Infrared LED Market to Continue Growth

15 June 2015

Over the past 10 years, visible light-emitting diodes (LEDs) have been adopted widely in many different applications, as prices have fallen and new technologies have been developed to make full use of them. The Infrared (IR) LED market is now also experiencing a similar increase.

Light-emitting diode. Image source: wikipediaLight-emitting diode. Image source: wikipediaThe market for infrared ambient light and proximity sensors was forecasted to continue growing very quickly in the near future. However, it is now expected to slow down significantly, as the market for sensors in tablets and smartphones begins to saturate. But the market for IR components is still forecasted to grow from $1.3 billion in 2014 to $1.5 billion in 2020.

So where is this growth coming from? The answer lies in the market for IR LEDs, photodiodes, and phototransistors.

IR LEDs have in the past been used in a variety of applications, mostly in remote controls for consumer goods. But over the past few years, there has been a huge increase in the popularity of consumer do-it-yourself (DIY) security cameras. Each of these cameras has a number of rings of IR LEDs, to provide night vision capabilities, meaning that for each camera sold, there could be anywhere from 10 to 50 IR LEDs. The gain in popularity has had a major impact on the market in China where the majority of these cameras are manufactured.

Despite gains in security cameras the real growth of potential, lies in the automotive market. Over the past 10 years, many leading automotive manufacturers have increased the number of sensors and “smart” capabilities into their vehicles. Many newer technologies—such as rain, light and tunnel sensors—now come equipped on many vehicles. Other applications of IR devices in cars include proximity, parking, lane detection and driver drowsiness sensors, and as such the IR LED market is growing strongly in the automotive market, with a 11% compound annual growth rate (CAGR) forecast from 2014 to 2020.

In automotive applications, each IR LED might be paired with a number of photodiodes or phototransistors to act as sensors. The success of the IR LED market is inherently linked to the success of the photodiodes and phototransistor market.

Over the next six years, with the emergence of more smart technologies and the focus of many consumers on safety and security, the market for IR LEDs, photodiodes and phototransistors will increase. However the market for visible LEDs is more than 10 times the size of the market for IR LEDs, meaning that whatever happens to the market for IR LEDs, the effects on the wider optoelectronics industry will still be dictated by the behavior of the visible LED market.

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