According to the latest report by the LEDinside research division of TrendForce, 2020 Deep UV LED Application Market and Branding Strategies, the rapid acceleration of COVID-19 has generated a corresponding boom in the disease-prevention business. Case in point, the demand for UV-C LED (wavelength≦280 nm), a type of LED with disinfection/sterilization properties, has skyrocketed since the Lunar New Year, in turn causing massive shortages across the entire supply chain. Given the extreme shortage of UV-C LED chips, LED package suppliers looking to place orders for these chips need to exercise caution when setting chip specifications; these suppliers may also need to bear the risk of possible chip shortages. The current shortage in the UV-C LED market has led to an adjustment to UV-C LED chip quotes, in turn resulting in purchasers being unable to procure chips even with at high bid prices.
TrendForce Research Manager Joanne Wu indicates that some UV-C LED suppliers are already seeing order fulfillment schedules that will last till August 2020. In addition, owing to increased orders for UV-C LED, several suppliers are expected to see double-digit YoY growths in their UV-C LED revenues this year, in particular those that have maintained UV-C LED chip and package operations for many years, including Seoul Viosys, Asahi Kasei (Crystal IS), Stanley, Bioraytron (a joint venture by Epileds and HPLighting) and San’an Optoelectronics. UV-C LED chip suppliers primarily include San’an Optoelectronics, Photon Wave, Opto Tech, and Epileds.
Whereas UV-C LED suppliers have historically relied on increased efficiency and competitive prices to receive branding contracts, the coronavirus pandemic in 2020 has compelled brands and consumers alike to place a high priority on disinfection. The demand for UV-C LED has extended from China to the U.S., Europe, and Japan, culminating in peak market demand. TrendForce thus projects the UV-C LED packaging market revenue to reach 60% CAGR during 2019-2024.
In response to the increased demand for disease prevention measures, brand vendors have released a host of UV-C LED products, including disinfection bags, disinfection boxes, maternity products, UV torchlights, and portable disinfection/sterilization products. UV-C LED manufacturers have been committed to develop the field of home appliance brands for many years. As UV-C LED technology gets more mature and is more acceptable by big brands, UV-C LED will eventually enter the growth booming period in 2020. Major UV-C LED suppliers for the home appliance market include Seoul Viosys, Bioraytron, Lite-on and San’an Optoelectronics. TrendForce also expects UV-C LED to see widespread use in commercial applications such as air conditioning, surface sterilization, and water sterilization. UV-C LED suppliers for these applications include Seoul Viosys, Asahi Kasei (Crystal IS), Stanley, Violumas, San’an Optoelectronics and Nichia. In addition, the passenger car market is planning to adopt UV-C LED products as well in the form of devices for external use and disinfection modules integrated into air conditioners. All of the aforementioned applications are expected to galvanize a steady demand in the UV-C LED market.