Chip-on-Board LED Market to Experience 35.5% CAGR by 2020

By Chris MillerApril 15, 2016

A recent report released by market research firm Technavio pegs the global chip-on-board (COB) LED market to grow at a compound annual growth rate (CAGR) of 35.5% during 2016-2020.

COB, which is a relatively new bare-chip technology used for LED packaging in lighting applications, is fast gaining popularity due to its cost and technical advantages such as better lighting effects, better color mixing, and the ability to spread light over a large area. Besides emerging as a simpler and low-cost assembly option compared to the solder reflow assembly process currently in use, COB packages are well-suited to manual assembly—a factor that eases the manufacturing process to a large extent.

The report lists other factors like efficient thermal management ability, homogeneous luminosity, longer service life, high-intensity lighting, reliable output, energy efficiency, and compactness as growth triggers for the COB market during the estimated period.

Technavio recognizes factors like the rising demand for energy-efficient and high-quality devices as important market growth drivers until 2020. “In recent times, it has been noted that the demand for energy-efficient light sources that have a long lifespan is rapidly increasing. The flexible design structure of LEDs allows lighting system controls to be used more effectively than the traditional lighting sources. Factors such as their rational design and the presence of micro lens molding will allow these devices to avoid the defects of point and glare light. Advantages such as its improved color-rendering index will result in its augmented adoption during the forecast period”, says the report.

In addition to this, because of their small size, COB LEDs support miniaturization of devices without interfering with their efficiency. When it comes to the most profitable segment, the general lighting segment generated the highest revenue in 2015 and it will continue to do so as the utilization of the LEDs for room, ceiling and outdoor lighting applications increases.

In terms of growth regions, the report predicts Asia-Pacific region (APAC) to constitute more than 59% of the overall market by 2020. The reason for this, as the report points out, is the growing demand for CoB LEDs, along with the fact that APAC is the hub of many leading COB LED makers.

The report lists Cree as one of the key vendors in the COB LED market. The company is at the forefront of innovations related to COB LED arrays and recently launched its CXA2 series of COB LEDs that deliver 33% greater efficacy compared to its earlier CXA product line. The compact size of their new product enables lighting manufacturers to rapidly address small-form-factor while implementing significant cost-cuts. Potential application areas for Cree’s COB LED includes high-intensity spot lights, track lights and PAR replacement lamps, replacement of ceramic-metal-halide light sources, and high-lumen applications that could not be addressed by previous LED technologies

Coming back to Technavio’s report, here’s what it states about the overall COB landscape: “The global CoB LED market is highly fragmented because of the presence of many global, regional and local vendors. Companies with a strong foothold in the general lighting segment are the well-established suppliers in the CoB LED market. The competitive environment in this market is expected to further intensify with an increase in product and service extensions, innovations in technology, and merger & acquisition (M&A) activities.”

The report identifies constantly shifting global economy of influential countries such as China, Russia and Brazil as a major challenge for the COB LED industry.