Digitimes Research: Global high-brightness LED production value to increase at CAGR of 3.7% from 2017-2021

Jessie Lin, DIGITIMES Research, Taipei 0

The global production value for high-brightness LED chips will increase from US$13.179 billion in 2017 to US$15.250 billion in 2021 during 2017-2021 at an annual compound growth rate (CAGR) of 3.7%, according to Digitimes Research.

While Osram Opto Semiconductors and China-based first-tier makers will expand production capacity for high-brightness LED chips, China-based makers are expected to trigger price-cut competition and therefore global production value for such chips will grow mildly during 2017-2021, Digitimes Research indicated. In particular, China's overall LED production value will increase quickly from CNY620.0 billion (US$92.5 billion) in 2017 to CNY1.300 trillion in 2021 at a CAGR of 16.2%.

In terms of high-brightness LED chip applications, lighting and automotive lighting/displays will grow at a CAGR of 12.0% and 11.3% respectively in global production value during 2017-2021, global production value for use in handsets and backlighting of LCD TVs will remain flat in 2017 and then decrease beginning 2018, that for use in backlighting of IT products will slip 5-10% each year and that for use in indoor/outdoor displays will increase 0-5% each year.

For LED lighting in particular, the global market value will grow from US$40.424 billion in 2017 to US$70.510 billion in 2021, with the penetration of all lighting products to rise from 36.7% to 70.2%.

In addition to visible-light LED chips, infrared (IR) LED chips have market-niche application including sensing in gaming, biometrics, distance measurement, IoT (Internet of Things) and automotive sensors while ultraviolet (UV) LED chips are mostly used for industrial purposes. The global production value for IR LED chips will increase at a CAGR of 30% during 2017-2021 and that for UV LED chips at a CAGR of 18%.

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