LED Chips Market

Rising Adoption of LED Lighting across Various End-Use Industries Fueling the Growth of the LED Chips Market

LED Chips Market by Product (Blue LED Chips, Red LED Chips, Green LED Chips, Infrared LED Chips, Yellow LED Chips, White LED Chips)

Report ID: PMRREP33408

Number of Pages: 250

Format: PPT*, PDF, EXCEL

Industry: Semiconductor Electronics

Published Date: April-2023

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LED Chips Market Outlook (2022 to 2032)

The Global LED Chips Market size increased from US$ 22.2 billion in 2021 to US$ 24.9 billion by 2022. Overall LED chip sales are set to surge at 8.9% CAGR from 2022 to 2032. By 2032, total market valuation will exceed US$ 58.6 billion.

Adoption of LED chips will remain high in the backlighting application. As per Persistence Market Research, backlighting segment will expand at over 8.7% CAGR between 2022 and 2032. Hence, it will generate lucrative revenues for LED chip manufacturers over the next ten years.

Key Trends Propelling LED Chips Demand:

  • Rising usage of LED chips in backlighting signals, and illumination applications will boost the market
  • Growing popularity of LEDs in automotive lighting and street lighting will bolster LED chip sales
  • Rapid shift from traditional lighting towards energy-efficient lighting solutions (LEDs) will create growth prospects for the market
  • A significant reduction in LED lighting solutions will generate high demand for LED chips
  • Increasing government investments and initiatives on deploying low-cost LEDs will create opportunities for LED chip manufacturers
  • Development of novel LED chips for high-end applications will stimulate market development
  • Rising penetration of smartphones and TVs globally will boost the LED chips industry
  • Advancements in chip-on-board LED technology will expand market size

Since its introduction, LED technology has been constantly evolving. Right from surface-mounted device (SMD) LED chips to chip-on-board (COB) LED designs, usage of LED chips has widened significantly.

Electronic components that emit light directly are known as LED chips. They are also referred to as SMDs (surface-mounted diodes). They play a huge role in determining light quality. These chips are generally manufactured through metal-organic chemical vapor deposition (MOCVD).

LED chips are core components of LED lighting products such as LED lights and LED fixtures. Their main function is to convert electric energy into light energy.

Various LED chip products are being used across numerous industries. This includes blue LED chips, red LED chips, yellow LED chips, green LED chips, white LED chips, and infrared LED chips.

Growing demand for LED chips from automotive, consumer electronics, and other sectors will provide a strong thrust to the global LED chips market.

LED chips are used in a wide variety of applications ranging from backlighting in electronic items such as laptops and LCD TVs to general illumination, street lighting, and automotive lighting. Their high degree of power efficiency and brightness results in good picture quality.

Rising awareness about the benefits of LEDs is another factor that will boost LED chip sales through 2032. Subsequently, growing need for energy conservation and transition towards cost-effective & energy-efficient lighting will elevate LED chip demand.

LED chips are also being increasingly used for signs and signals. They can operate on electricity or solar power and can be used to control vehicle and pedestrian traffic at intersections.

Leading LED chip manufacturers are focusing on developing efficient and advanced solutions to address rising environmental concerns. New green and low-power consuming lighting systems are penetrating the market.

Further, companies are using advanced technologies to introduce new products. For instance, in 2019, new LEDs with flip chip technology for luminaries were launched by Fagerhult.

Attributes Key Insights

Global LED Chip Market Size in 2022

US$ 24.9 billion

Projected Market Value (2032)

US$ 58.6 billion

Value-based CAGR (2022 to 2032)


USA Market CAGR (2022 to 2032)


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2017 to 2021 LED Chip Sales Outlook Compared to Demand Forecast from 2022 to 2032

LED Chip sales are set to rise at 8.9% CAGR from 2022 to 2032 in comparison to a CAGR of 12.6% registered from 2018 to 2022. The worldwide market for LED chips will create an absolute $ opportunity of US$ 33.7 billion during the forecast period.

When compared to conventional lighting options, LED chips are significantly more energy-efficient. LED chips use less energy and last longer, resulting in lower energy costs and lower maintenance costs.

LED lighting options are environmentally friendly because they don't contain hazardous materials such as mercury, which are present in fluorescent bulbs. They also produce fewer emissions of carbon dioxide which is a significant contributor to global warming. This is because they consume less energy when compared to traditional alternatives.

Thanks to lower costs and lower maintenance requirements, demand for LED lighting solutions is rising across sectors such as automotive, healthcare, and retail.

Growing usage in automotive sector will foster LED chip sales through 2032. Due to LED lights' higher energy efficiency and longer lifespan compared to conventional lighting solutions, LED chips are widely used in the automotive industry.

LED lights are also brighter than other lighting solutions and can provide better visibility, improving road safety in the dark.

There were around 82.6 million cars produced in the world in 2021. It is projected that the number of cars produced by 2030 will reach around 111 million. As LED lights are being widely used in cars for better visibility, rising demand for automobiles will propel LED chip demand.

In consumer electronics, LED chips are used for backlighting in products such as cell phones, LCD TVs, and laptops. Because LEDs are brighter and use less power, they can produce images with higher quality and resolution. The screens' brightness is improved by the LED backlighting as well.

There were around 198 million Smart TV units sold around the world in 2018. It is projected that by 2025, around 266 million smart tv units will be sold worldwide. Also, there were around 1.5 billion smartphone sales recorded in the year 2018 which is projected to expand to around 1.7 billion smartphones by 2030.

As smartphones and LCDs use backlighting for their displays, increasing demand for TVs and mobile phones globally will create growth opportunities for LED chip manufacturers.

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Which Region is Projected to Offer Significant Growth Opportunities for the Market?

Asia Pacific LED chips market value reached US$ 12 billion in 2022. Between 2022 and 2032, LED sales in the region will increase at a healthy pace. By the end of 2032, Asia Pacific market valuation will reach US$ 28.4 billion by 2032.

In recent years, Asia Pacific has become a leading manufacturer of automobiles and consumer electronics. This is due to strong presence of leading companies, lax government regulations, and easy availability of raw materials.

Demand for LED chips is on the rise due to growing usage in consumer electronics products as well as in automotive. Hence, expansion of automotive and consumer electronics sectors in the region will continue to uplift LED chip demand.

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Country-wise Insights:

How is the United States LED Chips Market Shaping?

As per Persistence Market Research, LED chip demand in the United States of America grew at 9.4% CAGR from 2017 to 2021. Between 2022 and 2032, sales of LED chips in the country will increase at 7.7% CAGR. By 2032, the United States market valuation will exceed US$ 9.2 billion.

Rising demand for LED chips in automotive and consumer electronics is a key factor spurring growth in the United States of America market.

The United States is among the leading manufacturers of cars globally. It produced around 9.1 million cars in 2021. Similarly, around 143 million smartphones are likely to be sold by 2027 in the country.

LED chips are used in consumer electronics such as smartphones and televisions in backlighting for displays that allow the display to be seen in various lighting conditions.

LED chips also find application in automobiles as they are brighter than traditional lighting solutions, therefore, improving visibility on the road in the dark.

Hence, growing demand for consumer electronics and vehicles in the country will trigger LED chip sales through 2032.

What is Driving LED Chip Sales in the United Kingdom?

The United Kingdom LED chips market will cross a valuation of US$ 1.6 billion. It will generate an absolute $ opportunity of US$ 817.3 million between 2022 and 2032. Overall LED chip sales in the United Kingdom are likely to surge at 8.0% CAGR.

Growing usage of LED chips in consumer electronics such as smartphones will provide an impetus to the United Kingdom market.

There were around 55 million smartphone users in the United Kingdom in 2018. By the end of 2025, this number is likely to exceed 64 million. This burgeoning demand for smartphones in the country will boost LED chip sales during the assessment period.

Why is South Korea Emerging as a Highly Lucrative LED Chips Market?

South Korea LED chips market will exhibit a CAGR of 9.4% between 2022 and 2022. It registered a robust CAGR of 14.1% from 2017 to 2021. By 2032, South Korea market will cross a valuation of US$ 3.6 billion.

Booming automotive industry is projected to create high demand for LED chips across Korea throughout the assessment period.

South Korea has a significant automobile industry producing around 3.4 million cars in the year 2021. As LED chips are being widely used in vehicles, rising production and sales will eventually boost LED chip sales.

Category-wise Insights:

Which is the Most Sought-After Product in the Global Market?

As per Persistence Market Research, demand in the market will remain high for blued LED chips. This is due to growing applications of these chips across various industries.

The blue LED chips segment progressed at a CAGR of 12.3% from 2017 to 2021. Over the projection period, blue LED chip demand is set to increase at 8.8% CAGR.

Blue LED chips are semiconductors that emit blue lights when current passes through them. These chips are witnessing high demand due to growing popularity of blue light LEDs.

When compared to incandescent and fluorescent lighting, blue light LED has a number of advantages. This includes a longer lifespan and higher energy efficiency and an ability to produce a wide variety of colors.

They are widely utilized in applications such as automotive lighting and TV displays. They also find application in special types of equipment such as UV and IR LED-based systems for sterilization.

Hence, rising usage of blued LED chips in these mentioned applications will boost growth of the target segment.

Which is the Most Remunerative Application of LED Chips?

By application, backlighting segment is likely to generate significant revenues in the market. LED chips for backlighting grew at 12.0% CAGR from 2017 to 2021. Between 2022 and 2032, the target segment will expand at a CAGR of 8.7%.

LED chips are being widely used for backlighting LCDs. An LCD cannot produce light by itself. Therefore, in a dim environment, backlight is used as the light source.

LED has been the predominant choice for backlighting due to a variety of reasons such as a longer lifespan and low power consumption than others.

Several products, including computer monitors, televisions, and mobile phones, use LCD displays. Hence, rising demand for these products will boost growth of the backlighting segment.

Competitive Landscape:

Key manufacturers of LED chips include Dowa Electronics Materials Co., AVA Technologies, Inc., Wolfspeed, Bridgelux, Inc., Bright LED Electronics Corporation, Nichia Corporation, Goldeneye, Inc., Hitachi Cable, Ltd., Ltd., Optek Technology Epistar Corporation, Kingbright Electronic Co. Ltd., and Osram Opto Semiconductors GmbH.

Most of these companies are committed to developing new advanced solutions to meet end user demand. Further, they are employing strategies such as acquisitions, facility expansions, mergers, etc. to expand their footprint.

Recent Developments:

  • In 2022, USHIO announced its entry into LED chip industry with the launch of small, high-efficiency SWIR LED chips. With its own laser diode products and packaged LED, the company is already a well-established leader in the solid-state lighting (SSL) field.
  • In May 2022, Osram AG launched a new line of LED’s OSLON capable of producing high-performance and broad distribution patterns, generally required in vertical farming and inter-lighting horticulture applications. The new products are based on GAaIP Thin film chip which enables OSLON to handle high drive currents with minimal drop in photon flux over time.
  • In July 2021, OSRAM AG introduced Osconiq E 2835 CRI 90 (QD), a new line of quantum dot LED expanding its portfolio of lighting solutions. The quantum dot technology allows for very precise adjustment of the desired color temperature and outstanding efficiency values in the warm white color spectrum.
  • In March 2021, SMART Global Holdings Inc acquired CREE Inc’s CREE LED Products business unit. This acquisition will benefit SMART Global Holdings in expanding its product portfolio as well as its market presence.

Scope of the Report:

Attribute Details

Current Market Size (2022)

US$ 24.9 billion

Projected Market Size (2032)

US$ 58.6 billion

Anticipated Growth Rate (2022 to 2032)

8.9% CAGR

Forecast Period

2022 to 2032

Historical Data Available for

2017 to 2021

Market Analysis

  • US$ Million for Value
  • MT for Volume

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • The Middle East & Africa

Key Countries Covered

  • United States
  • Canada
  • Brazil
  • Mexico
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Nordic
  • Russia
  • Poland
  • China
  • India
  • Thailand
  • Indonesia
  • Australia and New Zealand
  • Japan
  • GCC countries
  • North Africa
  • South Africa
  • Others

Key Segments Covered

  • Product
  • Application
  • Region

Key Companies Profiled

  • AVA Technologies, Inc.
  • Bright LED Electronics Corporation,
  • Wolfspeed
  • Bridgelux, Inc.
  • Hitachi Cable, Ltd.
  • Dowa Electronics Materials Co., Ltd.
  • Epistar Corporation
  • Nichia Corporation
  • Goldeneye, Inc.
  • Kingbright Electronic Co. Ltd.
  • Osram Opto Semiconductors GmbH
  • Optek Technology

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • Drivers Restraints Opportunity Trends Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Global LED Chips Market Segmentation:

By Product:

  • Blue LED Chips
  • Red LED Chips
  • Green LED Chips
  • Infrared LED Chips
  • Yellow led Chips
  • White LED Chips

By Application:

  • Backlighting
  • Illumination
  • Automotive
  • Signs And Signals

By Region:

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

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Companies Covered in This Report

  •  AVA Technologies, Inc.
  • Bright LED Electronics Corporation
  • Wolfspeed
  • Bridgelux, Inc.
  • Hitachi Cable, Ltd.
  • Dowa Electronics Materials Co., Ltd.
  • Epistar Corporation
  • Nichia Corporation
  • Goldeneye, Inc.
  • Kingbright Electronic Co. Ltd.
  • Osram Opto Semiconductors GmbH
  • Optek Technology

Frequently Asked Questions

The global LED chips industry reached a valuation of US$ 22.2 billion in 2021.

Currently, the global LED chips market size is valued at US$ 24.9 billion.

The global LED chips industry will reach around US$ 58.6 billion by 2032.

The global market for LED chips exhibited a CAGR of 12.6% over the last 4 years.

Global LED chip sales are likely to surge at 8.9% through 2032.

Backlighting application will create lucrative growth prospects for the market through 2032.

The United Kingdom LED chips industry will progress at 7.3% CAGR through 2032.

LED chip demand in Japan and Korea markets will rise at 9.2% and 9.4% CAGRs respectively.

Expanding at 10.4% CAGR, China market is set to reach a valuation of US$ 14.8 billion by 2032.

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