By BizLED Bureau
Jan 8, 2016: Demand for LEDs used in automotives will touch US$2.5 billion by 2018. From 2014-18, the market for automotive LEDs is expected to grow revenue wise by compounded growth rate of 9%, says a TrendForce report. Advancements in high efficiency LED technology are boosting the demand for LED lighting in the automotive market.
With competition increasing in the general LED lighting market, manufacturers are looking for newer segments to penetrate, and LED automotive lighting market is one of the lucrative markets to enter, which offers higher profit margin as compared to other LED application areas.
The high-low beam headlights (H/L beam) and daytime running lamp (DRL) have compounded annual production rate of 48% and 21%, respectively, which indicats major opportunities for LED makers. TrendForce predicts that the automotive LED market value in the H/L beam and fog light applications will reach US$313 million by 2018, with a compounded growth rate of 48% from 2014-18.
LEDs are also in demand for their use in GPS, dashboard and other panels in the vehicle, and these have a market value that is growing from US$ 71 million in 2014 to US$130 million by 2018.
LEDs are required for external rear- and front-lighting systems, such as headlights, low beams, turning lights, sidelights and daytime lamps.
However, it is quite difficult to penetrate the market for automotive LEDs as LEDs used in automotives require long certification periods. Manufacturers also require to manufacture their products that meet several standards and regulations.
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