LED packaging equipment: Key market research findings
- Demand for enhanced display functionality in devices
- Emergence of COB technology
- Leading players include ASM Pacific, BESI, Kulicke & Soffa, Palomar, and TOWA
Technavio has released a new report on the global LED packaging equipment market, which is anticipated to grow at a CAGR of very slow CAGR of 2% between 2016 and 2020. Consumers prefer devices with advanced functionalities such as high-definition picture, enhanced display management, and energy-efficient displays. LEDs is implemented as the backlighting source in display panels owing to unique features such as smooth dimming, power-factor correction, long life, and low maintenance costs. The changes in consumer preference have prompted LED manufacturers to integrate advanced fabrication and packaging technologies, which has created the demand for advanced packaging equipment from LED manufacturers. APAC dominates the market and is likely to occupy around 88% of the total market revenue during the forecast period. The growing demand for long-term evolution (LTE) bandwidths in APAC countries such as India and China, has led to the expansion of LTE base station infrastructure. Such requirements will drive the market for display panels that use LEDs as the backlighting source of the screen in the region.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Of late, the market is witnessing the emergence of chip on board (COB) technology, which is a type of bare chip technology used for LED lighting. It is a relatively new technology for LED packaging, and it involves multiple LED chips being mounted directly on the substrate to make an LED array in one lighting module. The lighting module for a COB LED is done by placing multiple LED chips in a small area. Also, COB LEDs help cut costs by skipping the complicated solder reflow assembly process,” says Asif Ghani, Lead Analyst, Semiconductor, Technavio Research.
The LED testing segment dominated the LED packaging equipment market in 2015 and accounted for about 60% of the total share. LED testing is required throughout the LED packaging process, and the testing equipment is used for the inspection and qualification of incoming materials, process monitoring and control, and testing end-of-line product. The estimated increase in the demand for LEDs will subsequently increase the demand for this market segment in the coming years.
ASM Pacific, BESI, Kulicke & Soffa, Palomar, and TOWA are the key vendors in the LED packaging equipment market. The market is characterized by the presence of large and small scale LED packaging equipment manufacturers. The market is dominated by a few major players and vendor competition in the market is moderate. Vendors have the need to comply with constant technological advances and usually compete on the basis of price, reputation, distribution, and global brand presence. The emergence of diversified regional and local vendors will intensify vendor competition in the market in the next four years.
A more detailed analysis is available in the Technavio report, Global LED Packaging Equipment Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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