Infrared is an electromagnetic wave ranging from about 700nm-1000nm and a radiant energy type that is invisible to human eyes. It could be felt in the form of heat. These rays are specifically emitted by LED which is called Infrared Light Emitting Diode (IR LED). It is designed to emit light with wavelengths longer than those of visible light. IR LEDs are commonly used in applications where the detection of infrared radiation is necessary, such as remote controls, security cameras, and night-vision devices. Due to its wide range of uses, it gained large popularity among various industries. It performs a variety of functions based on sensor type including proximity sensor, remote control sensor, pressure sensor, and so on.
The growing demand for IR LED for security and surveillance camera systems that are widely used to provide illumination in low-light or nighttime conditions. At the same time, there is an increase in advancements the technological created a larger popularity among the customers such as smart TV, remote controller cars & electronic devices, and wearables, developed with IR LED technology. Further, IR LEDs are used in various industrial applications, such as sensing and inspection systems, to detect objects and measure distances.
The growing trend towards automation in industries is driving the demand for infrared LEDs. Nowadays, solar panels are equipped with IR LED which could convert electric energy by leveraging the potential of IR rays. It created a demand for IR LED in renewable energy sectors. Overall, the extensive use of IR technology continues to drive the market for Infrared LED in the coming years as predicted in the forecast period.
The Global Infrared LED Market has reached a value of $1.05 billion in 2022. This market is projected to grow from $1.2 billion in 2023 to $3.1 billion in 2030 with a CAGR of 14.5% in the forecast period 2023-2030. This market is estimated based on different key pointers that attribute to the growth which are spectral range including Short-Wave Infrared (SWIR) LED, Medium-Wave Infrared (MWIR) LED, Long-Wave Infrared (LWIR) LED, applications including Biometrics, Imaging, Lighting, Remote Sensing, Surveillance, and end-user such as Aerospace & Defense, Automotive, BFSI, Consumer Electronics, Education, Healthcare, Industrial, Retail. Leading Companies such as Epileds Technologies, Epistar Corporation, Everlight Electronics Co. Ltd., Excelitas Technologies Corporation, High Power Lighting Corporation, Kingbright, OSRAM GmbH, Lextar Electronics Corporation, Lite-On Technology, and Nichia Corporation.
The Long Wavelength Infrared (LWIR) LED segment is one of the major key driving forces behind the growth of the Infrared LED market. They have wavelengths between 8 and 14 microns, which is longer than the wavelengths of Near Infrared (NIR) and Short-Wavelength Infrared (SWIR) LEDs. They have been gaining popularity due to their wide range of applications in various industries such as aerospace, defense, automotive, and industrial among others. It has a property of high sensitivity to temperature changes which makes them ideal for use in thermal imaging cameras, gas sensing, and flame detection applications. The increasing adoption of LWIR LEDs in automotive applications such as night vision systems and driver monitoring systems, and aerospace applications such as thermal imaging and temperature sensing systems, is projected to improve the growth of the Infrared LED market in the upcoming years.
Asia-Pacific region holds the largest market share for the Infrared LED market compared to others. This can be attributed to various factors such as the increasing demand for consumer electronics, rising adoption of automation in industries, and the growing trend towards smart homes and smart cities. China, Japan, South Korea, and Taiwan are some of the key countries driving the growth of the Infrared LED market in the Asia-Pacific region. These countries have a strong presence of major Infrared LED manufacturers and are investing heavily in research and development activities to develop advanced Infrared LED technologies. Moreover, the Asia-Pacific region is witnessing a rapid increase in urbanization and industrialization, which is driving the demand for security and surveillance systems, automation, and smart homes and cities. This, in turn, is expected to fuel the demand for Infrared LEDs in the region.
For instance, in 2020, the Indian-based company DetelPro launched its low-cost Infrared Thermometers DT09 under the Make-in-Bharat scheme. It started the sales through distribution or selling through e-platforms. Further, in 2021, the Taiwan-based company Epileds put forth the idea of expanding its IR LED chips production capacity with an investment of US$ 10.8 million. All these developments and expansion contributed to a larger share in the Asia-Pacific region as well as promoted the growth of the Infrared LED market in the upcoming years as predicted.
The increasing adoption of Infrared LEDs in automotive applications such as night vision systems and driver monitoring systems is expected to drive the demand for Infrared LEDs. It is necessary for companies that should invest in research and development activities to develop advanced Infrared LED technologies with better performance, lower power consumption, and longer lifetimes. This will help them stay ahead of their competitors and cater to the evolving needs of customers. Further, they should explore emerging markets such as Asia-Pacific, Latin America, and the Middle East, where there is a growing demand for Infrared LED products. This will help them to increase their revenue base and enhance the growth of the Infrared LED market in the coming years as expected.