LED Driver Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)
This Report Provides In-Depth Analysis of the LED Driver Market Report Prepared by P&S Intelligence, Segmented by Supply Type (Constant Voltage, Constant Current), Component (Driver ICs, Discrete Components), Luminaire (Type A Lamp, Decorative Lamps, Reflectors), Application (Automotive, Consumer Electronics, Lighting, Outdoor Display), and Geographical Outlook for the Period of 2019 to 2032
Explore the market potential with our data-driven report
LED Driver Market Future Prospects
The LED driver market size was USD 23.2 billion in 2024, and it is expected to reach USD 48.0 billion by 2032, propelling at a growth rate of 9.7% during 2025–2032. The market growth is primarily attributed to the technological advancements in lighting components coupled with the rising production and consumption of energy-efficient LED drivers.
Lighting is one of the fastest-growing business segments and the use of smart lights is projected to boost the industry. Moreover, the proliferating use of lighting across different verticals, such as manufacturing, healthcare, retail, and automotive, favored the growth prospect of the market.
There are several governments, including India and China, which are emphasizing promoting the deployment of these products instead of traditional lights, which, in turn, foster the production and consumption of the drivers.
Technological improvements lead to the development and utilization of organic LEDs and increase the preference for advanced forward lighting system technologies in LEDs for bend headlights. With flourishing sales of automobiles and replacing damaged lights, the automotive industry is focusing on substituting halogen lights with LEDs. The demand for halogen light replacement is significantly recorded in industrialized countries, which fortifies the LED driver market.
LED Driver Market Trends and Growth Drivers
Integration of IoT Is Major Trend in Market
The integration of advanced IoT technology into LEDs enhances connectivity features and enables remote monitoring and real-time control.
Ultimately, it offers better lighting in different places and helps manage the operation of the luminaire or display, ensure optimal performance, and increase energy savings.
With cloud access and plug-and-play modules, control over the LED device becomes simple.
Moreover, IoT dwindles the maintenance cost as it allows organizations to check the operational status of the lights.
These technologies also integrate the lights, often via the building management system, to people’s smartphones, enabling remote control and monitoring.
For instance, RediSem, a supplier of LED controller integrated circuits, is advancing its commercial wireless LED technology.
It is collaborating with Qorvo to create a smart lighting product that will manage the cost pressure, reliability, flexibility, and size issues in commercial lighting.
The RediSem controller employs the QPG6100 IoT system-on-chip from Qorvo featuring the ConcurrentConnect technology.
This enables the device to communicate via several wireless protocols, including Bluetooth mesh, Zigbee, and Thread, simultaneously.
This provides a shared single product that can support distinct standards and make upgrading luminaires and switching control systems for wireless use convenient, without need for extensive wiring changes.
Increasing Number of Smart City Projects Drives Market Growth
Governments around the world are focusing on investing in smart city initiatives, with a focus on greener transportation, intelligent buildings, and other smart technologies.
The initiatives also aim to promote optimal energy consumption and enforce strict guidelines on lighting standards, which are supporting the advance of this market.
Moreover, the emergence of 5G technology, robust urbanization, surge in focus on reducing operational expenses, and building performance management support the expansion and construction of smart building projects.
The global push for sustainability and the rising need for energy-efficient lighting systems have led to the LED driver market witnessing significant growth.
For instance, London, Lisbon, and Milan are the lighthouse cities that have implemented digital solutions, including retrofitted buildings and energy management systems.
In India, the government has introduced various incentives, such as tax breaks and subsidies; streamlined laws, simplified licensing procedures, and quickened up approvals to attract investments in LED manufacturing.
These incentives aim to lower the cost of production, making it economically feasible for companies to set up production facilities across the country.
The drop in production costs would ultimately bring down the product prices, making sustainability a shared contribution among the masses.
Evolving LED Technologies and Applications Are Major Opportunity
Innovations, such as light fidelity (Li-Fi) and active-matrix organic light-emitting diodes (AMOLED), have increased the features, benefits, and, concurrently, the adoption of LED systems.
The function of Li-Fi is to transmit data by controlling light at speeds indiscernible to the human eye.
It is still at a budding stage; however, it has shown a massive potential to provide the dual functionality of lighting and data transfer.
Like conventional Wi-Fi, it facilitates high-speed data transmission and internet access, only with greater performance.
Further, it can seamlessly connect with IoT devices, providing multiple benefits, such as real-time monitoring, automation, remote surveillance, and smart homes.
Likewise, the AMOLED technology in displays enlarges prospects for the LED driver market across different applications and arenas.
Unlike LCDs, it creates vibrant colors, deep blacks, and high contrast ratios.
These features make it preferable in consumer electronics, including smartphones, tablets, smart televisions, and smartwatches; and automotive components, such as dashboard displays and infotainment systems, for compact and intuitive interfaces.
The confluence of these technologies with LED devices fosters innovation and offers new avenues for market growth in the future, by improving features and the user experience.
LED Driver Market Analysis
Supply Type Analysis
Among supply types, the constant current category accounted for more than 60% share of the market revenue, and it is projected to grow faster during the forecast period as well. This is ascribed to the growing preference for constant current LED drivers, as they provide consistent forward current irrespective of the input voltage fluctuations.
Furthermore, a constant current driver is an excellent method to drive high-power LEDs, as it maintains constant brightness across all LEDs in series. With the increasing output power of these products, majorly where long strings are involved, the requirement to more meticulously manage the drive current prospers the use of constant current drivers.
The supply types analyzed here are:
Constant Voltage
Constant Current (Larger and Faster-Growing Category)
Component Analysis
Driver IC is the largest category in the LED driver market, and it is forecast to have the highest CAGR over the forecast period.
Driver ICs are vital for controlling the LED performance, by adjusting brightness, dimming, and current. These properties make them ideal for numerous end-use sectors, such as automotive, industrial & residential lighting, customer electronics, and outdoor displays. Their expanding functionalities, versatility, evolving features, and integration capabilities make them a smart option for modern LED applications and further propel their adoption by device manufacturers.
The components analyzed here are:
Driver ICs (Largest and Fastest-Growing Category)
Discrete Components
Others
Luminaire Analysis
The type A lamp category leads the market. Type A lamps are the bulbs proposed to replace the traditional incandescent bulbs.
They are compatible with standard fixtures and socket designs and can be conveniently integrated into existing lighting systems.
Worldwide, energy guidelines are becoming severe, aiming to diminish the consumption of energy and boost sustainability, leading to the broadening adoption of Type A lamps.
As LEDs utilize 60% less energy in contrast to traditional lights, they are an attractive option for both commercial and residential use, reducing electricity bills.
Decorative lamps are the fastest-growing category in the market.
In contemporary times, people are more inclined toward aesthetic indoor and outdoor spaces, be it in homes, art studios, cars, cafes, or restaurants. As a result, decorative lamps are becoming essential as they provide the desired appeal to the space in terms of design, color, and ambiance, and enhance the mood.
LED decorative lights are energy-efficient and sustainable, which is why they are increasingly being used to create appealing spaces within budget.
Moreover, with the option to adjust the lighting settings and dimming, they assist in fabricating an atmosphere based on requirements.
They are increasingly becoming popular during festivals such as Christmas and Diwali, when people cover their homes with colorful lights.
The luminaires evaluated here are:
Type A Lamp (Largest Category)
Decorative Lamps (Fastest-Growing Category)
Reflectors
Others
Application Analysis
The lighting application category is the largest in the market, and it is expected to register the fastest growth over the forecast period, at a CAGR of 11%. Green lights are beneficial for everything from treating skin conditions to reducing pain, promoting sleep, and even fighting depression. In addition to this, they can help people who suffer from migraine and photophobia (light sensitivity) and they do not contain mercury, unlike their counterparts, such as high-intensity discharge (HID) lamps. Thus, these factors stimulate the demand for LED drivers for this application across the globe.
Further, automotive is the second-fastest growing application category, growing at a CAGR of 10% during the forecast period, owing to the rising adoption of LEDs and laser lights in automobiles. These products are replacing traditional light sources due to their attractive features, such as long lifetime, high brightness, high energy efficiency, and low cost. Laser headlights are appreciably used in adaptive technology applications, such as automatically controlling brightness when other cars approach, curbing the risk of impairing vision. Also, they provide huge illumination that ameliorates safety during night driving or rainy and foggy driving conditions.
Further, consumer electronics has emerged as the lucrative application category, which is expected to boost the LED driver market outlook. This is due to the booming demand for various consumer electronic products, including smartphones, TVs, and computers, over the years.
The applications analyzed here are:
Automotive
Consumer Electronics
Lighting (Largest and Fastest-Growing Category)
Outdoor Display
Others
Drive strategic growth with comprehensive market analysis
LED Driver Market Geographical Outlook
Asia-Pacific dominates the market with a share of 40% in 2024, and the region is projected to continue leading the industry during the forecast period. It will also witness the highest CAGR, of 9.5% The favorable government initiatives to promote energy-efficient lighting, the rising competition among players resulting in product innovation, and the increasing number of infrastructure projects are the major factors advancing the growth of the market.
For instance, until June 30, 2024, Energy Efficiency Services Limited (EESL), under its Street Lighting National Programme (SLNP), has installed 13.2 million LED streetlights across gram panchayats and urban local bodiesacross India. This has led to an estimated energy savings of around 8,806 million units annually. Furthermore, these streetlights have facilitated the reduction of GHG emissions by 6.15 million tonnes annually.
In addition, North America and Europe are the second and third-largest revenue contributors to the market in 2024, respectively. This is imputable to the proliferating penetration of lighting solutions in the commercial and industrial sectors, particularly automotive. Moreover, the surging personal disposable income and the rising number of owner-occupied housing units aid the use of these solutions in these regions.
Intending to achieve the Net Zero by 2050 roadmap by 2032, several nations are concentrating on bumping up LED sales to more than 100% by 2025, as the LEDs that replace these bulbs are claimed to consume five times less energy. Also, all halogen light bulbs are prohibited and substituted with environmentally conservative LEDs in various European countries.
The geographical breakdown of the market is as follows:
North America
U.S. (Larger and Faster-Growing Country Market)
Canada
Europe
Germany (Largest Country Market)
Spain (Fastest-Growing Country Market)
Italy
U.K.
France
Rest of Europe
Asia-Pacific (APAC) (Largest and Fastest-Growing Regional Market)
China (Largest Country Market)
India (Fastest-Growing Country Market)
South Korea
Japan
Australia
Rest of APAC
Latin America (LATAM)
Brazil (Largest Country Market)
Mexico (Fastest-Growing Country Market)
Rest of LATAM
Middle East and Africa (MEA)
U.A.E. (Largest Country Market)
Saudi Arabia (Fastest-Growing Country Market)
South Africa
Rest of MEA
LED Driver Market Share
The LED driver market is fragmented in nature.
This is primarily because of the varied applications of the LED technology across several industries, such as automotive, consumer electronics, outdoor displays, and lighting.
The presence of many manufacturers, from established lighting companies to emerging startups, further drives the fragmentation as each provides specialized products, customizable according to the need.
Moreover, the swift pace of technological advancements, such as smart lighting and IoT integration, widens the scope for LED drives.
This also results in the entry of new players and variations in product and applications, all of which contribute to the competitive nature of the market.
Major Companies in LED Driver Market:
ACE LED Light
ams-OSRAM AG
Microchip Technology Incorporated
ON Semiconductor Corporation
ROHM Co. Ltd.
Texas Instruments Incorporated
Tridonic GmbH & Co KG
Signify N.V.
Samsung Electronics Co. Ltd.
Infineon Technologies AG
STMicroelectronics N.V.
NXP Semiconductors N.V.
LED Driver Market News
In October 2024, ACE LEDS announced its Advanced Power Activate Technology, which makes emergency LED drivers’ installation and maintenance convenient. This technology functions without battery connections, using a specific chip and advanced software. When power is activated, the driver automatically starts functioning, ensuring consistent performance, while eliminating the chances of depleted batteries.
In June 2024, Macroblock displayed its automotive LED driver ICs at the Shanghai International Auto Lamp Exhibition. It also showcased its recently launched advanced driver ICs, including the AM LED MBI6304Q and MBI6306Q, engineered to provide higher visual performance and immersive driving experiences.
In April 2024, ams-OSRAM AG launched the AS1163 Stand-Alone Intelligent Driver (SAID), which is a smart LED driver for automotive interior and exterior lighting systems. It facilitates connection between any low- or mid-power LED and OSP automotive lighting network, streamlining dynamic lighting systems.
Frequently Asked Questions About This Report
What will be the growth rate of the LED driver market during the forecast period?+
During 2025-2032, the growth rate of the market for LED drivers will be 9.7%.
What are the major drivers for the LED driver industry?+
The increasing number of smart city development projects and sustainability initiatives drive the LED driver industry's growth.
Which is the largest application area in the LED driver market?+
Lighting is the largest application area for the market for LED drivers.
What is the regional scenario of the LED driver industry?+
APAC is the largest as well as the fastest-growing region in the LED driver industry.
What are the LED driver market competitive insights?+
Leading companies across industries trust us to deliver data-driven insights and innovative solutions for their most critical decisions. From data-driven strategies to actionable insights, we empower the decision-makers who shape industries and define the future. From Fortune 500 companies to innovative startups, we are proud to partner with organisations that drive progress in their industries.
Client Testimonials
Working with P&S Intelligence and their team was an absolute pleasure – their awareness of timelines and commitment to value greatly contributed to our project's success. Eagerly anticipating future collaborations.
McKinsey & Company
India
Unmatched Standards
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
Complete Data Security
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws