The global chip-on-board (COB) LED market will rise at a compound annual growth rate (CAGR) of 35.51% during 2016-2020, according to a report by market research firm TechNavio. Key COB LED vendors are listed as Citizen Electronics, Cree, Nichia, Osram Opto Semiconductors, Philips Lumileds Lighting, Samsung Electronics and Seoul Semiconductor. Other prominent vendors include Everlight Electronics, LG Innotek and Lumens.
COB is a comparatively new bare-chip technology for LED packaging in lighting applications. Multiple LED chips are placed in a small area, mounted directly on the substrate to produce an LED array, and further packed together to form a single COB LED lighting module. COB LEDs hence help to reduce costs by eliminating the complicated solder reflow assembly process.
The report 'Global Chip on Board LED Market 2016-2020' segments the market into the applications of general lighting, automotive lighting, and backlighting.
The increase in demand for smartphones will create demand for more LEDs to be used in the backlighting unit (BLU) of flat-panel displays (FPDs), positively impacting the demand for COB LEDs. The development of LED filament lamps and the development of smart lighting will also boost demand for LED lighting.
For COB LEDs in the global lighting industry, a major driving factor of demand has been the declining average selling price (ASP) of LEDs. Some of the reasons for this are economies of scale and the transition in the wafer size that is used to make LED chips. The small size of LED chips achieved by COB technology supports miniaturization of the devices and provides high efficiency.
Advantages such as better lighting effects, better color mixing, and the ability to spread light over a large area will necessitate the adoption of CoB LEDs during the estimated period. Furthermore, factors like its efficient thermal management ability, homogeneous luminosity, longer service life, high-intensity lighting, reliable output, energy efficiency, and compactness will result in substantial growth of this market until 2020.
Technavio reckons that factors such as the rising demand for energy-efficient and high-quality devices will drive market growth until 2020. In recent times, demand for energy-efficient light sources with a long lifespan has been rising rapidly. The flexible design structure of LEDs allows lighting system controls to be used more effectively than the traditional lighting sources. Factors such as their rational design and the presence of micro-lens molding will allow these devices to avoid the defects of point and glare light, says the report. Advantages such as its improved color-rendering index will result in increased adoption during the forecast period, Technavio reckons.
The general lighting segment was the highest revenue-generating segment during 2015 and its revenue-generating capacity is expected to rise further due to increased utilization of the LEDs for room, ceiling and outdoor lighting applications. Advantages such as high energy efficiency, low maintenance costs, long service life, and the ability to reduce glare from the light source will necessitate the adoption of such LEDs for general lighting purposes, the report reckons.
The report forecasts that the Asia-Pacific region (APAC) will account for more than 59% of the overall market by 2020. Demand for CoB LEDs, coupled with the presence of many prominent CoB LED makers in APAC, will lead to substantial growth of this market in APAC during the forecast period.
The global CoB LED market is highly fragmented because of the presence of many global, regional and local vendors. Companies with a strong foothold in the general lighting segment are the well-established suppliers in the CoB LED market. The competitive environment in this market is expected to further intensify with an increase in product and service extensions, innovations in technology, and merger & acquisition (M&A) activities.
However, the report notes that the fluctuating global economy of influential countries such as China, Russia and Brazil is posing a challenge to global COB LED makers, as it impacts the international trade of LED components and products across borders.
