High Brightness LED Market Share, Growth, Opportunities 2031

Report Description

The global high brightness LED market size was around USD 26.12 Billion in 2022 and is estimated to reach USD 46.08 Billion by 2031, expanding at a CAGR of around 6.51% during the forecast period, 2023 to 2031. The growth of the market is attributed to the increasing adoption of LEDs in signboards, signals, automotive devices, televisions, and others.

Light-emitting diode (LED) is referred to as a semiconductor light source, which is a widely used light source in electrical equipment. Semiconductor devices emit visible or infrared light when they are charged with an electric current. When charged with an electric current, electrons reconnect emitting light in the process. The current flows in the forward direction in LEDs. They block the current moving in the reverse direction.

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The colors of LEDs are determined by the materials utilized in the semiconducting elements. Aluminum alloys are used to gain red, orange, and yellow light in LEDs. Conversely, indium alloys are used to obtain green, blue, and white light in LEDs. LEDs are used for various applications in several industries. They are used in automotive, displays, back-lighting, flash lighting, and several other applications. There are several benefits associated with LED lights, which make them a popular choice in several industries. LEDs have a longer lifespan in comparison with other traditional, fluorescent, or incandescent light bulbs. A LED light is said to last for six to 12 years, which is 40 times more than incandescent lights and two to four times longer than fluorescent lights. LEDs are more energy efficient than traditional bulbs. LEDs facilitate around 70% improvement in overall energy efficiency. Improved energy efficiency is correlated with cost-effectiveness.

LED lights are considered a smart investment for consumers. An increasing number of consumers are shifting their preferences to LED lights, as they are considered more environmentally friendly, have no heat or ultraviolet emission, and have the ability to operate in cold conditions. These lights provide more benefits such as design flexibility, ability to withstand frequent switching, instant lighting, dimming capabilities, and others. High brightness LEDs, also known as HB LEDs, are semiconductors, which have higher luminosity than traditional LEDs. HB LEDs withstand high current levels and power dissipation as well. HB LED lights offer enhanced and inexpensive lighting solutions compared to other lighting solutions. With such lights, colors look more natural than the other lights. HB LEDs are easily dimmable without emitting any noise. They have high lighting output, also known as luminous efficacy. High brightness LED lights are increasingly becoming a popular choice in several applications such as smartphones, automotive lights, backlighting, streetlights, and others.

COVID-19 Impact on High Brightness LED Market

The COVID-19 pandemic situation affected the global high brightness LED market negatively. The lockdown, social distancing policies, travel bans, and other pandemic-related restrictions and regulations resulted in a slowdown in the manufacturing process of non-essential commodities such as electronic components such as LEDs. The slowdown led to the disruption of the supply chain of electronic components, which delayed the distribution of these components required for producing several other products. Several organizations and companies decrease or cancel any new technological investments during the pandemic situation. The pandemic situation led to market disruption and had a negative financial impact on several businesses in the global high brightness LED market.

High Brightness LED Market Dynamics

The research report presents a complete global market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The high brightness LED market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2023 to 2031.

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Major Trends

Green construction is one of the current trends in the global market
Rising awareness regarding environmental issues is expected to boost the adoption of green construction across the globe. The green construction industry adopts LEDs increasingly, as they do not contain hazardous elements such as mercury. LEDs are considered greener alternatives compared to traditional fluorescent lights.  

Key Drivers

Increasing demand for energy-efficient, environmentally friendly, and durable LED lighting solutions boosts the global high brightness LED market
A growing number of consumers are shifting their preferences from traditional lights to LEDs, as they are considered more cost-effective, long lifespan, and energy-efficient lighting solutions than traditional lights. LEDs emit more bright light than fluorescent ones. Rising concern regarding high levels of carbon emissions is one of the major factors estimated to drive the global high brightness LED market in the coming years.

Favorable government policies and initiatives fuel the global high brightness LED market growth
Growing awareness regarding environmental issues and increasing knowledge of LED benefits propels governments across the globe to adopt various policies and take initiatives supporting the wide adoption of LEDs for various applications.

Existing Challenges

LED performance issues in different ambient temperatures restrain the global high brightness LED market
The productivity of high brightness LEDs is highly dependent upon surrounding temperature. For example, excessive usage of high brightness LEDs in high temperatures can cause the lights to fail. This factor hampers the high brightness LED market growth.

Emerging Opportunities

Rising demand for various consumer electronics offer growth opportunities
There is tremendous growth in the demand for consumer electronics such as televisions, laptops, smartphones, and others in recent years. Continuous technological advancements, growing disposable income, and increasing penetration of the internet are the major factors propelling the consumer electronics demand. The escalating demand and sales of various consumer goods are projected to create growth opportunities for the global high brightness LED players.

Scope of High Brightness LED Market Report

The report on the global high brightness LED market includes a comprehensive analysis of the market trends, market forecast, market segments, and regional markets. Overview and dynamics have also been included in the market research report.

High Brightness LED Market Segment Insights

Flip chip segment expands rapidly

In terms of technology, the global high brightness LED market is divided into mesa, flip chip, and vertical. The flip chip segment is expected to drive the global high brightness LED market during the forecast period, the flip chip technology-based LEDs are usually free from wire-bonding, driven by high current, and come in small packages. These factors facilitate the increased adoption of flip chip LEDs in various industries in compared to messa and vertical LEDs.

Signals & signage segment holds a key market share

Based on applications, the global high brightness LED market is segregated into general lighting, automotive, backlighting, signals & signage, consumer electronics, flash lighting, and others. The signals & signage segment is projected to register significant growth during the forecast period, as LED lights have the ability to produce multiple colors and require low power. The number of signals and signage has increased in recent years, due to growing concern regarding public security and safety. Brightly lit signs and signals guide people and vehicles to carry forward safely without any accidents. LED lights have long lifespans and the ability to produce different colors that aid in reading and understanding the signals and signs easily. An increasing number of outdoor LED lighting for signs and signals and supporting government policies affect the signals & signage segment growth positively.

The automotive segment is estimated to expand rapidly in the coming years, due to increasing demand for automobiles and the growing automotive industry across the globe. The automotive industry is increasingly adopting high brightness LED headlamps to increase road visibility and enhance passenger safety features in automobiles.

The flash lighting market is anticipated to hold a significant market share during the forecast period, due to the increasing usage of smartphones to capture photographs and videos across the globe. A growing number of consumers use their smartphones to take pictures, especially in dim light environments such as restaurants, night sky, and others. This boosts the demand for effective flashlights in smartphones that facilitates capturing good images in low light. This increasing demand boosts smartphone manufacturers to adopt high brightness LEDs in smartphones to offer an additional and effective light source for capturing low-light photographs.

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Asia Pacific to dominate the market

On the basis of regions, the global high brightness LED market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is expected to register a high CAGR during the forecast period, owing to a large number of key market players present in the region. The easy access to skilled labor and technical professionals in counties such as China, India, and Japan boosts the high brightness LED market growth in the region. Several favorable government policies and regulations aid in expanding the market as well. For example, the government of India has adopted a policy that facilitates the replacement of around 21 million streetlights with LED lights. Growing usage of billboards, LED signs, streetlights, bay lights, and others in countries such as Japan, India, China, and others are projected to spur the high brightness LED market in Asia Pacific.

The Europe high brightness LED market is anticipated to account for a substantial market share during the forecast period, owing to continuous technological developments in the region. The countries such as France, Germany, and the UK contribute to the growth of the high brightness LED market significantly. The presence of several market players such as OSRAM GmbH, Plessey, Lumileds Holding B.V., and others in the region facilitates a rapid expansion of the market in Europe. Growing usage of high brightness LEDs in various applications such as general lighting and automotive lighting boosts the high brightness LED market in Europe.

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