Market Trends of europe automotive led lighting Industry
Increasing EV sales are expected to drive the LED market in Europe
- The total automobile vehicle production in South Korea was 17.67 million units in 2022, and it is expected to reach 18.33 million units in 2023. The first Chinese factory closures disrupted the supply chains of the European automotive sectors. The average downtime for automotive plants throughout EU Member States was 30 days, with Sweden experiencing the most minor downtime (15 days) and Italy experiencing the highest (41 days). The EU automobile sector lost 3.6 million vehicles from production in the first half of 2020, amounting to a loss of EUR 100 billion (USD 107.9 billion). This number climbed to 4,024,036 motor vehicles by the end of September 2020, accounting for 22.3% of the EU's 2020 production. Such production loss in Europe ultimately had a negative impact on LED lights in the automotive sector.
- Volkswagen Group, Stellantis, Mercedes-Benz, BMW, Porsche, Hurtan, GTA Motors, Audi, and Peugeot are the major automotive car manufacturers in the region. With the rise in EVs and technological advancements in the fuel types utilized in vehicles, the region is seeing a significant transformation in its automotive industry. Battery electric vehicle sales in the EU are still rising quickly. For instance, 12.1% of the 9.1 million vehicles sold in EU markets in 2022 were fully battery electric vehicles, as compared to a share of just 1.9% in 2019 and 9.1% in 2021. About 22.6% of sales were made up of hybrid electric cars, and 9.4% of sales were made up of the more recent and eco-friendly plug-in hybrids. With the growing usage of EVs, the demand for semiconductors and LEDs in vehicle lighting is high due to their efficiency.
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Increasing EV registrations and government policies for EV adoption may drive the growth of the LED market
- The adoption of EVs across Europe is growing rapidly. In Europe, sales of electric vehicles (BEVs, PHEVs, EREVs, and FCEVs) totaled 2.59 million units, up by 15% from 2021 and by 92% from 2020. Norway (79%), Sweden (33%), the Netherlands (23%), and Denmark (21%) had the highest market shares of EV sales in Europe in 2022, followed by Finland, Switzerland, and Germany, with an 18% share of EV registrations each in Europe in 2022. In 2022, battery electric vehicles (BEVs) accounted for 12.1% of the total market share, up from 9.1% in 2021 and 1.9% in 2019.
- In 2016, the number of battery-electric cars in the United Kingdom was 30,669, and by May 2023, this number reached 784,968. More than 265,000 battery-electric vehicles were registered in 2022, a 40% increase over 2021. The British government strongly supports the people who are choosing EVs to increase the number of registered electric vehicles in the United Kingdom. Buyers can benefit from the Plug-In Grant, which offers a discount of up to EUR 2,500 (USD 2,699) on new EVs. Scotland also offers interest-free loans on purchases of new and used EVs.
- As part of a restructuring strategy for the automotive industry, France planned to raise subsidy rates in May 2020. The main reason was a drop in sales caused by the COVID-19 pandemic. The maximum subsidy rate was increased from USD 6,479 to USD 7,558.8 at the time. In mid-2021, the maximum rate was reduced from USD 7,558.8 to USD 6,478.9. In 2023, the government reduced subsidies for electric cars to USD 5,399 from USD 6,478.9, effective from January 2023. It also set a target of producing two million electric vehicles per year by 2030. These advancements in the market are expected to drive the demand for automotive LEDs in the region in the coming years.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing residential housing and non-residential buildings may drive the growth of LED lights
- Sales of used car, auto insurance, and adoption of EVs via government policies may drive the growth of the LED market
- Government policies to limit the use of conventional bulbs and the target to increase EV sales may promote the use of LED lights
- Government investments to construct and expand road infrastructure projects are expected to drive the growth of the LED market
- Increasing vacancy rates and leasing activity of real estate properties may drive the growth of the LED market
- Increasing EV sales may drive the LED market in the region
- Increasing disposable income and government incentives may lead to more LED penetration
- Government regulations and policies to ban the use of fluorescent lighting, as well as smart building initiatives, may drive the use of LED lights in the region
