The UV LED MarketÊ (henceforth, referred to as the market studied) was valued at USD 296.57 million in 2019, and is expected to reach USD 856.03Êmillion by 2025, registering a CAGR of 19.44%, during the period of 2020-2025. UV LEDs do not contain toxic mercury often found in CCFL technology. They are much smaller and more durable than CCFLs and are more resistant to vibration and impact, resulting in less product breakage and reduced waste and maintenance expense as well. Owing to these factors, UV LEDs are exhausting the usage of mercury light sources and thereby gaining the market share.
- The eco-friendly composition of UV LED is driving the market. The UV LEDs are witnessing a rapid adoption and becoming the viable alternatives, owing to their lower energy consumption than the mercury bulb lamps. The UV LED technology consumes less ink and minimizes waste (another environment-friendly feature) and inks developed for UV-LED technology are more responsive.
- Increasing adaptability fueled by low total cost of ownership is driving the market. The overall manufacturing cost of UV LEDs has gone down and as a result, the newer compact applications have started using UV LEDs. The Agricultural sector is poised to benefit the most from the reduced prices and owing to the reduced prices, Cornell AgriTechÕs (in 2019) announced to use UV LEDs to conduct about 20 trials with strawberries, squash, pumpkins, cucumbers, grapes, hops, basil, and industrial hemp. These all instances are driving the market due to low cost.
- Increasing production of UV LED chips is restraining the market to grow, as the advantage that Chip-on-board technology has over the surface mount UV LED technology is the higher thermal performance and UV-C LEDs have low external quantum efficiency (EQE).
Scope of the Report
Ultraviolet (UV) LED lights emit a light that is nearly invisible to the naked eye, but has many practical applications. UV LED lights can be used to authenticate documents like driverÕs licenses, passports, credit cards, forensics and currency, all of which include watermarks that are visible under UV light.
Key Market Trends
Sterilization to Significantly Contribute to Market Growth
- The scope for UV LED is becoming rich in sterilization application, as it is being proved as one of the cheapest ways to provide safe drinking water across the world. This would not only provide monetary benefits to the companies, but also increase the consumption.
- The industry players are finding an immense potential in this segment, owing to which, they are rigorously investing and entering into the sector. Few studies suggest that the utilization of UV-based water disinfection is more efficient than chlorine method, as the former operates in 120 mW irradiation capacity and a wavelength of 270 nm, which takes approximately two minutes to reduce waste by 90-99.9%.
- In May 2018, Luminus Devices, Inc. extended its ultraviolet (UV) LED product portfolio for sterilization and disinfection with two devices. This is expected to compel many other companies to invest in similar technology to stay ahead and put and sustain the market share.
- In United States, with the prediction of investment in water infrastructure in coming years, water disinfection and sanitization requirement and presence of regulation in the country has resulted in improved demand. There have been incidents, such as the 16 million cases of acute gastroenteritis occurring each year at US community water systems due to drinking water. In the United States, as per the National trends in drinking water quality violations research, Feb 2018 findings, health-based drinking water quality violations are widespread, with 9 million to 45 million people affected during each of the past 34 years. So, the scope for UV LED is becoming abundant for sterilization application in United States, as the application is one of the cheapest ways to provide safe drinking water.
Asia-Pacific to Hold a Major Growth in the Market
- Asia-Pacific is expected to gain a significant market growth in the forecast period. Vendors of the market based on Japan and China are making major investments in line with the expanding applications of UV LEDs, like disinfection and sterilization, in addition to their expansion activities.
- One of the major vendors, Nichia Corporation, is headquartered in Japan, and in April 2019, the company launched its 280 nm UVC NCSU334A Òdeep blueÓ ultraviolet-outputting LED, intended to address mass-market needs for air sterilization and water purification using solid-state lighting. Additionally, the company had a considerable success with the development of UVA LEDs, specifically designed for resin curing applications.
- Moreover, the automotive industry has been growing rapidly in China and the country is playing an increasingly important role in the global automotive market. The Government of China views its automotive industry, including the auto parts sector, as one of the industries that can serve as the pillar to the countryÕs economy. The Central Government of China expects that ChinaÕs automobile output will reach 30 million units by 2020 and 35 million units by 2025. With the growth in automobile production, the need for UV LED is expected to increase. This factor is expected to augment the marketÕs growth.
- Prominent vendors such as Seoul Viosys, LG Innotek, and QD Jason are the manufacturers in Korea who were found to be the early manufacturers of UV-C LED technology. Seoul Viosys, a provider of UV LED solutions, in August 2018, introduced a UV LED technology(WICOP) with low manufacturing costs, as it is designed to exclude the packaging process. The low-cost patented technology, UV WICOP combines Seoul SemiconductorÕs WICOP LEDs with compact and high-efficiency technology.
The UV LED market is highly fragmented with many companies in the competition. The major players are striving to gain a sustainable competitive advantage through innovation and several new players, like Osram are making significant investments in UV LED technology. Key players are Lumileds Holding BV, LG Innotek Co. Ltd, Nordson Corporation, etc. Some of the key developments in UV LED market are -
- May 2019 - Klaran, a Crystal IS product line, launched a new 60mW UVC LED and Reactor Prototype for water disinfection, demonstrating NSF Class A performance. In an advanced prototype reactor, the 60mW LED has demonstrated effective and affordable water treatment at flow rates up to three liters per minute,
- Apr 2019 - Nichia Corporation released a new Deep UV LED, Part Number NCSU334A. The new 280nm UVC NCSU334A can address mass market goals for water purification and air sterilization using Solid-State Lighting. With its small size (6.8mm x 6.8mm) and strong performance of 55mW typical optical power at 350mA, the NCSU334A allows for system miniaturization and long-life solutions.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Rising Adoption of UV Curing
4.3.2 Benefits of UV LED Technology
4.4 Market Restraints
4.4.1 Thermal Challenges
4.5 Industry Attractiveness Porters Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Technology
5.2 By Application
5.2.1 Optical Sensors and Instrumentation
5.2.2 Counterfeit Detection
5.2.4 UV Curing
5.2.5 Medical Light Therapy
5.2.6 Other Applications (Photocatalytic purification, Tanning)
5.3.1 North America
22.214.171.124 Rest of Europe
5.3.3 Asia Pacific
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.3.4 Latin America
184.108.40.206 Rest of South America
5.3.5 Middle East and Africa
220.127.116.11 South Africa
18.104.22.168 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Lumileds Holding B.V.
6.1.2 LG Innotek Co. LTD.
6.1.3 Nordson Corporation
6.1.4 Honle UV America Inc.
6.1.5 Seoul Viosys Co. Ltd.
6.1.6 Nichia Corporation
6.1.7 Semileds Corporation
6.1.8 Aquionics Inc. (A Halma Company)
6.1.9 Crystal IS Inc.
6.1.10 Heraeus Holding GmbH
6.1.11 Fuji Xerox Co. Ltd.
7 MARKET INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid
databases. Public sources involve publications by different associations and governments, annual
reports and statements of companies, white papers and research publications by recognized industry
experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different
stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end
customers and other key opinion leaders of the industry. Primary research is used both to validate the
data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.