Automotive LED market value to reach $313 million by 2018

<< Go Back Posted By:administrator on Jan 16,2015in Industry News

With LED lighting becoming more and more 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. 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. It is projected that the automotive LED market value in the H/L beam and fog light applications will reach $313 million by 2018, with a CAGR of 48% from 2014~2018.

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.

Especially 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.