IR LED market could more than double by 2021

IR LED market could more than double by 2021

Market news |
By Jean-Pierre Joosting

Applications such as security surveillance systems, virtual reality (VR) devices and facial and iris recognition solutions are expected to drive up the value of the global IR LED market from about $300 million in 2016 to US$792 million in 2021, excluding revenue from the optical sensor market.

“Surveillance systems currently makes up the largest mainstream application market for IR LEDs,” said Joanne Wu, assistant research manager of LEDinside. “Demand for surveillance cameras with night vision ability has been rising on a yearly basis as countries across the globe invest more in their anti-terrorism capabilities and security infrastructures. This in turn help boost the value of the entire IR LED market.”

However, the market value of IR LEDs for the surveillance application has only increased slightly this year mainly because the competition among LED suppliers has led to a significant decline in prices. At the same time, more suppliers are reducing costs by shrinking the size of LED chips and switching to lower-cost packages. Based on LEDinside’s projection, the total market value of IR LEDs used surveillance systems for 2016 will reach US$109 million.

Iris and facial recognition solutions are also a major emerging application market IR LEDs. “To meet the growing demand for mobile payment services, Samsung’s latest flagship smartphone Galaxy Note 7 features iris recognition,” Wu pointed out. “Other smartphone brands are expected to follow Samsung’s footsteps and incorporate similar biometric solutions, starting a new round of hardware competition.”

IR LEDs for the iris and facial recognition application have higher average sales prices, and the widespread promotion of mobile payment services means that devices such as smartphones and notebooks are going to have user authentication mechanisms based on the IR LED technology.

According to the report, IR LEDs for iris and facial recognition systems worldwide will have a total market value of US$359 million in 2021.

Another market set to boost the demand of IR LEDS is virtual reality applications, all requiring some tracking of users’ movements (eye tracking, gesture tracking). Although there are still uncertainties around how fast this market could expand, LEDinside estimates VR could represent as much as US$14 million in terms of IR LEDs dedicated to this market in 2016.

Get LEDinside’s 2016-2021 Global LED Industry Demand and Supply Database Report

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