Chip-On-Board LED Market Size and Trends

The chip-on-board (COB) LED market size is forecast to increase by USD 3.19 billion at a CAGR of 17.1% between 2023 and 2028.  The market is experiencing significant growth, driven by technological innovations in COB LEDs. These advancements include improved thermal stability, which enhances the LED's lifespan and efficiency. Another trend is the adoption of COB LEDs in horticulture applications, where they provide optimal light distribution and energy savings. Additionally, the development of Chip Scale Packaging (CSP) LEDs is expanding the market's scope, offering smaller form factors and increased compatibility with various vegetable oils, such as palm oleic acid, linseed oil, and castor oil. Natural alkyd resins, with their high molecular weight and hydroxyl groups, are crucial for ensuring the unreacted acids and other impurities do not affect the LED's performance. Ensuring compatibility between these materials and the COB LEDs is essential for market success.

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The market is witnessing significant growth due to the increasing demand for energy-efficient lighting solutions. In this context, the role of thermoplastic coatings in enhancing the performance and reliability of COB LEDs cannot be overlooked. This article provides an in-depth analysis of the key components and properties of thermoplastic coatings used in COB LED applications. Thermoplastic coatings are essential in the production of COB LEDs as they provide protection to the delicate LED chips from environmental stresses and enhance their thermal stability. These coatings are primarily based on organic polyesters, which are produced through the polycondensation process. This process involves the reaction of polyhydric alcohols with polybasic acids or fatty acids, resulting in the formation of polyesters with desirable properties. Organic polyesters used in COB LED coatings can be derived from various sources, including triglyceride oils such as palm oleic acid. Natural alkyd resins, which are derived from vegetable oils like linseed oil, castor oil, soybean oil, and tall oil, are also used in the production of thermoplastic coatings.

The molecular weight and compatibility of these polymers play a crucial role in determining their suitability for COB LED applications. The properties of thermoplastic coatings for COB LEDs are critical to their performance. Brightness and color consistency are essential factors that determine the quality of the LED output. Thermal stability is another important property that ensures the LED chips operate efficiently under high temperatures. Unreacted acids and hydroxyl groups in the coatings can affect the compatibility of the coating with the LED chips and the encapsulant material. Industrial coatings used in COB LED applications include nondrying alkyd, semidrying alkyd, drying alkyd, acrylated alkyd, waterborne alkyd, and silicon-modified alkyd. The choice of coating depends on the specific requirements of the application, such as the desired cure time, chemical resistance, and thermal stability.

Polyols are often used as crosslinkers in the production of thermoplastic coatings for COB LEDs. These materials help improve the coating's thermal stability and mechanical properties. The molecular weight and compatibility of the polyols are critical factors that determine the performance of the coating. In conclusion, the Chip-on-Board (COB) LED market is witnessing significant growth, and thermoplastic coatings play a crucial role in enhancing the performance and reliability of these LEDs. Organic polyesters derived from various sources, such as triglyceride oils and natural alkyd resins, are used to produce these coatings. The properties of these coatings, such as brightness, color consistency, thermal stability, and compatibility, are essential factors that determine their suitability for COB LED applications. The choice of coating depends on the specific requirements of the application, and polyols are often used as crosslinkers to improve the coating's thermal stability and mechanical properties.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• End-user
  • General lighting
  • Automotive lighting
  • Backlighting
• Geography
  • APAC
    • China
    • Japan
    • South Korea
  • Europe
    • Germany
  • North America
    • US
  • South America
  • Middle East and Africa

By End-user Insights

The general lighting segment is estimated to witness significant growth during the forecast period. The market encompasses the utilization of LED lamps and fixtures constructed on COB LED packages. These components are extensively employed in commercial settings, including restaurants, bars, hotels, industrial facilities, offices, and malls, as well as public infrastructure such as streets, highways, bridges, tunnels, taxiways, and runways, and residential establishments.

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The general lighting segment was the largest segment and was valued at USD 1.48 billion in 2018. The general lighting sector represents a significant market for COB LEDs due to the increasing regulatory requirements concerning energy consumption and CO2 emissions. In response to these regulations, governments worldwide are aiming to minimize the maintenance expenses of public infrastructure. The emphasis on energy conservation and decreasing greenhouse gas emissions has driven governments and local authorities to adopt energy-efficient and eco-friendly lighting solutions. Hence, such factors are fuelling the growth of this segment during the forecast period.

Regional Analysis

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APAC is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Chip-On-Board (COB) LED market in the Asia Pacific (APAC) region is experiencing substantial growth due to the escalating demand for LED lighting in commercial, residential, and industrial applications. Rapid urbanization and the establishment of industries, including retail, hospitality, and healthcare, are primary drivers of this market expansion. Additionally, the development of smart cities in several countries in the region is propelling the market forward. The construction industry's growth, coupled with substantial government investments in infrastructure projects, presents a significant opportunity for the COB LED market. Chemical resistance and durability are essential factors driving the preference for COB LEDs over traditional lighting sources.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Technological innovations in COB LEDs is notably driving market growth. Manufacturers of Chip-On-Board (COB) LEDs are continually enhancing the illumination and color quality of their products. They integrate advanced technologies to produce superior COB LED lighting solutions. One such innovation is tunable lighting, which allows users to modify the color temperature of LED lights.

This feature enables LED lighting to mimic the warm glow of incandescent lamps or the cool hue of daylight, all from a single COB LED module. The demand for tunable lighting is surging in various sectors, including commercial establishments like retail stores, hotels, offices, and hospitals, as well as residential settings such as homes and apartment lobbies. This trend is driven by the versatility and energy efficiency of COB LED lighting, making it an attractive alternative to traditional lighting sources. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

The adoption of COB LEDs in horticulture is the key trend in the market. COB LEDs, or Chip-On-Board LEDs, have gained significant traction beyond lighting systems, finding application in the horticulture industry. Horticulture encompasses the production and marketing of food and non-food crops, including fruits and vegetables, medicinal plants, grasses, and ornamental trees and plants.

These crops are often cultivated in controlled environments, where sunlight supplementation is necessary due to differences in regional climate. COB LEDs offer an effective solution, providing adequate light for plant growth in the absence of natural sunlight. Thermal stability is a crucial factor in COB LEDs for horticulture applications. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

The development of CSP LEDs is the major challenge that affects the growth of the market. The market is experiencing significant advancements with the integration of innovative technologies, such as CSP LEDs. Thermoplastic materials, including organic polyesters, are increasingly being utilized in COB LED manufacturing due to their superior thermal properties and ease of processing. The polycondensation process is employed to create polyhydric alcohols and polybasic acids, which serve as crucial components in the production of COB LEDs.

Moreover, the use of fatty acids and triglyceride oils in the coating applications of COB LEDs enhances brightness and ensures color consistency. The CSP LED technology, based on flip-chip LED manufacturing, offers several advantages, including the elimination of the packaging step, which results in a smaller LED chip size and a reduced production cost. The compact size of CSP LEDs makes them an ideal choice for integration into various electronic devices, such as smartphones and TV displays, to minimize their overall size. Hence, the above factors will impede the growth of the market during the forecast period

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Bridgelux Inc: The company offers chip-on-board LED for wide range of applications such as general lighting, signage, and automotive.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• ams OSRAM AG
• Boston Electronics Corp.
• Citizen Watch Co. Ltd.
• Everlight Electronics Co. Ltd.
• Excelitas Technologies Corp.
• Hongli Zhihui Group Co. Ltd.
• LG Innotek Co. Ltd.
• Lumens Co. Ltd.
• Luminus Inc.
• Mouser Electronics Inc.
• Neumuller Elektronik GmbH
• Nichia Corp.
• Perkin Elmer Inc.
• Power Palazzo Pvt Ltd.
• Samsung Electronics Co. Ltd.
• Seoul Semiconductor Co. Ltd.
• SMART Global Holdings Inc.
• Silicon Lightworks LLC

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market is experiencing significant growth due to the increasing demand for energy-efficient lighting solutions. In the production of COB LEDs, thermoplastic materials play a crucial role, particularly organic polyesters derived from polycondensation reactions between polyhydric alcohols and polybasic acids. These polyesters are often modified with fatty acids, triglyceride oils, or vegetable oils such as palm oleic acid, linseed oil, castor oil, soybean oil, and tall oil. The coating applications for COB LEDs require high brightness, color consistency, thermal stability, and excellent compatibility with various substrates. Natural alkyd resins, derived from renewable resources like vegetable oils, are commonly used due to their desirable properties.

The molecular weight, unreacted acids, and hydroxyl groups of these resins significantly impact the final performance of the COB LEDs. The alkyd resins can be categorized into nondrying, semidrying, and drying types, as well as acrylated, waterborne, and silicon-modified varieties. The polymer structure of these resins is often modified through processes like esterification, polymerization, and etherification, using raw materials like phthalic anhydride, maleic anhydride, and epoxy resin. The COB LED market also prioritizes the importance of eco-labeling, solvent reduction, and high solids compositions. The use of renewable resources and chemical resistance, as well as desirable properties like gloss retention, durability, and resistance to water, acid, brine, and alkali, are essential for the success of COB LEDs in various industrial coatings applications.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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