Chip-on-board (COB) LED Market Size 2025-2029
The chip-on-board (cob) led market size is valued to increase by USD 3.81 billion, at a CAGR of 17.8% from 2024 to 2029. Heightened demand for energy-efficient lighting solutions propels market growth will drive the chip-on-board (cob) led market.
Major Market Trends & Insights
- APAC dominated the market and accounted for a 50.9% growth during the forecast period.
- By End-user - General lighting segment was valued at USD 2.09 billion in 2023
- By Distribution Channel - Offline and Online segment accounted for the largest market revenue share in 2023
Market Size & Forecast
- Market Opportunities: USD 4.73 billion
- Market Future Opportunities: USD 3.81 billion
- CAGR from 2024 to 2029 : 17.8%
Market Summary
- The chip-on-board (COB) LED market is defined by its core value proposition of delivering high-intensity, uniform light from a compact source. This is achieved by mounting multiple semiconductor chips directly onto a substrate, a design that also ensures superior thermal management and high luminous efficacy.
- Key drivers include the global push for energy efficiency, expanding applications in automotive lighting and horticulture, and continuous technological advancements. The automotive sector, for instance, increasingly adopts COB technology for adaptive driving beam systems, enhancing both safety and design aesthetics.
- Simultaneously, the horticulture lighting market leverages COB LEDs for their ability to provide specific light spectra essential for controlled environment agriculture. However, the market faces challenges from intense price competition, which has led to commoditization, and the technological rise of mini-LED and micro-LED alternatives.
- For example, a manufacturer facing a 15% to 25% production cost increase due to tariffs might pivot its strategy to focus on high-margin, specialized applications like advanced display backlighting units, thereby mitigating supply chain volatility while maintaining profitability.
What will be the Size of the Chip-on-board (COB) LED Market during the forecast period?
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How is the Chip-on-board (COB) LED Market Segmented?
The chip-on-board (cob) led industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- End-user
- General lighting
- Automotive lighting
- Backlighting
- Distribution channel
- Offline
- Online
- Product type
- Standard COB LED
- High power COB LED
- Mid power COB LED
- Geography
- APAC
- China
- India
- Japan
- Europe
- Germany
- UK
- France
- North America
- US
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Middle East and Africa
- Saudi Arabia
- UAE
- South Africa
- Rest of World (ROW)
- APAC
By End-user Insights
The general lighting segment is estimated to witness significant growth during the forecast period.
The general lighting segment is foundational to the Chip-on-Board (COB) LED market, driven by stringent energy efficiency regulations and a growing emphasis on sustainability.
COB LEDs are ideal for general illumination due to their high luminous efficacy, superior thermal management, and uniform light output, making them suitable for residential, commercial, and industrial settings.
The integration of smart lighting systems and IoT integration further fuels market expansion, enabling features like remote control and sensor-based automation for optimized energy consumption.
This aligns with the development of human-centric lighting, which leverages tunable white light to enhance well-being.
Continuous advancements in the color rendering index are critical for commercial applications where color fidelity is paramount, with the market projected to grow at a compound annual rate of approximately 15%.
The General lighting segment was valued at USD 2.09 billion in 2023 and showed a gradual increase during the forecast period.
Regional Analysis
APAC is estimated to contribute 50.9% 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.
See How Chip-on-board (COB) LED Market Demand is Rising in APAC Request Free Sample
The geographic landscape of the chip-on-board (COB) LED market is dominated by the APAC region, which functions as both a major manufacturing hub and a high-growth consumer market.
This region is projected to contribute over 50% of the market's incremental growth, driven by rapid urbanization, government-led energy efficiency initiatives, and a robust electronics manufacturing ecosystem.
Countries like China, Japan, and South Korea are at the forefront of innovation in fine-pitch COB displays and high-power COB LED production.
In contrast, the markets in North America and Europe are characterized by stringent regulations and a strong focus on high-value applications, such as horticulture lighting, automotive lighting, and human-centric lighting systems.
The United States market, for example, represents a significant portion of regional demand, with a 2024 market value of $314 million.
Market Dynamics
Our researchers analyzed the data with 2024 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.
- A deeper analysis of the global chip-on-board (COB) LED market reveals several nuanced dynamics shaping its trajectory. The benefits of ceramic substrates in COB LED design are becoming increasingly critical, particularly for improving thermal management techniques for longevity in high-power applications.
- This advancement is crucial as the impact of miniaturization on COB LED performance continues to unlock new use cases, especially in creating advanced adaptive automotive headlights. Concurrently, a comparison of COB LED and mini-LED for displays highlights a market bifurcation, with COB technology holding its ground in cost-sensitive segments while mini-LED captures the premium space.
- The role of COB LED in controlled environment agriculture is also expanding, driven by the technology's ability to deliver optimized light spectrums. However, supply chain risks for COB LED manufacturers remain a significant concern. For instance, trade tariffs have been shown to increase production costs by 15-25% in certain scenarios, forcing companies to re-evaluate sourcing strategies.
- As the industry evolves, the integration of COB LEDs into smart city infrastructure and the development of cost-effective flip-chip COB technology will be key to overcoming challenges of commoditization and sustaining growth.
What are the key market drivers leading to the rise in the adoption of Chip-on-board (COB) LED Industry?
- The escalating demand for energy-efficient lighting solutions, driven by stringent government regulations and sustainability goals, serves as a primary market driver.
- The growth of the Chip-on-Board (COB) LED market is propelled by three primary drivers: heightened demand for energy efficiency, continuous technological innovation, and expanding applications.
- The global push for sustainability is reinforced by regulations like the new US Department of Energy rule set for 2028, which will require a minimum efficacy of 120 lumens per watt, further cementing the role of advanced LED solutions.
- Technological advancements, particularly in ceramic-based COB substrates, are improving thermal conductivity and enabling higher power densities. This innovation is critical for expanding applications in high-growth sectors.
- The automotive industry, for example, is a key driver, with the global penetration rate for LED headlights in passenger cars projected to reach 75% in 2024, driven by the demand for adaptive and energy-efficient systems.
What are the market trends shaping the Chip-on-board (COB) LED Industry?
- A predominant market trend is the persistent drive toward miniaturization and enhanced performance, which is unlocking novel applications across various industries.
- Key trends shaping the Chip-on-Board (COB) LED market include the drive toward miniaturization, the integration of smart technologies, and an unwavering focus on sustainability. Miniaturization and enhanced performance are unlocking new applications, exemplified by the development of an automotive micro-LED matrix solution containing over 16,000 micro-LEDs, reflecting a broader industry movement toward more compact and powerful lighting components.
- The convergence with the Internet of Things (IoT) is creating intelligent lighting solutions that offer enhanced control and automation, a crucial factor in smart city and smart home initiatives.
- Simultaneously, sustainability remains a powerful undercurrent, propelled by regulations such as the US Department of Energy's federal ban on most incandescent bulbs, which mandates a minimum efficacy of 45 lumens per watt and accelerates the adoption of energy-efficient alternatives like COB LEDs.
What challenges does the Chip-on-board (COB) LED Industry face during its growth?
- Intense price competition and the progression toward commoditization present a significant challenge to manufacturer profitability and long-term investment in innovation.
- The Chip-on-Board (COB) LED market faces significant challenges, including intense price competition, the emergence of competing technologies, and persistent supply chain volatility. Price erosion is particularly acute, with reports indicating that some Chinese-made COB LED strips are 30-50% cheaper than their Western counterparts, fueling market commoditization.
- Technologically, the rapid commercialization of Mini-LED and Micro-LED technologies, which offer superior contrast and resolution, presents a formidable challenge, especially in high-end display markets. Furthermore, geopolitical factors and logistical disruptions, such as the Red Sea crisis which caused shipping delays of 10-14 days, create supply chain instability and increase production costs, impacting manufacturers' profitability and ability to meet demand.
Exclusive Technavio Analysis on Customer Landscape
The chip-on-board (cob) led 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 chip-on-board (cob) led market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Chip-on-board (COB) LED Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, chip-on-board (cob) led market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
ams OSRAM AG - Delivers high-performance chip-on-board arrays, emphasizing superior color quality and energy efficiency for diverse commercial and residential lighting applications.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- ams OSRAM AG
- Boston Electronics Corp.
- Bridgelux Inc.
- Citizen Watch Co. Ltd.
- Cree LED
- EVERLIGHT ELECTRONICS CO. LTD.
- Excelitas Technologies Corp.
- Hongli Zhihui Group Co. Ltd.
- LG Innotek Co. Ltd.
- Luckylight Electronics Co. Ltd
- Lumens Co. Ltd.
- Lumileds Holding BV
- Luminus Inc.
- Nichia Corp.
- Power Palazzo Pvt Ltd.
- Samsung Electronics Co. Ltd.
- Seoul Semiconductor Co. Ltd.
- 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 industry 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.
Recent Development and News in Chip-on-board (cob) led market
- In September, 2024, industry reports highlighted the integration of smart features such as voice control and IoT compatibility as a key trend, meeting the increasing demand for intelligent lighting solutions in the residential sector.
- In October, 2024, at the Automotive Lighting Expo, leading companies showcased Mini LED COB solutions for automotive dashboards and center consoles, noted for superior image quality and durability.
- In February, 2025, industry analysis revealed that improvements in COB packaging were critical for increasing the manufacturing yield of Mini LEDs, which helps lower production costs and accelerate market adoption.
- In May, 2025, major online distributors enhanced their e-commerce platforms to provide greater supply chain transparency, allowing customers to better navigate sourcing complexities amid geopolitical instability.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Chip-on-board (COB) LED Market insights. See full methodology.
| Market Scope | |
|---|---|
| Page number | 291 |
| Base year | 2024 |
| Historic period | 2019-2023 |
| Forecast period | 2025-2029 |
| Growth momentum & CAGR | Accelerate at a CAGR of 17.8% |
| Market growth 2025-2029 | USD 3812.3 million |
| Market structure | Fragmented |
| YoY growth 2024-2025(%) | 14.9% |
| Key countries | China, India, Japan, South Korea, Australia, Indonesia, Germany, UK, France, Italy, Spain, The Netherlands, US, Canada, Mexico, Brazil, Argentina, Chile, Saudi Arabia, UAE, South Africa, Egypt and Nigeria |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The chip-on-board (COB) LED market is characterized by a dynamic interplay of technological advancement and intense competitive pressure. The core technology, involving direct die bonding of semiconductor chips with a phosphor coating, offers superior luminous efficacy and thermal management, making it ideal for demanding applications like general illumination, automotive lighting, and horticulture lighting.
- Ongoing innovation focuses on improving the color rendering index and developing advanced backlighting units. However, the market is contending with significant commoditization, a fact underscored by market data showing a 12.7% growth in shipment area even as revenue declined by 7.9% in the same period. This trend pressures manufacturers to differentiate through specialized offerings.
- Furthermore, the rise of competing technologies such as mini-LED, micro-LED, and flip-chip designs adds another layer of complexity. Strategic decisions at the boardroom level are increasingly focused on navigating these challenges, such as allocating R&D for human-centric lighting and smart lighting systems to capture high-value niches and counter price erosion.
What are the Key Data Covered in this Chip-on-board (COB) LED Market Research and Growth Report?
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What is the expected growth of the Chip-on-board (COB) LED Market between 2025 and 2029?
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USD 3.81 billion, at a CAGR of 17.8%
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What segmentation does the market report cover?
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The report is segmented by End-user (General lighting, Automotive lighting, and Backlighting), Distribution Channel (Offline and Online), Product Type (Standard COB LED, High power COB LED, and Mid power COB LED) and Geography (APAC, Europe, North America, South America, Middle East and Africa)
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Which regions are analyzed in the report?
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APAC, Europe, North America, South America and Middle East and Africa
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What are the key growth drivers and market challenges?
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Heightened demand for energy-efficient lighting solutions propels market growth, Intense price competition and commoditization
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Who are the major players in the Chip-on-board (COB) LED Market?
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ams OSRAM AG, Boston Electronics Corp., Bridgelux Inc., Citizen Watch Co. Ltd., Cree LED, EVERLIGHT ELECTRONICS CO. LTD., Excelitas Technologies Corp., Hongli Zhihui Group Co. Ltd., LG Innotek Co. Ltd., Luckylight Electronics Co. Ltd, Lumens Co. Ltd., Lumileds Holding BV, Luminus Inc., Nichia Corp., Power Palazzo Pvt Ltd., Samsung Electronics Co. Ltd., Seoul Semiconductor Co. Ltd. and Silicon Lightworks LLC
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Market Research Insights
- The dynamics of the chip-on-board (COB) LED market are shaped by a convergence of technological innovation, regulatory pressures, and evolving end-user demands. The push toward miniaturization in LED technology is expanding COB LED applications into new verticals, while smart COB LED solutions are gaining traction in connected environments.
- For instance, the global penetration rate for LED headlights in passenger cars reached 72% in 2023 and is projected to rise, underscoring the importance of the COB LED in automotive sector. However, the market is not without its challenges; aggressive pricing strategies have led to an 11.5% decrease in the prices of fine-pitch COB displays in a single quarter.
- This price pressure, coupled with competition from emerging display technologies, compels manufacturers to innovate continuously in areas like COB LED thermal performance and module design to maintain a competitive edge.
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