LED now dominant light source in automotive lighting, says Strategy Analytics

12 Jul 2021

Value demand for LEDs in sector will almost triple from 2020 to $3.9 billion by 2024.

Carmakers are increasingly looking at styling with LED-based systems.

Value demand for Light Emitting Diodes (LEDs) alone in automotive lighting will nearly triple from $1.4 billion in 2020 to $3.9 billion by 2024.

The latest report Automotive Lighting: Who Can Challenge LED's Dominance? from the Strategy Analytics Powertrain, Body, Safety & Chassis Service, predicts that OEM requirements for styling and functionality will further increase demand for LED-based automotive lighting systems.

The analyst notes that LED has seen further developments in efficiency and Tier 1 vendors have developed cost effective solutions for LED headlight modules.

The report states, “With the urgency to improve efficiency to support emissions and fuel economy mandates, the transition from halogen and xenon to LED has increased.”

LEDs raise functionality

But automakers are increasingly looking at styling with LED-based systems to win customers over their rivals. LED is 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,” commented Kevin Mak, principal analyst in the Global Automotive Practice.

“As more complicated systems are developed, OEMs will increasingly demand flexibility from their semiconductor suppliers,” he said.

In 2013, Strategy Analytics reported on the growing demand in LED headlights and, in 2018, the emergence of matrix LED systems for Adaptive Driving Beam functionality. This latest report provides an update on automotive lighting trends, discussing whether LED will become the predominant light source and the resulting demand on semiconductor components.

Strategy Analytics supports companies across their planning lifecycle through a range of customized market research solutions. Its multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies.