The LED technology is currently being used in a wide range of applications within displays and lighting solutions. These factors are collectively creating a positive impact on the growth of the global LED driver and chipset market, as LED drivers are crucial components for improving the performance of LED lights.
Tax exemptions offered by governments on LED devices have also prompted several consumers to replace traditional lighting solutions with modern LED technology.
All of these factors put together are expected to create an opportunity worth US$11.99 bn in the global LED driver and chipset market by the end of 2021, rising from US$2.80 bn in 2014 at a CAGR of 23.2% between 2015 and 2021 in terms of revenue.
The growing demand for prominent and large displays such as billboards and screens in sports stadiums, increased lifespan of LED lighting solutions, and reduced carbon footprint are some of the key factors augmenting the revenues of this market. However, the initial high cost of investment in LED drivers and chipsets is dissuading consumers. The lack of awareness about benefits of this technology as compared to conventional lighting solutions is also hampering the market growth.
LED Displays to Occupy Highest Share in the Revenue Pie
The displays segment is expected to expand at a whopping CAGR of 23.0% between 2015 and 2021 due to the aforementioned factors. Display makers are proactively opting for LEDs as they drastically reduce the maintenance costs and replacement costs, thereby allowing users to use the devices without any hassles or additional costs.
Strong Presence of LED Manufacturers in China Augments Asia Pacific Market Growth
The sharp fall in LED prices due to growing investments by companies in expanding production facilities has resulted in the surge of the LED driver and chipset market in Asia Pacific. A strong presence of LED manufacturers in emerging economies of China, who are continuously improving conductivity, consumption, and voltage aspect of LEDs will propel the usage of LED drivers and chipsets over the forecast period.