IR LED Sales Market Outlook

The global Infrared Light Emitting Diode (IR LED) market is poised to reach approximately USD 5.5 billion by 2035, exhibiting a robust compound annual growth rate (CAGR) of around 12% from 2025 to 2035. The increasing adoption of IR LEDs across diverse sectors such as automotive, healthcare, and consumer electronics is a significant growth driver. Furthermore, the rising demand for advanced surveillance systems and security equipment, particularly in urban areas, is propelling market growth significantly. The growing popularity of smart home devices and automation technologies is expected to create additional opportunities for IR LED manufacturers, enhancing product demand. Additionally, the ongoing advancements in IR LED technology, including the development of high-efficiency, low-power consumption devices, are positively influencing market dynamics.

Growth Factor of the Market

Several factors are contributing to the growth of the IR LED market. Firstly, the accelerating trend of digitalization and smart technology integration in various industries is driving the demand for IR LEDs, which are essential components in devices such as motion sensors and communication systems. Furthermore, the increasing focus on enhancing security measures in residential and commercial sectors is fostering demand for IR LEDs, particularly in surveillance cameras and night vision equipment. Another growth factor is the automotive industry's shift towards advanced driver assistance systems (ADAS), where IR LEDs play a critical role in enabling features such as pedestrian detection and automated driving. Additionally, the ongoing research and development activities aimed at improving the efficiency and performance of IR LEDs are expected to create new market opportunities, allowing manufacturers to meet the evolving demands of consumers and businesses. The rising awareness regarding energy efficiency and eco-friendly lighting solutions also drives the adoption of IR LEDs, as they are considered a viable alternative to traditional lighting technologies.

Key Highlights of the Market

• The IR LED market is projected to grow significantly, with a CAGR of approximately 12% from 2025 to 2035.
• Increased demand in surveillance systems is a major factor driving market growth.
• Advancements in automotive technology are leading to increased adoption of IR LEDs in vehicles.
• The healthcare sector is increasingly utilizing IR LEDs for applications in medical diagnostics and treatments.
• Growing awareness of energy-efficient solutions is enhancing the adoption of IR LED technology across various sectors.

By Product Type

Through-Hole IR LEDs:

Through-Hole IR LEDs are traditional components characterized by their leaded structure, which allows them to be mounted on printed circuit boards (PCBs). These types of IR LEDs are widely used in various applications due to their ease of use and robust performance. Their ability to emit infrared light effectively makes them suitable for proximity sensors, remote controls, and basic signaling applications. They are often preferred in situations where physical space is not a critical constraint. Despite the emergence of surface-mount technology (SMT), through-hole IR LEDs continue to find relevance in legacy systems and applications where a reliable connection is paramount. Their cost-effectiveness and simplicity in design further contribute to their sustained usage in markets like consumer electronics and industrial automation.

SMD IR LEDs:

Surface-Mount Device (SMD) IR LEDs have gained prominence due to their compact size, allowing for high-density assembly on circuit boards. These LEDs are favored in modern electronics, such as smartphones, tablets, and wearables, where space is at a premium. The ability to integrate SMD IR LEDs seamlessly into complex circuits without requiring additional mounting space makes them an ideal choice for contemporary applications. Furthermore, advancements in manufacturing techniques have enhanced the performance and reliability of SMD IR LEDs, making them suitable for high-frequency applications and reducing overall power consumption. As a result, SMD IR LEDs are increasingly being utilized in various sectors, including telecommunications, consumer electronics, and automotive safety features.

High Power IR LEDs:

High Power IR LEDs are designed to emit a greater amount of infrared light, making them suitable for applications that require high intensity, such as industrial lighting, laser systems, and night vision devices. These LEDs are capable of delivering enhanced performance over longer distances, making them ideal for outdoor use and in security applications. The ability to sustain higher currents without compromising reliability is a significant advantage of high-power IR LEDs. As industries focus on incorporating advanced technologies like IoT and smart surveillance, the demand for high-power IR LEDs is expected to rise significantly. Their efficiency in converting electrical energy into infrared light also contributes to their appeal in energy-conscious applications.

Low Power IR LEDs:

Low Power IR LEDs are designed to minimize energy consumption while providing sufficient infrared light output for applications such as remote controls and simple signaling. These LEDs are particularly popular in battery-operated devices, where energy efficiency is crucial. Their compact size and low operating voltage make them suitable for portable electronics, ensuring prolonged battery life. Additionally, advancements in low-power IR LED technology have improved their performance in terms of light output and reliability. As consumers become more environmentally conscious, the demand for energy-efficient lighting solutions continues to rise, further bolstering the market for low-power IR LEDs across diverse applications.

Mid Power IR LEDs:

Mid Power IR LEDs strike a balance between high and low power options, offering a mix of efficiency and light output. These LEDs are increasingly used in applications that require moderate infrared light levels without the need for the intensity offered by high-power variants. Common applications include various consumer electronics, automation equipment, and basic lighting solutions. The versatility of mid-power IR LEDs allows them to be utilized in a range of settings, from automotive lighting to home automation systems. Their moderate energy consumption paired with adequate performance makes them an attractive option for manufacturers aiming to deliver cost-effective solutions that meet diverse market demands.

By Application

Surveillance:

The surveillance sector significantly drives the IR LED market, as these components are critical for enhancing the visibility of security systems in low-light conditions. IR LEDs enable night vision capabilities in cameras, allowing for clear images even in total darkness. With the increasing need for security in residential, commercial, and public spaces, the demand for advanced surveillance systems equipped with IR LED technology is witnessing substantial growth. Additionally, the integration of smart technology and IoT in surveillance systems is propelling the use of IR LEDs, as these components ensure reliable performance in various weather conditions. The continuous advancements in IR LED technology, such as improved wavelength and beam patterns, further enhance their effectiveness in surveillance applications, making them indispensable in modern security solutions.

Automotive:

In the automotive industry, IR LEDs are becoming increasingly important due to their applications in advanced driver assistance systems (ADAS), which enhance vehicle safety and efficiency. These LEDs are used in applications such as pedestrian detection, adaptive cruise control, and interior lighting. The growing trend towards autonomous and semi-autonomous vehicles is expected to drive the demand for IR LEDs, as they play a key role in sensing technologies. By providing reliable illumination and facilitating communication between vehicles and their surroundings, IR LEDs contribute to the development of safer driving environments. Moreover, the increasing focus on passenger comfort and convenience is boosting their use in interior lighting applications, further supporting market growth.

Consumer Electronics:

The consumer electronics sector is a major contributor to the IR LED market, as these components are widely used in devices such as remote controls, televisions, and gaming consoles. The convenience of wireless communication facilitated by IR LEDs has made them a standard feature in many electronic devices. As the demand for smart home technologies continues to rise, the integration of IR LEDs into various devices is expected to grow. Additionally, the proliferation of IoT devices and smart appliances is driving the need for efficient IR LED solutions that enable seamless connectivity and user interaction. As manufacturers strive to enhance user experiences in consumer electronics, the role of IR LEDs is becoming increasingly vital, ensuring their sustained relevance in the market.

Healthcare:

The healthcare sector is increasingly adopting IR LEDs for various applications, including non-invasive medical diagnostics and imaging systems. These components are used in devices such as pulse oximeters, thermometers, and infrared cameras, which are essential for monitoring patient health. The ability of IR LEDs to provide accurate readings in low-light environments enhances their utility in medical settings. Furthermore, the growing focus on telemedicine and remote healthcare solutions is further driving the demand for IR LEDs, as these components facilitate efficient patient monitoring and diagnostics. With ongoing research into innovative healthcare applications, the market for IR LEDs in this sector is expected to expand significantly in the coming years.

Aerospace & Defense:

The aerospace and defense sector relies on IR LEDs for various critical applications, including navigation, targeting systems, and surveillance. The capability of IR LEDs to provide effective illumination in challenging environments is essential for military operations and aerospace endeavors. These LEDs are used in night vision equipment, allowing operators to navigate and conduct missions with enhanced visibility. As defense technologies evolve and the demand for advanced surveillance systems increases, the adoption of IR LEDs in this sector is expected to grow. Additionally, the emphasis on lightweight and energy-efficient components in aerospace design is driving innovation and integration of IR LEDs, highlighting their significance in ensuring operational effectiveness in defense and aerospace applications.

By Distribution Channel

Online Retailers:

Online retailers have become a significant distribution channel for IR LEDs, providing consumers and businesses with easy access to a wide range of products. The convenience of online shopping allows customers to compare prices, read reviews, and select from various brands, leading to increased sales in this channel. Furthermore, the growing trend of e-commerce, accelerated by the COVID-19 pandemic, has resulted in a surge in online sales of electronic components, including IR LEDs. Online platforms often offer competitive pricing and promotions, making them an attractive option for consumers and manufacturers seeking to procure IR LEDs efficiently. As the market continues to embrace digital transformation, the role of online retailers in distributing IR LEDs is expected to expand, catering to the evolving needs of customers.

Direct Sales:

Direct sales involve manufacturers selling their products directly to end-users or businesses, bypassing intermediaries. This distribution channel is particularly beneficial for IR LED manufacturers seeking to establish a strong relationship with their customers and better understand market needs. By engaging directly with customers, manufacturers can offer tailored solutions and provide technical support, enhancing customer satisfaction. Direct sales also enable manufacturers to maintain control over pricing and inventory. This approach is commonly employed by companies focusing on specialized applications or high-volume orders, ensuring that they meet specific requirements effectively. As manufacturers recognize the value of direct customer engagement, the direct sales channel for IR LEDs is likely to grow in importance.

Distributors:

Distributors play a vital role in the IR LED market by acting as intermediaries between manufacturers and end-users. They provide essential services such as inventory management, logistics, and product support, making it easier for manufacturers to reach a broader audience. Distributors often have established relationships with various industries, enabling them to market IR LEDs effectively across different sectors. Their expertise in managing supply chains and understanding market trends allows them to provide valuable insights to both manufacturers and customers. As industries continue to seek reliable and efficient sources for electronic components, the role of distributors in the IR LED market will remain crucial in ensuring seamless product availability and support.

Wholesalers:

Wholesalers serve as bulk suppliers of IR LEDs, catering primarily to small and medium-sized enterprises (SMEs) and retailers. By purchasing large quantities from manufacturers, wholesalers can offer competitive pricing and flexible payment terms, making it easier for smaller businesses to access IR LED products. This distribution channel is essential for fostering market growth, as it enhances product availability and allows for faster distribution to various end-users. Wholesalers often maintain extensive inventories, ensuring a steady supply of IR LEDs to meet demand fluctuations. As the market for IR LEDs continues to expand, the role of wholesalers in ensuring efficient distribution and accessibility will be increasingly important.

Retail Shops:

Retail shops, both physical and online, offer consumers direct access to IR LEDs and related electronic components. These shops often cater to hobbyists, DIY enthusiasts, and small-scale businesses looking for readily available solutions for various projects. The convenience of purchasing IR LEDs from retail outlets allows consumers to quickly obtain components for immediate use. Additionally, retail shops often provide in-person assistance and advice, enhancing the customer experience. As the trend of DIY electronics projects and home automation continues to grow, the demand for IR LEDs in retail shops is expected to increase, driving market growth in this distribution channel.

By Wavelength

700nm - 850nm:

The wavelength range of 700nm to 850nm includes various IR LEDs that are widely used in applications requiring short to medium-range infrared light. These LEDs are commonly found in remote controls, proximity sensors, and basic communication devices. Their ability to emit light within this wavelength range makes them suitable for applications where human visibility is not a concern. As the demand for consumer electronics continues to rise, the need for IR LEDs operating in this wavelength range is expected to grow significantly, driving market expansion in this segment.

850nm - 940nm:

IR LEDs operating in the wavelength range of 850nm to 940nm are particularly popular in surveillance applications, as they provide a balance between visibility and performance in low-light conditions. These LEDs are commonly used in night vision cameras and security systems, allowing for detailed imaging in darkness without alerting potential intruders. The adoption of this wavelength range is expected to grow as more sectors focus on enhancing security measures, making it a crucial segment in the IR LED market. As advancements in technology continue to improve the performance of LEDs in this range, their popularity in various applications will further increase.

940nm - 1100nm:

The 940nm to 1100nm wavelength range encompasses IR LEDs that are primarily used in specialized applications such as industrial sensing and data communication. These LEDs are less visible to the naked eye, making them ideal for covert applications where discretion is essential. The growing demand for industrial automation and smart factories is expected to drive the need for IR LEDs operating in this wavelength range, as they are crucial for various sensing and monitoring solutions. Moreover, as industries continue to explore innovative applications for IR technology, the market for LEDs within this wavelength range is anticipated to expand significantly.

Others:

This category includes IR LEDs with wavelengths outside the specified ranges, catering to niche applications that require specific light properties. These specialized IR LEDs can be utilized in research, advanced communication systems, and various industrial applications where standard wavelengths may not suffice. The demand for unique IR LED solutions in specialized fields is expected to grow as technology advances and industries seek customized lighting solutions to meet their individual needs. As a result, the "Others" segment is likely to witness steady growth, driven by ongoing innovation and the pursuit of tailored solutions.

By Region

The North American IR LED market is projected to hold a significant share, accounting for approximately 30% of the global market by 2035, driven by robust demand across sectors such as automotive, healthcare, and consumer electronics. The region benefits from a strong technological infrastructure and a high adoption rate of advanced technologies, including IoT and smart devices. The increasing emphasis on security and surveillance measures in urban areas is further fueling the demand for IR LEDs in North America. With a CAGR of around 11% expected in the region during the forecast period, North America is set to remain a key player in the IR LED market development.

In Europe, the IR LED market is anticipated to grow at a CAGR of approximately 10% from 2025 to 2035, driven by the rising demand for energy-efficient lighting solutions and advanced automotive technologies. The region's commitment to sustainability and environmentally friendly technologies is fostering the adoption of IR LEDs in various applications, including healthcare and consumer electronics. The increasing focus on enhancing security measures in both residential and commercial sectors is also contributing to market growth. The European market is expected to account for around 25% of the global IR LED sales, reflecting the regionÔÇÖs significance in the industry.

Opportunities

The IR LED market is poised for significant growth opportunities driven by technological advancements and the increasing demand for smart and energy-efficient solutions. As industries continue to innovate, the integration of IR LEDs into IoT devices and smart home applications is expected to create new avenues for market expansion. The ongoing development of automation technologies in various sectors, including manufacturing, healthcare, and agriculture, is set to enhance the demand for reliable and efficient IR LED solutions that support various functionalities. Furthermore, the push for sustainability and energy efficiency will lead to the adoption of modern lighting solutions, thereby boosting the IR LED market. Companies focusing on research and development to produce high-performance IR LEDs with lower energy consumption can capitalize on this opportunity, positioning themselves as market leaders in this evolving landscape.

Additionally, the growing awareness of smart surveillance systems and security technologies in residential and commercial spaces presents ample opportunities for IR LED manufacturers. The increasing incidences of security threats and the need for enhanced safety measures are driving the demand for sophisticated surveillance solutions, making IR LEDs an essential component in these systems. Furthermore, expansion into emerging markets where infrastructure development is taking place can offer a significant growth potential for companies in the IR LED space. By catering to the specific needs of these regions, manufacturers can establish a strong foothold and drive their business growth in the long term.

Threats

Despite the promising growth trajectory, the IR LED market faces several threats which could adversely affect its development. One of the primary threats is the intense competition within the industry, with numerous players vying for market share. This competition can lead to aggressive pricing strategies that may compromise profit margins for manufacturers. Additionally, the rapid pace of technological advancements in lighting solutions, such as the emergence of newer and more efficient technologies, may render existing IR LED products obsolete. Companies must continuously invest in research and development to keep pace with these changes, posing a significant challenge for those with limited resources.

Supply chain disruptions also present a considerable threat to the IR LED market. The global semiconductor shortage, which has impacted various industries, including electronics, may hinder the production and delivery of IR LEDs. This could lead to delays in product availability and increased costs, affecting both manufacturers and end-users. Furthermore, fluctuations in raw material prices, particularly in the context of global economic uncertainty, can impact the overall production costs and profitability of IR LED manufacturers. To navigate these challenges, companies must adopt strategic measures such as diversifying their supply sources and investing in inventory management solutions, ensuring resilience in their operations.

Competitor Outlook

• Osram Opto Semiconductors
• Everlight Electronics Co. Ltd.
• Vishay Intertechnology Inc.
• Lite-On Technology Corporation
• Broadcom Inc.
• Kingbright Company LLC
• Samsung Electronics
• Texas Instruments Inc.
• Infineon Technologies AG
• Sharp Corporation
• Maxim Integrated Products
• ON Semiconductor Corporation
• Philips Lumileds Lighting Company
• W├╝rth Elektronik eiSos GmbH & Co. KG
• Luminus Devices, Inc.

The competitive landscape of the IR LED market is characterized by a diverse array of players, ranging from established multinational companies to emerging startups. Major players such as Osram Opto Semiconductors and Everlight Electronics Co. Ltd. have a substantial market presence due to their extensive product portfolios and strong distribution networks. These companies invest heavily in research and development, enabling them to innovate and introduce cutting-edge solutions that meet the evolving demands of various sectors. Additionally, collaborations and partnerships with technology firms and research institutions play a crucial role in enhancing their competitive edge, allowing them to leverage combined expertise and resources to foster innovation.

Another significant aspect of the competitive landscape is the increasing emphasis on sustainability and eco-friendliness among manufacturers. Companies are investing in the development of energy-efficient IR LEDs that align with global sustainability goals, providing them with a competitive advantage. For instance, Vishay Intertechnology Inc. and Lite-On Technology Corporation are focusing on creating low-power consumption solutions that not only meet market demands but also contribute to environmental conservation. This strategic alignment with sustainability trends is expected to drive market growth and enhance brand loyalty among environmentally-conscious consumers.

Furthermore, the entry of new players into the IR LED market is intensifying competition and driving innovation. Startups are often more agile and willing to explore niche applications and emerging technologies, such as smart home solutions and IoT integration, which can disrupt traditional market dynamics. For example, companies like Luminus Devices, Inc. are focusing on specialized applications, providing innovative solutions tailored to meet specific customer needs. This influx of new entrants is likely to push established players to adapt their strategies and innovate continuously to maintain their market position.