Infrared LED Market worth over $1 Bn by 2026
Published Date: May 8, 2020 Authors: Preeti Wadhwani, Shubhangi Yadav
Infrared LED Market size is set to exceed USD 1 billion by 2026, according to a new research report by Global Market Insights, Inc.
Favorable government regulations in China have supported infrared LED suppliers to innovate new products in the market. The government of China is planning to provide subsidies to local LED suppliers. This will result in the Chinese manufacturers delivering LED components at much cheaper rates worldwide. The subsidies are propelling industry developments in China; however, they have created an intense pressure on other foreign key players by creating an oversupply for these components.
Low penetration of infrared LED technology in several countries is likely to restrain the growth of the market. Lack of awareness for infrared LEDs in low-income countries has hampered their adoption and integration with advanced electronics products. The lack of investment in infrastructure has resulted in decreasing demand for infrared cameras in several regions including Africa and some countries of Asia Pacific.
700-850nm infrared LED is gaining a market opportunity due to rising integration of smart recognition systems into smartphones
The 700nm-850nm spectral range segment in the infrared LED market is likely to witness a growth rate of around 10% during the forecast period. The growth is majorly attributed to the rising adoption of infrared LEDs for iris and face recognition systems in smartphones. infrared LED showcases several advantages on contact optical identification such as quick recognition speed, compact size, and strong security. This is likely to propel the demand for small wavelength IR LEDs for smart recognition systems and add an opportunity for market growth.
Browse key industry insights spread across 250 pages with 356 market data tables and 30 figures & charts from the report, “Infrared LED Market Size By Spectral Range (700nm-850nm, 850nm-940nm, 940nm-1020nm, 1020nm-1720nm), By Application (Biometrics, Imaging, Lighting, Remote Sensing, Surveillance), By End-use (Aerospace& Defense, Automotive, BFSI, Consumer Electronics, Education, Healthcare, Industrial, Retail), Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Rising trend toward smart cities will surge the market demand in surveillance application
The surveillance applications dominated a market share of over 40% in 2019. The dominance is attributed to rising integration of infrared cameras and CCTV cameras in smart cities. These LEDs are widely integrated into CCTV cameras owing to their night vision and low light level benefits. Also, the integration of infrared LEDs into cameras offers high optical output, wide emission angle, and near filed visibility, driving the market opportunity in smart city application.
Several nations are taking initiatives to integrate smart city applications to enhance their infrastructure and surveillance systems with the integration of cameras to procure real-time data. The adoption of Smart City Mission by the Government of India, a program for urban infrastructure, will support real-time decision-making for smart services such as energy usage, parking, and traffic lights. The growing implementation of smart cameras and IoT technologies across smart city infrastructures will increase the demand for infrared LEDs in cameras, further supporting industry growth.
Rising investment in thermal imaging technology will propel the infrared LED market growth in the automotive sector
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The automotive sector will create significant opportunities for players in the market and will grow at over 11% CAGR till 2026. The rising integration of advanced safety features into vehicles, such as face recognition systems, thermal imaging, and lighting systems, to avoid collision will boost the market demand. Thermal imaging technology integrated with advanced vehicle systems, such as ADAS, lane departure control systems, helps drivers to take better decisions to avoid collisions in seconds even at higher vehicle speeds.
The thermal cameras can recognize heat signatures of animals and pedestrians in numerous lighting conditions. Also, thermal imaging technology aids to defuse various obstacles for drivers such as darkness, glare, fog, smoke, and high beam headlights of oncoming vehicles. This led to companies investing heavily in the development of thermal cameras for vehicles, thereby increasing the market share.
Increasing penetration of data centers is laying a significant impact on North America
North America infrared LED market accounted for 35% revenue share in 2019 and is expected to exhibit significant growth between 2020 and 2026. The regional growth is characterized by rising concern toward public & national security, which led to the deployment of several security surveillance cameras in the U.S. The government has installed several CCTVs and surveillance cameras in high-profile places to increase observation on suspicious scenes.
The companies are forming partnerships and collaboration agreements with the U.S. government for improving their market position among competitors. For example, in August 2019, Ring, a doorbell camera company, announced its video sharing partnership with more than 400 police forces across the U.S. to enhance country security and surveillance.
Some of the prominent players in the market include Epistar, EVERLIGHT, Vishay Intertechnology, Inc., Raytek Corporation, Lite-On Technology, and Osram. These companies are focusing to invest on new strategic acquisitions and collaboration strategies to improve their product offerings and gain high competitiveness in the industry.
For instance, in July 2018, Excelitas Technologies announced the acquisition of Research Electro Optics (REO). Through this acquisition, the company offers a wide range of products and capabilities for defense prime contractors and OEM customers for high-performance illumination and optical & detection solutions.