Chip Scale Package LED Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application (BLU, General Lighting, Automotive Lighting, Flash Lighting), By Power Range (High Power, Low- and Mid-Power), By Region and Competition, 2020-2030F

Market Overview

The Global Chip Scale Package LED Market, valued at USD 4.23 Billion in 2024, is projected to experience a CAGR of 16.93% to reach USD 10.81 Billion by 2030. Chip Scale Package (CSP) LED technology defines an LED package whose physical size is equivalent to, or no larger than 20% of, the actual LED chip, thereby eliminating conventional packaging components for a more compact and thermally efficient device. The market's expansion is fundamentally driven by the escalating demand for energy-efficient lighting solutions across diverse applications, continuous technological advancements enhancing performance and lumen density, and the pervasive industry requirement for miniaturization in consumer electronics and automotive sectors. For instance, according to the Society of Automotive Engineers, LED adoption in automotive lighting reached 65% market penetration in 2023, a significant segment where CSP LEDs are highly valued for their compact form factor and efficiency. Additionally, the inherent potential for cost reduction stemming from simplified manufacturing processes further supports market growth.

A significant challenge that could impede market expansion for CSP LEDs is the comparatively high manufacturing costs. These elevated costs are often attributed to complex production processes and the lower yield rates associated with wafer-level manufacturing, alongside the demanding precision required for surface mount technology during integration.

Key Market Drivers

The Global Chip Scale Package LED Market is significantly influenced by the rising demand for energy-efficient lighting solutions. As industries and governments prioritize sustainability, the adoption of advanced LED technologies becomes imperative to reduce energy consumption and operational costs. Chip Scale Package LEDs, with their inherent efficiency and compact design, are well-positioned to meet this escalating requirement across various sectors. For instance, according to the European Commission, October 2023, 'Energy Efficiency Directive', EU countries are mandated to achieve annual energy savings of at least 1.3% from 2024 to 2025 in end-use sectors, fostering a favorable environment for energy-saving lighting.

Concurrently, the pervasive miniaturization trend across consumer electronics acts as another powerful catalyst. Consumers increasingly seek slimmer, lighter, and more integrated devices, driving manufacturers to innovate with smaller components. CSP LEDs directly address this need by offering a highly compact form factor without compromising performance, enabling sleeker designs in everything from mobile devices to wearable technology. According to Murata, January 2024, 'Enabling World-Class Connectivity for Mobility and Beyond: Murata Heads to CES 2024', the company’s latest connectivity module is miniaturized to deliver high-performance and class-leading integration for various electronic applications. This ongoing push for compact, high-performance components directly benefits the CSP LED market. The combined effect of these drivers propels the market forward, with CSP LEDs offering a compelling solution where both efficiency and size are critical. Overall, according to the International Energy Agency, in 2023, LED lighting adoption reached 63% of global lighting sales, underscoring the widespread acceptance and continued growth trajectory for LED technologies, including CSP LEDs.

Download Free Sample Report

Key Market Challenges

The challenging factor identified in the overview is the comparatively high manufacturing costs associated with Chip Scale Package (CSP) LEDs. These elevated costs directly impede the growth of the Global Chip Scale Package LED Market by diminishing the overall cost-effectiveness of these advanced lighting solutions. The complexity of production processes, coupled with lower yield rates inherent in wafer-level manufacturing, significantly inflates the per-unit cost. Additionally, the demanding precision required for surface mount technology during integration further adds to the manufacturing expenditure.

The higher production costs translate into higher average selling prices for CSP LED products, making them less competitive against traditional LED packages or other lighting technologies, particularly in price-sensitive applications. According to the China Solid-State Lighting Alliance (CSA), in 2022, the output value of LED packaging in mainland China decreased by 15% from the previous year, with revenue and profit of leading packaging companies also declining. This indicates a direct impact of cost pressures and market dynamics on the profitability and growth potential within the LED packaging sector, which includes CSP technologies. This increased cost burden can deter manufacturers from adopting CSP LEDs on a larger scale and can limit consumer and industrial uptake, thereby directly hampering market expansion despite the benefits of miniaturization and efficiency.

Key Market Trends

The pervasive integration of Chip Scale Package LEDs with smart lighting and Internet of Things platforms represents a significant market trend. CSP LEDs are inherently suited for smart lighting applications due to their compact footprint, facilitating their incorporation into miniaturized, wirelessly controlled luminaires. This trend extends beyond basic illumination to offer advanced functionalities such as adaptive lighting, intelligent energy management, and remote diagnostics across residential and urban infrastructure. According to the Connectivity Standards Alliance (CSA), in March 2024, the organization launched its IoT Device Security Specification 1.0 and a corresponding Product Security certification program. This initiative provides a unified security baseline for IoT devices, including smart lighting, aiming to enhance transparency for consumers and protect against hacking attempts.

The rising adoption of Chip Scale Package LEDs in Micro-LED and Mini-LED displays is profoundly influencing the market landscape. CSP LEDs are fundamental to these advanced display technologies given their diminutive size and ability to deliver high luminance and precise pixel control, critical for achieving ultra-high-resolution, high-contrast, and wide color gamut displays. This enables their deployment in premium applications such as large-format commercial displays, high-end televisions, and sophisticated automotive infotainment systems where display quality and form factor are paramount. According to AUO, in November 2023, the company announced an agreement with PlayNitride to establish a $21.5 million 6-inch epiwafer Micro LED production line at AUO's Longtan factory. This investment signifies a strategic expansion of Micro LED manufacturing capabilities, essential for realizing advanced display applications and supporting increasing demand.

Segmental Insights

The Backlight Unit (BLU) segment represents a pivotal area within the Global Chip Scale Package LED Market, demonstrating significant and rapid growth. This expansion is primarily driven by the escalating demand for compact, energy-efficient, and high-resolution displays across a wide array of consumer electronics, including smartphones, tablets, televisions, and monitors. Chip Scale Package LEDs are highly advantageous for BLU applications due to their inherently small form factor, exceptional luminous efficiency, and capacity to deliver uniform brightness essential for advanced screen technologies. This sustained demand for enhanced display performance continues to underpin the segment's substantial market contribution and robust growth trajectory.

Regional Insights

Asia Pacific leads the Global Chip Scale Package LED Market primarily due to its robust manufacturing infrastructure, particularly across China, South Korea, and Taiwan. This region hosts a high concentration of key LED production facilities and major industry players. Significant demand from the expansive electronics and lighting sectors, including consumer devices, display backlighting, and general illumination, further propels market growth. Additionally, proactive government initiatives promoting energy efficiency and sustainable lighting solutions contribute substantially to the region's dominance. Rapid industrialization and urbanization in Asia Pacific also fuel demand for advanced, energy-efficient lighting technologies.

Recent Developments

• In September 2025, Lumileds introduced its LUXEON HL1Z Color Line, a new portfolio of high-power, chip-scale package (CSP) LEDs. This line features ten direct and phosphor-converted colors that share a uniform focal length and footprint, simplifying the development of multi-color LED applications. The LEDs are supplied in small color bins and narrow forward-voltage bins, which contribute to improved color uniformity, enhanced efficacy, and better thermal management. These characteristics ensure consistent performance under various operating conditions and further strengthen Lumileds' leadership in CSP technology, which the company pioneered in 2013.

• In May 2025, Seoul Semiconductor highlighted its strengthened position in the global LED market, partly attributed to its "No-wire" Micro LED technology. This proprietary technology is a core component for next-generation displays and has further solidified the company's leadership following a patent litigation victory at Europe's Unified Patent Court (UPC). Furthermore, in August 2025, the company emphasized leveraging its extensive portfolio of over 18,000 patents, including its Wicop technology, to accelerate growth in the expanding micro LED sector. Wicop, a form of chip-scale packaging, provides a significant edge in advanced display applications.

• In December 2024, ams OSRAM announced its plans to showcase advanced LED innovations at CES 2025, including the EVIYOS Shape and EVIYOS HD 25. The EVIYOS Shape integrates 25,600 pixels into a single micro-LED chip array, delivering exceptional color and brightness uniformity alongside reduced power consumption for precise image projection in urban areas. The EVIYOS HD 25, designed for automotive high-resolution dynamic forward lighting, enables Adaptive Driving Beam (ADB) headlights to individually control thousands of pixels. This technology significantly enhances road safety by reducing glare for other drivers and improving hazard visibility.

• In January 2024, Nichia launched a new chip-scale LED, Part No. NFSWL11A-D6, designed to create lighting environments with soft, horizontal light distribution. This innovation by Nichia leverages years of expertise in phosphors and LEDs to overcome the directional light limitations of conventional LEDs, which often result in grainy fixture appearances. The NFSWL11A-D6 enables the design of thinner and lighter lighting fixtures, potentially reducing the material usage in both fixtures and building installations. The strong horizontal light output aims to produce a low-glare, enveloping illumination, offering new possibilities for solid-state lighting fixture designs and enhancing overall lighting aesthetics.

Key Market Players

• Nichia Corporation
• ams-OSRAm AG
• Wolfspeed Inc.
• Samsung Electronics Co., Ltd.
• Seoul Semiconductor Co., Ltd.
• Lumileds Holding B.V.
• Epistar Corporation
• Everlight Electronics Co., Ltd.
• LG Innotek Co., Ltd.
• Lextar Electronics Corporation

Report Scope:

In this report, the Global Chip Scale Package LED Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Chip Scale Package LED Market, By Application:

o   BLU

o   General Lighting

o   Automotive Lighting

o   Flash Lighting

• Chip Scale Package LED Market, By Power Range:

o   High Power

o   Low- and Mid-Power

• Chip Scale Package LED Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Chip Scale Package LED Market.

Available Customizations:

Global Chip Scale Package LED Market report with the given market data, TechSci Research offers customizations according to a 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 five).

Global Chip Scale Package LED Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]