Global Infrared LEDs Market to Reach US$1.8 Billion by 2030
The global market for Infrared LEDs estimated at US$881.4 Million in the year 2024, is expected to reach US$1.8 Billion by 2030, growing at a CAGR of 12.6% over the analysis period 2024-2030. Short-wave Infrared LED, one of the segments analyzed in the report, is expected to record a 11.3% CAGR and reach US$1.0 Billion by the end of the analysis period. Growth in the Medium-wave Infrared LED segment is estimated at 14.0% CAGR over the analysis period.
The U.S. Market is Estimated at US$240.1 Million While China is Forecast to Grow at 16.8% CAGR
The Infrared LEDs market in the U.S. is estimated at US$240.1 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$375.1 Million by the year 2030 trailing a CAGR of 16.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 9.4% and 11.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 10.0% CAGR.
What’s Powering the Surge in Infrared LED Adoption Across High-Tech Sectors?
Global Infrared LED Market – Key Trends & Drivers Summarized
Infrared (IR) LEDs, emitting light beyond the visible spectrum, have become critical enablers across a wide spectrum of industrial, commercial, and consumer applications. Unlike visible LEDs, IR LEDs are used for sensing, surveillance, data transmission, and machine vision, making them essential in everything from automotive safety systems and medical diagnostics to industrial automation and smart home devices. As industries continue to digitize and automate, the demand for reliable, energy-efficient, and high-performance IR LED solutions is growing significantly.
In recent years, the market has witnessed a shift from traditional IR sources like incandescent bulbs and laser diodes to IR LEDs due to their longer operational life, lower heat emission, and compact size. This shift is further supported by advancements in materials such as gallium arsenide (GaAs) and indium gallium arsenide phosphide (InGaAsP), which have improved the efficiency, spectral sensitivity, and modulation speeds of IR LEDs. At the same time, IR LED components are becoming increasingly cost-effective and easier to integrate into compact electronic devices, fueling their adoption across next-generation products in healthcare, consumer electronics, and industrial automation.
How Are Innovations and Applications Expanding the Role of IR LEDs?
Technological innovation is at the heart of the IR LED market’s expansion. A major development has been the growth of short-wavelength infrared (SWIR) and near-infrared (NIR) LED technologies, which offer higher penetration through fog, dust, and biological tissues—making them ideal for facial recognition, remote sensing, and biometric scanning. This has enabled new levels of precision and security in smartphones, surveillance systems, and wearable medical devices. As a result, IR LEDs are now integral to 3D sensing systems, night vision cameras, LiDAR, gesture recognition modules, and eye-tracking devices in AR/VR environments.
In the industrial sector, IR LEDs are central to machine vision systems used for quality inspection, object sorting, and presence detection on assembly lines. They are also key to non-contact thermometers and thermal imaging tools used in manufacturing, healthcare, and smart city infrastructure. Meanwhile, the automotive industry has embraced IR LEDs in driver monitoring systems, occupancy detection, and forward-collision warning systems—especially with the acceleration of autonomous vehicle development. Continuous miniaturization and better heat dissipation designs are enhancing integration flexibility, allowing for broader deployment in space-constrained devices and harsh operating conditions.
Where Is Sector-Specific Demand Gaining Traction?
The demand for IR LEDs is expanding rapidly across several core verticals. In consumer electronics, the rollout of facial recognition in smartphones, tablets, and laptops is one of the most influential drivers. These devices rely on NIR LEDs for fast, accurate depth sensing, particularly in low-light environments. Similarly, wearable health monitoring devices are using IR LEDs to measure heart rate, blood oxygen levels, and other vital signs through non-invasive photoplethysmography (PPG) techniques, offering high sensitivity and reliability. This trend is particularly relevant as remote healthcare and wellness monitoring become more mainstream.
In security and surveillance, IR LEDs play a pivotal role in enabling clear imaging in low-light or nighttime environments without visible illumination, thereby supporting discreet operations. Infrared illumination is also crucial in industrial and warehouse automation, where sensors use IR light for motion detection, positioning, and tracking. Meanwhile, agriculture and food processing sectors are deploying IR LED-powered sensors for monitoring plant health, moisture content, and contaminant detection. These highly specialized use cases are driving the need for tailored IR LED modules with specific wavelengths, beam angles, and power outputs, leading to greater segmentation and customization across industries.
What’s Fueling Growth in This Technologically Focused Market?
The growth in the infrared LED market is driven by several factors tied to application-specific requirements, technological advancements, and infrastructure modernization. The integration of biometric security features into a wide array of consumer devices—particularly mobile phones, smart locks, and payment systems—is generating significant demand for high-efficiency NIR LEDs. Additionally, the proliferation of automotive driver assistance systems (ADAS) and in-cabin monitoring solutions is boosting the need for robust, automotive-grade IR emitters that can function reliably under fluctuating temperatures and lighting conditions.
Rising automation across sectors such as logistics, manufacturing, and retail is another key driver. IR LEDs support the functionality of barcode readers, proximity sensors, and robotics vision systems that are critical to Industry 4.0 operations. Furthermore, the adoption of smart surveillance systems in urban infrastructure and industrial plants is prompting investments in IR-enhanced security cameras capable of 24/7 performance. Emerging applications in medical diagnostics, environmental sensing, and gesture recognition are also contributing to market growth, particularly as AI and IoT technologies enable more complex and interactive user interfaces. Backed by sustained innovation in packaging, efficiency, and thermal management, IR LEDs are cementing their role as indispensable components in tomorrow’s intelligent systems.
SCOPE OF STUDY:TARIFF IMPACT FACTOR
Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.
We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.
We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.
As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.
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APRIL 2025: NEGOTIATION PHASE
Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.
JULY 2025 FINAL TARIFF RESET
Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.
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