LONDON – The global chip on board LED market is expected to exceed $9 billion by 2020, growing at a CAGR of over 35%, according to Technavio analysts.
“The emergence of energy-efficient lighting technologies such as high-brightness LEDs in general lighting and automotive lighting, and the trend of miniaturization of electronic devices such as mobile computing devices, will bolster the demand for COB LEDs,” says Asif Gani, a lead research analyst for embedded systems at Technavio.
The research firm identified four factors that will drive growth of the global chip on board LED market: decline in price of LEDs; miniaturization of electronic devices; shorter time-to-market, and ban on mercury-based lighting sources.
The average selling price of LEDs is falling rapidly, owing to an oversupply of LEDs in the market, says Technavio. Falling LED prices have increased the adoption of COB LEDs, especially in the general lighting industry and are accelerating the transition from CFLs to COB LEDs in lighting applications. Therefore, the falling ASP of LEDs is expected to drive the global COB LED market during the forecast period.
The demand for compact electronic devices has grown in almost every sector, including telecommunication devices, automotive, industrial manufacturing, and healthcare equipment. This trend has compelled LED manufacturers to invest in R&D to reduce the size and increase the performance of LEDs, which has led to advances in LED chip technologies.
“The miniaturization of electronic devices, such as mobile computing devices, will positively impact the market for COB LEDs,” says Gani.
A shorter time-to-market will have a moderately high impact on general lighting and automotive LED manufacturers, as a result of rising demand for LEDs in these sectors.