Research director of LEDinside Roger Chu notes that the worldwide volume of 4-inch equivalent LED wafers was approximately 37 million pieces in 2017, a 30% YoY increase, and coupled with the new applications of micro LEDs and mini LEDs, the global LED market revenue could grow from US$ 17.16 billion in 2017 to US$ 25.5 billion in 2022, with a CAGR of 7% between 2017 and 2022.
Although the rise of OLED will affect the number of LED used in backlighting of mobile phones and large-size panels, the number of LED wafers used for general lighting and automotive lighting continues to grow. This goes hand in hand with the rapid growth of fine-pitch display applications.
However, the analyst observes that as Chinese LED manufacturers continue to expand their capacities significantly, the overall industry capacity may grow much faster than the demand in the future. Therefore, vendors will need to rely on new applications to boost the demand, in this case, the technical progress of micro LED and mini LED will play an important role.
In terms of the revenue of LED market, LED prices are expected to decline further due to the substantial capacity expansion of Chinese manufacturers, but LED’s penetration will continue to increase driven by general lighting and automotive lighting applications.
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