Global LED market is estimated to rebound to about US$15.7 Billion in Yearly Revenue in the year 2021

The COVID-19 pandemic has hit the LED industry very much in the year 2020, resulting in a great drop in market requirement and an estimated yearly revenue of merely US$15.127 billion, a 10% decrease YoY. Although the YoY decline in the year 2020 stands for a magnitude of historic proportions, as COVID vaccines become more widely available in 2021, long-term booming market demand will likely rebound from rock-bottom levels, to reach a forecasted yearly revenue of $15.7 billion for the global LED industry in the year 2021, a 3.8% increase YoY.

Because of the wide variety of LED applications, the degree of recovery in each specific industry differs as well. As for traditional backlighting applications in terms of consumer electronics, such as tablets and notebook computers, has increased rapidly on the back of the “new normalness” caused by the pandemic, which covers the proliferation of WFH and distance education. Facing the current high market requirement for display panels, LED backlighting suppliers have seen remarkable performances in the whole year 2020. However, considering the possibility that most end users have already bought the needed electronics items in the year 2020, we are not sure whether the strong market demand in 2020 will last in the coming year 2021.

On the other hand, many newest Mini LED backlights products are expected to be released in the year 2021, lead by major brands including Apple and Samsung. Therefore, there will be a great growth in Mini LED backlighting demand, with a forecasted $131 million in yearly revenue for the year 2021, a 900% YoY increase.

As well known, LED displays are mainly used for commercial application. Similar to general lighting applications, the drop in market demand this year caused a corresponding 9.3% YoY decrease in LED display revenue. However, looking ahead to 2021, it is expected that LED display revenue will be up to the pre-pandemic level of about $1.48 billion facing the rising demand for high-resolution, small-pixel-pitch LED displays.

As for general-use led lighting application, LED lights market have suffered great declines in the year 2020. As commercial activities were less in the year 2020, the declines in commercial lighting and outdoor landscape lighting have been the biggest among various LED lighting applications. However, the gradual legalization of marijuana and the pandemic-generated rising market for medical and recreational marijuana in North America have caused great increase in market demand for horticultural LED. Besides, the pandemic has also influenced the food supply chain step by step, so as to resulting in a resurging CAPEX for indoor agricultural infrastructure. For this reason, the market of certain LED lighting applications will be recovering in the year 2021. Finally, as for automotive LED light , the decline in vehicles sales in 2020 has also influenced the automotive lighting market. Automotive LED light revenue is expected to return to the level of $2.6 billion after the pandemic is under good control in the year 2021.