Global Sources
EE Times-India
Stay in touch with EE Times India
EE Times-India > Optoelectronics/Displays

LED packaging shows 20% CAGR over next five years

Posted: 16 Jan 2013     Print Version  Bookmark and Share

Keywords:LED  packaging  substrate 

Despite challenges to reduce costs, the LED packaging materials market will enjoy a 20 per cent CAGR during the period 2012—2017, rising to nearly Rs.4,787.23 crore ($900 million) by 2017, according to a new report from Yole Developpement. The growth will be driven primarily by package substrate and phosphors, says the report.

Despite strong price pressure, the associated market for LED phosphors will also enjoy double-digit growth, with a CAGR of 20 per cent during the period 2012 – 2017, added the report.

Depending on the device type, packaging can represent 40 per cent to 60 per cent of LED total cost. As such, packaging represents the single-largest opportunity for cost reduction, which is required in order for the general lighting market, says the report. However cost reduction is not going to come from standardisation as there is a wide range of packaging approaches.

The profusion of styles is inhibiting LED manufacturing cost reduction by multiplying the Stock Keeping Unit (SKU), thus preventing standardisation of the manufacturing process and the associated economies of scale, says the report. As a result LED manufacturers are reacting by developing new manufacturing philosophies/concepts, such as simplifying and standardising elements whenever possible, and push differentiation as far downstream as possible in the manufacturing process.

"Technological developments are also impacted by the quest for cost reduction, and LED manufacturers are now searching for equipment and/or materials with the right mix between cost and performance", said Pars Mukish, Technology & Market Analyst, LED at Yole Développement. Equipment and materials suppliers are proposing more and more equipment and materials that fit these requirements, i.e. laser-based dicer, low-cost ceramic package substrate, etc.

At the LED packaging equipment level, growth will return for the next three years, say the researchers. "The LED packaging equipment market, which stagnated in 2012 due to industry oversupply, is growing again and will peak at nearly $650 million [Rs.3,457.45 crore] by 2016", said Pars Mukish.

LED packagers are still using mostly retrofitted equipment from the IC industry and relying on existing technology solutions and materials to improve LED cost of ownership and performance. While this has allowed LED manufacturers to benefit from decades of R&D, and investments in the IC industry, it also limits the industry to a space defined by existing technology platforms which are not optimised to the specific needs of LEDs. However, the industry has gained enough momentum in 2011/2012 to entice equipment and material providers into developing dedicated solutions for LED manufacturing.

Many dedicated solutions emerging from both existing and new players will allow significant reduction in LED manufacturing cost through improved yields, throughputs and material efficiency.

For more statistics and forecasts, click here.

Comment on "LED packaging shows 20% CAGR over ne..."
*  You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.


Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

Back to Top