Market and Technology Trends

UV LEDs and UV Lamps – Market and Technology Trends 2021

By Yole Intelligence — Nov 2021

The UV lighting market will double or treble in size in the next five years, driven by disinfection and new functionalities.

What's new

In-depth analysis of new opportunities created by the COVID-19 pandemic
In-depth analysis of the UVC lamp market, industry, and technologies
Intellectual property analysis for both UVC lamps and UVC LEDs

COVID-19 PANDEMIC MOMENTUM FOR UV LIGHTING TECHNOLOGIES COULD PROPEL THE MARKET TO $3.5B IN 2026

There is good in everything bad. For example, the recent COVID-19 pandemic has created some perfect use-cases for ultraviolet (UV) lighting technologies to spread throughout a rapidly changing disinfection market. SARSCOV-2, the virus that causes COVID-19, has one of the highest reproduction/transmissibility rates among all viruses that have emerged in our modern society. To reduce the spread of the disease, light in the UVC wavelength band, which can deactivate bacteria and viruses through physical methods, has gained unprecedented attention. Overall, there will be a “before” and an “after” the COVID-19 pandemic for the UV lighting industry.

On one hand, UV lamps are the historic, established, and mature technologies in the UV lighting market. Business as usual before the COVID-19 pandemic was driven mostly by polymer curing with UVA wavelength band light and water disinfection with UVC light at the revenue level. By comparison, UV LED
technologies are still emerging. Business was mostly driven by UVA LEDs until recently. It’s only a few years ago that UVC LEDs reached performance and cost specifications of early adopters and started generating revenue.

Both technologies will benefit, but on different timelines. In the very short term, UV lamps might dominate end-systems because they are already established and easy to integrate. However, this proliferation of applications is a catalyst for the UV LED industry that will further push the technology and its performance forward. In the middle-to-long term several end-systems might further adopt UV LED technology.

The UV lighting market overall was worth around $400M in 2008. By 2015 UV LEDs alone were worth $100M. In 2019, the total market reached $1B as UV LEDs spread into UV curing and disinfection. The COVID-19 pandemic has then driven demand, increasing total revenues by 30% in just one year. In this
context, we expect the UV lighting market to be worth $1.5B in 2021 and $3.5B in 2026, with a Compound Annual Growth Rate (CAGR2021-2026) for this period of 17.8%.

UV LAMPS AND UV LEDS – COMPLEMENTARY OR COMPETITIVE TECHNOLOGIES?

UV lamps and UV LEDs are mostly seen as competitive technologies, but they can be complementary. Currently, applications use both technologies with differing penetration rates. There is still a strong market opportunity for both technologies.

To plan product offerings and harness maximum value from both light sources it is important to understand market and industry dynamics, and what is going to happen in the future. Each technology has advantages. Traditional UV lamp players already have access to the market. UV LED players have access to future technology.

Each light source suits different applications in the highly fragmented disinfection market and we don’t expect strong competition in the short term. Middle to high power applications such as disinfection robots or upper room/air fixtures will favor UV lamps, while small UV LEDs can be integrated into household appliances.

In the middle-to-long-term, competition will intensify as UV LEDs close on UV lamps’ performance and cost.

UVC LED INDUSTRY IS IN THE STARTING BLOCKS WHILE UV LAMP ONE SAVOR THIS UNEXPECTED GROWTH DRIVER

Different industries and different players supply UV lamps and UV LEDs. Signify, Light Sources, Heraeus and Xylem/Wedeco are the top four UVC lamp players. Seoul Viosys and NKFG are currently leading the UVC LED industry.

There are few overlaps between both industries. We expect this to remain true even if some UVC lamp players, such as Stanley and Osram, are
diversifying their activities into the UVC LED field.

Overall, the UVC LED industry is likely to be the most transformed by recent trends. The industry has waited for more than 10 years for this moment to happen. All the players are now ready to grab value from this booming market. The COVID-19 pandemic created such a peak in demand that an overall shortage appeared across the entire UVC LED supply chain in 2020. Such trends in demand are likely to last, so the overall industry is now increasing
manufacturing capacity very rapidly.

Financial gains will further intensify competition. It’s likely that an industry experiencing such an increase in demand will see big changes. We
expect leaders to maintain their positions. But recent new entrants are close behind and will do their best to grow their market shares.

Key features

Analysis of the main UV lighting applications, with an in-depth focus on UV disinfection
UV lamp and UV LED industry analysis, with a strong focus on the UVC lighting industry
UV LED performance and price analysis
UV LED technology manufacturing analysis
UV light source market forecast for 2008-2026, with an in-depth analysis for the UVC segment

Report objectives

This report is a comprehensive survey of UV light sources, providing the reader with a deep understanding of the UV lamp and UV LED businesses
Review and detail the traditional UV lamp business, its main applications and associated characteristics, main market metrics, main players’ positioning, and strategies
It reviews the global UV LED industry and provides insights into changes in the value/supply chain after the penetration of this disruptive technology
The report takes into account the impact of the COVID-19 pandemic for all aspects

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