Encapsulation is generally adopted in packaging of lamp-LEDs. The encapsulation procedure is to pour liquid epoxy into the LED moulding chamber first, and then insert the LED bracket that has undergone the press welding, then put the mould into the oven, and the LED gets shaped when the encapsulants solidifies.
As the LED, or light emitting diodes, lighting market continues to grow at an increasingly robust pace, the demand for LED encapsulants and underfill materials is predicted to grow accordingly. In fact, lighting, not TV backlight units, is now the key driver of the LED encapsulant market. LED-use encapsulants are categorized into epoxy, silicone, polyurethane types.
This report studies the LED Encapsulants market size (value and volume) by players, regions, product types and end industries, history data 2015-2018 and forecast data 2019-2025.
The global LED Encapsulation market
is expected to witness a CAGR of 3.9% and is projected to reach USD 2,531.62 Million by 2025. The growth of this market is propelled by demand for longer life of LEDs by protecting it from moisture, chemicals. Moreover, need of protection from solder joint fatigue in chip based LED is expected to further augment the growth of this market.
LEDs have been readily adopted in the field of electronics due to their low power consumption and simplistic design. Therefore, protection of LED has arisen as a basic requirement in its manufacturing process and will provide impetus to encapsulation market over the forecast period. Special encapsulation materials allow heat dissipation through them while providing protection from fluids and chemicals. Owing to these properties, LED Encapsulation has found its application in various industries such as consumer electronics, automotive, and Lighting.
Silicone Encapsulant Estimated to Have the Highest Market Share
The demand for the silicon type is majorly due to the strong demand from commercial LED lighting. silicon encapsulant is also majorly used in other electronics applications. As the advantages silicone encapsulants provide, such as thermal transfer and light emission, are in line with the addressable need of mid- and high-power LEDs, the silicon segment is expected to grow at a substantial rate, during the forecast period. These performance benefits of silicone type explain the demand in the electrical and electronics sector. With respect to the LED encapsulation - apart from the performance benefits, the abundant availability of the material and the cost compared to epoxy encapsulant makes silicone encapsulant more preferred by LED manufacturers and others involved in LED encapsulation. Huge demand for silicone encapsulant is expected from the United States and Asian regions, like South Korea and Taiwan, particularly for silicon encapsulants, due to the large production of consumer electronics like TV, tablets and monitors and the availability of the encapsulant in that region.
Asia-Pacific is Expected to Have Highest Share in LED Encapsulation Market
Geographically, the LED encapsulation market is prevalent in Asia-Pacific (APAC) also due to the availability of encapsulation of raw material in abundance. Positive demand growth for consumer electronics and automobiles in this region, where the rapid changes in technology, is resulting in higher demand for high and medium power LEDs. This need, therefore, inculcates the LED encapsulation growth in the design of the end product.
Asia-Pacific, comprising of the major LED giants (in China), is expected to have a major market share during the forecast period. China is expected to be the major revenue generator, as it occupies more than 45% in the LED market, followed by Taiwan. Increasing demand from South Korea and Taiwan particularly for silicon encapsulants, due to the large productions of consumer electronics like TV, tablets, and monitors, also explain the high market share. Australia, which is among the top 10 LED importers, in the world also contributes to the growth of the LED encapsulation market.