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MARKET INSIGHTS

The global Surface-emitting LED Market size was valued at US$ 3.67 billion in 2024 and is projected to reach US$ 5.84 billion by 2032, at a CAGR of 6.0% during the forecast period 2025-2032. The U.S. market accounted for approximately 30% of global revenue in 2024, while China is expected to witness the highest growth rate due to expanding manufacturing capabilities.

Surface-emitting LEDs are semiconductor light sources that emit light perpendicular to their surface, offering advantages such as high brightness, uniform illumination, and compact form factors. These devices are categorized into infrared LEDs (accounting for 42% market share in 2024), mid-IR LEDs, and other specialized variants, finding applications across lighting, fiber optic communication, signal lights, and display technologies.

The market growth is driven by increasing demand for energy-efficient lighting solutions and expanding 5G infrastructure requiring advanced optical components. While the infrared LED segment is projected to reach USD 1.2 billion by 2030, display applications are witnessing rapid adoption due to rising AR/VR device production. Key players like Nichia and Hamamatsu Photonics collectively held 35% market share in 2024, with recent technological advancements in mini-LED and micro-LED designs further propelling industry expansion.

List of Key Surface-emitting LED Manufacturers

• Hamamatsu Photonics (Japan)


• Nichia Corporation (Japan)


• Prizmatix Ltd. (U.K.)


• Frankfurt Laser Company (Germany)


• Qingdao NovelBeam Technology (China)


• SIMTRUM Pte. Ltd. (Singapore)


• Allied Scientific Pro (Canada)


• New Age Instruments & Materials (India)


• Boston Electronics Corporation (U.S.)

Segment Analysis:

By Type

Infrared LED Segment Leads Due to Expanding Applications in Sensing and Communication

The market is segmented based on type into:

• Infrared LED


• MID-IR LED


• Others

By Application

Lighting Segment Dominates Owing to Widespread Adoption in Commercial and Residential Spaces

The market is segmented based on application into:

• Lighting


• Fibre Optic Communication


• Signal Lights


• Displays


• Others

By End User

Industrial Sector Accounts for Significant Share Due to Automation Demand

The market is segmented based on end user into:

• Residential


• Commercial


• Industrial


• Automotive


• Healthcare

By Wavelength

Near-Infrared Range Maintains Strong Position for Security and Surveillance Applications

The market is segmented based on wavelength into:

• Short-wavelength Infrared (SWIR)


• Medium-wavelength Infrared (MWIR)


• Long-wavelength Infrared (LWIR)


• Others

Regional Analysis: Surface-emitting LED Market

North America
The North American surface-emitting LED market benefits from strong R&D investments and widespread adoption in automotive lighting, displays, and medical applications. The U.S., contributing the majority of regional revenue, drives demand through stringent energy-efficiency standards and the rapid adoption of smart lighting solutions. Leading players like Boston Electronics Corporation and CoolLED are expanding production capabilities to meet growing industrial and consumer needs. However, high manufacturing costs and supply chain disruptions pose moderate challenges, mitigated by partnerships with Asian semiconductor suppliers.

Europe
Europe’s market is characterized by strict regulatory frameworks promoting energy-efficient lighting, particularly in Germany and France. The EU’s Green Deal initiative accelerates the shift toward sustainable LED solutions, with Hamamatsu Photonics and Edinburgh Instruments leading in infrared LED innovations for automotive and aerospace sectors. While Western Europe maintains technological dominance, price sensitivity in Eastern Europe slows high-end product adoption. The region’s focus on fibre optic communication technologies further boosts demand for precision surface-emitting LEDs.

Asia-Pacific
As the largest and fastest-growing market, the Asia-Pacific region is driven by China’s massive electronics manufacturing sector and India’s expanding urban infrastructure. China accounts for over 40% of global production, with firms like Nichia and Qingdao NovelBeam Technology scaling output for displays and signal lights. Cost-competitive manufacturing and government subsidies in Southeast Asia attract global suppliers, though IP protection issues persist. Emerging applications in agricultural lighting and healthcare present new growth avenues, with Japan and South Korea leading in high-tech MID-IR LED development.

South America
Market growth in South America remains modest, with Brazil and Argentina focusing on replacing conventional lighting in commercial spaces. Economic instability and limited local production capabilities keep prices elevated, restricting widespread adoption. However, partnerships with Asian manufacturers are gradually improving accessibility. Infrastructure projects in urban centers are driving demand for durable LED solutions, though political uncertainty and currency fluctuations deter large-scale investments in advanced technologies like surface-emitting LED arrays.

Middle East & Africa
This emerging market shows promise with increasing smart city projects in the UAE and Saudi Arabia, where surface-emitting LEDs are deployed in architectural lighting and signage. Israel’s tech-driven economy fosters niche applications in medical devices and defence systems. Africa’s growth is hindered by low purchasing power and unreliable electricity access, though off-grid solar-LED hybrid solutions gain traction in rural areas. Long-term potential lies in infrastructure modernization, contingent on stable investment climates and technology transfer agreements with global suppliers.

MARKET DYNAMICS

Emerging Applications in Biomedical Devices Create New Revenue Streams

Surface-emitting LEDs are finding innovative applications in medical diagnostics and therapeutic equipment. Their narrow spectral output and compact size make them ideal for portable medical devices. The global market for medical LEDs is projected to exceed $1.2 billion by 2027, with significant growth in phototherapy and spectroscopy applications. Recent breakthroughs in UV-C surface-emitting LEDs have opened possibilities for sterilization systems, particularly in healthcare settings. Device manufacturers are forming strategic partnerships with LED producers to co-develop specialized solutions.

Advancements in Micro-LED Technology Enable New Form Factors

The development of micro-scale surface-emitting LEDs is creating opportunities in augmented reality displays and wearable electronics. With pixel densities exceeding 5000 PPI now achievable, these components are enabling truly immersive visual experiences. Major consumer electronics brands have announced micro-LED based products for commercial release within two years. The technology’s potential extends to flexible and transparent displays, where conventional LEDs cannot compete. While manufacturing challenges remain, successful commercialization could redefine multiple display segments.

Smart Building Integration Offers Untapped Potential

The convergence of IoT and lighting systems presents significant growth opportunities for surface-emitting LEDs. Modern building automation systems increasingly incorporate LEDs as both illumination sources and data transmitters (Li-Fi). This dual functionality allows for innovative applications in indoor positioning, asset tracking, and environmental monitoring. Facility managers are recognizing the operational benefits of intelligent lighting networks, driving adoption in commercial real estate. The market for connected LED solutions is expected to grow at a compound annual rate exceeding 25% through 2030.