LED Driver Market Analysis Report By Supply Type, By Application Type And Segment Forecasts From 2019 To 2025

Industry Insights

The global LED driver market size accounted for USD 4.07 billion in 2018 and is projected to grow at 16.3% CAGR over the forecast period, from 2019 to 2025. The technologically advanced solution in LED lighting has improved performance and efficiency, which is expected to drive the LED drive demand during the forecast period. In addition, increasing the adoption of LED lighting across various applications like automotive, horticulture, industrial, and outdoor has resulted in increases demand products.

Companies such as NXO semiconductors and ON Semiconductor are investing in research and development activities to deliver advanced lighting solutions. This factor is also projected to witness a positive impact on market growth.

Several initiatives taken by governments across the globe for smart city projects are boosting IoT-based LED lighting solutions. Several countries have installed smart street lights that turn on & off automatically by using a daylight sensor. This initiative is expected to boost the demand for the market.

However, manufacturers are facing some challenges such as the lack of certain industry-defined standards to check the behaviors and characteristics of products. LED driver and Solid-State Lighting (SSL) follow their standards during manufacturing which led to a lack of interoperability in end-use applications.

Supply Type Insights

By supply type, the market is segmented into constant voltage and constant current. In 2018, the constant current type dominated the global market and is expected to retain its position over the forecast period. Constant current products are used in several applications as they have the ability to form uniform brightness, clear display, and offer more control.

The constant voltage products are widely used in an application that needs multiple LED lights to be connected in series. This product distributes voltage similarly and helps to provide equal luminance.

Application Type Insights

Based on the application type, the light-emitting diode driver market is segmented into automotive, lighting, consumer electronics, and outdoor display. Increasing replacement of traditional light sources such as incandescent and CFL is driving the demand for LED lights, thereby expected to boost the demand for LED drivers. The consumer electronic application segment is projected to hold the largest market share during the forecast period due to the rising adoption of LED TVs, smartphones, and tablets in emerging countries. LED screens are gaining traction across the globe due to their better picture quality, low power consumption, and high color accuracy. Moreover, LED drivers are also used in other electronic devices such as air conditioners and refrigerators for display panels, which is expected to drive the demand for LED drivers in consumer electronics applications.

Automotive application is expected to emerge as the fastest-growing segment during the forecast period. This high growth is attributed to increasing consumers' preference for LEASER lights and high brightness LED over convectional halogen and HID lights. Moreover, several economies have banned the use of harmful HID bulbs. For example, the California government has stopped HID lights kits that emit blue light.

Outdoor displays include kiosks, video walls, signage, and other displays that have similar applications. Video walls demand has been increased in developed countries like U.K. and U.S. due to the growth of the digital marketing &advertisement sector.

Regional Insights

In 2018, Asia Pacific held the largest light-emitting diode (LED) driver market share and was estimated to grow with a CAGR of 16.7% over the forecast period. This is due to enhanced manufacturing facilities, growing adoption of LED lighting, and government subsidies in this region.

Furthermore, Factors such as significant growth of the economy, rapid urbanization, and increasing access to electricity in rural areas are expected to drive the demand for LED bulbs which will boost the demand for LED drivers in this region. Moreover, technological advancement coupled with the decreasing cost of LED drivers has increased the adoption of these products in the lighting industry. In this region, China is a prominent supplier of LED drivers and one of the major countries for electronic manufacturing.

In Europe and North America, LED lighting is highly used in the high and low-end automotive sectors. Countries like Canada and the U.S. have increased the adoption of LED lights for outdoor applications, thereby driving the demand for LED drivers in North America. Moreover, the European government has banned less efficient incandescent and halogen bulbs and promoting incentive programs for LEDs which is expected to drive the regional market growth.

Impact of COVID-19

The LED lighting industry has been affected by the coronavirus epidemic, as supplies of components including LED drivers are have gone down as most of the operations are resumed in China. However, the demand for UV LED is increasing which helps to sterilize bacteria. In order to avoid infection of COVID-19, consumers’ awareness of sanitization and disinfection is increasing. Thus, the COVID-19 pandemic is expected to drive more opportunities for market growth including social distance controlling infrared sensors, germicidal UVC LEDs, and horticulture lighting for food supply. Many countries that depend on food imports are suffering from food shortages due to lockdown and travel restrictions. During the lockdown, horticulture LED lighting is gaining traction as it allows people to grow their own crops at home and helps to enhance food security. Several benefits of LED lighting in pandemic situations are expected to drive market growth.

LED Driver Market Share Insights

The major vendors included in this market are Koninklijke Philips N.V.; NXP Semiconductors N.V.; Atmel Corp.; AC Electronics; General Electric Company; Macroblock, Inc.; Lutron Electronics Co., Inc.; ROHM Semiconductors; Cree, Inc.; On Semiconductor Corp.; Harvard Technology Ltd.; Maxim Integrated Products, Inc.; Osram GmbH; Texas Instruments, Inc.; and STMicroelectronics.

Market players have taken several initiatives like mergers and acquisitions to gain maximum market share. In addition, industry players are focusing on R&D activities to develop technologically advanced new products. Major players are outsourcing components from emerging nations such as Taiwan and China to reduce the end-use product cost. Moreover, the growing adoption of smart lighting has influenced manufacturers to design IoT-based lighting for smart home applications. For example, in 2018, Tridonic partnered with Enlighted Inc., to offer IoT-based SSL.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global LED driver market report based on supply type, application type, and region:

• Supply Type Outlook (USD Billion, 2015 - 2025)
    • Constant Voltage
    • Constant Current

• Application Type Outlook (USD Billion, 2015 - 2025)
    • Automotive
    • Consumer Electronics
    • Lighting
    • Outdoor Display

• Regional Outlook (USD Billion, 2015 - 2025)
    • North America
       • The U.S.
       • Canada
    • Europe
       • The U.K.
       • Germany
       • France
    • The Asia Pacific
       • China
       • India
       • Japan
       • Korea
    • Latin America
       • Brazil
       • Mexico
    • Middle East & Africa