News: Markets
7 July 2021
LEDs now dominant as light sources in automotive lighting
Demand for light-emitting diodes (LEDs) alone in automotive lighting will nearly triple from $1.4bn in 2020 to $3.9bn by 2024, estimates the report ‘Automotive Lighting: Who Can Challenge LED's Dominance?” from the Strategy Analytics Powertrain, Body, Safety & Chassis Service (PBCS), which predicts that OEM requirements for styling and functionality will further increase demand for LED-based automotive lighting systems.
LEDs have seen further developments in efficiency, and tier-1 vendors have developed cost-effective solutions for LED headlight modules. With the urgency to improve efficiency to support emissions and fuel-economy mandates, the transition from halogen and xenon to LEDs has accelerated. However, auto-makers are increasingly looking at styling with LED-based systems to win customers over their rivals, notes the report.
LEDs are also being used to raise functionality in lighting systems, particularly digital light projection (DLP) and matrix LED headlights to form a precise adaptive driving beam (ADB) and increase the use of glare-free high-beam illumination, as well as new welcome lighting and even projecting messages and virtual lane markings.
“While the emerging market regions, low-cost and heavy-duty sectors seek component integration to lower the size, weight and cost of the lighting system, the increasing requirement for styling and functionality in the mass market will raise the profile of semiconductor vendors in system development,” says Kevin Mak, principal analyst in the Global Automotive Practice (GAP). “As more complicated systems are developed, OEMs will increasingly demand flexibility from their semiconductor suppliers,” he adds.
