Chip Scale Package LED Market

Chip Scale Package LED Market Outlook (2022 to 2032)

The global Chip Scale Package LED Market size is set to reach USD 5.8 billion by 2032. It stood at USD 1.5 billion in 2022. A CAGR of 14.9% is expected to be witnessed by the global market from 2022 to 2032.

An integrated circuit package that can be surface mounted is known as a chip scale package. It has an area no more than 1.2 times that of the original die.

The IPC/JEDEC J-STD-012 is the foundation for this description of a chip-scale packaging. Due to its numerous advantages, chip-scale packaging has grown to be one of the largest developments in the electronics sector since their introduction.

Traditional LEDs are mostly produced via a chip manufacturing process. The component, such as a package LED embedded in ceramic substrate, is connected to the die.

A packed LED refers to the entire procedure. Production method and manufacturing costs are the most important factors in chip-scale LED.

The CSP LED has a quick production time and bypasses the manufacturing step. In the chip-scale package LED market, chip-scale LEDs are regarded as the most popular trend.

Any chip must meet a set of requirements in order to be packaged. In this instance, packaged LED chips scale is suitable for the die, and their production process is simple.

These chip scales penetrate the market more slowly than conventional packed LEDs. The possibility for this chip scale would be large in the next ten years, though.

It has excellent characteristics and cost savings that will create enormous desire for the chip size package LED industry. In applications using backlights, there is a considerable need for chip scale. For numerous electronics, it is an energy-efficient chip scale.

The global market might be constrained by low-cost possibilities of skipping key packaging processes. The product's container or bill material is inexpensive.

Broad market benefits from low manufacturing costs associated with these chip sizes might hamper sales. The final product is economical for industries since it has a low potential cost.

These elements significantly increase demand from this sector. Several packaging procedures are skipped, which even cuts production time. These characteristics will encourage substantial investment in the chip-scale packaging industry in the assessment period.

Attributes	Key Insights
Chip Scale Package LED Market Estimated Size (2022E)	USD 1.5 billion
Projected Market Valuation (2032F)	USD 5.8 billion
Value-based CAGR (2022 to 2032)	14.9%
USA Value-based CAGR (2022 to 2032)	13.6%

2017 to 2021 Chip Scale Package LED Sales Outlook Compared to Demand Forecast from 2022 to 2032

As per Future Market Insights (FMI), the global chip scale package LED market is set to exhibit a CAGR of 14.9% from 2022 to 2032. It witnessed a CAGR of around 18.1% in the historical period.

Advantages of chip scale package (CSP) LEDs led over conventional ones are their main attributes. More end users are drawn to this sector as a result.

The supply chain will expand in the next ten years owing to the product's remarkable qualities. End users are influenced to purchase these chip scales by numerous characteristics.

These include the form factor, wide-angle beam, and high package density. A large audience from various industries will be drawn in thanks to improvements made to these features.

Chip scale package LEDs have a significant benefit owing to their low heat resistance. Another element that might lead to increased rate of adoption of this technology is uniform spreading.

Top Chip Scale Package LED Market Trends Listed by Future Market Insights (FMI)

• Increasing advancements in technology and long-life span would propel chip scale package LED sales in the next ten years.
• Chip size LEDs are far more power-efficient than conventional lighting options.
• They are a desirable alternative for a wide variety of uses.
• A few of their uses include industrial lighting, automobile illumination, and lighting for the house.
• Chip scale package LEDs last longer than conventional lighting options.
• These necessitate less frequent replacement and upkeep.
• They are an affordable solution for a variety of applications.
• Chip scale package LEDs are easily incorporated into tiny and portable gadgets.
• These are equipped in wearables, computers, and smartphones owing to their small size.
• They are a popular option for producers of consumer electronics.
• Chip size LEDs are becoming increasingly effective, robust, and adaptable thanks to continuous developments in the field.
• They are set to be appropriate for a wide variety of uses and industries as a result of these advances.
• Need for chip size LEDs is also being driven by governmental requirements.
• Several nations have put laws into place that encourage the adoption of energy-efficient lighting systems and reduce energy usage.

Which Factors are Restraining Chip Scale Package LED Demand?

• Limited availability and high costs are two main factors hampering chip scale package LED demand.
• Chip scale package LEDs are more expensive than other lighting technologies.
• It prevents them from being widely used in a few situations.
• Supply chain is still being developed, and chip scale package LEDs are not yet generally accessible on the market.
• This makes it challenging for manufacturers to find the parts they need.
• Chip scale package LEDs have certain technological restrictions.
• These include a small color temperature range, low efficiency, and poor color rendering.
• These restrictions might reduce their suitability for particular applications and restrict their general adoption.
• As there are no industry-wide standards for chip-size LEDs, both producers and consumers become perplexed.
• As a result, the technology's potential for expansion is constrained and adoption is quite difficult.
• Organic light-emitting diodes (OLEDs) and micro-LEDs are two lighting technologies that compete with chip scale package LEDs.
• As compared to chip scale package LEDs, these technologies have various benefits.
• These include high efficiency and better color rendering.
• It might prevent the widespread use of chip scale package LEDs in specific applications and hence restrict the market.

Which Region would Create New Opportunities for Chip Scale Package LED Suppliers?

North America to Witness High Demand for Wafer Level Package by 2032

North America is anticipated to lead the global chip scale package LED market throughout the projection period. Growing need for chip scale LEDs in the backlighting unit would lead to expansion in North America. It is also attributed to rising demand from the flash lighting sector.

As per Future Market Insights (FMI), CAGR of North America is likely to be about 23.2% in the forecast period. Cree Inc. is one of the leading producers of chip scale package LEDs in the region.

Country-wise Insights

Why is the USA Showcasing High Chip Scale Package LED Demand?

Launch of Unique Speakers with Lead Frame Chip Scale Package in the USA to Aid Sales

The USA chip scale package LED market is expected to be worth USD 780.4 million by 2032. It is set to create an absolute dollar opportunity of USD 562.3 million from 2022 to 2032.

The USA market witnessed growth at a CAGR of 14.7% from 2017 to 2021. It is anticipated to expand at a CAGR of 13.6% from 2022 to 2032.

In November 2022, Xperion 6000 LED was introduced by Lumileds. It is a USA-based company. The variable beam of Xperion 6000 Flood Speaker produces 1000 lumens in flood mode and 250 lumens in spotlight mode.

The light doubles as a USB power bank. It has built-in Bluetooth speakers that enable music to be played straight via the work light.

Would the United Kingdom Exhibit Rising Chip Scale Package LED Sales?

United Kingdom-based Wafer Level Chip Scale Package Manufacturers to Engage in Partnerships

The United Kingdom chip scale package LED market is set to be worth USD 163.4 million by 2032. It would create an absolute dollar growth of USD 115.3 million in the next ten years.

The United Kingdom witnessed growth at a CAGR of 13.2% from 2017 to 2021. It is expected to flourish at a CAGR of 13.0% from 2022 to 2032.

In October 2020, Lextar Electronics based in the United Kingdom, partnered with X Display. This partnership will help to accelerate high-performance micro LED mass production.

Would Japan be a Significant Chip Scale Package LED Manufacturing Hub?

Launch of High Output Wafer Level Chip Size Package in Japan to Boost Demand

Japan chip scale package LED market is projected to be worth USD 1.0 billion by 2032. It would create an incremental opportunity of USD 773.8 million in the assessment period.

Japan exhibited growth at a CAGR of 19.2% from 2017 to 2021. It is estimated to elevate at a CAGR of 15.1% from 2022 to 2032.

In January 2023, Nichia Corporation, a Japan-based company, introduced its high output 280 nm NSCU 434C. It has a wall-plug efficiency of 5.4% and can produce a radiant flux of 110mW at 350mA. It is a surge of more than 80% over its predecessor.

Its flux density and efficiency has a dimension of just 3.5mm x 3.5mm. These are currently unparalleled in the industry. They can also eliminate any wavelength inefficiencies of germicidal efficacy.

Category-wise Insights

Which is the Most Preferred Power Range of Chip Scale Package LEDs?

Need for High-power Automotive Lighting to Spur Demand for Chip Scale Package Implementation

Based on power range, the high power segment is set to dominate the global market. It is projected to witness a CAGR of 14.6% from 2022 to 2032. It showcased steady growth at 17.5% CAGR during the historical period.

The high power segment is anticipated to expand rapidly throughout the projection period. Global demand for backlight LEDs and automotive lighting would broaden the segment. It calls for high-power CSP LEDs for increased effectiveness and high beam functions.

Growth is high since the automotive lighting industry currently has a low market penetration rate. Yet, numerous businesses have seen high potential in the automotive lighting industry.

They are introducing unique products and making attempts to get into the aftermarket. They are also taking initiatives to expand their supply chain for vehicle lighting. It has led to a significant increase in terms of demand.

Which is the Leading Application of Chip Scale Package LEDs?

Expansion of Aerospace Industry to Propel Need for Backlighting Chip Scale Package Process Flow Units

By application, the backlighting unit segment is projected to lead the global market. As per the report, the segment is set to expand by 14.8% CAGR from 2022 to 2032.

It witnessed considerable growth at a CAGR of 17.8% from 2017 to 2021. Ongoing expansion of the aerospace and defense industry can be connected to increasing need for customized equipment.

Competitive Landscape

The global chip scale package LED market contains numerous small- and medium-sized companies. Leading players are striving to invest in research and development activities to create novel products. A few other companies are focusing on launching highly efficient technologies to cater to the rising demand.

A few of the recent developments in the chip scale package LED market are:

• In January 2022, New Luxeon Rubix Cyan LED introduced its latest 96-98 CRI across its CCT range. It is the color scheme solution utilized in the stage, studio, and entertainment industries. Multi-color driven systems create a quite high CRI white light. It would be essential in entertainment lighting applications. Cyan is added to Lumileds to assist in the process. A system's significant wavelength gap between green and blue is filled in by the inclusion of cyan LED. It is what makes CRI of the system substantially better.
• In November 2022, a high luminous flux density chip-scale LED was introduced by Nichia Corporation. The new NCSWE13A-V1 is a 1W-class LED that is identical to the current NCSWE17A-V1. It comes in a smaller packaging (1.3mm x 1.3mm). The previous, 0.2W-class, NFSWE11A-V1 measures 1.1mm x 1.1mm. It is supplemented with the NCSWE13A-V1. Small size of the luminaire due to enhanced flux density coming from the tiny E13A-V1 would lead to high design flexibility.

Scope of the Report

Attribute	Details
Estimated Market Size (2022)	USD 1.5 billion
Projected Market Valuation (2032)	USD 5.8 billion
Value-based CAGR (2022 to 2032)	14.9%
Forecast Period	2022 to 2032
Historical Data Available for	2017 to 2021
Market Analysis	Value (USD billion)
Key Regions Covered	North America; Latin America; Europe; East Asia; South Asia; Oceania; Middle East and Africa
Key Countries Covered	USA, United Kingdom, Germany, France, Spain, Italy, Japan, China, Singapore, Malaysia, Sri Lanka, Kingdom of Saudi Arabia, United Arab Emirates, South Korea, Finland, Hungary, Rest of the World
Key Segments Covered	Application, Power Range, Region
Key Companies Profiled	Lumileds; Samsung Electronics; Seoul Semiconductors; Osram Opto Semiconductors; LG Innotek; Nichia; Epistar; Cree; Genesis Photonics; Lumens Co., Ltd.
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, Market Dynamics and Challenges, and Strategic Growth Initiatives

Chip Scale Package LED Market Outlook by Category

By Application:

• Backlighting Unit
• General Lighting
• Automotive
• Flash Lighting
• Others

By Power Range:

• High Power
• Low and Mid-Power

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa

Frequently Asked Questions

What is the expected value of the Global Chip Scale Package LED market in 2022?

The global chip scale package LED market is valued at USD 1.5 billion in 2022.

What is the CAGR for the Global Chip Scale Package LED market from 2022 to 2032?

The chip scale package LED market’s CAGR from 2022 to 2032 will be 14.9%.

What is the value of the United States Chip Scale Package LED market until 2032?

United States is expected to reach a value pool of USD 780.4 million until 2032.

What expected CAGR of Japan’s Chip Scale Package LED market until 2032?

Japan’s chip scale package LED market will surge at a CAGR of 15.1% through 2032.

Which is the key segment by power range in the Chip Scale Package LED market?

The high power segment will remain preferred in the market through 2032.