What Has Been the Progress and Growth of the Chip Scale Package CSP LED Market in Recent Years?
The chip scale package csp led market has seen considerable growth due to a variety of factors.
• The scale of the chip scale package (CSP) LED market has escalated at a swift pace in recent past. Its size is expected to elevate from $1.85 billion in 2024 to around $2.21 billion in 2025, growing at a compound annual growth rate (CAGR) of 19.2%.
The historic progress of this market has been propelled by increased incorporation of miniaturized LED components, escalating demand for high power density lighting solutions, and augmenting usage of CSP LEDs in vehicle lighting systems. The proliferation of energy-efficient lighting owing to government initiatives, along with the growing infiltration of CSP LEDs within the consumer electronics sector have also supported this growth.
What Can Be Expected from the Chip Scale Package CSP LED Market?
The chip scale package csp led market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipations are high for a significant expansion in the chip scale package (CSP) LED market in the coming years, with projections placing it at $4.39 billion by 2029 at a compound annual growth rate (CAGR) of 18.8%.
Factors contributing to this estimated growth within the forecast period include an increased demand for intelligent lighting options, the rising use of CSP LEDs in microLED displays and UV and IR applications, their growing use in horticulture lighting, and a rising demand for ultra-slim lighting solutions. Noteworthy trends for the forecast period comprise of an increase in the usage of CSP LEDs in wearable technology, a growing preference for tunable and dynamic lighting solutions, an enlarging role in automotive adaptive lighting, integration with Internet of Things (IoT) networks, and a surge in R&D investments in quantum dot-based CSP LEDs.
What Are The Core Factors Supporting Growth In The Chip Scale Package CSP LED Market?
The advancement of the chip scale package (CSP) LED market is predicted to be fueled by the rising demand for energy efficiency projects. These initiatives aim to decrease energy usage without sacrificing output, performance, or comfort. They enable buildings, industries, transportation systems, and infrastructure to use energy more effectively, reducing costs, environmental damage, and enhancing sustainability. The escalating interest in energy efficiency projects can be traced back to increased environmental awareness, expensive energy, and the necessity for sustainable construction practices. CSP LEDs contribute to energy efficiency projects by offering high luminous efficacy and low power use. Their streamlined design improves thermal regulation, cuts energy waste and boosts lifespan, thereby decreasing maintenance costs. For example, Energy UK, a UK-based trade organization, released a report in September 2022 indicating that the quantity of energy efficiency initiatives is projected to rise from 150,000 installations annually in 2021 to 1 million yearly by 2030 in line with the government's decarbonization objectives. As a result, the demand for energy efficiency projects is stimulating the expansion of the chip scale package (CSP) LED market.
How Is The Chip Scale Package CSP LED Market segmented?
The chip scale package (CSP) LED market covered in this report is segmented –
1) By Type: Low And Mid-Power, High-Power
2) By Application: Automotive Lighting, Backlighting Values (BLU), Flash Lighting, General Lighting, Other Applications
3) By End-User: Residential, Commercial, Industrial
Subsegments:
1) By Low and Mid-Power: General Lighting, Automotive Lighting, Display Backlighting, Indicator And Signage
2) By High-Power: General Lighting, Automotive Lighting, Industrial Lighting, Outdoor Lighting
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What New Trends Are Influencing The Chip Scale Package CSP LED Market?
Major companies operating in the chip scale package (CSP) LED market are focusing on developing innovative products, such as soft light Chip-scale LEDs, to enable thinner, lighter, and low-glare lighting fixtures. Soft light Chip-scale LEDs are compact light sources with integrated components that emit diffused illumination, reducing sharp shadows and creating a gentle lighting effect. For instance, in January 2024, Nichia Corporation, a Japan-based fine chemicals and luminescent materials company, launched the NFSWL11A-D6 chip-scale LED. This LED achieves a horizontal light distribution, creating a more uniform and softer illumination. This feature reduces glare, providing a low-glare light that envelops the entire environment, making it ideal for spaces that require comfortable, ambient lighting. The design also contributes to thinner and lighter lighting fixtures, enabling a reduction in the materials needed for their construction. This efficiency in design can lead to significant resource savings in both the lighting fixtures and the buildings in which they are installed.
Who Are the Key Players In The Chip Scale Package CSP LED Market?
Major companies operating in the chip scale package (CSP) LED market are:
• Samsung Electronics Co. Ltd.
• Toshiba Corporation
• Sharp Corporation
• LG Innotek Co. Ltd.
• Lite-On Technology Corporation
• Rohm Semiconductor
• Shenzhen MTC Co. Ltd.
• Lumileds Holding B.V.
• Harvatek Corporation
• Everlight Electronics
• Smart Global Holdings company
• Lextar Electronics Corporation
• Epistar Corporation
• Dpower Opto-Electronic Co. Ltd.
• Luminus Devices Inc.
• Bridgelux Inc.
• Plessey Semiconductors Ltd.
• Genesis Photonics Inc.
• Nichia Corporation
• Lumens Co. Ltd.
• Seoul Semiconductor
• Semileds Corporation
What Is The Most Dominant Region In The Chip Scale Package CSP LED Market?
Asia-Pacific was the largest region in the chip scale package (CSP) LED market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the chip scale package (CSP) LED market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
