LED Packaging Market worth $19.4 billion by 2029

The LED Packaging Market is expected to reach USD 19.4 billion by 2029 from USD 16.0 billion in 2024, at a CAGR of 3.9% during the 2024–2029 period according to a new report by MarketsandMarkets.

The major factors driving the growth of the LED packaging equipment market include the growing adoption in automotive lighting solutions and the surging prices of packaged LEDs. Additionally, the ongoing developments towards advanced LED packaging technologies are expected to create growth opportunities for the LED packaging market in the future.

The widespread adoption of the CSP LEDs over SMD LEDs is attributed to its numerous advantages such as minimized footprint, slim profile, cost-effectiveness, elevated lumen output, reduced weight, improved electrical performance, and an enhanced organized distribution of connections. These attributes contribute to the effective utilization of the epitaxial manufacturing process. High-performance CSP LEDs can be used for applications that require high output, such as automotive, where conventional mid-powered LEDs were previously utilized. Therefore, CSP package type is expected to register the highest CAGR in the LED packaging market during the forecast period.

The general lighting application is projected to dominate the LED packaging industry which is attributed to the increasing demand for LED lighting in commercial settings and the widespread adoption of LED technology as a replacement for traditional light sources which results in reduced energy consumption. The prominence of the market is further growing due to the efforts of governments and regulatory bodies to promote energy conservation, particularly in residential and industrial sectors.