Report Overview

The surge in need for smart-lighting solutions in end-use industries and increasing demand for LEDs in display panels in televisions, mobiles, and others are some of the major factors driving the growth of the India LED Packaging market during the forecast period.

India LED Packaging Market- Industry Trends & Forecast Report 2027

The India LED packaging market is estimated to grow at a CAGR of 5.4% during the forecast period (2021-2027). The market growth can be attributed to the growing government initiatives to adopt energy-saving and cost-effective LEDs in residential areas and offices to save energy. Additionally, the surge in need for smart-lighting solutions in end-use industries and increasing demand for LEDs in display panels in televisions, mobiles, and others are some of the major factors driving the growth of the India LED Packaging market during the forecast period.

India LED Packaging Market Overview

LED packaging is an essential aspect of guaranteeing LED quality as it protects the LED chip from direct environmental contact and encapsulates the chip with LED phosphors. LED packaging is necessary because its outer leads can be connected to the electrodes of LED chips, shielding them and increasing their luminosity efficiency.

India LED Packaging Market Trend

Growth Drivers

Favorable Government Initiatives are Pushing the Demand for the Market

The Indian government has approved a Production Linked Incentive Scheme for White Goods, which includes LED Lighting, with a budget of INR 6,238 crore (USD 855 million) to strengthen LED manufacturing in India, remove sectoral barriers, create economies of scale, and enhance exports. By offering 4-6% incentives, the initiative will spur manufacturing components and sub-assemblies that are not currently made in India.

Incentives will be offered for LED chip packaging, resistors, ICs, fuses, and other LED light components, including LED chips, LED drivers, and LED engines, to help create a healthy ecosystem that will increase LED lighting value by 40-45%. This PLI plan will also benefit other industries, such as the automobile industry, which is predicted to grow at a CAGR of 21% over the next five years. LED lights are also used for general illumination, backlighting, signaling, and signage in India. The PLI scheme is expected to result in new output worth over USD 23 billion, exports worth over USD 8.8 billion, and four lakh direct and indirect job possibilities over the next five years.

Challenges

The Slowdown in Production of Manufacturing Facilities due to COVID-19 has Challenged the Market Growth

The COVID-19 outbreak has reduced global FDI by 5% to 15%, according to the United Nations Conference on Trade and Development (UNCTAD), due to a reduction in the manufacturing sector following global lockdowns enacted in the first and second quarters of 2020. The scarcity of raw materials and supply disruptions are projected to cause COVID-19 to negatively impact FDI investments in the consumer electronics and automobile industries. Manufacturers are thus experiencing a slowdown in production. Consequently, the LED packaging industry's growth has been hindered since the demand for LED packages in such facilities has dropped.

Impact of COVID-19

COVID-19 has a significant impact on the market's first node, that is, lighting product manufacturers. Both LED devices and lamp manufacturers in India witnessed a considerable drop in sales during the pandemic. According to ELCOMA Electric Lamp and Component Manufacturers Association, Chinese vendors provide roughly 30% of the components, such as electrical drivers and chips, needed in the manufacture of LED lights in India. As a result of the pandemic, LED lighting manufacturers have had to rethink their strategy in order to cope with the ongoing pandemic. In the wake of the outbreak, Telensa and Signify were among the hardest hit companies. Signify announced its plans to improve its solar-connected street light in February 2020, utilizing a Philips Combo Charge Controller to switch between solar and grid power. However, due to a financial crisis caused by the COVID outbreak, the corporation announced a 20% wage cut for its staff in March 2020.

India LED Packaging Market: By Wavelength

Based on wavelength, the India LED Packaging Market is segmented into visible & infrared, and deep UV. The deep UV LED packages have witnessed a significant growth rate in 2020. UV-C (100-280 nm), UV-B (280-315 nm), and UV-A LEDs are the three types of UV LEDs (315-400 nm). As longer wavelength ranges penetrate deeper into the material, UV-A LED packages are likely to be the most popular choice for printing, coatings, and adhesive applications.

Source: BlueWeave Consulting

India LED Packaging Market: By Application

Based on applications, the India LED Packaging Market is segmented into automotive, residential, television, industrial, and others. Among these, the residential segment held a significant market share in 2020 and is likely to dominate the segment during the forecast period. The supremacy of this segment can be attributed to favorable government initiatives such as Pradhan Mantri Awas Vikas Yojana Programme. Under this scheme, the government intends to give affordable housing to all urban poor by 2022 through financial support to continue driving the segment's growth during the forecast period.

India LED Packaging Market: Regional Insights

Geographically, the India LED Packaging Market is categorized into Northern, Eastern, Southern, and Western. The northern region has catered to a significant market share in the market in 2020 and is likely to dominate the segment during the forecast period. This can be attributed to the various government initiatives in the region. For instance, in March 2021, Union Minister of State for Power, New and Renewable Energy, Shri RK Singh, launched the Gram Ujala programme in Varanasi. On this date, an event was held in Jayapur, Prime Minister Narendra Modi's first adopted village, during which CESL, a subsidiary of EESL, announced it would sell high-quality LED bulbs at a low price of INR 10 per bulb. In phase one of the Gram Ujala programme, 1.5 crores LED bulbs will be distributed, resulting in considerable energy savings of 2025 million kWh/year and CO2 reductions of 1.65 million T CO2/year for India's climate change effort. This will result in a higher standard of living, financial savings, more economic activity, and increased safety for rural residents.

India LED Packaging Market: Competitive Landscape

As a result of the few domestic and international players within the LED packaging market, the market is highly fragmented. Additionally, the emergence of new players has resulted in healthier competition among long-established service providers in the industry. Some key players in the India LED Packaging Market are Signify NV, Surya, Crompton, Bajaj, Halonix, Havells, and other prominent players.

Recent Developments

• In January 2020, under the Indian government’s UJALA and LED Street Lighting National Program, over 361.3 million LED bulbs were distributed across the country, and 10.3 million smart LED streetlights were installed, saving over 6.97 billion kWh per year. The International Energy Agency (IEA) has praised this success, stating that the country saw it as a chance for the federal and state governments to implement energy efficiency across the board.

Scope of the Report

By Package Type

• • • SMD (Surface Mount Device Package)
    • COB (Chip On Board Package)
    • CSP (Chip Scale Package)
    • Others

By Power Range

• • • Low- & Mid-Power Led Packages
    • High-Power Led Packages

By Wavelength

• • • Visible & Infrared
    • Deep UV

By Packaging Material

• • • Plastic
    • Nanoceramics
    • Ceramics
    • Silicone Materials
    • Epoxy Molding Compound
    • Metal Alloys
    • Polymers
    • Glass Composites
    • Others

By Application         

• • • Automotive
    • Residential
    • Television
    • Industrial
    • Others

By Region

• • • Northern
    • Eastern
    • Southern
    • Western