The LED materials market is increasing at a compound annual growth rate (CAGR) of 9.9% from 2016 to $12.55bn in 2021, forecasts a report from MarketsandMarkets.
The market is driven by the growing demand for LED materials in general lighting applications, resulting from an increase in demand for LEDs for residential and industrial facilities.
Asia-Pacific the largest market for LED materials
Asia-Pacific is currently the largest market for LED materials. China is the leading country where there is major consumption of LED materials in end-use industries such as general lighting, automotive lighting, and backlighting. Moreover, the growing population with rising disposable income in China is driving demand for better-quality LED materials.
Wafers the largest market segment
Of the LED materials market in 2016 in terms of value, the wafer segment accounted for the largest share, followed by the epitaxy segment. The wafer segment is also projected to grow at the highest CAGR to 2021.
General lighting dominating LED materials market
The general lighting application segment is projected to drive the LED materials market, aided by increased demand from residential LED markets to reduce overall energy costs. Industrial lighting is also expected to contribute to the growth. The use of LEDs in industrial settings has increased, as they are better than conventional lighting sources at overcoming challenges such as extreme temperature ranges and continuous or long operational hours.
Key players in the LED materials market are cited as Sumitomo Electric Industries Ltd (Japan), Hitachi Metals Ltd (Japan), Cree Inc (USA), Seoul Semiconductor Co Ltd (South Korea), Nichia Corp (Japan), Epistar Corp (Taiwan), Koninklijke Philips N.V. (Netherlands), Osram Licht AG (Germany), II-VI Inc (USA), and Akzo Nobel N.V. (The Netherlands).