Infrared Light Emitting Diode Market Outlook

The global Infrared Light Emitting Diode (IR LED) market is projected to reach approximately USD 2.3 billion by 2035, growing at a compound annual growth rate (CAGR) of around 10% from 2025 to 2035. The increasing demand for IR LEDs across diverse applications such as security and surveillance systems, automotive lighting, and consumer electronics is a significant factor driving market growth. Moreover, advancements in technology enabling higher efficiency and longer lifespan of IR LEDs are also contributing positively to this market. The rising awareness regarding energy-efficient lighting solutions and the growing trend of smart homes and buildings are further augmenting the demand for infrared LED products. With the integration of infrared LEDs in various sectors, the outlook for this market remains robust and promising in the coming years.

Growth Factor of the Market

Several growth factors are influencing the expansion of the infrared LED market. Firstly, the rapid advancements in technology have resulted in the development of next-generation infrared LEDs that offer enhanced efficiency and performance. These improvements have made IR LEDs increasingly attractive for various applications, thus boosting market demand. Secondly, the growing emphasis on energy efficiency and sustainability has prompted industries to adopt LED technology over traditional lighting solutions, as LEDs consume significantly less power. Thirdly, the proliferation of smart devices and the Internet of Things (IoT) has created new opportunities for IR LEDs to be integrated into various applications, including smart home security systems and automotive applications. Additionally, the rising use of infrared technologies in medical imaging and diagnostics is also propelling market growth. Finally, the growing investments in research and development to explore new applications for infrared LEDs are likely to provide substantial momentum to the market in the near future.

Key Highlights of the Market

• The global infrared LED market is anticipated to reach USD 2.3 billion by 2035.
• North America holds a significant share in the infrared LED market due to high adoption rates in consumer electronics and automotive applications.
• Technological advancements are leading to the development of high-power and multi-wavelength infrared LEDs.
• The medical sector is emerging as one of the fastest-growing application segments for infrared LEDs.
• Online retail channels are becoming increasingly popular for the distribution of infrared LED products.

By Product Type

Through-Hole Infrared LED:

The through-hole infrared LED segment has been a traditional choice for many applications. These LEDs are characterized by their cylindrical shape and leads that go through the PCB, making them suitable for various industrial applications. The simplicity of design and ease of installation have made through-hole IR LEDs favorable for applications requiring robust performance in harsh environments. In addition, their relatively lower cost compared to surface mount components has kept them in demand among budget-conscious consumers. However, the segment faces challenges due to the growing shift toward surface mount devices, which are more compact and suitable for modern electronic designs.

Surface Mount Infrared LED:

Surface mount infrared LEDs are gaining popularity due to their compact size and favorable performance characteristics. These LEDs can be mounted directly onto the surface of a PCB, allowing for more efficient use of space and better thermal management. Their increased efficiency and reliability make them an ideal choice for high-density applications, especially in consumer electronics and automotive systems. As the trend towards miniaturization continues, surface mount IR LEDs are expected to dominate the market share in the coming years. Additionally, their enhanced optical performance and lower power consumption make them a preferred choice for smart devices and IoT applications.

High Power Infrared LED:

The high-power infrared LED segment is particularly focused on applications requiring significant light output and energy efficiency. These LEDs can emit a higher intensity of infrared light, making them ideal for industrial applications such as machine vision, surveillance, and automation systems. The advancement in technology has enabled the production of high-power IR LEDs that not only consume less power but also have a longer operational lifespan. This trend is crucial in sectors looking to reduce energy costs while maximizing performance. As the demand for high-performance lighting solutions increases, this segment is poised for substantial growth in the market.

Low Power Infrared LED:

The low-power infrared LED segment is primarily used in applications that require minimal energy consumption, such as remote controls, indicator lights, and low-intensity lighting. These LEDs are designed to operate at lower currents, providing a cost-effective solution for low-demand applications. The increasing adoption of battery-operated devices and portable electronics is contributing to the growth of this segment, as low-power IR LEDs help to extend battery life. Furthermore, their compact size and lightweight nature make them suitable for a wide range of consumer electronics. The ongoing trend towards energy-efficient technologies also supports the growth of low-power infrared LEDs.

Multi-Wavelength Infrared LED:

The multi-wavelength infrared LED segment is emerging as a significant innovation in the infrared LED market. These LEDs can emit light at different wavelengths, enabling them to be utilized in various specialized applications, such as spectroscopy, sensing, and advanced imaging technologies. The versatility of multi-wavelength IR LEDs allows for their integration into sophisticated instruments and systems, making them highly valuable in research and development settings. With the rise in demand for complex applications that require precise wavelength control, this segment is projected to witness considerable growth in the coming years, driven by technological advancements and increased investment in research.

By Application

Security and Surveillance:

The security and surveillance application is one of the major driving forces for the infrared LED market. The increasing need for enhanced security measures in both residential and commercial sectors has led to a surge in the implementation of IR cameras and detectors. Infrared LEDs provide the necessary illumination for night vision and low-light scenarios, ensuring that surveillance systems can capture clear images and video footage even in darkness. The growth of smart home security solutions, equipped with infrared technology, is further propelling market demand. As urbanization continues to rise globally, investments in security infrastructure are expected to increase, solidifying the position of infrared LEDs in this application segment.

Automotive:

The automotive industry is rapidly incorporating infrared LED technology into various applications, including interior lighting, adaptive headlights, and driver assistance systems. Infrared LEDs enhance visibility for night vision systems, providing drivers with improved safety and security during nighttime driving. As automotive manufacturers increasingly focus on improving vehicle safety features and the overall driving experience, the demand for infrared LEDs is projected to rise significantly. Moreover, the shift towards electric vehicles (EVs) presents new opportunities for IR LED integration in advanced driver-assistance systems (ADAS) and intelligent transportation systems, further driving market growth in this segment.

Consumer Electronics:

Infrared LEDs play a vital role in the consumer electronics market, primarily in devices such as remote controls, televisions, and smartphones. As household electronics continue to proliferate, the demand for infrared LEDs for remote communication has grown correspondingly. Additionally, with the increasing adoption of smart home technologies, more devices are utilizing infrared LEDs for communication and sensing applications. The consumer electronics segment is expected to remain a substantial contributor to the overall growth of the infrared LED market, driven by the continuous innovation in electronic devices and the demand for more advanced functionalities.

Medical:

In the medical field, infrared LEDs are utilized for various therapeutic and diagnostic applications. Their ability to penetrate biological tissues makes them suitable for applications such as phototherapy, where infrared light is used to promote healing and alleviate pain. Additionally, infrared LEDs are used in medical imaging technologies, such as infrared thermography, to detect and monitor various health conditions. The growing emphasis on non-invasive medical procedures and the increasing demand for high-quality imaging systems are contributing to the growth of the infrared LED segment in the medical industry. As healthcare technology continues to evolve, the application of infrared LEDs is expected to expand further.

Industrial:

The industrial application of infrared LEDs is significant due to their use in manufacturing processes, automation, and machine vision systems. Infrared LEDs are integral to systems that require precise sensing, detection, and illumination in various industrial environments. Their ability to function effectively in challenging conditions, such as low-light environments or high dust levels, makes them a reliable choice for industrial automation applications. As industries increasingly adopt smart manufacturing practices and automation technologies, the demand for infrared LEDs in industrial applications is anticipated to grow, driven by the quest for improved efficiency and productivity.

By Distribution Channel

Online Retail:

The online retail distribution channel has seen significant growth in the infrared LED market, thanks to the increasing popularity of e-commerce platforms. Consumers and businesses alike are turning to online retail for the convenience of shopping from home and accessing a wider variety of products. Online retailers often offer competitive pricing, detailed product information, and customer reviews, making it easier for buyers to make informed decisions. Furthermore, the online distribution channel allows manufacturers and suppliers to reach a global audience, thus expanding their market presence. Continuous advancements in digital marketing and logistics are expected to further enhance the growth of online retail as a distribution channel for infrared LEDs.

Offline Retail:

While online retail is on the rise, offline retail remains a crucial distribution channel for infrared LEDs, particularly in regions where e-commerce penetration is lower. Brick-and-mortar electronics stores, hardware suppliers, and specialty lighting shops provide customers with the opportunity to see and evaluate products before making a purchase. This tactile experience is particularly important for certain segments of consumers who prefer in-person shopping. Additionally, offline retailers often offer expert advice and technical support, making it easier for customers to choose the right infrared LED products for their specific needs. As a result, offline retail will continue to coexist alongside online channels, contributing to the overall market growth.

By Material Type

Gallium Arsenide:

Gallium arsenide (GaAs) is a prominent material used in the manufacture of infrared LEDs due to its exceptional electronic and optical properties. GaAs-based infrared LEDs are known for their high efficiency and ability to emit light at specific wavelengths, which makes them suitable for a range of applications, including telecommunications, consumer electronics, and industrial sensing. The increasing demand for high-performance infrared LEDs has led to significant investments in GaAs technology, driving innovation and reducing costs. As industries continue to upgrade their systems and integrate advanced technologies, the demand for gallium arsenide infrared LEDs is expected to grow steadily.

Aluminium Gallium Arsenide:

Aluminium gallium arsenide (AlGaAs) is another material extensively used in the production of infrared LEDs. The incorporation of aluminum into the gallium arsenide matrix allows for the tuning of the emission wavelength, enhancing the versatility of infrared LEDs. This property makes AlGaAs LEDs particularly valuable in applications such as optical communication and medical diagnostics. As the market for specialized infrared applications continues to expand, the demand for aluminium gallium arsenide infrared LEDs is anticipated to rise significantly, driven by advancements in material science and increasing adoption in various sectors.

Indium Gallium Nitride:

Indium gallium nitride (InGaN) is a relatively newer material that is gaining traction in the infrared LED market due to its unique characteristics and capabilities. InGaN-based LEDs can emit light across a wide range of wavelengths, making them suitable for multi-wavelength applications. This flexibility allows for their use in advanced technologies such as spectroscopy and sensing devices. The growing emphasis on research and development in the field of optoelectronics is facilitating the adoption of InGaN infrared LEDs in various high-tech applications. As industries continue to seek innovative solutions, InGaN is poised to become a key player in the infrared LED market.

Other:

Other material types used in the production of infrared LEDs include various composite materials and emerging compounds that aim to enhance performance and efficiency. These materials may offer specific advantages such as improved heat dissipation, better reliability under extreme conditions, or enhanced wavelength performance. While these materials currently hold a smaller market share compared to GaAs, AlGaAs, and InGaN, they represent a growing area of interest as researchers and manufacturers explore new possibilities for infrared LED technology. The continuous evolution of materials science is likely to drive innovation in this space, leading to the development of next-generation infrared LEDs.

By Region

North America is currently one of the leading regions in the infrared LED market, accounting for a significant market share due to the high adoption of infrared technology in various sectors, including automotive, consumer electronics, and security. The region is home to numerous leading technology companies and manufacturers that are continuously innovating and integrating advanced infrared LED solutions into their products. The increasing popularity of smart home devices and the growth of the automotive industry, particularly electric vehicles, are further expected to propel the demand for infrared LEDs in North America. The market in this region is projected to grow at a CAGR of approximately 9.5% over the forecast period.

In Asia Pacific, the infrared LED market is experiencing rapid growth, driven by the booming electronics industry and increasing consumer demand for advanced technologies. Countries such as China, Japan, and South Korea are at the forefront of this growth, with a strong emphasis on manufacturing consumer electronics and automotive components. The rising investments in smart city initiatives and the growing demand for security and surveillance solutions are also contributing to the market expansion in this region. The Asia Pacific region is anticipated to witness the highest growth rate during the forecast period, fueled by both domestic consumption and export opportunities.

Opportunities

The infrared LED market presents various opportunities for growth and innovation in the coming years. One of the most significant opportunities arises from the increasing demand for smart home technology. With the proliferation of IoT devices and smart security systems, infrared LEDs are becoming essential components in modern households. Manufacturers can capitalize on this trend by developing innovative infrared lighting solutions that integrate seamlessly with smart home ecosystems, thus enhancing user experience and providing additional functionalities. Furthermore, as consumers become more environmentally conscious, there is an opportunity for companies to emphasize the energy efficiency and sustainability of their infrared LED products, which can differentiate them in a competitive market and attract a broader customer base.

Another area of opportunity lies in the expanding applications of infrared LEDs in the medical sector. As the healthcare industry increasingly adopts non-invasive diagnostic and therapeutic technologies, infrared LEDs are becoming integral to various medical devices. Companies focused on R&D can explore new applications of infrared technology in areas such as telemedicine, wearable health devices, and advanced imaging systems. By collaborating with healthcare professionals and institutions, manufacturers can develop specialized infrared solutions tailored to meet the unique demands of the medical field. This collaboration can also lead to the establishment of a strong market presence in the rapidly growing health tech sector, allowing companies to leverage the increasing investments in healthcare innovation.

Threats

Despite the numerous opportunities, the infrared LED market faces certain threats that could impact its growth trajectory. One of the primary challenges is the intense competition among manufacturers, which puts pressure on pricing and profit margins. As more players enter the market, there is a risk of oversaturation, leading to price wars that may compromise product quality and innovation. Additionally, the rapid pace of technological advancement means that companies must continuously invest in R&D to stay ahead of the competition. Failure to keep up with emerging technologies may result in loss of market share and reduced competitiveness. Moreover, economic fluctuations and changes in regulatory environments can also pose threats to market stability, as companies may struggle to navigate the complexities of compliance while managing costs.

Another significant threat to the infrared LED market stems from the potential disruption caused by alternative lighting technologies. The emergence of new technologies, such as laser diodes and organic LEDs (OLEDs), may challenge the dominance of traditional infrared LEDs in certain applications. For instance, laser diodes are known for their high intensity and efficiency, making them suitable for specific industrial and medical applications. If these alternative technologies gain traction, they could divert investments and attention away from infrared LEDs, leading to a decline in market growth. Thus, it is essential for infrared LED manufacturers to remain vigilant and adaptable to changing market dynamics to ensure long-term sustainability and competitiveness.

Competitor Outlook

• Osram Opto Semiconductors
• Vishay Intertechnology
• Fujitsu Limited
• Lite-On Technology Corporation
• Broadcom Inc.
• Everlight Electronics Co., Ltd.
• Kingbright Company, LLC
• STMicroelectronics
• Rohm Semiconductor
• Honeywell International Inc.
• Samsung Electronics
• Philips Lighting
• Sharp Corporation
• Texas Instruments
• Agilent Technologies

The competitive landscape of the infrared LED market is characterized by the presence of several key players who are continuously innovating to enhance product offerings and expand their market reach. These companies are investing heavily in R&D to develop advanced infrared LED technologies that cater to the evolving needs of various industries. Strategic collaborations, mergers, and acquisitions are common practices among these manufacturers as they seek to strengthen their market position and leverage new opportunities. Additionally, many competitors are focusing on sustainability initiatives, aiming to provide energy-efficient solutions that align with global trends towards environmentally friendly practices.

Osram Opto Semiconductors is a prominent player in the infrared LED market, known for its wide range of high-performance infrared LEDs suitable for various applications, including automotive, industrial, and medical sectors. The company emphasizes innovation and quality in its product offerings, enabling it to maintain a competitive edge. Similarly, Vishay Intertechnology has established a strong reputation for its reliable and efficient infrared LED solutions, targeting the consumer electronics and automotive markets. The companyÔÇÖs commitment to customer satisfaction and product excellence has positioned it as a leading provider in this space.

Lite-On Technology Corporation is another key competitor in the infrared LED market, with a diverse portfolio of products catering to various industries. The company is focused on expanding its presence in the automotive and smart home markets, where infrared LEDs play a critical role in enhancing safety and functionality. Additionally, Everlight Electronics Co., Ltd. is recognized for its innovative infrared LED technologies, addressing the growing demand for energy-efficient lighting solutions across different application sectors. By emphasizing research and innovation, Everlight is well-positioned to capitalize on emerging trends and market opportunities.