2023-12-28
Uv LED Application And Market Analysis
Uv LED application and market analysis
According to YOLE statistics, in 2017, the traditional UV lamp market was close to 42.5 million sets/units, and the market share reached 708 million US dollars. The market share of UV leds has tripled in the past decade. As UV LED technology continues to evolve, opening the way for new high-power applications, it will also bring more business models and strategic evolution.
I. Ultraviolet wavelength and application
There are three different ultraviolet wavelengths: UVA/UVB/UVC. Each UV wavelength type has specific applications. Each application can also be defined as a function of the optical power output and the desired wavelength.
UVA(315~400nm) : UVA, also known as "black light," represents the main ultraviolet rays in sunlight and is responsible for skin tanning. UVA is generally not harmful and can be used to treat certain skin conditions. It is widely used for UV curing, anti-counterfeiting detection, photocatalytic purification, skin tanning and so on.
UVB(280~315nm) : A small but dangerous part of sunlight. Most of the solar UVB is absorbed by the reduced atmospheric ozone layer. Prolonged exposure can be harmful to the human eye and skin, but it is beneficial for vitamin D production and the treatment of severe skin diseases. Mostly used for medical phototherapy.
UVC (200-280nm) : Also known as short wave ultraviolet or deep ultraviolet, unintentional overexposure can cause temporary redness and eye irritation, but does not cause skin cancer or cataracts. Used for air, water and surface purification.
2.Second, UV lamps market performance
According to YOLE statistics, in 2017, the traditional UV lamp market was close to 42.5 million sets/units, and the market share reached 708 million US dollars. The growth rate is 5.4%, and the compound annual growth rate is expected to be 4.7% from 17 to 2023.
Among them, ultraviolet curing for UVA applications, UVB medical phototherapy /UVC disinfection/purification (municipal and industrial levels), analytical instruments and other applications belong to the larger market share of the application, accounting for 460 million US dollars market share, for this part of the application, power improvement is the biggest challenge.
UVA tanning, UV irradiation, and disinfection/purification of UVC (residential and commercial use points/entry points) are among the smaller applications with a market share of $248 million. For this part of the application, price is the biggest factor.
In addition to the four categories of ultraviolet curing, ultraviolet illumination, purification/disinfection (low and medium power) and invisible light illumination, most of the other applications are in the field of relatively small market share and small scale. While most traditional UV lamp applications still maintain a reasonable growth rate. Uv leds have yet to have a strong impact on the market.
3. UV LED market applications
At present, UV leds are mostly used in the UVA market, while UVB/UV applications are still in their infancy.
As of the second quarter of 2018, all applications of UV LED-based systems have been commercialized. According to YOLE's forecast UV, the annual growth rate of the LED market (from 2018 to 2023) is 41%! From $242 million in 2018 to $1,339 million in 2,023.
1. Main application of UVA
1.1 UV curing
The UV curing market in UVA applications has firmly occupied the leading position in the UV LED market size from the beginning. UV curing has advantages over infrared curing and thermal curing, such as instant drying, improved performance of inks and coatings, environmental friendliness, high productivity, elimination of infrared wavelengths, etc., but inks and coatings can be more expensive, higher upfront equipment costs, UV inks behave differently than traditional inks and coatings, and process integration can sometimes be difficult.
However, a large number of Taiwanese and Chinese manufacturers have recently poured into the UVA LED industry, which has brought great price pressure to the industry, thus limiting the growth of the UVA LED industry scale. On the other hand, the UVB/UVC LED industry can also see this increasing competition.
The benefit, however, is that the price of the device ($/mW) has reached the requirements of the early adapters faster than expected, enabling the true purification/disinfection market application to begin in 2020/2021. By 2021, the related revenue will even surpass the UV curing market.
1.2 UV curing system development roadmap
2010-2013 Only the standard module of the arc lamp is available for replacement
2013-2015 began to customize according to customer needs
2015 - so far in order to make better use of the advantages of LED technology, according to the actual needs of customers (process, ink, speed, substrate, etc.) fully customized with the progress of technology customization degree is getting higher and higher
2, UVB/UVC main application
2.1 Disinfection/decontamination system
Uv water disinfection is increasingly used in a variety of situations, and the technology does not contain chemicals and can effectively carry out pathogen inactivation; And because mercury lamps are easy to replace, maintenance costs are low. UVC LED technology has other advantages, such as:
1, no mercury: UV LED does not contain harmful substances.
2, small footprint: due to the small size of high-power LED, the footprint is much smaller than the traditional UV system.
3, instant on/off: you can open or close the system without preheating time, thereby extending the service life of the LED.
4, no temperature effect: LED does not transfer heat to the water, thus limiting the scaling of the water and ensuring constant UV output.
The main difference between mercury lamps and UV leds is that their light emission profile has a direct impact on reactor design. Due to the geometric structure of traditional UV lamps, a cylindrical design is required.
The UVC LED lamp is a point source light emitting mode, so a cylindrical reactor is not required. In contrast to conventional UV lamps, UV LED lamps can emit different wavelengths (e.g. : 255,265,275nm......) .
2.2 Disinfection/purification system market analysis
Globally, major players involved in traditional UV disinfection/purification systems have yet to develop any UV-LED based systems. There are many reasons for this:
1, the price and performance of UVC LED can also be comparable to traditional UV lamps. As of the second quarter of 2018, UVC LED prices are about $1 / mW, while traditional UV lamps are priced at $1.5 / W.
2, the development of UV LED-based systems requires new expertise and significant investment. Oliver LAWAL (CEO of Aqui Sense Technologies) appeared in an interview, The development of his company's compact PearlAqua product, the first mass-produced UV-C LED water disinfection system, is the result of eight years of development research, more than $5 million of investment, and hundreds of hours of user interaction.
3, based on UV LED system development will directly affect the main business of major manufacturers. Systems/equipment business and UV lamp business (i.e. replacement market).
The situation in the UV disinfection/purification industry is similar to the situation in the UV curing industry a few years ago: no traditional manufacturer would risk developing a technology that costs more (i.e. : R&D, resources, marketing) and gets less to pay... At least "until they have no choice" (as in the UV-curing industry).
Therefore, in the short term, the developers of UV LED systems for water disinfection/purification applications will come from new manufacturers.
4.UV LED market analysis
1）, UV LED market share increased by three times
In this decade, technology, market and industry developments have completely changed the UV LED market outlook, enabling UV LED technology to gain more market share from other UV lighting technologies, from 8% market share in 2008, UV LED is expected to reach 25% market share in 2018.
In 2008, UV leds were still considered an emerging technology and industry trying to enter promising applications such as UV curing and anti-counterfeiting detection. Then, the LED industry only takes a fancy to the booming display application, and believes that general lighting is the most favorable application field of visible LED, and considers preparing for the rise of general lighting. But the reality is very different!
Asian players have moved in and created excess capacity and strong price pressure, which has turned what could have been a "blue ocean" market into a bloodied one. This has had a direct impact on the UV LED industry, which in 2008 had about 10 manufacturers and now has more than 65 manufacturers in 2018.
Since 2010, some visible LED manufacturers have turned to the UV LED market in order to seek new growth drivers and higher profit margins.
The UVA LED market was the first to witness this industrial development, experiencing strong price declines that further accelerated the penetration of the technology. But soon the dream has turned into a nightmare. After several years of double-digit growth, UV curing application revenues, representing more than 80% of the UV LED market, have begun to decline due to commoditization and a highly competitive environment. In the short to medium term, only companies that can innovate will remain profitable in this area.
The UVB/UVC LED market has less impact on new entrants. This is due to the fact that UVB/UVC LED technology is more difficult to enter than UVA leds, so the barrier to entry is much higher. In addition, the degree of application of UVB/UVC leds is still not high, so the entry of new manufacturers helps to promote the development of equipment.
Although devices are good enough in terms of performance and cost, progress in the UVB/UVC market is slow moving. The UV LED system required extended development to fully benefit from the technology, which took more time than expected.
In the short term, the UV LED industry will go through a slow phase, as the UV curing market begins to stabilize, and the prosperity of the UV disinfection market will be delayed. In this context, we expect the UV LED market to reach $320 million by 2020, up from $160 million in 2017, and then a boom driven by UVC applications to reach $1 billion by 2023.
2）, the continuous development of UV leds opens the way for new high-power applications
In the past decade, the performance of UV leds has been continuously improved, from the previous very low power output devices to the gradual replacement of traditional UV lamps in some application areas.
UVA LED chip manufacturers have improved the external quantum efficiency (EQE) of their products by a factor of five to six in 10 years and now reach 50-60%. In addition, increased competition has led to a sharp drop in prices. This makes it possible for UV leds to be widely used in UV curing applications, such as electronic adhesives or inkjet printing.
The next step will include more complex applications such as wood coatings, flexographic printing and medical adhesives. However, most of the work here will focus on system development. And not just to improve the performance of UV leds.
In the UVB/UVC range, EQE has also improved, but it remains below 10% for most commercial devices, and each 1% increase seems to be getting harder. But this has not constrained investment and development in manufacturing.
This acceleration is further highlighted by recent announcements from some UV LED manufacturers, such as LG's 2018/2019 package target of 150 to 200 MW. This combination of lower price and improved performance will also allow UV leds to be integrated into entirely new applications. With the integration of leds into the consumer market of white products, such as large ovens and even coffee makers, it may be a strong driving growth point in the future.
Although devices are good enough in terms of performance and cost, progress in the UVB/UVC market is slow moving. The UV LED system required extended development to fully benefit from the technology, which took more time than expected.
In the short term, the UV LED industry will go through a slow phase, as the UV curing market begins to stabilize, and the prosperity of the UV disinfection market will be delayed. In this context, we expect the UV LED market to reach $320 million by 2020, up from $160 million in 2017, and then a boom driven by UVC applications to reach $1 billion by 2023.
2）, the continuous development of UV leds opens the way for new high-power applications
In the past decade, the performance of UV leds has been continuously improved, from the previous very low power output devices to the gradual replacement of traditional UV lamps in some application areas.
UVA LED chip manufacturers have improved the external quantum efficiency (EQE) of their products by a factor of five to six in 10 years and now reach 50-60%. In addition, increased competition has led to a sharp drop in prices. This makes it possible for UV leds to be widely used in UV curing applications, such as electronic adhesives or inkjet printing.
The next step will include more complex applications such as wood coatings, flexographic printing and medical adhesives. However, most of the work here will focus on system development. And not just to improve the performance of UV leds.
In the UVB/UVC range, EQE has also improved, but it remains below 10% for most commercial devices, and each 1% increase seems to be getting harder. But this has not constrained investment and development in manufacturing.
This acceleration is further highlighted by recent announcements from some UV LED manufacturers, such as LG's 2018/2019 package target of 150 to 200 MW. This combination of lower price and improved performance will also allow UV leds to be integrated into entirely new applications. With the integration of leds into the consumer market of white products, such as large ovens and even coffee makers, it may be a strong driving growth point in the future.
