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Automotive LED Lights Market Value to Reach $ 2.5B by 2018


LED lights has been in the state of cutthroat battlefield, and manufacturers are seeking new Blue Ocean Strategy. Automotive LED lights have a relatively higher gross margin compared with other traditional LED lighting applications, attracting many Taiwanese LED makers to start planning to enter the automotiveLED lights field. Duff Lu, research manager of a research division of TrendForce, says that even though automotive-use LED lights certification periods are long and the entry barrier for entering the supply chain is high, but its overall market revenue from 2014-2018 has a compounded growth rate of 9%. In particular, the daytime running lamp (DRL) and high-low beam LED headlights (H/L Beam) have compounded annual production values of 21% and 48% respectively; they are two major production applications to be considered.

LED sees steady growth in overall vehicle lights application

The current demands for LED headlight designs are gradually moving towards aesthetics demands such as smaller sizes and variety in designs. Lighting source is also gradually changing from traditional light bulbs to LED. The worldwide automotive-use LED lights market (combination of before market and after market) is projected to reach US$ 2.5 billion by 2018, with a compounded growth rate of 9% from 2014-2018. In particular, the automotive LED lights market value in before market is projected to reach US$1.9 billion and the automotive LED lights market value in after market is also estimated to reach US$620 million.


H/L Beam see great growth in automotive LED lights segment

Automotive-use LED lights marketing presents steady developments, in particular, DRL and H/L Beam growth are the most impressive. These can be credited to the high-efficiency LED technology improvements. Following the falling LED chip prices, the automotive-use LED lights are gradually shifting from the premium to the medium priced car models. We think that automotive LED lights market value in the H/L beam and LED fog light applications will reach US$313 million by 2018, with a compounded growth rate of 48% from 2014 to 2018.


Automotive-use LED lights market value in Panel Application is gradually reaching the growing phase

With the rapid growth in demand for GPS, dashboard and other vehicle-use panels, we value that that the automotive LED lights market value in panel application will also grow from US$ 71 million in 2014 to US$130 million by 2018. In 2014, worldwide new vehicles with standard equipment included automotive-use LED panels, have already reached 9%, and is expected to hit 14% by 2018. Supposing the gradual decline of traditional IT backlight, automotive-use panel backlights will become an unavoidable battleground among LED lights factories.

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