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Chip Scale Package (CSP) LED Market

Growth for Energy-efficient LED and Government Regulation are expected to Drive Chip Scale Package (CSP) LED Market Growth

Chip Scale Package (CSP) LED Market is Segmented By Power Ranges (High-Power, Low-Power, Mid-Power), the high-power range segment will grow at a CAGR of 14.2%.

Chip Scale Package (CSP) LED Market Outlook (2023 to 2033)

According to Persistence Market Research, the global market for chip scale package (CSP) LED will reach US$ 1.0 billion by 2023, growing at a 14.2% CAGR from 2023 to 2033. The market is projected to reach US$ 3.8 billion by 2033.

As automotive headlights become more complex and require high intensity and beam control, CSP LEDs are becoming increasingly popular. Advanced Front Light Systems (AFLS) and cameras are improving the resolution of matrix headlights, as well as driver visibility.

Since the LEDs are chip scale packages, they comply with cooling requirements, and without wire connections, they offer longer service lives and are not damaged by vibrations. Due to their miniaturization and cost reduction capabilities, chip scale package LEDs (CSP-LED) based on flip-chip technology are attractive at the moment.

Along with improving the optical, thermal, and mechanical performance of LEDs, excellent LED packaging technology can also improve its light extraction efficiency. For CSP LED products, manufacturers must adhere to quality standards such as ISO in order to guarantee quality and safety.

LEDs made from CSP exhibit higher resistance to moisture and temperature changes in comparison to other LEDs, thus making them suitable for a wider range of applications. Due to their compact size and design, CSP LEDs provide greater design freedom and integration possibilities than traditional LED packages.

Report Attributes Details

Chip Scale Package (CSP) LED Market Size (2023)

US$ 1.0 billion

Chip Scale Package (CSP) LED Projected Market Value (2033)

US$ 3.8 billion

Chip Scale Package (CSP) LED Market CAGR (2023 to 2033)

14.3%

United Kingdom Market Growth (2017 to 2021)

16.5%

Europe Market Share (2023 to 2033)

25%

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2018 to 2022 Chip Scale Package (CSP) LED Sales Outlook Compared to Demand Forecast from 2023 to 2033

According to Persistence Market Research (PMR), chip scale package (CSP) LED is projected to grow at a 14.3% CAGR from 2023 to 2033. Over the historical period of 2018 to 2022, the market recorded a 17.8% CAGR.

CSP LEDs will probably see a high adoption rate from the automotive market and other applications in the next few years, likely leading to an increase in demand. Safety regulations for CSP LEDs, like those for all lighting products, are being implemented for safeguarding users from being exposed to electrical or fire hazards.

CSP LEDs are in high demand due to the rapid development of sleeker and more advanced smartphones, requiring smaller components to grow the market. Residential sectors are likely to grow in demand for CSP LED market in the coming years.

The sale of lighting products is regulated by energy efficiency regulations in many countries. These regulations must be met in order to allow CSP LEDs to be sold in countries with such regulations.

Silicon is being used to develop CSP LEDs so that their performance can be improved and their production cost can be reduced. With the development of CSP LED technology, mobile-based lighting solutions or voice commands are becoming more popular on the market.

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How is the Market for Chip Scale Package LEDs Evolving?

Technology Developments and the Role of LED Light to Support the Chip Scale Package (CSP) LED

A long life span and technological advancements will drive chip scale LED sales in the upcoming decade. In comparison with conventional lighting options, LED chips are much more energy efficient.

Compared to traditional LED packaging, CSP LEDs require fewer packaging procedures, which results in lower production costs. With LED packaging companies competing for market share, CSP LEDs are improving with better designs. Several factors influenced the elusive investor to invest in the chips scale. These factors included packaging density, beams with wide angles, and the shape of the devices. As a result of the new features, a wider range of businesses will be attracted to the site.

Chip scale LEDs have a lower thermal resistance, which is a major advantage. The uniform spread of these technologies is another factor contributing to their higher adoption rates. Continuous development in the field is making chip size LEDs more effective and adaptable. As a result of these advantages, they can be used in a wide range of industries and by users. Additionally, the government and requirements have also stressed the importance of chip size LEDs. A number of countries have set up policies that encourage the use of energy-efficient lighting systems.

It is becoming increasingly important that government regulations mandate the use of LED lighting in vehicles in order to reduce energy consumption, which is fueling the adoption of CSP LEDs in automobiles.

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Country-wise Insights

What Role is Asia Pacific Playing in the Growth of Chip Scale Package (CSP) LEDs?

Growth of Electronics and Demand for LED Lighting in Residential Sectors to expand Demand in the Asia Pacific

According to PMR, the Asia Pacific region is expected to dominate the global demand for chip scale package (CSP) LED. The sales of chip scale package (CSP) LEDs in Asia Pacific are expected to reach US$ 0.93 billion by 2033. According to the forecast, the market will accumulate a revenue share of 24.6%.

APAC's authority in the market is attributed to the presence of manufacturers and customers that produce chip scale LED packages, such as display panel manufacturers and smartphone vendors. As the market develops in APAC, newer chip-scale packages will be found in a wide range of lighting applications.

High sales in China, Japan, and South Korea are driving a significant percentage of the market's steady revenue growth. The high usage of electronic devices in these countries contributes to the growth of the market. A growing global market is expected to lead to China having a share of 35% of the global market by the year 2023. By 2033, China's GDP is projected to grow by US$ 325.3 million at a 15.3% annual growth rate.

Why are Chip Scale Package (CSP) LEDs so popular in Europe?

Elevated demand for Automotive Products will increase demand for Chip Scale Package (CSP) LED in Europe

The chip scale package (CSP) LED market in Europe is expected to accumulate a market share of 25.1%. It is estimated that 25 to 28% of the global market represents the market for CSP LEDs. As predicted, the United Kingdom is expected to reach US$ 1.2 billion during the forecast period. According to PMR, the market is expected to grow at a CAGR of 13.4% between 2023 and 2033.

Europe's chip scale package (CSP) LED market is expected to experience considerable growth during the forecast period. A significant increase in the demand for general lighting in the region, as well as for automotive lighting, is leading to the growth of the market.

The region is dominant in the market due to prominent LED manufacturers, including wearable devices, smartphone manufacturers, and backlight panel integrators.

With an abundance of automotive manufacturers and LED CSP manufacturers in the region, the CSP LED market is expected to grow significantly in Europe. As part of the EU's RoHS directive, CSP LED products must comply with regulations regarding the utilisation of hazardous substances in electronics, and with REACH regulations that regulate the registration, testing, approval, and restriction of chemicals.

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Category-wise Insights

Which Top Power Ranges are driving the Global Chip Scale Package (CSP) LED Market?

High-power CSP LEDs is Rising Demand for Chip Scale Package (CSP) LED

Market projections indicate that by 2033, the high-power range segment will grow at a CAGR of 14.2%. High power is expected to experience rapid growth throughout the projection period. The LED backlight and automotive lighting market is expected to exceed global demand for high-power ranges in the market.

LED chip scale package lighting is becoming increasingly popular in street lighting, highway lighting, and ambiance lighting. CSP LEDs with high power are primarily used for industrial and exterior lighting in outdoor environments. Performance and efficiency are the primary reasons for using high-power LEDs.

CSP LEDs with high power are recommended for increased effectiveness and higher beam intensity. Due to the low market penetration rate in the automotive lighting industry, growth is high. However, there are numerous businesses in the automotive lighting industry that have seen a great deal of potential within it.

Several unique products are being introduced and attempts are being made to expand into the aftermarket. As part of their expansion plans, they are expanding their automotive lighting supply chain. As a result, demand has increased significantly.

Does Backlighting Unit (BLU) Lighting drive the Chip Scale Package (CSP) LED Market?

Backlighting Unit Revenues Are Expected to Grow Steadily During the Forecast Period

On the basis of application, the chips scale package LED market is segmented into Automotive lighting, backlighting unit, flash lighting, general lighting, and others. CSP LEDs are popular for display backlighting because they offer energy-efficient and compact lighting sources for TVs, smartphones, and monitors. In display backlighting, CSP LEDs have become a great alternative to traditional and large LED packages. LED-based BLUs featuring CSP-based technologies feature a compact form factor and wide beam angle, making them affordable and innovative in the market.

Over the forecast period, the backlighting market is expected to grow rapidly with a CAGR of 14.1% from 2023 to 2033. In addition to providing excellent uniformity of brightness, the LED backlight technology also produces an improved level of comfort and interaction between the user and the product.

Competitive Landscape

Technology firms are forming strategic partnerships with chip scale LED manufacturers. In order to gain a greater share of the market, the organization hopes to expand its product line, technology capabilities, and marketing presence. Combining strengths across companies could lead to innovative products.

Through research and development, several companies improve the performance of their products. The launch of new products is another way of gaining a competitive advantage.

  • The Calgary Flames, the city, and the province have signed a $1.2 billion arena deal. It has struck a billion-dollar deal with the Flames hockey team and the provincial government to build a new arena adjacent to its downtown.
  • Mouser Electronics, Inc., offers a global shutter sensor from OSRAM, the Mira220. In addition to mobile facial authentication and smart appliances, these sensors are ideal for smart wearable devices such as drones, smart home appliances, QR readers, AR/VR, and structured light vision in industrial applications.

Chip Scale Package (CSP) LED Industry Report Scope

Attribute Details

Forecast Period

2023 to 2033

Historical Data Available for

2018 to 2022

Market Analysis

US$ billion for Value

Key Countries Covered

  • United States
  • Canada
  • Brazil
  • Mexico
  • Germany
  • United Kingdom
  • France
  • Spain
  • Italy
  • China
  • Japan
  • South Korea
  • Malaysia
  • Singapore
  • Australia
  • New Zealand
  • Rest of APAC
  • GCC Countries
  • South Africa
  • Israel

Key Market Segments Covered

  • Power Ranges
  • Applications
  • End-user
  • Region

Key Companies Profiled

  • Samsung Electronics
  • Lumileds, Seoul Semiconductor
  • Nichia Corporation
  • Osram Opto Semiconductors
  • Epistar
  • Cree
  • Shenzhen MTC
  • Unistars
  • Dpower Opto-electronic Co.Ltd.
  • Plessey Semiconductors
  • Genesis Photonics
  • DK Corporation.

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Chip Scale Package (CSP) LED Market Outlook by Category

By Power Ranges:

  • High-Power
  • Low-Power
  • Mid-Power

By Application:

  • Automotive Lighting
  • Backlighting Value (BLU)
  • Flash Lighting
  • General Lighting
  • Others

By End User:

  • Residential
  • Industrial
  • Commercial

By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa

- Companies Covered in This Report -

  • Samsung Electronics
  • Lumileds
  • Seoul Semiconductor
  • Nichia Corporation
  • Osram Opto Semiconductors
  • Epistar
  • Cree
  • Shenzhen MTC
  • Unistars
  • Dpower Opto-electronic Co.Ltd
  • Plessey Semiconductors
  • Genesis Photonics
  • DK Corporation

- Frequently Asked Questions -

According to PMR, the global chip scale package (CSP) LED market was worth US$ 847 million by 2022.

Chip scale package LEDs are expected to generate US$ 1.0 billion in revenue in 2023.

Globally, the market for chip scale package (CSP) LED is expected to reach US$ 3.8 billion by 2033.

The chip scale package (CSP) LED market is expected to grow at a CAGR of 14.3% during the forecast period.

According to a PMR, chip scale package (CSP) LED sales grew 17.8% between 2018 and 2022.

Backlighting Unit (BLU) will account for a significant revenue of 14.1% CAGR by 2033.

South Korea’s chip scale package (CSP) LED is forecast to grow at a CAGR of 16.40% over the forecast period.

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