The global chip-on-board LED market is expected to reach $9179.7m by 2020, according to the report ‘Chip on Board (COB) Light Emitting Diode (LED) Market Analysis By Application (Automotive, Backlighting, Illumination) And Segment Forecasts To 2020’ by Grand View Research Inc. Increasing urbanization and infrastructure spending are expected to be the key drivers of growth over the forecast period.
COB LEDs are energy efficient, have greater reliability and require less space, notes the report. Furthermore, they offer high intensity and homogenous luminosity, making them suitable for high-power applications. In recent times, the use of solid-state lighting technology rather than traditional lighting has led to significantly increased adoption of COB LED, it adds.
High demand for COB LED due to increased adoption by several lighting application segments (to gain benefits over technologies such as CFL and incandescent lighting) is also expected to positively impact the global market over the next six years. Furthermore, advances in design and cost saving through economies of scale are expected to provide significant growth opportunity over the forecast period. However, the complex manufacturing process and high price, coupled with fluctuating global economic conditions, may be a challenge for industry participants, the report cautions.
Further key findings from the study suggest that:
The illumination segment dominates the market and is expected to be the largest and fastest-growing application over the next six years. This segment accounted for over 45% of the market in 2013, mainly because of COB LEDs’ wide area light-emitting property. The backlighting application segment is expected to grow substantially due to the rise in the number of applications in handheld devices, monitors and LED televisions. Asia Pacific accounted for over 50% of global market revenue in 2013, and is expected to dominate demand over the forecast period. Further, it is expected to exhibit the fastest growth from 2014 to 2020, due to government initiatives favoring COB LED adoption and a large number of market participants. Key firms operating in the market include Philips LumiLEDs Lighting Company, Cree Inc, Samsung Electronics Co Ltd, Citizen Electronics Co Ltd, Osram Opto Semiconductors GmbH, Everlight Electronics Co Ltd., Seoul Semiconductor Co Ltd, Nichia Corp, Lumens Co Ltd, and LG Innotek Co Ltd. The market is consolidated in nature, and the development of efficient and cost-effective products is expected to serve as a key growth strategy over the forecast period.
