Chip Scale Package (CSP) LED Market - By Power Range (Low & Mid-power, High-power), By Package Type (Single-die CSP LEDs, Multi-die CSP LEDs, Flip-chip CSP LEDs, Vertical CSP LEDs), By Application, By End-use Industry & Forecast, 2024-2032

Chip Scale Package LED Market Size

Chip scale package LED market was valued at USD 1.8 billion in 2023 and is expected to grow at a CAGR of over 20% between 2024 and 2032. The trend toward miniaturization in consumer electronics, such as smartphones, wearables, and tablets, is a key driver for the CSP LED market.
 

CSP LEDs, with their compact size and high efficiency, are ideally suited for these applications, allowing manufacturers to create smaller, lighter, and more energy-efficient devices. The growing consumer preference for sleek & compact devices with powerful features continues to fuel the adoption of CSP LEDs.
 

For instance, in January 2024, Ushio Inc. developed a new high-power LED package named the EDCC Family, designed with a focus on compactness and high-density integration. The EDCC Family integrates traditional high-power LED chips with a broad range of wavelength options while reducing the footprint by about 80% compared to the previous small-sized EDC Family package. As a result, it offers a compact form factor (W1.5 x L1.85 x H0.9 mm) that closely resembles the bare chips and is also compatible with CSP and other compact-sized packages.
 

The automotive industry is increasingly adopting CSP LEDs for various lighting applications, including headlights, taillights, and interior lighting. CSP LEDs offer superior brightness, energy efficiency, and durability, which are critical for automotive lighting. Additionally, their small form factor allows for more flexible and innovative lighting designs, which is particularly important as automakers focus on enhancing the aesthetic appeal and safety features of vehicles.
 

One of the major challenges facing the CSP LED market is the high manufacturing costs associated with these advanced lighting solutions. The production of CSP LEDs requires sophisticated equipment and processes, which can be expensive. This can result in higher prices for CSP LED products, potentially limiting their adoption, especially in price-sensitive markets. Manufacturers need to find ways to reduce production costs without compromising quality to remain competitive.

Chip Scale Package LED Market Trends

One of the prominent trends in the CSP LED market is their growing adoption in automotive lighting systems. Automakers are increasingly utilizing CSP LEDs for headlights, taillights, and interior lighting due to their high brightness, energy efficiency, and design flexibility. The compact size of CSP LEDs allows for innovative lighting designs that enhance both the aesthetic appeal and safety features of vehicles. As the automotive industry continues to advance toward electric & autonomous vehicles, the demand for high-performance, energy-efficient lighting solutions, such as CSP LEDs, is expected to rise significantly.
 

The expansion of smart lighting systems is another key trend driving the chip scale package LED market. CSP LEDs are ideal for smart lighting due to their ability to provide precise control over light output, color, and intensity, which are essential for creating adaptive and energy-efficient lighting environments. Smart lighting is gaining traction in residential, commercial, and public spaces, where it is used for everything from mood lighting and energy management to security and automation. As smart cities and smart homes become more prevalent, the demand for CSP LEDs, which are integral to these advanced lighting systems, is poised to grow.
 

The proliferation of wearable and portable electronic devices is also contributing to the growth of the CSP LED market. Devices such as smartwatches, fitness trackers, and portable medical monitors require compact, lightweight, and energy-efficient lighting solutions, making CSP LEDs an ideal choice. These LEDs provide the necessary brightness and performance while maintaining a small footprint, allowing manufacturers to design sleek & functional devices. As the market for wearables and portable electronics continues to expand, driven by consumer demand for connectivity and health monitoring, the adoption of CSP LEDs in this segment is expected to increase.
 

Chip Scale Package LED Market Analysis

Based on end-use industry, the market is divided into consumer electronics, automotive, healthcare, industrial, public infrastructure, and commercial. The automotive segment is expected to register a CAGR over of 23% over the forecast period.
 

• The automotive segment is another key area where CSP LEDs are making a significant impact. Automakers are increasingly adopting CSP LEDs for various lighting applications, including headlights, taillights, daytime running lights, and interior ambient lighting.
   
• CSP LEDs offer numerous advantages in automotive lighting, such as higher brightness, better energy efficiency, and greater design flexibility compared to traditional lighting technologies. Their small size allows for innovative lighting designs that can enhance both the aesthetic appeal and safety features of vehicles.
   
• Moreover, CSP LEDs are more durable and have a longer lifespan, making them suitable for the demanding conditions of automotive environments. As the automotive industry moves toward electric and autonomous vehicles, the demand for CSP LEDs is expected to grow further.
   

Based on power range, the chip scale package LED market is divided into low & mid-power, and high-power. The low & mid-power segment is projected to account for the largest share in the global market with a revenue of over USD 5 billion by 2032.
 

• The low and mid-power segment of the CSP LED market refers to CSP LEDs that are designed for applications requiring moderate levels of brightness and power consumption. These LEDs are commonly used in backlighting for displays, general lighting, and various consumer electronics.
   
• Low and mid-power CSP LEDs are favored for their balance between performance and energy efficiency, making them ideal for applications where extended usage and low heat output are important.
   
• The segment benefits from the ongoing trend toward energy-efficient lighting solutions in both residential and commercial settings. Additionally, the versatility of low and mid-power CSP LEDs allows them to be used in a wide range of products, from LED bulbs to small display panels.
   

North America dominated the global chip scale package LED market in 2023, accounting for a share of over 35%. North America is a key player in the CSP LED market, characterized by high demand from the automotive, consumer electronics, and industrial sectors. The U.S. and Canada are at the forefront of adopting CSP LEDs, particularly in high-tech applications and smart lighting systems. The region's strong focus on technological innovations and energy efficiency drives the adoption of CSP LEDs in both residential and commercial lighting. North America's automotive industry, particularly in the U.S., is a significant contributor to market growth, with automakers increasingly using CSP LEDs for advanced lighting solutions. The region's growing emphasis on smart cities and IoT applications also boosts the demand for CSP LEDs, as these technologies rely on efficient, compact, and high-performance lighting systems.
 

The U.S. holds a significant share of the CSP LED market, driven by strong demand from the automotive, consumer electronics, and smart lighting sectors. American automakers are increasingly integrating CSP LEDs into vehicle lighting systems due to their compact design, high efficiency, and superior performance. Additionally, the U.S. is a leader in smart lighting adoption, with CSP LEDs playing a crucial role in enhancing energy efficiency and functionality in the residential, commercial, and public lighting applications. The country's focus on technological innovation and the development of IoT and smart city infrastructures further supports the growth of the CSP LED market.
 

Japan is a key player in the chip scale package LED market, particularly in the consumer electronics and automotive sectors. Japanese manufacturers are at the forefront of CSP LED technology, producing high-performance & energy-efficient LEDs for use in a wide range of applications. The country's strong automotive industry is a major driver of CSP LED adoption, with automakers using these LEDs to create innovative, energy-efficient lighting solutions. Additionally, Japan's leading position in the electronics industry contributes to the high demand for CSP LEDs in devices such as smartphones, wearables, and other portable electronics. The country's emphasis on energy efficiency and environmental sustainability also promotes the widespread use of CSP LEDs.
 

China is a rapidly growing market for CSP LEDs, driven by the country's expansive consumer electronics and automotive industries. As the world's largest producer of electronics, China's demand for CSP LEDs is substantial, particularly for use in smartphones, tablets, and other portable devices. The Chinese automotive industry is also increasingly adopting CSP LEDs for vehicle lighting, as automakers seek to enhance energy efficiency and design flexibility. Additionally, China's government initiatives promoting energy efficiency and smart city development are further boosting the demand for CSP LEDs, as these projects require advanced lighting solutions that CSP LEDs can provide.

South Korea is an important market for CSP LEDs, with strong demand from the consumer electronics and automotive sectors. South Korean electronics giants are major consumers of CSP LEDs, using them in a wide range of products, from smartphones to wearables and displays. The country's automotive industry is also embracing CSP LEDs for their compact size, energy efficiency, and high performance, leading to increased adoption in vehicle lighting systems. South Korea's focus on technological innovations, particularly in the development of smart cities and IoT applications, is driving further growth in the chip scale package LED market, as these technologies rely on advanced & efficient lighting solutions.
 

For instance, in March 2024, Diodes Incorporated announced its SDT2U30CP3 (30V/2A), SDT2U40CP3 (40V/2A), and SDT2U60CP3 (60V/2A) diodes, which achieve the highest current densities in their class. These diodes offered low forward voltage drop and thermal resistance, addressing design challenges for creating smaller & more efficient mobile, mobile, and wearable devices. This series of innovative high-current trench Schottky rectifiers are housed in CSP that occupies only 0.84mm² board space. These ultra-thin CSPs, featuring a typical profile of 0.25mm, also shortened thermal paths, thereby resulting in enhanced power dissipation, ultimately reducing thermal bill-of-materials costs and significantly increasing the overall system reliability.
 

Chip Scale Package LED Market Share

Samsung Electronics and Seoul Semiconductor hold a significant share of the CSP LED market. Samsung Electronics holds a significant share of the CSP LED market due to its leading position in the global electronics and semiconductor industries. Samsung is known for its strong Research and Development (R&D) capabilities, allowing it to innovate and introduce advanced CSP LED solutions that cater to various applications such as consumer electronics, automotive lighting, and smart devices. The company’s vertical integration, which includes control over the entire production process from chip fabrication to final product assembly, provides it a competitive edge in terms of cost, quality, and scalability. Samsung’s extensive global distribution network and established brand reputation further enhance its ability to capture a large market share. Additionally, Samsung’s commitment to energy efficiency and sustainable technologies aligns with the growing demand for environment-friendly lighting solutions, making its CSP LEDs a preferred choice in the market.
 

Seoul Semiconductor holds a significant share of the chip scale package LED market, owing to its strong focus on innovation and specialization in LED technology. The company is a pioneer in CSP LED technology, having developed and patented several key advancements that enhance the performance, efficiency, and versatility of these LEDs. Seoul Semiconductor’s CSP LEDs are known for their high brightness, reliability, and compact form factor, making them ideal for a wide range of applications, including automotive lighting, consumer electronics, and industrial lighting. The company’s aggressive investments in R&D allow it to stay at the forefront of LED innovation, continuously improving its products to meet evolving market demands. Furthermore, Seoul Semiconductor’s strategic partnerships and collaborations with major electronics and automotive companies enable it to expand its market presence and maintain a strong competitive position in the CSP LED market.

Chip Scale Package LED Market Companies

Major players operating in the CSP LED industry are:

• Samsung Electronics
• Seoul Semiconductor
• Lumileds
• Nichia Corporation
• Osram Opto Semiconductors
• Cree
• LG Innotek
   

Chip Scale Package LED Industry News

• In August 2024, Samsung Electronics, a world leader in advanced digital component solutions, announced two new additions to its CSP line-up: LM101B, a 1W-class mid-power LED, and LH231B, a 5W-class high-power LED. Built with enhanced CSP technology, the new LED packages will deliver industry-leading efficacy and reliability for spotlights and high-bay lighting applications.
   
• In May 2024, Empower Semiconductor unveiled the largest silicon capacitor in its ECAP product family for high frequency decoupling. The new EC1005P is a single 16.6-microfarad (μF) capacitance device suitable for the most demanding power integrity targets as often found in high-performance Systems-on-Chips (SoCs). It features ultra-low impedance up to 1GHz in a low profile that can be embedded into the substrate or interposer of any SoC, making it ideal for High-performance Computing (HPC) and Artificial Intelligence (AI) applications. The EC1005P has an ultra-low sub-1-picohenry (pH) Equivalent Series Inductance (ESL) and sub-3-milliohm (mΩ) ESR and is offered in a compact 3.643 x 3.036-millimeter 120-pad CSP.
   

The chip scale package LED market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million & units) from 2021 to 2032, for the following segments:

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Market, By Power Range

• Low & mid-power
• High-Power

Market, By Package Type

• Single-die CSP LEDs
• Multi-die CSP LEDs
• Flip-chip CSP LEDs
• Vertical CSP LEDs

Market, By Application

• General lighting
• Headlights
• Daytime Running Lights (DRLs)
• Interior lighting
• Backlighting
• Signage display
• Flash lighting
• Others

Market, By End-Use Industry

• Consumer electronics
• Automotive
• Healthcare
• Industrial
• Public infrastructure
• Commercial

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA