LED Driver Market Size, Share & Trends Analysis Report By Luminaire Type (Reflectors, Type A Lamp), By Application (Automotive, Lighting), By Component (Driver IC, Discrete Component), By Supply Type, And Segment Forecasts, 2023 - 2030

Report Overview

The global LED driver market size was estimated at USD 46.20 billion in 2022. It is anticipated to grow at a compound annual growth rate (CAGR) of 9.1% from 2023 to 2030. Technological advancements in lighting components, including LED drivers, have enabled energy efficiency and performance, thus amplifying the market demand over the forecast period. The rising penetration of light-emitting diodes in lighting in industrial and commercial segments has increased demand. Such components are utilized in the high brightness of lighting applications. In addition, firms, such as Microchip Technology, Inc. and Signify Holdings, are investing in research and development to improve the efficiency of traditional lighting solutions.

For instance, in February 2023, Signify Holdings introduced a range of new solutions for the retail industry, including the Philips StoreFlow retail lighting system, Interact Retail hybrid lighting controls, and a collection of luminaires crafted from recycled materials. The light-emitting diode driver has become a crucial part of commercial and industrial lights and has helped in the reduction of electricity costs considerably. Furthermore, the growing demand for LED lights in several applications, such as automotive, outdoor industrial, and horticultural lighting, is propelling the market growth. Several governments have initiated smart city programs to provide technologically sophisticated and environmentally friendly living environments. Sustainable lighting forms an essential part of such projects. As a result, the demand for IoT-based smart lighting systems is increasing in these nations.

Several municipalities have also installed smart lamps that use daylight sensors to switch on and off. Next-generation light-emitting diodes make it easier for designers to create efficient luminaries. For example, a high-voltage driver can supply up to 17 LEDs in series, with constant currents ranging between 350mA to 1,200mA. Such advancements are expected to boost market demand in the future. However, the absence of certain industry-defined standards to test the characteristics and behavior of such drivers has steered manufacturers to face several challenges in the industry. Solid-State Lighting (SSL) lighting and driver manufacturers worldwide follow their standards in manufacturing such a key component of lighting systems resulting in a lack of interoperability across its end-use applications hindering the market proliferation.

Component Insights

The driver IC segment dominated the market with a revenue share of 41.7% in 2022. It is anticipated to remain prevalent over the forecast period due to its associated benefits. LEDs need to be driven with a constant current to maintain their brightness and longevity. Driver ICs enable precise current control, ensuring that LEDs receive a consistent and accurate current, regardless of input voltage or temperature variations. Moreover, driver ICs often incorporate dimming and control capabilities, allowing users to adjust LED lighting systems’ brightness or color temperature. These ICs provide compatibility with different dimming methods, such as analog, digital, or wireless control, enabling versatile lighting control options. Such benefits associated with driver IC are anticipated to propel the growth of the segment over the forecast period.

Discrete components play an important role in the design and execution of LED driver circuits in the LED driver industry. Unlike integrated circuits (ICs), discrete components are distinct electronic components not combined into a single chip or packaging. These components are employed within the LED driver circuitry to accomplish particular purposes. Some discrete components include resistors, capacitors, inductors, and diodes, among others. These discrete components combine with integrated circuits, such as driver ICs, provide LED driver circuits with the appropriate functionality, efficiency, and protective features. Designers pick and configure these components with care to satisfy the unique needs of the LED lighting system. The segment is anticipated to grow at a CAGR of 9.3% from 2023 to 2030.

Luminaire Type

The type A lamp segment dominated the market with a revenue share of 31.4% in 2022. The type A lamp is a specific type of LED driver designed to operate and power type A lamps. LED drivers are electronic devices that regulate and control the power supply to LEDs, ensuring proper voltage and current levels for optimal operation. Type A lamps are retrofitting bulbs intended to replace standard incandescent bulbs without requiring changes to the existing fixtures or sockets. These lamps are often designed like classic A-shaped incandescent bulbs and have a medium screw base (E26 or E27). Moreover, these lamps are compatible with standard socket types and can be easily integrated into existing lighting systems. Decorative lamps is another crucial segment in the market. The segment is anticipated to grow at a CAGR of 9.4% from 2023 to 2030.

Decorative lamps are intended to improve the aesthetic appeal of indoor and outdoor settings by offering eye-catching lighting options. LED drivers are essential for powering and controlling these ornamental lights. In addition, decorative lamps come in various designs, shapes, and sizes to suit various decorative lighting applications. They can include filament-style bulbs that mimic the vintage look of incandescent bulbs, strips or ropes for accent lighting, decorative pendant lights, chandeliers, wall sconces with intricate designs, and more. Furthermore, many decorative lights offer dimming capabilities that allow you to create an atmosphere and modify illumination settings based on your needs. Drivers with dimming capabilities are used to manage the light output and enable seamless dimming of the decorative lighting. This allows users to adjust the brightness or create dynamic lighting effects.

Supply Type Insights

The constant current type segment dominated the market with a revenue share of 65.7% in 2022. It is anticipated to remain prevalent over the forecast period due to its heavy industry utilization. For several applications, it is desirable to utilize constant current drivers as they offer more control and provide the ability to design a clear display and uniform brightness. As such devices use a constant current driver, they are extremely energy efficient. Constant current drivers are popular because they provide a constant forward current independent of variations in the input voltage. With a constant current source, the driver keeps the current constant even when the voltage fluctuates with temperature, eliminating thermal runaway and over-driving the LED. While utilizing light-emitting diodes for lighting applications, such a method allows for higher brightness consistency and a longer lifetime.

The constant voltage driver is utilized when many LED lights must be linked in series. Furthermore, the constant voltage driver evenly flows the voltage, resulting in uniform illumination throughout the lights. LED drivers with a constant voltage provide more versatility than a variable voltage. This is because more LEDs could be connected until the constant-voltage LED driver's maximum current capability is reached, at which point adding further LEDs will decrease the available power to each light-emitting diode, lowering the brightness. However, the constant voltage driver is less efficient than the constant current driver as it cannot stabilize the current influx, thus consuming more energy than the latter one. Therefore, the constant voltage driver is anticipated to grow at a CAGR of 8.6% from 2023 to 2030.

Application Insights

The growing demand for energy-efficient lighting across all industry verticals has compelled users to adopt LED lights. Solid-state lighting (SSL) has a compelling value proposition and ROI due to its low maintenance costs and ability to offer consistent brightness efficiently. Thus, it replaced conventional light sources, such as compact fluorescent lamps (CFLs) and incandescent light bulbs with LED lighting. As these lights require an advanced driver, the market demand is expected to grow exponentially over the forecast period. The consumer electronics segment held a revenue share of 35.6% in 2022 owing to the increasing adoption of smartphones and TVs in developing countries worldwide.

LED replaces conventional LCD screens in both these segments since they offer better picture clarity, high color accuracy, and low power consumption. These components are also used in display panels of various consumer electronics, such as refrigerators, air conditioners & others. The automotive segment has emerged as a lucrative application segment for LED drivers accounting for a market share of 28.3% in 2022 as the industry is shifting toward high-brightness light emitting diodes and LASER lights from conventional high-intensity discharge lamps (HID) & halogen lights.

Many governments have implemented regulations to stop the use of hazardous HID bulbs. For instance, in August 2020, the California government prohibited the installation of aftermarket vehicle HID light systems that emit blue light rather than the approved white-to-yellow spectrum. The outdoor display segment includes signage, video walls, kiosks, and similar application displays. Due to increased digital marketing and advertisement activities, the demand for video walls has risen predominantly in developed countries, such as the U.S., China, Japan, and the UK. Despite the fact that LCDs are typically utilized for outdoor displays, LED use is increasing as prices fall.

Regional Insights

Asia Pacific accounted for the highest revenue share of 28.8% in 2022. The regional market is anticipated to grow at a CAGR of over 9.2% from 2023 to 2030. The increasing adoption of LED lighting across residential, commercial, and industrial sectors in the region has been a key driver of market growth. Government initiatives promoting energy efficiency and sustainability, along with the rising awareness about the benefits of LED light, have further fueled the demand for LED drivers in the region. The rapid urbanization and infrastructure development in countries, such as China, India, and Japan, have also contributed to the growth of the market.

Furthermore, in November 2021, the Chinese government outlawed incandescent bulbs unveiling the country's incandescent bulb phase-out strategy with National Development and Reform Commission. Infrastructure growth, lower pricing, local energy conservation targets, and rising urbanization levels are other significant factors driving the market growth in China. Such programs are boosting the LED driver market growth in the region. China is a global consumer and industrial electronics manufacturing base and a prominent supplier of LED drivers worldwide. The increasing demand for LEDs across consumer electronics, such as smartphones, tablets, laptops, and TVs, is expected to drive the demand for these components over the forecast period.

Moreover, a decline in the average selling price of the driver, along with technological advancements, has resulted in high demand across the lighting industry. North America has been witnessing substantial growth over the past few years in line with the regulations being drafted by various governments in the region to promote the use of energy-efficient lights, the rising awareness about the benefits of energy-efficient lights, plummeting prices of LED products, and subsequently, growing adoption of LED solutions across residential, commercial, and industrial applications. The growing adoption of smart lighting solutions to improve lighting performance while enhancing energy savings in commercial applications can be considered a prominent factor driving regional market growth.

Key Companies & Market Share Insights

The market was dominated by Microchip Technology, Inc, ACE LEDs, Cree LED, Signify Holdings, Macroblock Inc.; Lutron Electronics Co., Inc.; Maxim Integrated Products, Inc.; Semiconductor Components Industries, LLC, NXP Semiconductors N.V., ams-Osram, STMicroelectronics, Texas Instruments, Inc., and ROHM Semiconductors. The manufacturers have adopted mergers and acquisitions as a key strategy to increase their market share. For instance, in May 2022, Signify Holdings announced the acquisition of Fluence from ams-OSRAM. The acquisition helped the company upgrade its global agriculture lighting platform and expand in the North America horticulture lighting market. Moreover, companies are investing in R&D activities and are focused on delivering innovative solutions.

For instance, in April 2022, STMicroelectronics N.V. announced the launch of the latest power management I.C. for the company's AMOLED display portfolio. The I.C. combines low quiescent current and higher flexibility to extend the battery life of portable devices. The practice of outsourcing component manufacturing to companies based in China and Taiwan has witnessed a rise, as it enables lighting manufacturers to reduce the cost of the end product. The adoption of smart lighting has triggered manufacturers to design innovative IoT-based lighting for smart home applications. For instance, in September 2021, WiSilica, a renowned provider of IoT platforms and solutions, and Tridonic, a global leader in smart and energy-efficient lighting solutions, joined a strategic partnership. The collaboration aims to create cutting-edge lighting control solutions for intelligent buildings. Some of the key companies in the global LED driver market are:

• ACE LEDS

• Microchip Technology, Inc.

• Cree LED

• GE Current, a Daintree Company

• Signify Holdings

• SAMSUNG

• Lutron Electronics Co., Ltd.

• Macroblock, Inc.

• Maxim Integrated

• NXP Semiconductors

• Semiconductor Components Industries, LLC

• ams OSRAM

• ROHM Co., Ltd.

• STMicroelectronics N.V.

• Texas Instruments Inc.

• Eaglerise Electric & Electronic (China) Co., Ltd.

• Lifud Technology Co., Ltd.

• BOKE Drivers Co., Ltd.

• Shenzhen Xiezhen Electronics Co., Ltd.

• MEAN WELL Enterprises Co., Ltd.

• Inventronics, Inc.

• Tridonic

• TCI Telecomunicazioni Italia Srl

LED Driver Market Report Scope

Global LED Driver Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global LED driver market report on the basis of component, luminaire type, supply type, application, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Driver IC

  • Discrete Component

  • Others

• Luminaire Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Decorative Lamps

  • Reflectors

  • Type A Lamp

  • Others

• Supply Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Constant current

  • Constant voltage

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Automotive

  • Consumer electronics

  • Lighting

  • Outdoor Display

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Taiwan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • United Arab Emirates (UAE)

    • Kingdom of Saudi Arabia (KSA)

    • South Africa