11 July 2012

LED forward lighting market to almost double by 2020

LED lighting adoption in the automotive category will increase sharply by the end of the decade, forecasts a market report from management consultancy firm McKinsey & Company.

In 2011, LEDs claimed a 12% share of the overall automotive lighting market, contributing to revenue of $18.1bn for the sector. Market researchers expect to see a spike of 22 percentage points by 2020, boosting the LED’s share of the overall automotive lighting market to 34%. This forecast is based on anticipated growth in the adoption of LED headlights and daytime running light (DRL) systems by automakers over the next eight years, says David Hulick, marketing director for Specialty Solid State Lighting at German lighting manufacturer Osram.

Hulick highlights three major trends driving LED adoption:

1. Styling and aesthetics - new LED systems empower designers with a more flexible palette, enabling new shapes, colors and mounting configurations that were not possible until recently.

2. Functionality and safety - LEDs offer solutions for better vision and reduced glare, and operate at a color temperature that is close to natural sunlight.

3. Energy savings - LEDs use significantly less energy than standard halogens (e.g. Osram’s JOULE technology uses 14W of electricity compared with 65W for a conventional bulb).

“An efficient LED headlamp system can extend an electric vehicle's range on a charge by nearly 6 miles (9.5km),” says Hulick. “So, whether the goal is reduced fuel consumption or enhanced styling - be it for a hybrid or standard engine - LED lighting is simply the best technology available,” he reckons.

Osram says that its JOULE JFL2 technology integrates the light source and socket into one easy-to-use package, making it compatible with various vehicle makes and models. The technology debuted in the USA earlier this year on three vehicle models using LEDs in a completely new way, including the Cadillac XTS and the Cadillac ATS.

Osram’s goal was to provide automakers with a solution to implement LED technology in various applications without paying the premium price tag that typically comes with it.

LEDs are said to offer other features that benefit both automakers and consumers, including robustness (extended lifetime and resistance to shock and vibration); packaging (small size enables lower profiles, plus new applications and designs like light guides and 3D configurations); optics (directional emitters improve optical system efficiency); and electronics (high-tech electronics within LEDs enables infinite management of light).

“Until recently, LEDs were most common in center high-mounted stop lamps and tail-lights, with headlights having been a novelty feature in very high-end vehicles,” says Hulick. “Now the industry is seeing growth in daytime running lights and headlight applications.”

Also, while in the very near term the industry is expected to experience an increase in DRL and headlamp usage as well as unique LED light guides and multiple light source lamps, McKinsey forecasts that the technology will continue to change and advance, and in the future will include technology such as smart headlamps that sense the driving environment and adjust illumination accordingly.

Tags: Automotive LED lighting Osram

Visit: www.mckinsey.com

Visit: www.osram.com