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The automotive LED market is set to double from $650m in 2006 to $1.3bn within 10 years as the LED becomes an alternative to incandescent light bulbs and halogen and xenon lamps in external lighting, reckons IMS Research’s latest report ‘LEDs in Automotive Applications’.

Currently, most of the value comes from interior applications such as backlighting dashboards and displays, as well as a wide range of indicator lamps. However, value from external lamps will rise from a third of the total market to over half by 2013. Most external LED lamps are at the rear (brake, tail and turning lights), but daytime running lights (DRLs) will become much more widely used in the future, with the market growing from under $5m last year to over $100m by 2013, according to analyst Jamie Fox, the author of the report.

Although daytime running lights are obligatory in countries such as Canada, Finland and Sweden, in some countries such as the USA they are used on many vehicles but not required, while in other countries such as the UK they are little used. However, usage of DRLs is growing overall. European Union studies have concluded that DRLs save lives, and a law requiring DRL use throughout the EU is widely anticipated.

Daytime running lights will offer a good opportunity for LEDs, says Fox. “LED DRLs have long lifetime and low power consumption as well as an attractive appearance.” First introduced on the Audi A8 in 2004, they are currently used on less than 1% of vehicles. However, IMS Research forecasts that, with very strong growth after 2009, revenues for LED DRLs in the next decade will be similar to current revenues for LEDs for functions used in rear lighting applications. “DRLs are the application that will lead the way for LEDs to move forward from the rear of the vehicle into front lighting,” says the market research firm.

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