The global LED market has faced its share of challenges in recent years, with market value shrinking to $12.608 billion in 2023 due to factors such as weak end-market demand, slow inventory depletion, and intense price competition. However, according to a recent report from TrendForce, the industry is set for a rebound in 2024, with the market value expected to grow to $13.003 billion, a 3% year-over-year increase.
In the realm of MicroLED, the report notes that wearables have faced some setbacks, with the cancellation of the much-anticipated MicroLED Apple Watch, originally slated for a 2026 release. Despite this, some suppliers, such as panel maker AUO, have managed to ship small quantities of products to brands like Tag Heuer. Large-sized MicroLED displays, on the other hand, continue to face challenges in manufacturing and process yield, with costs remaining high and shipments stagnating at the hundred level.
The automotive sector shows promise for MicroLED adoption, particularly in flexible, curved, and integrated display solutions for smart cockpits. TrendForce’s investigations reveal that European car makers are likely to adopt MicroLED displays for reading lights and knob buttons, while automakers from Europe, the US, and Japan plan to incorporate MicroLED transparent displays. The report suggests that MicroLED transparent displays, with a transmittance rate of ≥70% and a curved screen, will enter the automotive market in 2026-2027, serving as AR-HUDs or window displays.
MiniLED (COB) video walls have seen rapid growth in market demand, with leading manufacturers including Samsung, LG Electronics, Leyard, Unilumin, and Absen. In the automotive lighting and display sector, the growth of NEV shipments is expected to slightly drive up global sales of passenger cars and box trucks by 2-3% in 2024. The adoption of advanced technologies like ADB headlights, MiniLED taillights, full-width taillights, (intelligent) ambient lights, and MiniLED-backlit displays is expected to intensify price competition within the automotive market. The market size of automotive LEDs is estimated to reach $3.445 billion in 2024.
UV LEDs are also gaining traction, with manufacturers introducing single-chip high power products (≥80mW) and integrated UV-C COB LED packages for home appliance and flowing water disinfection applications. The Huawei-affiliated EV brand AITO is set to adopt UV-C LED air disinfection between 2023 and 2025, which could prompt other car makers to follow suit.
Finally, the agricultural lighting sector is expected to see growth in 2024, particularly in Central and Eastern European markets, where lower prices for horticultural lighting products and higher ROI for plant factory solutions are likely to drive demand. Regions at high latitudes in Asia and Northern Europe are also investing in horticultural lighting to mitigate the impact of long winters on food supply chains.
Despite the challenges faced in recent years, the LED market appears to be on the cusp of a resurgence, with several key sectors poised for growth in 2024.
