Micro LED Market - Forecasts from 2022 to 2027

The Micro-LED market is expected to grow at a compound annual growth rate of 96.81% over the forecast period to reach a market size of US$43,158.704 million in 2027, from US$377.316 million in 2020.

Micro-LED is an emerging display technology that aims to provide a flat panel display with a wide viewing angle, quick response time, and a simultaneous reduction of energy consumption compared to existing technologies. Micro-LED provides a better display and higher brightness than LCD and OLED, and other existing technologies. This is expected to increase its popularity and application in devices like TVs, smartwatch, tablet, laptops, PCs, and others. Micro-LED consumes less power than other technologies, which is expected to boost its demand further. Also, with the rising disposable income and changing living standards of the people, the demand for digital products is expected to increase over the years. With better up-gradation in devices like smartphones, laptops, smartwatches, TVs, etc., the demand for technologies like micro-LED stands at a favorable position.

One of the major restraints to this market is the high investment cost and high product price, which can not only affect the entry of new companies in this field but can also hamper the demand from customers owing to the high price associated with the product. Apart from that, the existing technologies are projected to serve as significant competition, especially in terms of affordability to the market, impacting its growth.

Growth Factors

• Demand for high display options

With the rise in development and urbanization across the globe, the factors like disposable income and living standards are being affected. Over the years, trends suggest that people have increased their demand for high-tech products to adjust to automation and technological advancement and simultaneously produce better results for their businesses. Therefore, the ever-rising demand and our growing dependence on high display digital products like smartwatches, TVs, laptops, etc., along with better display results than LCDs and OLEDs, are projected to fuel the demand for micro-LEDs in the coming years.

• Low power consumption by micro-LEDs

The major highlight of micro-LED products is that they consume less power than other existing technologies, which are expected to give a considerable market share to this market in the years to come. This is because of micro-LED's color filters and backlights, and with the advancement in this developing technology, the number of polarizer filters in them is expected to be cut in half, which can further reduce its energy consumption.

• North America is expected to hold a significant share

Based on geographical segmentation, the micro-LED market is segmented into North America, South America, Asia Pacific, the Middle East and Africa, and Europe. Of these, North America is expected to hold a significant share in the market owing to the various factors like high scale adoption of technological advancement in the region, the high disposable income of the people, which can fuel the demand for expensive technologies like micro-LED, growing demand for smartwatches, smartphones, etc. For instance, Apple Inc., an American Company, is expanding its expertise in micro-LED and may soon launch some products under the domain. In 2020 the company was looking to invest around $330 million in a Taiwanese factory to manufacture LED and micro-LED displays for future iPhones, iPads, MacBooks, and other devices. Apart from that, major functioning companies under micro-LED technology like VueReal, etc., are already located here, providing a major advantage to the region.

Apart from this APAC region is expected to grow at the highest rate owing to the rising digital transformation accompanied by the presence of major players like Epistar Corporation, Sony Corporation, Samsung Electronics, etc., in the region.

Restraints

• High cost and competition from substitutes like LCDs and OLEDs

One of the major restraints for the micro-LED market is the high cost associated with the development and purchase of this product. As of now, not many market players have been able to adopt this technology due to the high initial investment in this project. This is expected to restrain its growth to some extent as the entry of new players can get impacted severely.

Apart from that, being a developing and advancing technology, the price associated with micro-LED products is still high compared to its substitutes like LCDs and OLEDs. This can restrain common citizens and middle-class people from buying this luxury, and the availability of affordable substitutes can create tough competition for this market and hinder its growth in the future.

Impact of COVID-19 pandemic on the micro-LED market:

With the onset of the COVID pandemic around the globe, the market for micro-LED suffered negatively. Due to the shift in focus of the people on necessities, the demand for luxuries like smartphones, smartwatches, TVs, etc., reduced, which severely hampered the micro-LED market.

Market Segmentation:

• By Product Type

Smartphone & Tablet

PC & laptop

TV

Smartwatch

Others

• By Industry Vertical

Consumer Electronics

Automotive

Government & Defense

Others

• By Display Size

Micro Panel

Small and Medium Panel

Large Panel

• By Application

Display

Lighting

• By Geography

North America

• USA
• Canada
• Mexico

South America

• Brazil
• Argentina
• Others

Europe

• U.K.
• Germany
• France
• Others

Middle East and Africa

• UAE
• South Africa
• Israel
• Saudi Arabia
• Others

Asia-Pacific

• China
• Japan
• India
• Australia
• Taiwan
• South Korea
• Others