Global LED Materials Market Size Forecast to Reach $21.5 Billion by 2027

April 06 13:28 2022
Global LED Materials Market Size Forecast to Reach $21.5 Billion by 2027
Global LED Materials Market | IndustryARC
The Growing Popularity of Silicone-Based LED Packaging Materials for the Manufacturing of Many High-Brightness LED Components and Economically Viable Technologies Are Likely To Aid in the Market Growth of the Global LED Industry.

The Global LED Materials Market size is forecast to reach US$21.5 billion by 2027, after growing at a CAGR of 9.5% during 2022-2027. Due to rapid industrialization across the world, the demand for LED Lighting is surging globally, which in turn drives the market growth. The increasing number of R & D activities of LED materials in many regions is one of the key drivers for the growth of the LED Materials market share globally during the forecast period. Besides, expanding utilization of customer merchandise and expanding the use of Light Emitting Diode (LED) materials in areas like healthcare, aerospace, automobile and others over the globe due to its durability will support the development of the global LED materials industry. Furthermore, the growing demand for environment-friendly vehicles is also driving the growth of LED components, LED reflector, and LED light manufacturers’ contribution to the global market during the forecast period.

LED Materials Market Segment Analysis – By Product Type

The substrate material segment held the largest share of more than 30% in the LED Materials market in 2021 and is projected to grow at a substantial rate over the forecast period. This growth is due to the growing uses of silicon-based LED across TVs and handheld device displays, aviation lighting, automotive lighting, advertising and general lighting, and medical devices. Furthermore, the growing demand for silicon-based die-attach adhesives and optically reflective materials for industrial applications due to its excellent photo and thermal stability characteristics also drive the demand for substrate material-based LED materials over the forecast period.

LED Materials Market Segment Analysis – By Application

The automotive lighting segment is projected to grow at the highest CAGR of 12.3% in the LED Materials market during the forecast period. This growth is attributed to the growing uses of LED components like a led reflectors and led lighting in electric vehicles. Furthermore, the growing trends of interior and exterior lightings in automotive is also contributing to the growth of this segment during the forecast period. Additionally, as the life of LED lighting or led reflector used in exterior automotive applications is increased, it has gathered a better share of the automotive lighting market.

For More Information About LED Materials Market @

Report Price: $ 4500 (Single User License)

LED Materials Market Segment Analysis – By Geography

Among the regions, the APAC region held the largest share of more than 35% in 2021 and is projected to witness the highest CAGR of around 11% in the global LED Materials market followed by North America and Europe during the forecast period. The growing building and construction, increased disposable income of the countries such as China and India, surging uses of semiconductor device and semiconductor material across the transportation the sector is driving the growth of LED light manufacturers in the APAC region. For instance, according to the Chinese government report, the construction sector across the country is projected to witness a growth of 5.9% and 6.1% during the years 2019 and 2020 respectively. Furthermore, the growing development of the aviation sector in China and India is also accelerating the growth of LED Materials market share in the APAC region during the forecast period.

LED Materials Market Drivers

Growing demand for energy saving lightings

The use of LED materials based lighting offers various advantages over incandescent light sources such as lower energy consumption, longer lifetime, improved physical robustness, smaller size, and faster switching. Hence, due to these features, the demand for LED material based lighting is growing across various end-use sectors including residential, commercial, and industrial. Furthermore, LED lighting is a highly energy-efficient lighting technology and has the potential to fundamentally change the future of lighting globally. For example, according to the Energy Saver report, the use of LED lighting can use at least 25%-75% less energy and last 3-25 times longer, than incandescent lighting. Furthermore, along with energy-saving the lifespan of LED lighting is more than that of the other light sources that make LED lighting as the energy and cost-saving lighting product, which in turn drives the demand for LED material-based lighting products. 

Government subsidies in developing countries increases LED consumption 

Light-emitting diodes (LEDs) offer various benefits in terms of price, durability, and energy-saving. So, by knowing these benefits, the government of the respective emerging nations such as China, India, Brazil, Argentina, and Mexico is focusing on reducing energy costs by implementing and developing energy-efficient devices. For instance, in May 2015, the Government of India (GoI) launched the Unnat Jyoti by Affordable LEDs for All (UJALA) scheme with a target of replacing 77 crore incandescent lamps with LED bulbs. Furthermore, the government has subsidized LED bulbs in order to increase energy conservation. Whereas, in the year 2013, according to the World Bank report, in India, the per capita consumption of electric power was 765 KWh, which was close to 25% of the global average of 3,104 KWh. Whereas, the per capita consumption of electricity in China was reached from 2,944 KWh in the year 2010 to 3,762 KWh in 2013. Besides, according to the National Energy Administration (NEA) in China, in 2016, the country accounted for the largest share in terms of total energy consumed. This growth of per capita consumption of non-LED lighting has accelerated the demand for LED material-based lighting due to various befits over non-LED.

Direct Purchase @

LED Materials Market Challenges

Unstable economy and decline in automobile sales

The growing trade war between the two largest economies includes the US and China, along with geopolitical tensions, global trade tensions, and global macroeconomic performance as a whole are the factors responsible for the current unstable economic conditions. The unstable economy is considered as a challenge for the growth of this market. Furthermore, in 2020, the ongoing outbreak of COVID-19 pandemic affecting lives, businesses, individuals, and industries. The rapid spread of this pandemic disease has had a major impact on global LED materials markets due to the lockdown and drastically falling demand from developed and developing nations across various industries such as automotive, aviation, manufacturing, and construction. Besides, the decline in the sale of passenger and commercial vehicles globally in 2019 acts as a restraining factor for the growth of this market. Additionally, the ban imposed by various countries such as China, UK, Germany, the US, France, Italy, Spain, and others on the diesel vehicles will implement by 2025 and 2030 also hampering the growth of this market.

LED Materials Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the LED Materials market report. Major players in the LED Materials Market outlook are:

Nichia Corporation

Addison Engineering, Inc.

Epistar Corporation

Koninklijke Philips N.V.


Epigan NV

LG Innotek

II-VI Incorporated

China Crystal Technologies Co., Ltd.


Smart Global Holdings

Seoul Semiconductors Co, Ltd.

Six Point Materials, Inc.

Xinxiang Shenzhou Crystal Technology Co., Ltd among others.

Recent Developments

In October 2020, Smart Global Holdings entered into a definitive agreement with Cree, Inc. to purchase the Cree LED Products business unit for up to $300 million. With this acquisition, the SMART’s will be well-positioned to continue to deliver industry-leading LED products and solutions. 

Key Takeaways

In the North America region, in 2021, the USA was a major market for the LED Materials owing to growing uses as outdoor LED lighting across the country.

The growing popularity of silicone-based LED packaging materials for the manufacturing of many high-brightness LED components and economically viable technologies are likely to aid in the market growth of the global LED industry.

The outbreak of COVID-19 is projected to lower the growth of the global LED Materials market at a reasonable rate during the forecast period due to global lockdown, disruption of the global supply network, lack of availability of workforce, and declining demand from end-users.

The alternatives available for LED Materials such as laser diode, sodium vapor lights, and fluorescent tubes are acts as a restraining factor to the growth of this market as well as led light manufacturers.

Relevant Reports

Advanced Materials Market

For more Chemicals and Materials Market reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.

Media Contact
Company Name: IndustryARC
Contact Person: Mr. Venkat Reddy
Email: Send Email
Phone: (+1) 970-236-3677
City: Hyderabad
Country: India