Jan 6, 2017: The global revenue of LED packaging market was $14.6 billion in 2014 and is estimated to reach $17.64 billion by 2020, at a CAGR of 3%, states a recent report on LED packaging market by Market Research Hub.
In terms of applications, LED lighting leads the LED packaging market. Also, in the global lighting market, the usage of LED is estimated to grow at a rate of 14% compounded annually for the period 2016-2020. But, on the other hand, the innovations in the industry are saturated and at the same time the market has over capacity.
For the TV display application, the industry is moving from usage of LED to OLED, which is the latest innovation. This is expected to penetrate more into the market. Added to this, the production costs of OLED displays will be decreased by 3 folds since fixed costs (equipment) is less and variable costs is also relatively less as more units can be produced within a given time.
To leverage on costs, the companies are focusing on operating through economies of scale. As such the industry is witnessing consolidation of manufacturers of LED packaging. But, on the other hand, some of the SMEs, which are not able to merge, are exiting from the market.