key markets for home and commercial appliance factories. Meanwhile, there is also a chance for UV-C LEDs to be applied in dynamic water cleaning, producing facilities, manufacturers' automatic applications, and automotive air conditioners. So the UV-C LEDs market will increase year by year.

IR LED mostly consists of security monitoring, a driving monitoring system, 2.5D facial acknowledgment, and other applications. Benefiting from the stable market demand and price, the IR LED market size will grow slightly in 2021. In the long run, the IR LEDs market will
grow continuously in the future.

5. Agricultural Lighting Market

The growth rate for the demand for agricultural lighting will drop obviously in 2021 after a fast increase in 2020. Affected by rising overseas transportation costs and the crackdown on illegal indoor marijuana cultivation in North America, the demand for plant lighting LEDs has weakened.

But in long term, many more areas will legalize cannabis. 6 states in North America legalized medical cannabis in 2022. Thailand plans to legalize medical cannabis in 2022), and the global extreme climate changes are becoming more and more frequent, indoor Agricultural planting has greatly improved the localization of food supply, improving the level of food safety and shortening the food supply chain and. In long term, plant LED lighting, Livestock LED lighting, fishing LED lights, other agricultural LED lighting, and the other potential LED markets have very good prospects.

6. General Lighting Market

In the coming few years, the market for top-end LED lighting will continue to grow due to the promotion of smart LED lighting and human-induced LED lighting factors.

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