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Chip-on-Board LED Market in APAC to Grow 34.79% by 2020
August 8, 2016 | Business WireEstimated reading time: 1 minute
-Research and Markets has announced the addition of the "Chip-on-Board LED Market in APAC 2016-2020" report to their offering.
The report forecast the chip-on-board (COB) LED market in Asia-pacific (APAC) to grow at a CAGR of 34.79% during the period 2016-2020. The market is divided into the following segments based on application:
- Automotive lighting
- Back lighting
- General lighting
The growth of manufacturing facilities in China will be a key trend for market growth. Subsidies for LED manufacturers offered by the government led to the expansion of the manufacturing capacity. The increasing use of domestically made chips has further decreased the overall cost of manufacture of LEDs. This will foster the growth of Chinese manufacturers, as the market is highly price sensitive.
According to the report, Falling ASP of LEDs will be a major key driver leading to market growth. The ASP of LED is declining owing to a decrease in manufacturing costs. This is attributed to the use of thicker wafers and automation in manufacturing.
Further, the report states that limitations associated with packaging will be a major challenge against the market growth. Lower prices, high light attenuation, and higher thermal resistance offered by aluminum make it the second most-reliable material for packaging. In addition, manufacturers have different modes of packaging. Packaging technologies used by different vendors decrease the throughput of assembly and manufacturing of COB LEDs, thereby affecting the market growth.
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