LED Phosphors Market Expected to Reach $30.44 Million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “LED Phosphors Market," The led phosphors market was valued at $14.22 million in 2021, and is estimated to reach $30.44 million by 2031, growing at a CAGR of 8.0% from 2022 to 2031.

Phosphor is a substance that exhibits the luminescence property. In the case of LED lighting, the type of luminescence is primarily fluorescence, the emission of light caused by the absorption of blue light energy originating from the LED chip. Phosphors are made in ways in order to make them most suitable for consistent, high yield LED manufacturing.

An increase in demand for LED lighting technology has been witnessed as it provides higher color rendering index and efficiency for existing lighting system. These features boost the adoption of LED lighting technology over conventional lightning systems such as florescent light sources. Owing to demand for LED lightning, there is a growth in demand for LED Phosphor, as it is used to manufacture the LED lights. The expansion of the global LED phosphors industry is majorly attributed to its wide applications in Smartphones, Portable PCs, automotive, lighting, electronics, pharmaceutical, and signage.

Moreover, surge in inclination toward LED lighting technologies over conventional lighting systems drive the LED phosphors market growth during the forecast period. In recent years, the light-emitting diode (LED) has become the most energy-efficient and rapidly-developing lighting technology. Fueled by technological innovations and preference for clean and green energy solutions, LEDs offer elevated efficiency and help lower energy prices. LEDs have a longer life cycle, use 50% less electricity, and do not need any maintenance as compared to traditional lighting systems. Furthermore, LEDs use 100% of the electrical energy to produce light as compared to incandescent bulbs that convert 80% into heat and only 20% into light.  According to The United States Department of Energy, LED is an energy-efficient lighting technology and has the potential to change the future of lighting in the U.S. Residential LEDs, particularly ENERGY STAR rated products utilize at least 75% less energy, and last up to 25 times longer than incandescent lighting. Extensive usage of LED lighting has a notable impact on energy savings in the U.S. The majority of lighting installations are predicted to use LED technology by 2035. In addition, the energy savings from LED lighting could top 569 TWh yearly by 2035, equal to the annual energy output of over 92 1,000 MW power plants.

There is an increased demand for the LED lighting technology as it provides higher color rendering index and efficiency for existing lighting system. These features are the major driving forces to adopt LED lighting technology over conventional lightning systems such as florescent light sources.  Due to demand for LED lightning, there is a growing demand for LED Phosphor, as it used to manufacture the LED lights. Phosphor is used to for the production of “white LEDs” to manufacture LCD backlighting units.

However, high initial price and temperature dependence are projected to hinder the expansion of the market. On the contrary, an upsurge in demand for LED phosphors in the electronics industry is expected to offer ample growth opportunities for the LED phosphors market. The electrical & electronics sector includes a variety of products, ranging from aerospace products, lamps, and light fixtures including light-emitting diodes, consumer electronics such as electrical household appliances, television sets, electronic medical equipment, and microelectronic components. LED phosphors are widely used in manufacturing of consumer electronics such as lighting equipment, LCD TVs & displays, and portable PCs LED.

The LED phosphors market is segmented into type, application, and region. On the basis of type, the market is categorized into phosphate, garnet, silicate, nitride, and others. On the basis of application, the market is fragmented into automotive, portable PCs, smartphones, flat panel TVs, signage, lighting, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The major players that operate in the global LED phosphors market include Beijing Yuji International Co., Ltd., Edison Opto Corporation, General Electric Company, Harvatek Corporation, Intematix Corporation, Leuchtstoffwerk Breitungen GmbH, Lumileds Holding B.V., Luming Technology Group Co.,Ltd., Materion Corporation,  Mitsubishi Signage Corporation, Nichia Corporation, Nippon Electric Glass Co.,Ltd., OSRAM GmbH, PhosphorTech Corporation and Tailorlux GmbH.

COVID-19 Analysis:

The COVID-19 pandemic negatively impacted the end-use sectors including consumer electronics and automotive. The COVID-19 pandemic has had a swift and severe impact on the globally integrated automotive sector. Symptoms include a disruption in Chinese parts exports, large-scale manufacturing interruptions across Europe, and the closure of assembly plants in the U.S. According to global automotive industry analysis the automotive industry in Europe will need about 10 years to reach the size of 2019. However, the automotive sector in China has seen smaller losses, becoming the highest market with a production rate of 48.9 cars per minute after quickly recovering from the pandemic.

Key findings of the study:

• By type, the nitride segment was the highest revenue contributor to the market in 2021
• By application, the lighting segment was the highest revenue contributor to the market in 2021.
• Region wise, Asia-Pacific was the highest revenue contributor to the market along with the highest CAGR of 9.2%. South Korea and China are expected to witness considerable CAGRs of 9.9% and 9.7%, respectively, during the forecast period.