Market Trends of germany automotive led lighting Industry
Technological advancements by major automotive manufacturers and promising growth by EV industry to drive the growth of LED market
- The total automobile vehicle production in Germany was 3.53 million units in 2022, and it was expected to reach 3.63 million units in 2023. The COVID-19 pandemic had a significant effect on the German automotive market. The manufacturing lines of all German automobile OEMs were at a standstill due to the low global demand. The pandemic also caused suppliers, including Continental, Benteler, and Magna, to halt manufacturing briefly. Germany saw a 61% decline in car sales in April 2020. This shows that the overall drop in auto car manufacturing and the supply chain of automotive parts resulted in the decline in LED light usage in automotive vehicles.
- The country is home to some of the best automakers in the world, including Audi, Volkswagen, Mercedes-Benz, BMW, Porsche, and others. The major forces behind these manufacturers' success are technological advancements. Audi first saw the possibilities of using OLED technology in rear lights in May 2023 and has since worked to enhance its digitization. It is the only automaker that has deliberately and methodically developed this lighting technology to provide more lighting features to vehicles. These developments are the main forces behind the expansion of LED lights, generally in the automotive sector. Given that Germany is the center of the automobile sector, EVs have a promising future in this nation. At the start of 2023, according to the Federal Motor Transport Authority (KBA), there were about 48.8 million registered passenger automobiles in Germany. In addition, many car models are anticipated to cost the same by 2025, whether they have an internal combustion engine or not. The use of LEDs in automotive vehicles is expected to increase due to the enormous expansion in EVs.
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Car registration and shift toward electric mobility through government initiatives to drive the growth of the LED market
- In 2022, the German electric car market grew by 132.2% in 2021, with 470,502 zero-emission passenger car registrations. Since 2020, when registrations increased from 1.75% to 6.65%, Germany has significantly shifted toward electric mobility. Electric automobiles accounted for 13.6% of the market in 2021 and 17.7% in 2022. In Germany, petrol and diesel automobiles accounted for half of all sales, a 12.1% decrease. In 2022, passenger auto registrations included Petrol (32.6%), Diesel (17.8%), BEV (17.7%), PHEV (13.7%), HEV (17.5%), and others (0.7%).
- The initiative, which took effect in July 2020, has played a significant role in persuading Germans to weigh in on the market share of electrified vehicles. Germany's new administration plans to hasten the transition to more electric vehicles on its roadways. The government announced that purchasing an electric car will continue to be subsidized for up to EUR 9,000 (USD 9706.36) in 2022. The assistance might be worth up to EUR 6,750 (USD 7279.77) for plug-in hybrid vehicles. In May 2022, Volkswagen launched a second German manufacturing plant dedicated to the production of electric vehicles, following the conversion of a facility in Emden that produces the all-electric ID.4.
- In October 2022, the German government unveiled plans to boost charging infrastructure for electric vehicles. The plan consists of a EUR 6.3 billion (USD 6.17 billion) proposal that would increase the number of charging points across the country to 1 million by 2030. Thus, the above instances lead to the development and production of new power stations because of the growing demand for EVs, which boosts the demand for automotive LEDs in the country.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increase in the number of household and government subsidies to increase EV sales and drive the growth of LED market
- Auto financing, effective borrowing rates, loan installments, and adoption of EVs to increase the sales of LED lights
- Increase in demand for EVs and the improvement of street lights to drive the growth of the LED market
- Installation of street lights and upgradation in road infrastructure to drive the growth of the LED market
- Increase in warehouses and logistic space to drive the growth of the LED market
- Increase in the demand for EVs and technological advancement to drive the growth of the LED market
- Rise in number of immigrants, high purchasing power of consumers, and energy efficient programs to drive the growth of LED lights
- Growth in energy-efficient buildings is expected to promote the growth of the LED lighting market
