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Taiwan players to see growing sales with LED domination in auto lighting market

With smart auto lighting becoming a trend in the automotive market, LEDs are widely used in auto lighting products. Compared to conventional halogen- and xenon-based auto lighting products, LED lighting features higher brightness and longer life, according to DIGITIMES Research's latest study on the global auto lighting industry.

LEDs' superior energy efficiency makes them especially suitable for new energy cars. On top of that, LEDs' development toward ultra-slim form factors also makes auto lighting design more flexible.

Taiwan-based automotive LED light suppliers include Lite-On, Everlight, Ennostar, Laster Tech and Excellence Opto. (EOI) exert efforts toward the development of smart adaptive driving beam (ADB) lights while expanding their production capacity to meet demand from markets worldwide, the study shows.

Auto lighting comes in a wide variety and can be categorized generally into interior and exterior lighting with headlights contributing the largest share in the auto lighting market.

About five million vehicles were equipped with ADB systems, a platform that automatically adjusts beams in response to the changes in driving conditions to ensure safety on the road, in 2021. The volume is projected to rise exponentially by 2027. The US approved the use of ADB lights on roads in February 2022, which should help the country to become a major ADB market in the near future.

Taiwan-based auto LED light manufacturers are mostly tier-2 suppliers, but they are poised for revenue growth as automakers have continued to widely adopt LED products.

The five Taiwan-based suppliers all have factories in Taiwan and China. Lite-On and EOI have recently made investments to set up production bases in the US as part of their efforts to accelerate their global expansion and enhance their supply chain resilience.

Lite-On, Everlight and Ennostar are suppliers to global tier-1 vendors, while Laster Tech works in close collaboration with China-based vendors. EOI has penetrated the supply chain of leading European and American automakers.