According to TrendForce’s latest report “Gold+ Member: Global LED Industry Data Base and LED Player Movement Quarterly Update”, soaring raw material costs and high inflation caused by the Russia–Ukraine war and pandemic woes in China have slashed consumer market demand and increased end product inventories. Therefore, TrendForce analyzes that the LED market value shrunk to USD 14.214 billion in 2022 (-19% YoY). Except for the 40% growth rate of the Mini LED backlight market, general lighting, architectural lighting, agricultural lighting, and UV LED sectors all suffered noticeable declines throughout the year. Despite the continuing gloomy macroeconomic outlook and a great deal of uncertainty in 2023, end product inventories are expected to go back to the normal level in late 2Q23, which will also benefit order placements. Therefore, TrendForce forecasts that the LED market value will achieve single-digit growth in 2023.

Looking into the future, Micro LED will be installed in wearables, automotive displays and large-sized displays; Mini LED video walls will continue thriving, along with increased automotive LED penetration, stable growth in HDR / Mini LED automotive displays, rising energy-saving demand for agricultural lighting, and expanded LED video wall applications. TrendForce predicts that the LED market value will jump to USD 21.013 billion in 2027 with a 2022-2027 CAGR of 8%. To satisfy the technical requirements of Micro/Mini LED in the coming years, however, LED manufacturers will gradually shift to produce 6-/8-inch epi-wafers, with Nichia, ams OSRAM, Epistar, PlayNitride, Samsung LED, San’an and HC Semitek being major manufacturers. TrendForce discovered that ≧6-inch GaN LED epi-wafers accounted for 5% of total production in 2022 and expects the share to reach 15% in 2027.