Chip Scale Package (CSP) LED Market Size

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.