Micro-LED Market

[154 Pages Report] The micro-LED market is estimated to grow from USD 0.60 Billion in 2019 to USD 20.50 Billion by 2025, at a CAGR of 80.1% between 2019 and 2025. The base year considered for the study is 2018; however, as of 2018, only the digital signage application is commercialized following Sony’s launch of micro-LED-based “CLEDIS” displays with 1.26mm pixel pitch and ~50-micron size RGB pixels. Major applications such as smartwatches, NTE devices, and smartphones are expected to be commercialized 2019 onward, owing to which the forecast period for the report is considered to be 2019–2025.

Key Market Dynamics in Micro-LED Market

Increasing interest of electronics giants - Apple, Samsung, and Sony

The rising interest of leading electronics companies—Sony, Samsung, and Apple—has encouraged further investments in micro-LED technology and accelerated the schedule for its commercialization.

Apple focuses on smartwatch application that requires significant pixel density (PPI) but low pixel volume. The company’s priority is to reduce the size of LEDs used for each pixel. However, the yield decreases with small pixel size. Currently, Apple is developing prototypes in collaboration with various LED manufacturers at its research facility in Taoyuan, Taiwan. Apple is likely to launch its next smartwatch with micro-LED displays by 2019. However, it may take longer to use the technology in smartphones, which is a critical application for micro-LED technology growth.

Sony, on the other hand, sacrificed pixel size for greater pixel volume in its large displays. As large displays are viewed from a greater distance, low pixel density is not an issue for picture quality. However, the pixel volume increases with large display panels. Sony has adopted a methodology to lower the PPI by using larger LEDs that have high production yield rates. Sony introduced a micro-LED solution Crystal LED Integrated Structure (CLEDIS) in 2016 and commercialized it in video wall devices in the first quarter of 2017 in the European and Asian market. Details of the display panel are provided in the “Company Profiles” chapter.

Samsung entered into the micro-LED market with the introduction of a 146-inch modular micro-LED TV at the CES event in 2018. The company did not disclose the specifications about pixel pitch or size during the showcase of model. The product is targeted at the consumer electronics segment. The prototype consisted of modules of micro-LED panels put together. The company has opted for micro-LED technology as it offers increased luminosity, durability, and faster response time compared with conventional technologies such as OLED and LCD. The company recently entered into a strategic agreement with San’an Optoelectronics to develop micro-LED displays.

High growth of flexible display market and adoption of folded displays for smartphones in near future

The adoption of flexible displays based on OLED technology in smartphones is increasing, and the market is likely to witness folded smartphones in the coming years. This would affect the micro-LED market as the technology is yet to be commercialized and will take many years to witness adoption in flexible/foldable applications.

The flexible display market is expected to witness high growth in the smartphone and smart wearable device space, which would ultimately lead to the overall growth of the display market. A majority of the flexible display shipments in 2017 were for smartphones and smartwatches. The applications of flexible displays in tablets, automotive displays, and TVs are also expected to witness growth and are likely account for a significant market share by 2023.

The intrinsic qualities of flexible displays, such as lightweight, thinness, and portability, give rise to newer applications, such as automotive central cluster displays and curved retail displays. LG Display and Samsung introduced flexible OLED displays in their flagship premium smartphones in 2013 and 2015, respectively, while Apple’s smartwatch made use of flexible OLED display in 2014. Apple, in 2017, adopted flexible OLED display panel manufactured by Samsung in its iPhone X model. LG Display also launched flexible OLED displays for signage applications; this indicates technological advancements made by these players for bendable, rollable, and curved displays.

The development of micro-LED displays may be restrained by the introduction of foldable consumer display devices as micro-LED technology is in the research phase, and launching flexible and foldable display panels based on micro-LEDs, alongside the competing and more mature OLED technology, will be challenging in terms of cost and yield.

High penetration of micro-LED technology-based products in the display panel market

The display panel market is huge, and many leading industry players are working on optimizing the existing display technologies such as LED-LCD, OLED, quantum dot LED, and e-paper. Samsung is pursuing quantum dots and OLED, while LG Display is focusing on OLED technology. The market is dominated by Samsung, LG Display, AU Optronics, Innolux, and Japan Display, and these players may enter into partnerships or collaborations or even acquire one of the many start-ups that are focusing on developing micro-LED technology.

Micro-LED technology, when mature, is expected to penetrate different display applications. The huge display market offers various opportunities for the development of micro-LED technology, which is much brighter and low power consuming compared with the existing technologies, such as LCD and OLED.

Low yield, high cost, and need for improving micro-LED production and mass transfer processes

During technological progress, the most difficult process would be the mass transfer of micro-LEDs onto substrates. Finding a solution to this challenge would also open up the possibility of mass-transferring other microelectronic components, including sensors. The existing mass transfer technology developed by manufacturers mainly includes transfer method, transfer equipment, and suction nozzle. Companies are focused on how to improve the transfer yield to 99.9999% and the precision of each chip within ±0.5ìm which is the key challenge in front of them. The transfer technology is not fully mature, and it may have yield issues, especially for high-resolution products, resulting in high costs.

Another addressable challenge for mass transfer is how to massively pick up micrometer-scale epitaxy, which can be implemented through physical and chemical methods at present. LuxVue’s physical method picks up micro-devices through electrostatic adsorption, while X-Celeprint’s chemical method uses Van der Waals forces to pick up via elastomer stamp medium. Many manufacturers have developed a number of pickup methods. For example, Sony selects the specified target object through the laser ablation technology.

Another challenge is regarding the bonding that is connecting the gold wire from LED chip internal circuit to substrate. The micro-LED chip is small, and it is necessary to integrate substrate via methods other than gold wire bonding. Therefore, the focus of technology development in the future would be on the material used for bonding and transfer.

Micro-LED technology has the potential to match the price and performance of LCD and OLED displays; however, its full realization will take years due to several challenges associated with mass production. Thus, micro-LED technology faces various challenges, such as the need for low-cost new designs and manufacturing processes, mass transfer-related yield issues, and supply chain issues. Intense R&D efforts are being made by display suppliers, LED suppliers, and device manufacturers to overcome these challenges.

The cost of micro-LED displays is expected to be the biggest factor in bringing such displays to market, although producing a high-quality red LED has always been a challenge for LED manufacturers. Micro-LED technology is expected to be first used in microdisplays, and later in small displays for watches.

Study Objectives

• To identify the potential applications of micro-LED technology in display and lighting segments
• To analyze the current manufacturing capabilities of leading LED foundries and transfer capabilities of leading players involved in the micro-LED ecosystem
• To analyze the current capabilities and technology status of micro-LEDs in terms of LED manufacturing, mass transfer, yield, investment, and cost
• To discuss the current challenges pertaining to micro-LED technology and analyze solutions offered by different players to overcome these challenges
• To define and describe each current and futuristic stages of micro-LED value chain and analyze the market based on player activities, developments, and capabilities
• To analyze patent activities and identify the latest trends in patent filing and discuss leading players involved
• To analyze pixel pitch, RGB LED size, pixel volume, display product demand during the commercialization year, and pixel (RGB LED) production/transfer rate required for different display applications based on display panel size, aspect ratio, and resolution
• To estimate the commercialization potential of micro-LED technology for different display applications based on current and futuristic manufacturing capabilities, mass transfer capabilities, yield improvements, and configuration/specification requirement for different display applications
• To analyze demand for micro-LED-based display panels, in terms of volume, during the commercialization year and forecast period segmented on the basis of different display applications
• To define, describe, and forecast the market, in terms of value, by display panel size, vertical, and geography
• To provide market size estimation for North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW), along with respective countries, segmented on the basis of each application, by identifying the potential micro-LED panel customers or brand product manufacturers, respective share, and potential demand
• To identify and analyze the major factors (drivers, restraints, opportunities, and challenges) influencing the market growth
• To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the market
• To analyze strategic developments such as joint ventures, mergers & acquisitions, prototype developments, and R&D in the micro-LED market
• To strategically profile the key players and comprehensively analyze their market position in terms of ranking and core competencies, and detail the competitive landscape for market leaders

Research Methodology

The research methodology includes the use of primary and secondary data. Both top-down and bottom-up approaches have been used to estimate and validate the size of the market, as well as other dependent submarkets. Key players in the market have been identified through secondary research. Secondary sources include references such as annual reports, company press releases, Factiva, and investor presentations of companies; white papers, consumer electronics exhibitions, and certified publications (such as IEEE, Science Direct, and articles of recognized authors); websites (such as Consumer Technology Association (CTA), CS International Conference, SEMI, International Signs & LED Exhibition, Display Taiwan, OLED-Info, Integrated Systems Europe, qled-info, FlexTech Alliance, and Touch Taiwan); directories; and databases. All the percentage shares and breakdowns have been determined using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.

To know about the assumptions considered for the study, download the pdf brochure

Major companies operating in this market are Apple (LuxVue) (US), Oculus VR (InfiniLED) (US), Sony (Japan), Samsung (South Korea), X-Celeprint (Ireland), Epistar (Taiwan), GLO AB (Sweden), VerLASE Technologies (US), JBD (China), and Aledia (France), among others. Some of the key innovators in the market include Mikro Mesa Technology (Taiwan), VueReal (Canada), Uniqarta (US), ALLOS Semiconductors (Germany), Plessey Semiconductors (UK), PlayNitride (Taiwan), and Ostendo Technologies (US). Some other prominent players in the market include Lumens (South Korea), Lumiode (US), Rohinni (US), Cooledge Lighting (Canada), and Nichia (Japan).

Some of the prominent research institutes undertaking research in the market are Industrial Technology Research Institute (ITRI) (Taiwan), Changchun Institute (China), III-V Lab (France), CEA Leti (France), Hong Kong University of Science and Technology (Hong Kong), and Fraunhofer-Gesellschaft (Germany). Some of the input suppliers developing related materials and components in market include Jasper Display (Taiwan), Crystalwise Technology (Taiwan), Unimicron (Taiwan), Luminit (US), Macroblock (Taiwan), and Max Technologies (Taiwan).

Key Target Audience

• LED supply chain
• LED manufacturers
• Sapphire makers
• MOCVD suppliers
• Epi houses
• Display panel manufacturers
• Brand customers/OEMs/ODMs
• OSAT and foundries
• Display-related service providers
• Display-related associations, organizations, forums, and alliances
• Government bodies such as regulatory authorities and policy-makers
• Venture capitalists, financial and strategic investors, and start-ups
• Semiconductor component suppliers
• Distributors and sales firms of display panels and devices
• End users of display devices
• Research institutes, organizations, and consulting companies

Scope of the Report

In this report, the has been segmented as follows:

Micro-LED Market, by Application

• Display
  • Near-to-Eye (NTE) Devices
    • AR HMD
    • VR HMD
  • Smartwatch
  • Television
  • Head-up Display (HUD) 
  • Smartphone and Tablet
  • Monitor and Laptop
  • Digital Signage
• Lighting
  • General Lighting
  • Automotive Lighting

Micro-LED Display Market, by Panel Size

• Microdisplay
• Small- and Medium-sized Panel
• Large Panel

Micro-LED Display Market, by Vertical

• Consumer Electronics
• Automotive
• Advertisement
• Aerospace & Defense
• Others

Micro-LED Market, by Geography

• Asia Pacific
  • South Korea
  • China
  • Japan
  • Rest of Asia Pacific
• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Rest of Europe
• Rest of the World

Company Profiles: Detailed analysis of the major companies in the market.

Available Customizations:

With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:

• Company Information

Detailed analysis and profiling of additional market players (up to 5)

• Industry-specific Data

Detailed analysis of specific industries and respective use cases or applications of micro-LED technology

Get more insight on other verticals of Semiconductor and Electronics Market Research Reports & Consulting

Micro-LED is an emerging display and lighting technology with the potential to disrupt the traditional LCD display and LED lighting markets. Micro-LED technology is being developed to offer high brightness at low power. The micro-LED market is estimated to grow from USD 0.60 Billion in 2019 to USD 20.50 Billion by 2025, at a CAGR of 80.1% between 2019 and 2025.

Increasing demand for brighter and more power-efficient display panels for smartwatches, mobile devices, and NTE (AR/VR) devices is a major factor for the growth of the market. The rising interest of electronic giants Apple, Samsung, and Sony and interest shown by input/component suppliers in the supply chain also contribute to the market growth.

The micro-LED market can be broadly divided into display and lighting segments. The micro-LED display market is segmented on the basis of applications into smartwatches; near-to-eye (NTE) devices (AR & VR HMDs); televisions; smartphones and tablets; head-up displays (HUDs); laptops and monitors; and digital signage. The market is further segmented on the basis of display panel size into microdisplays; small- and medium-sized panels; and large panels. On the basis of verticals, the market is categorized into consumer electronics; advertisement; automotive; aerospace & defense; and others. The micro-LED lighting market is segmented on the basis of applications into general lighting and automotive lighting.

As of 2018, only the digital signage application is commercialized following Sony’s launch of micro-LED-based “CLEDIS” displays with 1.26mm pixel pitch and ~50-micron size RGB pixels. Considering the current manufacturing capabilities, prototype development, and the involvement of leading players, micro-LED-based smartwatches and NTE devices may enter the commercial phase in 2019. The micro-LED market for NTE devices is expected to grow at the highest CAGR between 2019 and 2025. Demand for micro-LED-based smartphone display panels is expected to grow rapidly; however, limitations in mass production may restrict the actual supply volumes. With the launch of new foundries or manufacturing plants, high demand can be fulfilled over time, and the shipment volume will increase rapidly between 2023 and 2025. Smartphones and tablets are high-volume applications, and once commercialized, the corresponding market share will rise to dominate the overall micro-LED display market. Small- and medium-sized display panels are expected to dominate the micro-LED display market by 2025 in terms of share, while the market for microdisplays is expected to witness the highest growth during the forecast period.

APAC is expected to dominate the micro-LED display market during the forecast period with the presence of leading brand product manufacturers, LED foundries, and display panel manufacturers in the region. Samsung, LG, Sony, Sharp, Panasonic, and several others will account for major demand for micro-LED display panels by 2025.

Significant research by input suppliers required for the establishment of a strong supply chain will drive the growth of the micro-LED display market. At present, the lack of an established supply chain and distributed patent portfolio are the major restraints for the growth of the market. The fast adoption of OLED technology in display devices may further hinder the commercialization and growth of micro-LED technology. Trade-off between pixel volume and pixel size; huge investment requirement in infrastructure, equipment, and process development; and need for different manufacturing processes as well as equipment compatibility are the key challenges faced by micro-LED technology developers. Low yield, high cost, and need for improving micro-LED production and mass transfer processes are also the major challenges for the commercialization of the technology in different products. The manufacturing of micro-LEDs on large silicon wafers and growing demand of wearable displays for smartwatches and AR/VR HMDs are the major opportunities for micro-LED developers.

Players will require increased investments to tackle these challenges and facilitate growth in the coming years. This report comprises drivers, restraints, opportunities, and challenges pertaining to the market; and extensive value chain analysis, patent analysis, analysis of the current manufacturing capability and technology status, commercialization potential in different devices, along with market size forecasts till 2025.

Major companies operating in this market are Apple (LuxVue) (US), Oculus VR (InfiniLED) (US), Sony (Japan), Samsung (South Korea), X-Celeprint (Ireland), Epistar (Taiwan), GLO AB (Sweden), VerLASE Technologies (US), JBD (China), and Aledia (France), among others. Some of the key innovators in the market include Mikro Mesa Technology (Taiwan), VueReal (Canada), Uniqarta (US), ALLOS Semiconductors (Germany), Plessey Semiconductors (UK), PlayNitride (Taiwan), and Ostendo Technologies (US). Some other prominent players in the market include Lumens (South Korea), Lumiode (US), Rohinni (US), Cooledge Lighting (Canada), and Nichia (Japan).

Some of the prominent research institutes undertaking research in the market are Industrial Technology Research Institute (ITRI) (Taiwan), Changchun Institute (China), III-V Lab (France), CEA Leti (France), Hong Kong University of Science and Technology (Hong Kong), and Fraunhofer-Gesellschaft (Germany). Some of the input suppliers developing related materials and components in market include Jasper Display (Taiwan), Crystalwise Technology (Taiwan), Unimicron (Taiwan), Luminit (US), Macroblock (Taiwan), and Max Technologies (Taiwan).

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