Zooke Connectors Co., Ltd. , https://www.zooke.com
In recent years, the emergence of new applications for infrared LEDs has created significant business opportunities. Companies in Taiwan, such as Jingdian, Dingyuan, Hongqi, and Qihong, are actively expanding their development and market presence in the infrared LED die sector. Industry insiders are optimistic that these efforts could help local LED manufacturers break out of the operating challenges they've faced in recent years.
According to industry reports, the global infrared LED market (excluding optical sensing components) was valued at approximately $439 million in 2017 and is projected to grow to $505 million in 2018. The market is expected to continue its upward trend, reaching around $697 million by 2021. This growth is being driven by various applications, including security monitoring, iris and facial recognition, and infrared touch panels.
As infrared LED components become thinner and more advanced, their integration into mobile devices has increased significantly. Features like proximity sensors, iris recognition, and face recognition now rely heavily on infrared technology. Companies such as Jingdian, Dingyuan, Guanglei, Hongqi, and Qihong have all made strategic moves to capitalize on this growing demand.
Jingdian, which was originally founded with a focus on infrared technology, continues to maintain a strong position in the market. Its competitive advantages include precise control over product wavelength and light shape, as well as cost efficiency, yield management, and advanced crystal technology—factors that have been honed through years of experience.
Dingyuan has also emphasized its commitment to the infrared sensing market. In 2017, strong demand for its infrared LED sensing products led to impressive shipment growth. Compared to the more saturated lighting market, the sensing sector offers broader application potential and better profit margins.
In the first three quarters of 2017, Dingyuan's gross profit margin reached 23.58%, marking the highest level in the past decade for the same period. The company plans to further expand its infrared sensing product lineup with the completion of its new plant in Zhunan, Taiwan, which is expected to serve as a key driver of future growth.
Hongqi is also confident in the future of the infrared LED market. The company has announced plans to establish a subsidiary in Guangzhou and Luzi, focusing on the production of infrared-related products. Hongqi will hold a 75% stake in the new venture, with operations expected to begin before the end of 2018.
With increasing demand across multiple industries and continued technological advancements, the infrared LED market is showing strong signs of long-term growth. For companies that have already built expertise in this area, the opportunities ahead are both promising and substantial.