Technavio’s latest semiconductor industry report covers the present scenario and growth prospects for the global LED backlight display driver ICs market during the period 2016-2020.
In this report, Technavio research experts announce their key market highlights for the global LED backlight display driver ICs market. Their findings include:
Global LED backlight display driver ICs market to fall to USD 2.19 billion by 2020
The global LED backlight DDIC market was valued at USD 3.37 billion in 2015 and will likely fall to USD 2.19 billion by the end of 2020, decreasing at a CAGR of 8.24% during the forecast period.
“The negative growth rate of the global LED backlight DDIC market can be attributed to the emergence of substitute technologies such as OLED, which is increasingly being adopted due to its power and display advantages. OLEDs do not require backlighting which has made OLED panels an effective substitute for LED backlighting technology,” said Asif Gani, a lead research analyst forhardware and displays at Technavio.
Despite these challenges, Technavio estimates a positive trend in the growth rates of the global LED backlight DDICs market post 2016 as a result of the ongoing rise in adoption of QD technology in display panels. The growing volume of automotive infotainment content and the increasing demand for mobile computing devices such as smartphones, tablet PCs, and notebooks, will also drive the recovery of the global demand for LED backlight DDICs, especially in APAC.
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Asia-Pacific (APAC) will continue to dominate the market
In terms of revenue contribution, APAC has been dominating the global LED backlight DDICs market, accounting for a share of 86% in 2015. APAC will further consolidate its dominance during the forecast period and account for 88.62% of the total revenue in 2020.
The region hosts many large consumer electronics and mobile computing device manufacturers, including prominent OEMs and ODMs such as Xiaomi, Samsung, LG, HTC, ZTE, Huawei, Lenovo, Acer, ASUS, and Sony. With the rising demand for high picture quality and improved efficiency systems, LED backlight DDICs are employed in the BLU of these devices.
The demand for LED backlight DDICs in developing countries is expected to drive the global market. The smartphone market in China and India is the largest in the world and is expected to drive sales of connected devices after the rollout of long-term evolution (LTE) and the ongoing trend of the Internet of Things (IoT).
“China is quickly emerging as a leading hub for LCD display manufacturers. The rising number of display device manufacturers in the country is mainly attributed to the availability of abundant resources and low-cost labor. The growing disposable income of people in APAC countries, along with the declining end-product prices, have increased the demand for such devices in the domestic market. The overall demand for consumer electronics in this region indirectly support the demand for LED backlight DDICs,” said Asif.
The presence of prominent automotive infotainment manufacturers in APAC makes the region a leader in the global LED backlight DDICs market. Companies such as Alpine, Denso, Fijitsu, Panasonic, and Pioneer manufacture automotive infotainment systems such as navigation systems and other in-vehicle entertainment devices, which incorporate LED backlight DDICs in their BLU.
”The automotive market in Japan is one of the largest markets for LED backlight DDICs. The country is a manufacturing hub for many prominent car manufacturers such as Toyota, Honda, Nissan, Suzuki, and Mitsubishi, which employ these infotainment devices and indirectly contribute to the demand for LED backlight DDICs in APAC. The automotive market in China is the largest in terms of automobile unit production, with the presence of many domestic automobile manufacturers such as China First Automobile Group (FAW), Dongfeng Motor, and Shanghai Automotive Industry (SAIC),” added Asif.
Emergence of QD display technology becoming a key trend for the market
QD technology will look to revolutionize the display industry by enhancing LED and LCD TVs. QD displays emit light that does not have to be filtered by the filter panels of LCD. The QD LEDs enhance luminance efficiency up to 30%-40%.
Features such as low power consumption and low-cost manufacturing have helped QD LEDs enter the market and compete with existing technologies like LCD and OLED. QDs are used both as a light source and a filter for an external light source. In filtered types, the backlight in QD-enhanced display originates from conventional LEDs and are filtered through QD layers. Depending on the size, QD crystals exude unique colors, creating a superior color spectrum.
“QD LEDs are in the early stages of development but the technology is expected to greatly drive the LED backlight market and generate demand for LED backlight DDICs to regulate light intensity. Companies such as TongFang Global and QD Vision are planning to manufacture new QD LED panels to provide its customers with wide color gamut (WCG) TVs. As well, ODMs such as Samsung Electronics are set to focus on QD TVs for its high-end TV portfolio in 2016. LG Electronics is planning enter the market to gain a competitive position,” said Asif.