Apr 21, 2017: According to a MarketsandMarkets report, LED materials market is expected to reach US$ 12.55 billion by 2021, at a CAGR of 9.9% from 2016 to 2021.
The market is driven by the growing demand for LED materials in the general lighting application. This growth results from an increase in the demand for LEDs for residential and industrial facilities purposes. The use of LEDs in these applications helps reduce the overall energy bill, thus reducing the carbon footprint of these applications.
Asia-Pacific: The largest market for LED materials in 2016
Asia-Pacific is currently the largest market for LED materials. China is the leading country where there is major consumption of LED materials in end-use industries such as general lighting, automotive lighting, backlighting, and others. Moreover, the growing population with rising disposable income in China is driving the demand for better quality LED materials.
Wafers is the largest type segment of the LED materials market in 2016
LEDs are constructed using the following materials: wafer, epitaxy, substrate, and phosphor. The wafers segment accounted for the largest market share, in terms of value, followed by the epitaxy segment in 2016. The wafers segment is also projected to grow at the highest CAGR from 2016 to 2021, in terms of value.
General lighting expected to dominate the market for LED materials market in 2016
The general lighting application segment is projected to drive the LED Materials Market, aided by the increased demand from residential LED markets to reduce the overall energy costs. Industrial lighting, which comes under general lighting, is also expected to contribute to the growth of LED materials market. The use of LEDs in industrial settings has increased as they are able to overcome challenges such as extreme temperature ranges and continuous or long operational hours better than the conventional lighting sources.
Key players in the LED materials market are Sumitomo Electric Industries, Ltd. (Japan), Hitachi Metals, Ltd. (Japan), Cree, Inc. (U.S.), Seoul Semiconductor Co., Ltd. (South Korea), Nichia Corporation (Japan), EPISTAR Corporation (Taiwan), Koninklijke Philips N.V. (Netherlands), OSRAM Licht AG (Germany), II-VI incorporated (U.S.), and Akzo Nobel N.V. (Netherlands).