The global LED chips market is anticipated to grow significantly over the forecast period. LED chips are used in numerous industries and a large number of applications. They are used for illumination purposes, and the resultant bulbs are more power efficient as compared to conventional incandescent bulbs.
LED chip-based bulbs also help reduce electricity bills, thus saving costs in the long run. This is expected to contribute to market growth in an increasingly energy-conscious environment. Growing investment by companies, such as Cree, and research and development activities, as well as initiatives by governments in Taiwan and China to replace traditional lighting by LED lamps, is expected to drive the market over the forecast period. However, the high production costs in comparison to incandescent lamps and cold-cathode fluorescent lamps (CCFLs) are expected to negatively impact the industry in the coming years.
Backlighting is expected to be the largest and fastest-growing application of LED chips over the next few years. This can mainly be attributed to the shift to LED backlighting for television sets since they improve the picture quality and brightness. The largest contribution to backlighting was from mobile phones, which is expected to witness sluggish growth in the near future. With increasing expected demand for LED backlight TVs, average manufacturing prices are estimated to decline in the coming years. LED chips for illumination to include applications, such as residential, industrial, and commercial lighting, and this segment accounted for approximately 30% of the overall market in 2012. Automotive, signs and signals and other segments are expected to lose market share over the forecast period.
The market for blue LED chips is expected to grow faster than the global average, mainly on account of their application in backlighting and illumination among others, as well as a high degree of brightness. In comparison, red LED chips are used in automotive for rear lamps as well as for traffic signals. The others segment includes yellow, ultraviolet LED, and infrared chips. Asia Pacific is expected to be the major contributor to revenue, and account for the largest market share during the forecast period, primarily due to a large number of industry participants in the region. New product development and innovation is the key growth strategy, and major manufacturers include Cree, Epistar Corporation, Hitachi Cable, Seoul Semiconductors, and Bright LED Electronics Corporation among others.
Our market research study takes a closer look at the LED chips industry, providing a holistic perspective on market dynamics, trends, supply, and demand. Our report deep-dives into the market and segments it on multiple levels and providing key insights on a macro as well as micro-level. The study aims at providing granular information, regarding estimates and forecasts for key product segments including red, blue, and green LED chips among others. Estimates have also been provided for the market on the basis of backlighting, illumination, automotive, signs and signals, and other applications along with yearly forecast up to 2020. The report also provides the same level of information for key regional markets.
The research report analyzes various factors which have been driving and inhibiting the global LED chips market in the past. In addition, the research report analyzes the impact of each driver and restraint on the market growth based on which the market is forecasted. The report also showcases the opportunities available in the market which may act as future drivers for the market.
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The exponential spread of COVID-19 worldwide has had an adverse impact on the semiconductor industry with manufacturing facilities temporarily shut, leading to a significant slowdown in the production. The outbreak could result in disruption across the ecosystem with several supply chain participants shifting their production facilities outside China, thereby reducing their over-reliance on China. Lockdowns imposed by the governments in the wake of the Covid-19 outbreak has not only affected manufacturing but also hauled consumer demand for semiconductor devices. Our analysts predict a decline in semiconductor revenue by over 1% in 2020 as compared to that in 2019. The report will account for Covid19 as a key market contributor.