LED Packaging Market: Ecosystem

LED packaging Market Dynamics

Driver: Surged demand for LED packages in display panel market
The flourishing market for display panels has led industry-leading players to optimize their display technologies such as OLEDs, quantum dot LEDs, and microLEDs. Samsung (South Korea) focuses on developing quantum dot LEDs and microLEDs, while LG (South Korea) emphasizes the development of OLEDs. Increasing demand for bright and power-efficient display panels for use in smartwatches and mobile devices are the key factors fueling the growth of the market for microLEDs. Leading LED packaging manufacturers are enhancing their microLED technological capabilities through partnerships and expansions. In October 2020, Lextar (Taiwan) partnered with X Display (US), a leading provider of microLED technologies, to co-develop microLED packages to meet the increasing demand for them from customers. Moreover, in March 2018, NationStar (China) established a dedicated microLED research center in China.

LED Packaging Market: Ecosystem

Restraint: Limited demand for new technology-based products due to higher pricing for OLED or QD-based LED
Currently prices of end use product segment such as OLED or QD LED-based technology products like smart TVs are on relatively higher side which led to the limited adoption of LED packaging in this segment. End users in the display market are expected to shift from LED-backlit LCD technology-based TVs to OLED or QD LED-based TVs once the prices of these TVs are comparable with their conventional counterparts. As consumers are reluctant to change their conventional high-end electronics products this has resulted in resulting in limited demand for new technology-based products. Further, increasing pricing war in the LED packaging market has put immense pressure on LED manufacturers to develop innovative or special lighting solutions to boost their new revenue stream.

Opportunity: Development of human-centric lighting solutions and horticulture lights
Lighting solutions have a biological and emotional impact on human beings. Human-centric lighting solutions can be envisioned to encourage the well-being, mood, and health of individuals as they can be adjusted in terms of directions, correlated color temperatures (CCTs), and illuminance. These lighting solutions can improve concentration, safety, and efficiency in workplaces and educational environments. In healthcare applications, human-centric lighting solutions can support healing processes, prevent chronic diseases in individuals with irregular daily routines, and improve the overall sense of well-being among patients. The increasing demand for human-centric lighting solutions has created new growth prospects for the manufacturers of LED packaging. Leading LED packaging manufacturers such as OSRAM (Germany) and Seoul Semiconductor (South Korea) are developing packages that support the tuning of light according to circadian rhythms and the emotional requirements of humans.

Challenges: Lack of common open standards for LED Packaging
The setting up of a general lighting standardization for LEDs has been initiated by several organizations such as the Zhaga Consortium (US) as the lack of common open standards has resulted in the development of inefficient LEDs. Manufacturers of LED packages are not able to benefit from the economies of scale, while the designers and manufacturers of LED fixtures are not able to design their products with efficiency owing to the lack of extensive coordination among various component suppliers. As such, it becomes necessary to establish a common standard for all light sources being developed globally. In relation to the initiative toward the setting up open standards, the Lighting Industry Association (UK) launched an independent verification program for LED production in December 2020. This program defines the standards for products equipped with LEDs in the country. It is expected that over the coming years, a set of common standards will be made available to LED manufacturers so that they can develop and offer equally efficient LEDs across the world.