PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930265
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930265
The global LED production equipment market is witnessing steady expansion driven by the increasing adoption of energy-efficient lighting solutions and advanced display technologies. In 2025, the market was valued at USD 5.09 billion, supported by strong demand from lighting, electronics, and display manufacturing industries. According to Fortune Business Insights, the market is projected to grow from USD 5.51 billion in 2026 to USD 11.66 billion by 2034, registering a compound annual growth rate (CAGR) of 9.8% during the forecast period. Asia Pacific dominated the global market with a share of 36.8% in 2025, owing to its robust semiconductor manufacturing base and cost-effective production capabilities.
LED production equipment includes machinery used for fabrication, deposition, lithography, assembly, packaging, and testing of LED components. The market is highly transformative, characterized by rapid technological innovation, automation, and strict quality standards. Government regulations promoting energy efficiency, along with bans on incandescent bulbs, are further accelerating the adoption of LEDs, thereby strengthening demand for advanced LED production machinery.
Impact of COVID-19 on the Market
The COVID-19 pandemic disrupted global supply chains and negatively impacted semiconductor manufacturing hubs, including China, Japan, and the U.S. Delays in raw material supply and machinery delivery affected LED production equipment installations. However, the pandemic also accelerated the adoption of automation, remote monitoring, and smart manufacturing solutions due to labor shortages. As industries resumed operations, manufacturers increasingly integrated automated systems to enhance production efficiency and resilience, supporting long-term market recovery.
Impact of IoT and Automation
IoT-enabled and automated LED production equipment has become a critical growth enabler. Automation improves precision, consistency, and scalability across production lines, while IoT connectivity enables real-time monitoring, predictive maintenance, and reduced downtime. These technologies also allow manufacturers to adapt production lines for emerging technologies such as microLEDs, ensuring quality control and cost efficiency. In 2024, JUKI Corporation launched the JM-E01 multitask platform with integrated automation, designed to eliminate manual handling and reduce production errors, highlighting the industry's shift toward smart manufacturing.
Market Trends
The adoption of advanced production techniques is a key trend shaping the LED production equipment market. Smart factories equipped with industrial IoT systems enable real-time equipment monitoring and waste reduction. Additionally, sustainable manufacturing practices, including lead-free welding and recyclable materials, are gaining traction to comply with environmental regulations. In 2024, Veeco Instruments announced the qualification of its Lumina MOCVD system for next-generation microLED production, reinforcing the trend toward advanced deposition technologies.
Market Dynamics
Rising demand for energy-efficient lighting in smart cities is a major driver of market growth. Government initiatives promoting sustainable lighting, such as the European Union's Ecodesign directive and India's UJALA Scheme, are significantly boosting LED adoption. In India, large-scale LED street lighting projects have resulted in substantial energy savings and carbon emission reductions, directly increasing demand for LED production equipment.
However, high initial capital costs and technical complexities associated with advanced semiconductor machinery act as restraints. The production of miniaturized LEDs, including microLEDs, requires highly precise and expensive equipment, which can limit adoption among small manufacturers.
At the same time, growing demand for advanced display technologies such as OLEDs and microLEDs presents strong growth opportunities, particularly in emerging markets across Asia Pacific. Government-led electrification projects and investments in sustainable manufacturing further enhance market potential through 2034.
By equipment type, the etching and fabrication segment held the largest market share in 2025, driven by the need for precise and miniaturized LED chipsets. Vapour deposition equipment is projected to witness the fastest growth through 2034 due to rising demand for MOCVD systems in microLED manufacturing. Other segments, including lithography, assembly and packaging, and testing and inspection, continue to grow steadily due to stringent quality and efficiency requirements.
By application, the lighting and illumination segment dominated the market in 2025, supported by increasing adoption of energy-efficient lighting in residential, commercial, and industrial settings. Displays and electronics applications are also contributing significantly, driven by advancements in OLED and curved LED technologies.
Asia Pacific led the market with a valuation of USD 1.87 billion in 2025, driven by strong semiconductor manufacturing capabilities in China, Japan, and India. The region continues to benefit from low production costs, skilled labor, and government support for domestic manufacturing. North America was valued at USD 1.44 billion in 2025, supported by growing demand for microLEDs and smart city lighting solutions. Europe is expected to grow steadily due to strict energy efficiency regulations and incentives promoting sustainable lighting technologies.
Competitive Landscape
The LED production equipment market is highly competitive, with key players such as Aixtron SE, Veeco Instruments, ASM International, Tokyo Electron, and Nordson Corporation focusing on sustainable product development, technological innovation, and strategic collaborations to strengthen their market positions.
Conclusion
The global LED production equipment market is expected to expand significantly from USD 5.09 billion in 2025 to USD 11.66 billion by 2034, driven by automation, IoT integration, smart city development, and rising demand for energy-efficient lighting and advanced displays. Continuous advancements in manufacturing technologies and supportive government policies will remain central to the market's long-term growth trajectory.
Segmentation By Equipment
By Application
By Region
Key Market Players Profiled in the Report Aixtron SE (Germany), Veeco Instruments Inc. (U.S.), ASM International N.V. (Netherlands), Tokyo Electron Limited (Japan), Hitachi High-Tech Corporation (Japan), Taiyo Nippon Sanso (Japan), Daitron Co., Ltd (Japan), Shenzhen ETON Automation Equipment Co., Ltd (China), Dongguan ICT Technology Co., Ltd. (China), and Nordson Corporation (U.S.), etc.