Increasing demand for smart lighting solutions is a key driver that contributes towards the growth of LED packaging market. Moreover, the growing developments towards advanced LED packaging technologies provide opportunities for the market players that offer packaged LEDs which thereby is expected to drive the growth of LED packaging market in the future.
The LED packaging market is projected to reach USD 19.4 billion by 2029 from USD 16.0 billion in 2024, at a CAGR of 3.9% from 2024 to 2029. The major factors driving the growth of LED packaging market includes the rising adoption of UV LED-based disinfection systems, increasing demand for smart lighting solutions, and rising adoption of LEDs in automotive lighting solutions which is expected to provide several growth opportunities for market players in the LED packaging market.
GROWING DEMAND FOR SMART LIGHTING SOLUTIONS TO DRIVE MARKET GROWTH
LED packaging is an essential element in the world of lighting technology. It involves the process of encapsulating and protecting delicate LED components, allowing them to deliver high-performance illumination in a range of applications. With its compact size, energy efficiency, and long lifespan, LED packaging has revolutionized the way we illuminate our surroundings. In this article, we will talk about what is LED packaging, its importance, its principles, and general packaging methods. LED packaging refers to assembling LED chips and other components (such as connecting wires and packaging materials) together to form a complete LED lamp. The purpose of LED packaging is to enable the LED chip to work properly in practical applications and have sufficient brightness and stability.
Testing equipment includes test equipment for electricity, optics, and electrostatic discharge (ESD) tests. LED testing involves evaluating the performance, quality, and safety of LED lighting products that covers luminous efficacy, colour characteristics, lifetime and reliability, electrical safety, thermal management, and environmental and energy efficiency. Various companies provide testing equipment for packaged LEDs such as Vitrek (US), MPI (Taiwan), Chroma (US), and VEKTREX (US). These companies supply a diverse range of equipment to ensure LED lighting products comply with industry standards and specifications. Therefore, testing equipment in the LED packaging market is expected to have the largest market size during the forecast period. The popularity of LED packages employed in luminaires is steadily increasing which is driven by the superior energy efficiency of LEDs as compared to conventional light sources. Improvements in the standard of living and the modernization of residential design and construction practices are driving the demand for LED packages in residential applications. The market share for UV LEDs is notably increasing, particularly due to their specialized applications in disinfection, counterfeit detection, sterilization, UV curing, and medical research. However, the market for these UV LEDs is anticipated to experience rapid growth during the forecast period driven by the growing demand for these LEDs in medical facilities. Asia Pacific has witnessed substantial growth in manufacturing activities owing to the advantages of low production costs and strong support from local governments. Increased investments further drive the expansion of the LED packaging market in the region. Many electronic manufacturers choose to outsource production, particularly in segments like semiconductor assembly, to cost-effective countries within Asia Pacific.
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