The LED market output value is expected to grow to US$13.003 billion in 2024

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Data show that due to many factors such as weak end market demand, slow LED inventory depletion, and market price competition, the output value of the LED market will drop to US$12.608 billion in 2023.

Looking forward to the market demand in 2024, market demand for automotive lighting and displays, lighting (general lighting, architectural lighting, agricultural lighting), LED displays, ultraviolet/infrared LEDs, etc. will have the opportunity to gradually recover. In addition, although Micro LED technology has not developed as expected, it has been successfully introduced into large displays (Samsung) and watches (Tag Heuer), leading the way to the commercialization stage of Micro LED. Overall, the LED market output value is expected to grow to US$13.003 billion in 2024 (+3% YoY). Among them, Micro/Mini LED self-luminous display, ultraviolet/infrared LED, LED display screen, automotive lighting and display, and agricultural lighting will have the opportunity to exceed the average growth rate.

LED light

Micro LED Applications

Wearable devices: The Micro LED version of the Apple Watch, originally scheduled to be released in 2026, was recently canceled due to the cancellation of the project. Market expectations for the application of Micro LED technology in wearable watches are definitely a heavy blow that cannot be ignored. Amid this headwind, a few suppliers, such as panel manufacturers such as AUO, have shipped small-scale products to Tag Heuer, but they are still unable to reverse the obstacles in the development of the Micro LED wearable device market.

Large displays: The yield rate of Micro LED large display processes and processes is difficult to meet development expectations. This is reflected in the fact that costs remain high and actual shipments remain at the level of 100 units. Chip miniaturization is a major indicator of Micro LED cost reduction. However, judging from the current market, considering many key factors affecting the production process such as chip efficiency and transfer yield, the progress of chip size reduction in large-size displays is not very clear. Next, this will also simultaneously slow down the speed of cost reduction.

Automotive display: Considering driving needs, Micro LED technology with high brightness, high contrast, wide color gamut, and fast response speed is used to integrate special-shaped, curved, flexible, tactile feedback and other smart cockpit integrated automotive display solutions. solution to comprehensively upgrade the driving experience. According to a TrendForce survey, knobs (Knobs) use Micro LED technology and are used in reading lights/knob buttons, and will have the opportunity to be introduced into European car manufacturers. European, American and Japanese car manufacturers plan to introduce Micro LED transparent displays. According to a TrendForce survey, car manufacturers require Micro LED heads-up displays to have a penetration rate of ≥70% and a curved surface design. As technology and product prices mature, it is expected that Micro LED transparent displays will be introduced into the automotive market in 2026-2027 as augmented reality head-up displays (AR-HUD) or car window displays.

Mini LED Display

Mini LED (COB) display market demand is growing rapidly, and major display manufacturers include Samsung, LG Electronics, Leyard, Unilumin, and Absen.

Automotive Lighting and Display

Looking forward to the performance of the auto market in 2024, with the growth of new energy vehicle shipments, it is expected that the sales volume of the global passenger car and logistics vehicle market in 2024 is still expected to grow slightly by 2-3%. With the continuous advancement of advanced technologies such as adaptive headlights (ADB Headlight), Mini LED taillights, Full-Width Taillights, (intelligent) ambient lights, and Mini LED backlight displays, we continue to face price competition in the car market, which affects the car market. Based on LED product prices, the automotive LED market size is expected to grow to US$3.445 billion in 2024.

UV LED

In response to the market requirements for high-power sterilization and purification, UV-C LED manufacturers continue to launch ≥80mW single crystal high-power and UV-C COB LED integrated packages, and it is expected that there will be opportunities to introduce it into home appliances and dynamic water sterilization market applications from 2H24-2026. In addition, Huawei AITO uses UV-C LED air sterilization, and the order period is from 2023 to 2025. It will also have the opportunity to drive other car manufacturers to introduce automotive air sterilization applications. In the long run, compared to UV lamps (UV Lamp), UV LED has a longer product life and simple optical design. Manufacturers such as Nichia, Seoul Viosys, Violumas, UVT (UVT) and other manufacturers have launched complete UV-A/B / C LED product line, with a view to providing complete wavelength solutions to meet customer needs for alternative UV lamps (UV Lamp).

Agricultural Lighting

Looking forward to 2024, the Central and Eastern Europe (Czech Republic, Poland) region will benefit from the price reduction of plant lighting products (finished products), and the overall plant factory solution will have a higher return on investment (ROI), showing a relatively strong growth rate. need. In addition, investment in the construction of plant lighting in high latitudes in Asia and Northern Europe to grow vegetables, fruits and pasture is to improve the negative impact of long winters on food supply. The above factors are expected to drive the growth of the plant lighting LED market output in 2024.