UV-C LED Market - Global Outlook & Forecast 2023-2028

MARKET OUTLOOK

The global UV-C LED market was valued at USD 582.00 million in 2022 and is expected to reach USD 5.27 billion by 2028, growing at a CAGR of 44.41%. UV-C LED technology was rapidly advancing and gaining significant attention across various industries. With growing concerns about the impact of traditional disinfection methods on the environment, UV-C LEDs present an eco-friendly alternative. Unlike traditional UV-C lamps, UV-C LEDs do not contain mercury, eliminating the need for special disposal procedures and reducing the risk of environmental contamination. UV-C LEDs' energy efficiency and longer lifespan also reduce energy consumption and waste generation. Such factors will boost the UV-C LED market during the projected period.

UV-C LEDs are a specific type of light-emitting diodes (LEDs) that emit ultraviolet light in the UV-C wavelength range. UV-C possesses germicidal properties, enabling its efficient use as a disinfectant for eradicating microorganisms like bacteria and viruses. These LEDs are designed to produce light in the ultraviolet spectrum with wavelengths between 200 and 280 nanometers (nm). This market has grown rapidly due to increased demand for UV-C disinfection and sterilization applications. Further, North America accounts for a significant share of the global UV-C LED market owing to the huge penetration of commercial and residential sectors and the high disposable income of consumers. Most of the population in North America lives in urban areas and is aware of using sustainably. Moreover, higher LED penetration was witnessed in outdoor lighting, which has created a significant opportunity to expand the U.S. UV-C LED market.

MARKET TRENDS & OPPORTUNITIES

Growing Demand for Miniaturization & Portability
Consumers are increasingly seeking UV-C LED products that they can easily carry and use on the go. Portable UV-C LED sanitizing wands, for example, have gained popularity as they allow users to quickly disinfect surfaces like smartphones, keys, and personal items wherever they are. These compact products' convenience and ease of use have become essential selling points. Advancements in technology have also played a crucial role in driving the miniaturization trend.

Increasing Awareness of Health & Hygiene
Consumers increasingly demand safer and cleaner environments, especially in public spaces, healthcare facilities, and hospitality settings. Consumers are seeking technologies that can provide efficient and reliable disinfection solutions, leading to the growing popularity of UV-C LED products. Additionally, industries such as healthcare, hospitality, transportation, and food processing have recognized the need for robust disinfection measures to ensure the safety of their customers, employees, and products.

INDUSTRY RESTRAINTS

Limited Wavelength Range and Low External Quantum
Limited wavelength range and low external quantum efficiency (EQE) are significant challenges in the UV-C LED market, impacting the performance and versatility of UV-C LED technology. UV-C LEDs primarily emit light in a narrow wavelength range of around 260-280 nanometers, which is effective for germicidal applications. However, certain specialized applications, such as water purification or specific photochemical processes, may require different wavelengths. The ability to develop UV-C LEDs that can emit at specific wavelengths outside the typical range is essential to address the diverse needs of various industries and expand the potential applications of UV-C LED technology.

SEGMENTATION INSIGHTS

INSIGHTS BY MOUNTING TYPE
The global UV-C LED market is categorized into four types of mounting type- surface mount, chip-on-board, through hole, and others. Surface Mount accounts for the highest share of the market. Surface mount refers to directly soldering components onto a printed circuit board (PCB) surface instead of through-hole mounting, where leads pass through holes in the board. In the UVC LED market, the demand for surface mount-type LEDs is driven by their compact size, energy efficiency, durability, cost-effectiveness, and health & safety concerns. Through-Hole and other mounting types are likely to grow and generate low revenue compared to surface mount and chip-on-board in the forecast period.

INSIGHTS BY APPLICATIONS
The global UV-C LED market includes three major types of applications – water disinfection, surface disinfection, and air disinfection. The water disinfection market is expected to grow at a CAGR of over 43% during the forecast period and hold the largest segmental share. UV-C LEDs have shown great potential for water disinfection applications due to their ability to emit ultraviolet light in the germicidal range, specifically at 254 nanometers (nm). This wavelength effectively inactivates microorganisms, including bacteria, viruses, and protozoa, by damaging their DNA or RNA. The air disinfection market is expected to grow at the highest CAGR due to technological advancement, changing consumer behavior, technological integration, and health & safety concerns.

INSIGHTS BY WAVELENGTH
The global UV-C LED market comprises a wide range of wavelengths of UV-C LEDs. Some UV-C LEDs fall into the range of 200-230nm, some into 230-260nm, and the last category is 260-280nm. UV-C LED with a wavelength of 260-280nm held the highest share in the market in 2022 but is likely to grow steadily during the forecast period. These LEDs possess disinfection properties and find applications in various industries. UV-C LEDs in this range are used in fluorescence detection, chemical analysis, phototherapy, and surface sterilization. UV-C LED with a 230-260nm wavelength is anticipated to grow at the highest CAGR.

GEOGRAPHICAL ANALYSIS

APAC accounted for the highest share of the global UV-C LED market, in 2022, due to the presence of countries like China, Japan, South Korea, India, and other emerging countries, which are the manufacturing hubs for electronics. The Asia-Pacific (APAC) region has witnessed a substantial surge in the demand for UV-C LED technology, primarily driven by its integration into the consumer electronics manufacturing industry. UV-C LEDs have gained immense popularity due to their ability to effectively disinfect and sanitize surfaces, making them a crucial component in addressing hygiene concerns, especially during the COVID-19 pandemic. In the consumer electronics manufacturing industry within the APAC region, the demand for UV-C LED technology has been particularly evident in products such as smartphones, tablets, laptops, and wearable devices.

COMPETITIVE LANDSCAPE

The global UV-C LED market is dynamic and evolving, with numerous companies striving to establish their presence and gain a competitive advantage. The key players in this market can be categorized into three main groups: established LED manufacturers, specialized UV-C LED companies and emerging players. Many prominent LED manufacturers have recognized the potential of UV-C LEDs and expanded their product offerings to include UV-C solutions. These companies leverage their experience, infrastructure, and established customer base to enter the UV-C LED market. Some key companies operating in the market are Nichia Corporation, Seoul Viosys, Crystal IS, ams-OSRAM AG, and many more.

Companies continuously invest in research and development to improve UV-C LEDs' efficiency, output, and lifetime. Additionally, regulatory standards and guidelines related to UV-C LED applications, such as healthcare and food safety, can impact market dynamics and competitiveness. Vendors compete on various parameters in the UV-C LED market to establish their position and gain a competitive edge. Vendors differentiate themselves based on the technological capabilities of their UV-C LED products. This includes LED chip design, materials used, epitaxy growth techniques, and overall product performance. Vendors with superior technology and a diverse product portfolio that caters to different applications have a competitive advantage.