Market Trends of automotive led lighting Industry
The increasing demand for EVs is anticipated to raise the market value
- The total automobile production globally was 143.96 million units in 2022, and it was expected to reach 150.92 million units in 2023. The gathered data indicated a 16% reduction in the manufacturing of automotive cars in 2020, following a dismal 2019, which already showed a noticeable decline of roughly 5% in global auto output. The average decline across all of Europe was more than 21%. Sharp decreases in all major producing nations ranged from 11% to roughly 40%. Manufacturing in Europe accounted for roughly 22% of the total production. Vehicle manufacturing in the Americas accounted for 20% of global production in 2020. The African continent had a severe decrease of more than 35% in manufacturing. Asia, on the other hand, held up very well, with a decline of only 10%. According to the numbers provided, the COVID-19 pandemic had a tremendous impact on the automotive industry, which decreased the demand for LEDs.
- Volkswagen Group, Stellantis, Mercedes-Benz, BMW, Porsche, Hurtan, GTA Motors, Audi, TATA Motors, Mahindra & Mahindra, SAIC Motor, Hyundai Motor Company, Kia Corporation, KG Mobility, and Renault Korea Motors are the major automotive manufacturing companies globally. In 2022, there were more than 10 million electric vehicle sales worldwide, and the sales in 2023 were anticipated to increase by another 35% to a total of 14 million. Due to this rapid expansion, the market share of electric automobiles increased from 4% in 2020 to 14% in 2022. In addition, as more electric vehicles are being used, there is a rising demand for automotive semiconductor chips because they require more processors per vehicle than conventional cars. The market for LED lighting is expected to benefit from the increase in semiconductor demand in the automobile industry.
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The increasing number of battery swapping stations and battery recycling service outlets and the rising demand for EVs are expected to drive the growth of the market
- The EV markets are expanding at an exponential rate, with sales exceeding 10 million in 2022. In 2022, electric vehicles accounted for 14% of all new vehicle sales, up from roughly 9% in 2021 and less than 5% in 2020. Global sales were led by three markets. China was the leader, accounting for almost 60% of global electric vehicle sales. China accounts for more than half of all the electric vehicles on the road worldwide, and the government has already exceeded its 2025 target for new energy vehicle sales.
- By 2022, China had 1,973 battery swapping stations, including 675 built in 2022 and over 10,000 power battery recycling service outlets. Thus, the rapid growth of charging facilities indicates the booming new energy vehicle (NEV) sector in the country. In October 2022, the German government unveiled plans to boost charging infrastructure for electric vehicles. The plan consisted 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.
- In major markets, electric car sales were normally low in 2022, but it was a growth year in India, Thailand, and Indonesia. Sales of electric vehicles in these countries more than tripled since 2021, reaching 80,000 units. In the United States, the Inflation Reduction Act (IRA), combined with a number of states adopting California's Advanced Clean Cars II rule, is likely to produce a 50% market share for electric cars in 2030, in line with the national target. Considering the abovementioned instances, key manufacturers across the world are expected to invest more in developing and producing automotive LEDs.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing energy-efficient construction and the rise in global sales of EVs are expected to drive the market's growth
- Online financing options through technology and government incentives to promote the use of EVs are expected to drive the market
- Asia-Pacific is one of the significant exporters of LED products, and the growing demand for EVs may drive the market's growth
- The United States' large road network, increasing use of smart traffic management systems, and increasing highway construction projects are expected to drive the growth of LED market
- Global sales of commercial construction exceeding by 59% in 2020, increasing pipeline projects, and increasing demand for EVs are expected to drive the market's growth
- Increasing car registrations, passenger cars having the highest motor vehicle sales, and technological advancements are expected to drive the market's growth
- The market is driven by increasing population, rising energy-efficient construction of buildings, and government programs to promote LED penetration
- Government schemes to replace conventional bulbs with LED lights and increasing global sales of electric vehicles are expected to drive the market's growth
