Infrared (IR) LED Market Size, Share, Trends, Growth, and Industry Analysis, By Type (Gallium Arsenide, Indium Phosphide, Aluminum Gallium Arsenide), By Application (Consumer Electronics, Automotive, Surveillance & Security, Healthcare, Telecommunications, Industrial), and Regional Forecast to 2032

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INFRARED (IR) LED MARKET OVERVIEW

The Infrared (IR) LED Market size was USD 943.38 Million in 2023 and is projected to reach USD 2983.99 Million by 2032, exhibiting a CAGR of 13.65% during the forecast period 2024-2032.

An infrared LED is a semiconductor device that provides infrared radiation. Though it cannot be seen by a human eye, it is detectable by electronic devices. It has been utilized in consumer electronics, automotive industries, the surveillance and security industry, in healthcare, telecommunications, and even in industrial automation. High adoption rates of consumer electronics such as infrared LEDs used in remote controls, smartphones, and wearable devices. The infrared LEDs consume less power, have small sizes, and high reliability and can be well integrated into portable and battery-powered devices. Automobile applications in the form of driver assistance systems, night vision, and gesture control increase usage of infrared LEDs driving the market.

Infrared LEDs are in growing demand, as their application ranges include surveillance and security systems, health care through pulse oximetry and medical imaging, and industrial automation processes. The improvement of semiconductor technology has ensured high efficiency and performance without the cost of infrared LEDs increasing much.

GLOBAL CRISIS IMPACT ON THE INFRARED (IR) LED MARKET - COVID-19 IMPACT

"The COVID-19 pandemic has brought mixed effects to the infrared (IR) LED market "

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Supply chain and manufacturing operations interruptions have temporarily stopped the growth of the market, but increased demand for remote communication, home automation, and contactless technologies due to lockdown periods pushed infrared LEDs in consumer electronics and healthcare applications. As the world slowly recovered from the pandemic, demand resurfaced in the market, with operations restarting for industries, as well as investments in technology-driven solutions.

LATEST TREND

"Integration of Infrared LEDs in Augmented Reality and Virtual Reality Applications"

One of the latest trends in the infrared (IR) LED market is the increasing integration of these devices in augmented reality (AR) and virtual reality (VR) applications. A basic role of infrared LEDs applies especially in gesture recognition, eye tracking, and object detection functionalities of AR/VR headsets and other immersive platforms. As the demand continues rising for more intuitive interfaces in the AR/VR space, a growing use of infrared LEDs will enhance experience. Manufacturers now develop specialized infrared LED solutions for AR/VR which further accelerates market growth and introduces innovation.

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INFRARED (IR) LED MARKET SEGMENTATION

BY TYPE

Based on types, the global market can be categorized into Gallium Aesenide, InP Infrared, Aluminum Gallium Arsenide

• Gallium Arsenide (GaAs): Infrared LEDs that are associated with gallium arsenide feature efficiency, reliability, and cost-effectiveness. They mainly find applications in remote control, gesture recognition, and industrial automation.

• InP infrared: LEDs combine all these advanced performance characteristics, such as increased output power and spectral purity. It mainly uses some special applications which are medical imaging, free space optical communication, and data transmission at high speed.

• Aluminum Gallium Arsenide (AlGaAs): Infrared LEDs that emit light in a few specified wavelengths are made using aluminum gallium arsenide, and they are applied precisely in cases where the precise wavelength of infrared is to be targeted. It is mainly implemented in night vision and other unique sensor systems.

BY APPLICATION

Based on application, the global market can be categorized consumer electronics, Automotives, Surveillance & Security, Healthcare, Telecoms, Industry.

• Consumer Electronics: Consumer electronics are highly laden with infrared LEDs. Some of these devices include remote control, mobile phones, wearable devices, and thousands of home automation systems.

• Automotive: Infrared LEDs are in the automobile sector. It is utilized in driver assistant systems, night vision, gesture control, and inter vehicle communication.

• Surveillance & Security: Infrared LEDs are in great demand for surveillance and security applications, which include night vision, motion detection, and object tracking.

• Healthcare: Infrared LEDs are used in medicine, such as in pulse oximetry, medical imaging, and non-invasive diagnostics.

• Telecoms: In the application of fiber optic communications including data transfer as well as signal processing, the world has moved to become highly infrared- and speed-driven LEDs.

• Industry: Industrial automation, process control, and sensor applications are some of the areas where infrared LEDs find their use, as they would lead to improved efficiency and productivity.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

"More consumer electronics as well as automotive applications."

The infrared LEDs, integrated into consumer electronics, which include wearables, home automation products, and smartphones, are actually a pretty strong growth driver in the infrared LED market share. The requirement for more advanced features, gesture control capabilities, and remote connectivity drive the usage of infrared LED technology. Increased usage of infrared LEDs in automotive applications, including driver assistance systems and night vision, drives the expansion of this market.

"Improvements in Semiconductor Technology"

With ongoing advancements in semiconductor technology, infrared LEDs are becoming even more efficient, capable, and less expensive. This emerging market is based on the newness of materials, structure of devices, and manufacturing processes with higher intensity, energy efficiency, and reliability of infrared LEDs, thus making them widely applicable in various industries.

"Growing Demand in Surveillance and Security Applications"

The growth driver for this market is the increasing application of infrared LEDs in surveillance and security systems, especially in the night vision, motion-detecting, and object-tracing applications. Advanced security needs, especially in lowlight conditions, are driving in infrared LED-based technologies to the market.

RESTRAINING FACTORS

"High Initial Investment with High Operating Costs"

Some of the major drawbacks for market growth for infrared LED technology include high initial investment and operating cost. The production cost of infrared LEDs has increased due to the usage of advanced semiconductor material and specific testing and quality checks involved in infrared LEDs manufacturing processes. This production cost hampers their applications in application-based or region-based sensitive markets and regions.

OPPORTUNITY

"Integration in New Technologies and IoT Applications"

The infrared LED market has immense growth opportunities in emerging applications such as augmented reality, virtual reality, and Internet of Things (IoT). As these technologies are further developed and applied on a wider scale, the need for infrared LEDs will be present to make the more advanced features like gesture recognition, object detection, and wireless communication work.

CHALLENGES

"Intense Competition and Pricing Pressure"

Infrared (IR) LED Market has been highly competitive with numerous global and regional players in terms of product and solutions offered. Due to such intense competition and persistent cost pressures on account of continually falling product prices, the profit margins and market share of market players may be impacted.

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REGIONAL INSIGHTS OF INFRARED (IR) LED MARKET

NORTH AMERICA

The second major key region is North America that holds a significant share in the global infrared (IR) LED market. This is attributed to the dominance of consumer electronics and automotive companies in the region. Technological advancement in the region, high adoption of new solutions, and demand from improved security and surveillance systems are driving growth in the United States IR LED market.

EUROPE

The other big market for infrared (IR) LEDs is Europe, targeting industrial automation, healthcare, and automotive application. The reason for this gigantic growth in Europe is the manufacturing capabilities in the region, added emphasis toward energy efficiency, and, more importantly, environmental sustainability.

ASIA-PACIFIC

The IR LED market's most important growth region is Asia-Pacific. Consumer electronics and semiconductor manufacturing are mainly located in Asia-Pacific, such as China, Japan, and South Korea, hence the growth. It is because of the population, rapid urbanization, and increasing disposable income that infrared LED-enabled devices and applications are in increasing demand.

KEY INDUSTRY PLAYERS

The competition in the infrared (IR) LEDs market is extremely high in nature. There are numerous global and regional players present with their product portfolio, technological capabilities, and strategies in the market. Among such players, the following ones are the key players who are shaping the market as follows Such vendors are doing product development, capacity addition, alliance activities and geography expansion as a growth plan to build market supremacy as well as to react on the fast growing market demands of infrared LED for applications within such industries.

LIST OF TOP MARKET COMPANIES

• Osram Opto Semiconductors GmbH, Germany
• Epistar Corporation, Taiwan
• Everlight Electronics Co., Ltd, Taiwan
• Vishay Intertechnology, Inc., U.S.
• Lumina Power, Inc., U.S.
• Excelitas Technologies Corp., USA
• Edison Opto Corporation, Taiwan
• Epileds Technologies, Inc. (Taiwan)
• Opto Diode Corporation (U.S)
• San'an Optoelectronics Co., Ltd. (China)

KEY INDUSTRY DEVELOPMENT

August 2023: Osram Opto Semiconductors increases efficiency of infrared LEDs Osram Opto Semiconductors, the worldwide leading infrared LED specialist, has developed a new generation of powerful infrared LEDs. A brand-new series combines increased efficiency with higher output power in a product family for growing applications of infrared LEDs in automobile, security, and industrial automation applications.

REPORT COVERAGE

The global infrared LED market analysis report, which discusses its market size, share, trend, growth, and industry analysis along with its drivers, constraints, opportunities, and challenges, has much to offer in competitive landscape analysis and insights into regions where business is gaining more momentum. Latest industry developments, strategic initiatives, and technological advances that decide the course of future progress in the infrared LED market can also be gained through this research study.

The IR LED market has immense growth potential due to the surging adoption of infrared LED technology in consumer applications such as automobiles, surveillance and security systems, and new-age technologies such as augmented reality and the Internet of Things. Some of the challenges that have impacted the market include high initial cost of investment and stiff competition. However, on going advancements in semiconductor technology besides growing demand for energy-saving and innovative solutions will also add fuel to the increase in this market size for future years.