Automotive the next big opportunity for LEDs

LED

The automotive LED market is on the rise, with the market for LEDs used in automotives to reach $2.5 billion by 2018.

With LED lighting becoming increasingly competitive, manufacturers are seeking new strategies, and pivoting towards LED automotive lighting, which offers a relatively higher gross margin compared with other traditional LED applications.

Automotive-use LEDs require long certification periods, and there is a high barrier to entry for the supply chain. But in the period from 2014 to 2018, the overall market revenue is expected to have a compounded growth rate of 9 percent, according to TrendForce.

In particular, the daytime running lamp (DRL) and high-low beam headlights (H/L Beam) have compounded annual production values of 21% and 48% respectively, representing major opportunities for LED makers.

LED manufacturers and OEMs are heeding the general trends in headlight design towards aesthetic demands such as smaller sizes and variety in designs. Lighting source is also shifting from traditional light bulbs to LED.

In particular, high-efficiency LED technology advancements are boosting their use in DRL and H/L Beam automotive headlights. Falling LED prices also mean LED lights are migrating from the premium to the much larger medium priced car market.

TrendForce’s research division LEDinside projects that the automotive LED market value in the H/L beam and fog light applications will reach $313 million by 2018, with a compounded growth rate of 48% from 2014 to 2018.

LEDs will also see growth in their use in GPS, dashboard and other vehicle-use panels, with the market’s value growing from $71 million in 2014 to $130 million by 2018. Given the gradual decline of traditional IT backlight, automotive-use panel’s backlights will become an inevitable battleground among LED makers.

(Electronics News)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s