LED packaging equipment to reach over $656 million by 2020
According to a new study 'Global LED Packaging Equipment Market 2016-2020' released by Technavio, the LED packaging equipment market is expected to grow steadily at a CAGR of almost 2 percent to reach over $656 million in revenue by 2020.
The report considers the emergence of COB (chip on board) technology as one of the major trends that will gain traction in this market during the forecast period.
Benefits such as the capability to spread light across a large area, effective thermal management, homogenous luminosity, energy efficiency, and compactness will ensure the increased adoption of the COB LEDs will require the adoption of new and advanced LED packaging processes, which will demand the replacement of older packaging equipment.
"COB is a type of bare chip technology used for LED lighting. The lighting module for a COB LED is done by placing multiple LED chips in a small area. It is a comparatively 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," said Navin Rajendra, one of Technavio industry managers for sensors.
During 2015, the LED testing segment accounted for about 60 percent of the total share and dominated the LED packaging equipment market. Die singulation was 18.99 percent; die attach 15.12 percent; substrate separation 3.88 percent; and permanent bonding 2.33 percent.
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.
This market study estimates that APAC will account for about 88 percent of the LED packaging equipment market by 2020 and dominate this market throughout the during the forecast period.
The exponential rise in demand for consumer electronics coupled with the rollout of long-term evolution (LTE) bandwidths in APAC countries such as India and China, has led to the expansion of LTE base station infrastructure. This will drive the market for display panels that use LEDs as the backlighting source of the screen. Additionally, the presence of major LED display lighting panel manufacturers in this region will also contribute to the growth of the market in the next four years.
