Report Overview

Japan’s LED packaging market is mainly driven by increased demand for LED packages for display panels. A favorable government policy and regulation, promoting LEDs as energy-efficient and environmentally friendly products, is also favorable to the market’s growth.

Japan LED Packaging Market- Industry Trends & Forecast Report 2027

The Japan LED packaging market is estimated to grow at a CAGR of 4.5% during the forecast period (2021-2027). The market is fueled by the growing demand for automotive interior and exterior illumination.  Additionally, strong demand for center stack displays and instrument cluster displays is likely to push the market's growth during the forecast period. This growth is also attributed to CSP technology, which has gained traction in the automotive industry due to its high optical density, good lumen maintenance, color stability, reduced current consumption, and reliability over conventional LED packaging.

Japan LED Packaging Market Overview

Typically, LED chips and lead wires are packaged to prevent them from being in direct contact with the environment. LED packaging also allows LED chips to integrate electrically or thermally with printed circuit boards. Only well-packaged LEDs can be used as terminal components in real-world applications. In addition, the packaging types should be designed based on the different types of LEDs. Last but not least, packages made of LEDs protect the chips and increase their luminescence efficiency.

Japan LED Packaging Market Trend

Growth Drivers

Growing Government Focus on Energy Saving Solutions Contributes to the Market's Growth

Certain parts of Japan are phasing out incandescent lights. Because LED bulbs are more efficient and provide high luminous intensity, the country is now focusing on energy-saving solutions. The government supports the development of more energy-efficient and cost-effective lighting solutions through energy efficiency certification schemes. Also, LED lights have a longer product life cycle (up to a thousand hours) than incandescent bulbs, resulting in less money spent on bulb replacements. Therefore, the market is expected to grow in demand during the forecast period.

Restraints

High Initial Cost of LEDs is Restraining the Market Growth

Compared to conventional lighting, LEDs are considered expensive due to their high initial investment costs. A power supply and circuit board are also included in the price. Although it is true regarding the initial expenditure, the total cost (including the LED's lifetime) would be lower than traditional technologies. The total cost of ownership of LEDs is lower than that of halogen and incandescent sources, including maintenance and energy costs. Despite this, LEDs' adoption is slow due to their heavy initial investments. This results in a limited market for LEDs, thus, impeding the growth of the Japan LED packaging market.

Impact of COVID-19

The nationwide lockdown in Japan affected LED and other component production, disrupting the market's supply chain. Due to a shortage of critical components, manufacturing in numerous parts of the country came to a halt. The majority of countries, including China, which is a major supplier of LEDs and lighting components, were completely shut down. When supplier businesses began to operate with lower capacity in the second half of 2020, the situation improved to some extent. Moreover, with favorable government initiatives, the market is likely to proliferate in the upcoming years. For instance, on October 26, 2020, Japanese Prime Minister Suga Yoshihide declared in a key policy speech to the National Diet that Japan aims to become a carbon-neutral, decarbonized society by 2050. He also suggested implementing a variety of strategies to reduce carbon dioxide emissions from infrastructure. Additionally, efforts are being made to manage traffic flow on road infrastructure, convert to LED street lighting, set up renewable power plants, and develop and promote novel construction machinery for electric power, hydrogen, and biomass facilities. The goal is to reduce carbon dioxide emissions by 1.34 million metric tonnes by 2030 by conserving energy and using renewable energy in sewage systems.

Japan LED Packaging Market: By Power Range

Based on power range, the Japan LED packaging market is segmented into low- & mid-power LED packages and high-power LED packages. The high-power LED packages have witnessed the highest CAGR during the forecast period. Outdoor and industrial illumination are the primary applications for high-power LED packages. High-power LED bulbs are all about efficiency and lowering forward voltage (Vf) for a high lumen-per-watt output. For instance, LUXEON 5050 is a multi-die, high-power LED package that delivers high brightness from a single package, allowing for low-cost single-optic and directed fixture designs. The LUXEON 5050 employs a 5050-surface mount package with the smallest circular Light Emitting Surface (LES) in the industry. LUXEON 5050 has a wide range of CCTs and is available in 70CRI, 80CRI, and 90CRI. With hot-color targeting, the LEDs remain within the color target even when they are operating at temperatures of 85°C.

Source: BlueWeave Consulting

Japan LED Packaging Market: By Wavelength

Based on wavelengths, the Japan LED packaging market is segmented into Visible & Infrared, and Deep UV. The visible & infrared segment held a significant market share in 2020 and is likely to dominate the market during the forecast period. Human-centric lighting is a new advancement in the world of visible LEDs.  Human-centric lighting contributes to an individual's mood, well-being, and health by adjusting directions, correlated color temperatures, and brightness.  Visible LEDs are used in practically every lighting application, including domestic illumination, commercial lighting, car lighting, outdoor lighting, and many others. These lighting solutions can increase concentration, safety, and efficiency in the work place and educational setting.

Japan LED Packaging Market: By Application

The Japan LED packaging market is segmented into automotive, residential, television, industrial, and others based on applications. Among these, the automotive segment witnessed the highest CAGR in 2020. LED packages are widely utilized in both interior and external illumination in automobiles. CSP technology, which has gained traction in the automotive vertical due to features such as high optical density, excellent lumen maintenance, color stability, reduced current consumption, and reliability over conventional LED packages, is one of the most recent trends in LED packaging technology. Furthermore, due to the increasing demand for center stack displays and instrument cluster displays, LED packages are predicted to develop rapidly in the automotive display industry over the projection period.

Competitive Landscape

The Japan LED packaging market is highly fragmented due to the presence of limited domestic and international players. In addition, the emergence of new players has led to stronger competition among long-established service providers. Some key players in the Japan LED packaging market are ATEX Co.,Ltd., Toshiba, Sharp, Panasonic, ENDO Lighting Corporation, Nichia Corporation, and Other Prominent Players.

Recent Developments

• In September 2021, NICHIA, the world's largest LED manufacturer and developer of the high-brightness blue and white LED, introduced a UV-C LED with a high radiant flux density that can aid in the inactivation and sterilizing of bacteria and viruses, including the novel coronavirus.

• In August 2021, NICHIA, the world's largest LED manufacturer and developer of high-brightness blue and white LEDs, announced a joint product development partnership with Zumtobel, a prominent international supplier of holistic lighting solutions, to bring advanced human-centric lighting benefits to LED lighting.

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