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The infrared light-emitting diode market size is estimated to grow at a CAGR of 8.09% between 2022 and 2027. The market size is forecast to increase by USD 242.69 million. The growth of the market depends on several factors, including increasing government security initiatives for video surveillance, increasing integration of biometrics in consumer electronics, and increasing adoption of night vision technologies.
This infrared (IR) light-emitting diode (LED) market report extensively covers market segmentation by type (Gallium arsenide LED and Aluminum gallium arsenide LED), application (consumer electronics, surveillance, automotive, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The Increasing integration of biometrics in consumer electronics is notably driving the market growth, although indoor limitations of infrared light-emitting diodes may impede the market growth. Our researchers analyzed the data with 2022 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.
Increasing integration of biometrics in consumer electronics is notably driving the infrared (IR) light-emitting diode (LED) market growth. Advanced computer chips, modern camera sensors, and highly efficient infrared light-emitting diodes are integrating complex eye-tracking systems into consumer devices such as smartphones, notebooks, and tablets. These systems allow the device to detect the user's eye movements. Besides common input methods, eye tracking and retinal scanning enable new intuitive interactions between humans and machines. Eye tracking systems can record eye movements and the direction people are looking. Most of these systems use infrared light to illuminate the user's eyes, click images with a camera, and estimate eye movements from image data. An image processing algorithm takes this raw data and calculates the position of the pupil. Based on information about the position of a reference object such as a screen, special software can detect exactly where the user is looking.
Regardless of eye color, infrared illumination ensures the necessary contrast between the iris and pupil, especially in low light or when the screen background is very bright. Several infrared emitting diode manufacturers, such as OSRAM, have begun developing products for consumer electronics biometrics. Therefore, the application of biometrics in consumer electronics will increase the demand for infrared light-emitting diodes, driving the infrared (IR) light-emitting diode (LED) market growth during the forecast period.
The increasing number of smart cities is a key trend influencing the Infrared (IR) LED Market growth. A smart city is an amalgamation of multiple digital technologies that improve communication between devices, improve urban infrastructure, reduce costs, improve quality of life, and enable efficient use of resources. Intelligent traffic control, home surveillance, and safe and intelligent mobility are essential elements of smart cities. Smart cities use multiple interconnected digital technologies to improve communication between devices, increase performance, reduce costs, and contribute to the efficient use of resources. These digital technologies include Smart Pole solutions that support intelligent transportation. Smart City enables smart pole end-users to quickly respond to challenges faced by city dwellers. Surveillance and security equipment such as CCTV cameras are widely used in smart cities for traffic control, vehicle speed monitoring, automatic license plate recognition, and parking assistance.
Moreover, the number of smart cities is expected to grow rapidly during the forecast period. Cutting-edge technologies such as big data and artificial intelligence carry out tasks such as real-time video surveillance and emergency response. This will increase the demand for surveillance systems and related components such as infrared emitting diodes. Therefore, with the increasing number of smart cities, the application of infrared light-emitting diodes will increase, which will drive the market over the forecast period.
Indoor limitations of infrared light-emitting diodes are challenging the IR Light-emitting Diode (LED) Market growth. Indoor use of cameras with infrared emitting diodes is not easy due to reflective surfaces. In residential applications, infrared emitting diodes tend to bounce off windows and reflect back onto the camera, so if the camera is pointed looking through a window, the video will be washed out. Video from high-power infrared security cameras is usually washed out by these reflective surfaces. In addition, infrared-emitting diodes are bright and powerful and bounce off opposite surfaces and surroundings.
Infrared cameras can be used indoors when there are open areas free of reflective surfaces, windows, or other objects. However, it does not perform optimally indoors. Therefore, limitations on indoor infrared light-emitting diodes will have a negative impact on market growth during the forecast period.
The 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 growth strategies.
Global Infrared Light-emitting Diode Market Customer Landscape
Vendors 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.
Adolf Wurth GmbH and Co. KG: The company offers different types of infrared light-emitting diodes such as SFH 4718A, SFH 4053, and many more.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the gallium arsenide LED segment will be significant during the forecast period. A semiconductor called gallium arsenide(GaAs) can emit light and is used in the LED field because of its direct bandgap. GaAs infrared emitting diodes are fast, making them suitable for use in radio frequency (RF) devices such as mobile phones and microwave ovens, which are primarily used in military applications such as radar and smart weapons. Demand for GaAs infrared emitting diodes is expected to grow moderately, driven by increased ruggedness, efficient power consumption, and superior performance of GaAs devices. These advantages make these components attractive solutions in industries such as consumer electronics. This ultimately increases market revenue over the forecast period.
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The gallium arsenide LED segment was valued at USD 218.09 million in 2017 and continued to grow until 2021. The gallium arsenide(GaAs) infrared emitting diode segment is growing due to the increasing adoption of smart homes, mobile phones, and high-frequency radar systems. GaAs infrared emitting diode materials have applications in specific areas such as infrared spectroscopy, which is used to determine the wavelength range of a signal. For example, a GaAs sensor incorporating an infrared emitting diode is designed for multichannel near-infrared spectrophotometry. Also, the increasing adoption of these sensors in spectroscopy and healthcare applications will propel the market over the forecast period.
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APAC is estimated to contribute 67% to the growth of the global IR light-emitting diode (LED) market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is a global manufacturing center for consumer electronics and other industrial products requiring infrared light-emitting diodes. APAC's automotive industry is large. There are many famous automobile manufacturers in Japan such as Toyota, Nissan, Suzuki, and Mitsubishi Motors. Infrared emitting diodes are widely used in automotive applications such as driver monitoring and gesture control. Rising automobile production in APAC will drive the adoption of infrared light-emitting diodes, which will ultimately drive the growth of the market during the forecast period. There is also a huge demand for consumer electronics in APAC as it is the manufacturing base for various electronic display products. The widespread acceptance of remote controls by major smart TV and game console manufacturers in the region is another factor driving the demand for infrared-emitting diodes in APAC.
In 2020, industrial activities across the world were impacted by the COVID-19 outbreak. Strict lockdowns and social distancing regulations led many business owners to temporarily close their facilities. The pandemic severely impacted automobile production and other manufacturing subsectors. This crisis affected not only corporate capital investment but also the procurement budget for raw materials and parts such as infrared light-emitting diodes. However, the market started to recover in 2021 due to the lifting of lockdowns and the start of mass vaccination campaigns against COVID-19. Moreover, the growing demand for infrared light-emitting diodes from end-users such as automobiles and consumer electronics is expected to boost the growth of the market during the forecast period.
The infrared (IR) LED market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global infrared (IR) LED market as a part of the global semiconductors market within the overall global semiconductors and semiconductor equipment market. The parent global semiconductor market includes manufacturers of semiconductors and related products. Technavio defines semiconductor manufacturers as companies involved in the production of integrated circuits (ICs) such as memory, logic, analog, and microcomponents.
Infrared Light-emitting Diode Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
Market growth 2023-2027 |
USD 242.69 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.58 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 67% |
Key countries |
US, China, South Korea, Taiwan, and Singapore |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adolf Wurth GmbH and Co. KG, AMS OSRAM AG, Ennostar Inc., Epileds Technologies Inc., Everlight Electronics Co. Ltd., EXALOS AG, Excelitas Technologies Corp., High Power Lighting Corp., Kingbright Electronic Co. Ltd., Kioxia Corp., Lumileds Holding BV, Luna Innovations Inc., Marktech Optoelectronics Inc., Nichia Corp., ROHM Co. Ltd., TE Connectivity Ltd., Toyoda Gosei Co. Ltd., Ushio America Inc., Vishay Intertechnology Inc., and Wolfspeed Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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