LED Production Equipment Market by Product and Geography - Forecast and Analysis 2022-2026

The LED production equipment market share is expected to increase to USD 455.07 million from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 5.2%.

This LED production equipment market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers LED production equipment market segmentations by product (front-end LED production equipment and back-end LED production equipment) and geography (APAC, Europe, North America, South America, and Middle East and Africa). The LED production equipment market report also offers information on several market vendors, including 3D Micromac AG, 4JET Technologies GmbH, Accent Pro 2000 s.r.l., AIXTRON SE, Apex Sound and Light Corp., Applied Materials Inc., ASM Pacific Technology Ltd., Canon Inc., Coherent Inc., FAROAD, JUSUNG ENGINEERING Co. Ltd., Manncorp, Notion Systems GmbH, Shanghai Micro Electronics Equipment Group Co. Ltd., Shenzhen ETON Automation Equipment Co. Ltd., Shenzhen JAGUAR Automation Equipment Co. Ltd., SMTnet, Taiyo Nippon Sanso Corp., ULVAC Inc., and Veeco Instruments Inc. among others.

What will the LED Production Equipment Market Size be During the Forecast Period?

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LED Production Equipment Market: Key Drivers, Trends, and Challenges

The increasing government support for the production and sales of LEDs is notably driving the LED production equipment market growth, although factors such as challenges in manufacturing micro-LEDs may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the LED production equipment industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key LED Production Equipment Market Driver

• The increasing government support for the production and sales of LEDs is one of the key drivers supporting the LED production equipment market growth.
• Lighting applications are estimated to account for more than 25% of the global energy consumption. There is an immediate need to reduce this energy consumption, and governments across the world are focusing on the implementation of policies to promote the use of energy-efficient LED products.
• The Indian Government's LED Street Lighting National Programme (SLNP) is the world's largest streetlight replacement program, and Unnat Jyoti by Affordable LEDs for All (UJALA) is the world's largest domestic lighting project. These schemes aim to replace incandescent and compact fluorescent lamps (CFLs) across India with LED lamps.
• In October 2021, halogen light bulbs were banned in the UK as a part of the government's wider efforts to tackle climate change. As per the new legislation, retailers in the UK are now prohibited from selling a majority of halogen bulbs for general household use.
• An estimated 54 million halogen bulbs now need to be replaced by LEDs. Also, the government has planned to phase out the sales of high-energy fluorescent light bulbs and ban their sales by September 2023. Such initiatives by the government will drive the LED production equipment market growth during the forecast period.

Key LED Production Equipment Market Trend

• Growing investments in GaN-based technology for mini or micro-LEDs is one of the key LED production equipment market trends fueling the market growth.
• Micro-LEDs measure less than 100 um and can be 1/100th the size of a conventional LED. These are self-emissive and do not require a backlight, unlike LEDs that are used as backlights in LCDs.
• LED production is based on the sapphire substrate. However, with the increasing market traction for micro-LEDs, LED manufacturers are shifting to gallium nitride-on-silicon (GaN-on-Si) technology for micro-LED production.
• The advantage of using GaN-on-Si instead of the sapphire substrate is higher yield. With this technology, a larger wafer size can be achieved, which is beneficial for micro-LEDs because of the use of transfer stamps that allow maximum wafer surface area utilization and ensure cost savings.
• Advantages of GaN-based technology will propel the LED production equipment market growth during the forecast period.

Key LED Production Equipment Market Challenge

• Challenges in manufacturing micro-LEDs is one of the key factors challenging the LED production equipment market growth.
• Micro-LEDs are LEDs that produce light without the help of any external light source and are used in lighting and displays. However, there are several technical and manufacturing issues in the development of micro-LEDs. IN view of this, LCDs, LEDs, and OLEDs are still the preferred options.
• Since a micro-LED chip is very small, a large amount of metal in solder paste is generated during bonding, which can cause a short circuit. 
• In the micro-LED manufacturing process, micro-LEDs are transferred from a temporary substrate to the main substrate, which can lead to chip damage.
• These manufacturing challenges make the commercialization of micro-LEDs for high-volume consumer applications difficult and may adversely impact the growth of the LED production equipment market during the forecast period.

This LED production equipment market analysis report also provides detaiLED information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global light-emitting diode (LED) production equipment market as a part of the global semiconductor equipment market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the LED production equipment market during the forecast period.

Who are the Major LED Production Equipment Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• 3D Micromac AG
• 4JET Technologies GmbH
• Accent Pro 2000 s.r.l.
• AIXTRON SE
• Apex Sound and Light Corp.
• Applied Materials Inc.
• ASM Pacific Technology Ltd.
• Canon Inc.
• Coherent Inc.
• FAROAD
• JUSUNG ENGINEERING Co. Ltd.
• Manncorp
• Notion Systems GmbH
• Shanghai Micro Electronics Equipment Group Co. Ltd.
• Shenzhen ETON Automation Equipment Co. Ltd.
• Shenzhen JAGUAR Automation Equipment Co. Ltd.
• SMTnet
• Taiyo Nippon Sanso Corp.
• ULVAC Inc.
• Veeco Instruments Inc.

 

This statistical study of the LED production equipment market encompasses successful business strategies deployed by the key vendors. The LED production equipment market is fragmented and the vendors are deploying growth strategies such as innovative technological features, price, reputation, distribution, and global brand presence to compete in the market.

Product Insights and News

• 3D-micromac.com - The company offers LED production equipment namely microCETI.
• Aixtron.com - The company offers LED production equipment namely AIX 2800G4 TM.
• Apexsoundandlight.ca - The company offers LED production equipment namely Diamond DM2.6.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The LED production equipment market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

LED Production Equipment Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the LED production equipment market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for LED Production Equipment Market?

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51% of the market's growth will originate from APAC during the forecast period. China, Japan, and South Korea are the key markets for the LED production equipment market in APAC. Market growth in this region will be slower than the growth of the market in Europe.

The demand for LEDs from automotive original equipment manufacturers (OEMs) has increased, which will facilitate the LED production equipment market growth in APAC over the forecast period. This market research report entails detaiLED information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the outbreak of COVID-19 negatively impacted the regional LED production equipment market. However, in H2 2021, the introduction of COVID-19 vaccines led to a decline in the number of COVID-19 cases, which resulted in the lifting of most COVID-19-related restrictions in the region. These factors led to an increase in demand for LED production equipment from major end-users. Hence, the regional LED production equipment market will continue to witness growth during the forecast period.

What are the Revenue-generating Product Segments in the LED Production Equipment Market?

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The LED production equipment market share growth by the front-end LED production equipment segment will be significant during the forecast period. LED manufacturers can choose between methods such as dry etching and wet etching to produce patterned sapphire substrate (PSS) wafers. Even though LEDs based on dry-etched PSS wafers are considered efficient light sources, the dry etching process is comparatively slow. For instance, these can take up to 30-60 minutes to etch a standard 2-inch wafer, depending upon the type of film used and the depth of the pattern being etched. Thus, the availability of such advanced LED production equipment is expected to augment the growth of the front-end LED production equipment segment during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the LED production equipment market size and actionable market insights on post COVID-19 impact on each segment.

 

LED Production Equipment Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 5.2%
Market growth 2022-2026	$ 455.07 million
Market structure	Fragmented
YoY growth (%)	4.2
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 51%
Key consumer countries	US, China, Japan, South Korea, and Germany
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiLED	3D Micromac AG, 4JET Technologies GmbH, Accent Pro 2000 s.r.l., AIXTRON SE, Apex Sound and Light Corp., Applied Materials Inc., ASM Pacific Technology Ltd., Canon Inc., Coherent Inc., FAROAD, JUSUNG ENGINEERING Co. Ltd., Manncorp, Notion Systems GmbH, Shanghai Micro Electronics Equipment Group Co. Ltd., Shenzhen ETON Automation Equipment Co. Ltd., Shenzhen JAGUAR Automation Equipment Co. Ltd., SMTnet, Taiyo Nippon Sanso Corp., ULVAC Inc., and Veeco Instruments 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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What are the Key Data Covered in this LED Production Equipment Market Report?

• CAGR of the market during the forecast period 2022-2026
• DetaiLED information on factors that will drive LED production equipment market growth during the next five years
• Precise estimation of the LED production equipment market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the LED production equipment industry across APAC, Europe, North America, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detaiLED information on vendors
• Comprehensive details of factors that will challenge the growth of LED production equipment market vendors

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