PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1884045
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1884045
The global chip-on-board LED market is experiencing accelerated expansion driven by the rising shift toward energy-efficient lighting, smart illumination technologies, and advanced LED packaging systems. According to the latest market assessment, the COB LED market was valued at USD 2.95 billion in 2024, is projected to increase to USD 3.34 billion in 2025, and is expected to reach USD 8.65 billion by 2032, reflecting an impressive CAGR of 14.6% during the forecast period. The Asia Pacific region dominated the market with a 40.68% share in 2024, supported by strong manufacturing capabilities and heavy adoption of LED lighting technologies.
A chip-on-board (COB) LED integrates multiple LED chips directly mounted onto a single substrate, offering excellent heat dissipation, greater luminous efficacy, and uniform light output. Key players operating in this market include Lumileds, EPISTAR, EVERLIGHT, GE Lighting (Savant Systems), Lextar, Penguin Solutions (Cree LED), Luckylight Electronics, Samsung Electronics, NICHIA, and Bridgelux, all contributing to innovation, production scale, and global distribution.
Market Dynamics
Drivers
Global demand for energy-efficient lighting is the foremost driver of COB LED adoption. COB LEDs consume significantly less energy while delivering high brightness and uniform illumination. For example, solutions like Bridgelux's Vesta street lighting system enhance brightness while reducing power consumption. The International Energy Agency (IEA) projects that worldwide implementation of LED technology could cut electricity consumption for lighting by over 65%, further boosting COB LED demand.
COB LEDs also benefit from the rising need for compact, high-intensity lighting in applications such as architectural lighting, residential use, industrial facilities, healthcare, and transportation. Their uniform illumination profile and ability to integrate multiple chips into one module make them ideal for general lighting, premium retail spaces, museums, and automotive applications.
Restraints
High initial manufacturing and material costs pose a challenge to widespread adoption. COB LED production requires advanced substrates, high-quality semiconductors, and phosphors, increasing fabrication expenses compared to conventional LED packages. These elevated material requirements contribute to higher retail costs and limit adoption in price-sensitive markets.
Opportunities
Expansion in smart lighting, IoT integration, and automotive LED systems offers lucrative opportunities. Smart cities globally are adopting sensor-based streetlights and adaptive lighting systems that increasingly incorporate COB LEDs due to their reliability and power efficiency. Automotive manufacturers are also implementing COB LEDs in adaptive front lighting systems, brake lights, and ambient interiors. With global vehicle production exceeding 85 million units in 2023, automotive-grade COB LEDs will continue to see rising demand.
Generative AI also presents new opportunities by optimizing LED design, improving thermal efficiency, reducing development time, and enhancing product performance.
Market Trends
A major market trend is continuous innovation in thermal management, addressing heat accumulation from densely packed LED chips. Manufacturers now use advanced substrates, computational fluid dynamics (CFD), and finite element analysis (FEA) tools to optimize heat flow. The shift toward Flip-Chip COB technology is also emerging, improving durability, color consistency, and power handling.
Tariff changes have influenced supply chains, with some Chinese manufacturers losing share in the U.S. while Taiwanese and South Korean producers gained momentum due to lower tariff exposure.
Segmentation Overview
By Product
COB LED modules dominated the 2024 market, widely used across residential, commercial, and architectural lighting due to straightforward integration, high heat control, and flexible design.
COB LED arrays are projected to grow at the highest rate due to their compactness, superior CRI performance, and high-intensity output.
By Substrate Material
Ceramic substrates held the largest share in 2024, driven by their strong thermal conductivity and durability, ideal for high-power LED environments.
Metal core PCBs are expected to exhibit the highest CAGR owing to demand in industrial and automotive lighting.
By Application
General lighting remained the largest application segment in 2024, supported by adoption across residential, industrial, and commercial installations.
The backlighting segment is expected to grow fastest due to its increasing use in displays, consumer electronics, and smart backlight applications.
Asia Pacific
Valued at USD 1.20 billion in 2024, Asia Pacific leads the global COB LED market. Strong manufacturing ecosystems in China, Taiwan, Japan, and South Korea-home to Samsung, Nichia, Seoul Semiconductor, and others-contribute significantly to growth. Smart city programs and huge public infrastructure investments continue to support market expansion.
North America
North America is projected to grow at the highest CAGR due to rising implementation of smart lighting, LEED-certified building standards, and adoption of energy-efficient illumination in residential and industrial spaces.
Europe
Europe is driven by strict energy regulations, sustainability policies, and increasing adoption of COB LEDs in automotive, industrial, and public lighting.
Conclusion
The global chip-on-board LED market is set for substantial expansion, rising from USD 2.95 billion in 2024 to USD 3.34 billion in 2025, and projected to reach USD 8.65 billion by 2032. With energy efficiency, smart lighting, and advanced LED packaging technologies shaping the future, COB LEDs will remain central to next-generation illumination systems across industries.
Segmentation By Product
By Substrate Material
By Application
By Region
Companies Profiled in the Report Lumileds Holding B.V. (Netherlands)
EPISTAR Corporation (Taiwan)
EVERLIGHT ELECTRONICS CO., LTD. (Taiwan)
Savant Systems, Inc. (GE Lighting) (U.S.)
Lextar Electronics Corporation (Taiwan)
Penguin Solutions (Cree LED) (U.S.)
Luckylight Electronics Co., Ltd (China)
Samsung Electronics Co., Ltd. (South Korea)
NICHIA CORPORATION (Japan)
Bridgelux, Inc. (U.S.)