Infrared LED Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (LED Emitters, Photodiodes, Optoelectronics, Integrated Assemblies), By Material (Gallium Arsenide (GaAs) LEDs, Aluminium Gallium Arsenide (AlGaAs) LEDs, Indium Gallium Arsenide (InGaAs) LEDs, Others), By End User (Electronics and IT, Healthcare and Life Sciences, Automotive Industry, Aerospace and Defense, Industrial Manufacturing) By Region, By Competition 2020-2030F

Market Overview

The Global Infrared LED Market, valued at USD 819.00 Million in 2024, is projected to experience a CAGR of 15.20% to reach USD 1914.25 Million by 2030. Infrared Light-Emitting Diodes (IR LEDs) are semiconductor devices that emit invisible infrared radiation, detectable by specialized sensors and cameras. Market growth is primarily driven by their escalating integration across various sectors. Key drivers include increased demand in consumer electronics for facial recognition and gesture control, as well as critical applications in automotive advanced driver-assistance systems. Additionally, the expansion of security and surveillance systems, leveraging IR LEDs for night vision, substantially contributes to market momentum.

Further impetus stems from rising adoption in IoT devices and industrial automation for machine vision. According to the 2024 SPIE Global Industry Report, global annual revenues for photonics-enabled products, incorporating IR LEDs, were projected to exceed $2.39 trillion in 2023. However, a significant challenge hindering market expansion is the inherent high manufacturing cost of these specialized semiconductor components.

Key Market Drivers

The increasing demand for robust security infrastructure and continuous technological innovations represent two paramount driving factors influencing the Global Infrared LED Market. The expansion of surveillance and security systems, driven by evolving safety requirements, significantly boosts IR LED adoption. These systems rely on infrared LEDs for effective night vision and covert monitoring, crucial for asset protection and public safety. For example, escalating financial impact from illicit activities compels businesses to enhance protective measures. According to the National Retail Federation, in 2023, retail shrinkage costs exceeded USD 112 billion, driving substantial investments in advanced surveillance systems equipped with IR capabilities. This direct correlation between security concerns and IR LED solutions underscores its critical market influence.

Concurrently, persistent technological innovations and performance enhancements profoundly shape the market landscape. Ongoing research and development focuses on improving IR LED efficiency, output power, and miniaturization, enabling integration into sophisticated applications, from enhanced biometric authentication to advanced industrial sensing. Illustrating this progress, according to Dowa Electronics Materials, in February 2024, their new Short Wave Infrared LED chip series achieved a 170mW output power at 1,350nm from a 1mm square chip, doubling comparable products. Such breakthroughs yield more compact, powerful, and energy-efficient IR LED components. Reflecting the broader industry's scale, according to S&P Global, on April 22, 2025, ams OSRAM, a major optoelectronics manufacturer, reported fiscal-year 2024 revenue at €3.43 billion, further highlighting the economic impact and growth potential within the overall market.

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Key Market Challenges

The inherent high manufacturing cost of specialized semiconductor components presents a significant challenge to the growth of the Global Infrared LED Market. The complex fabrication processes and the need for precision engineering for specific infrared wavelengths contribute to elevated production expenses. This directly impacts the final product pricing, making IR LED-enabled devices less competitive in cost-sensitive applications. According to SEMI, worldwide semiconductor manufacturing equipment sales reached $117.1 billion in 2024, increasing 10% from $106.3 billion in 2023. Such substantial and ongoing investments in the broader semiconductor ecosystem, which encompasses crucial stages for IR LED fabrication, reflect the significant capital intensity required. This consistently high capital expenditure contributes to the inherent manufacturing cost structure of specialized components like IR LEDs. Despite technological advancements aimed at efficiency, the intricate nature of achieving precise infrared emission for applications such as facial recognition or advanced driver-assistance systems maintains an elevated cost. This higher production cost ultimately translates to increased pricing for end-products, potentially limiting their adoption in price-sensitive market segments and thus hampering the overall expansion of the Global Infrared LED Market.

Key Market Trends

The integration of Artificial Intelligence in IR LED systems represents a significant trend, shifting focus from individual component performance to enhancing system-level intelligence and data processing. This development enables IR LED devices to perform more sophisticated tasks, such as improved object recognition, predictive maintenance, and autonomous decision-making. According to the Semiconductor Industry Association, in February 2024, the DRAM market was projected to grow by 39% due to the increasing demand from AI applications, underscoring AI's profound impact on related semiconductor sectors. ams OSRAM, in January 2023, announced its efforts to integrate artificial intelligence into smart products, leveraging its Mira Family image sensors alongside AI processors for applications in robotic vision, enhancing object detection and avoidance in industrial environments. This convergence allows IR LED systems to move beyond basic sensing, delivering enhanced functionality and operational efficiency across various industries.

The expanding adoption of IR LEDs in smart city infrastructure is another prominent trend, extending their application beyond traditional security into broader urban management solutions. This encompasses uses in intelligent traffic control, environmental monitoring, public safety, and smart lighting systems, contributing to more efficient and responsive urban environments. The European Court of Auditors reported in October 2023 that the Horizon 2020 Lighthouse programme, designed to support smart city projects, had received approximately €400 million in research and innovation funding for the 2014-2020 period, indicating substantial investment in developing smart urban solutions. Further highlighting market expansion, UPCITI, a smart city technology company, secured $20 million in Series A funding in October 2025 to scale its privacy-first urban operations platform, which utilizes proprietary sensors and edge AI software for managing traffic flows and public safety. This illustrates the growing recognition of IR LED technology as a foundational element in developing modern, interconnected urban spaces.

Segmental Insights

The Healthcare and Life Sciences segment stands out as the fastest-growing area within the Global Infrared LED Market, primarily due to the increasing adoption of advanced non-invasive diagnostic and therapeutic applications. Infrared LEDs are crucial in medical devices such as pulse oximeters, blood analysis systems, and various imaging technologies that enhance patient monitoring and diagnostic accuracy. Furthermore, their capability to penetrate biological tissues without causing harm makes them ideal for phototherapy and wound healing, stimulating natural healing processes. The ongoing development of compact, efficient wearable health devices integrating IR LED technology further propels this significant expansion.

Regional Insights

Asia Pacific stands as the leading region in the Global Infrared LED Market, primarily driven by its extensive electronics manufacturing capabilities and robust consumer electronics sector. The region's substantial production and high consumer demand for devices such as smartphones and smart home appliances significantly propel the integration of IR LEDs. Additionally, the increasing deployment of advanced surveillance systems in public infrastructure and defense applications, alongside a rising need for biometric authentication in banking and security sectors, fuels market expansion. The automotive industry in Asia Pacific also contributes significantly, with IR LEDs being increasingly adopted for advanced driver-assistance systems and in-cabin monitoring. These factors, combined with supportive technological advancements, solidify Asia Pacific's market dominance.

Recent Developments

• In October 2025, breakthrough research from a collaboration between The University of Texas at Austin and the University of Porto in Portugal demonstrated a new light-based cancer therapy utilizing near-infrared LED technology. The therapy employs a custom near-infrared LED heating system in conjunction with cancer-targeting tin oxide nanoflakes to selectively destroy cancer cells without harming healthy tissue. This collaborative research represents a significant advancement in medical applications for the Global Infrared LED Market, potentially leading to more accessible and less invasive cancer treatments.

• In September 2025, Excelitas announced an expanded portfolio of UV curing and IR drying solutions for the labels and packaging industry. Presented at Labelexpo Europe 2025, the offerings positioned Excelitas as a comprehensive provider, including infrared emitters and systems tailored for IR drying applications. This expansion in infrared solutions is directly relevant to the Global Infrared LED Market as it addresses industrial process optimization, enabling more efficient heating and drying, particularly for water-based inks and coatings used in packaging and label manufacturing.

• In January 2025, Marktech Optoelectronics highlighted its latest Medium-Wave Infrared (MWIR) LEDs designed for precision applications. The company showcased these innovations at Photonics West, an event for the photonics and laser industries. Marktech's MWIR LEDs are available with peak wavelengths of 3100nm, 3700nm, 3900nm, 4100nm, and 4300nm, catering to diverse precision MWIR needs. This product development contributes to the Global Infrared LED Market by expanding the range of specialized infrared emitters for various industrial and scientific applications requiring accurate wavelength control.

• In October 2024, ams OSRAM introduced its new IR:6 infrared (IR) LED chip technology, significantly enhancing performance within the Global Infrared LED Market. This advanced thin-film technology increased brightness by up to 35% and efficiency by up to 42% compared to previous generations of ams OSRAM IR LED emitters. The innovation enables manufacturers of security cameras and biometric authentication systems to achieve improved illumination for better image quality and faster, more accurate recognition. The first products to incorporate this technology were the OSLON P1616 series and the OSLON Black family of high-power IR LEDs.

Key Market Players

• OSRAM Opto Semiconductors GmbH
• Epistar Corporation
• Everlight Electronics Co., Ltd
• Nichia Corporation
• Lumileds Holding B.V
• High Power Lighting Corp
• Kingbright Company, LLC
• Lextar Electronics Corporation
• EPILEDS Technologies, Inc
• Koninklijke Philips N.V

Report Scope:

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

• Infrared LED Market, By Component:

o   LED Emitters.

o   Photodiodes.

o   Optoelectronics.

o   Integrated Assemblies

• Infrared LED Market, By Material:

o   Gallium Arsenide (GaAs) LEDs

o   Aluminium Gallium Arsenide (AlGaAs) LEDs

o   Indium Gallium Arsenide (InGaAs) LEDs

o   Others

• Infrared LED Market, By End User:

o   Electronics and IT

o   Healthcare and Life Sciences

o   Automotive Industry

o   Aerospace and Defense

o   Industrial Manufacturing

• Infrared 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 Infrared LED Market.

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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