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The automotive LED market is expected to grow to $1bn by 2014, as new performance capabilities are expanding their use rapidly beyond simple switch illumination applications into automotive LCD backlighting and exterior lighting (most recently, fully LED-based front headlights), forecasts a report by market research firm Strategy Analytics. Major LED suppliers, including Nichia, Osram and Lumileds are hence currently working with automotive partners to gain a major market share.

“Interior LED applications will continue to account for the majority of automotive LED volume demand,” says Chris Webber, VP of Strategy Analytics’ Global Automotive Practice. However, the highest growth rates will be driven by vehicle lighting and driver information applications due to their use of higher-priced high-brightness LEDs in exterior lighting assemblies and LCD display backlighting.

"Regulatory barriers for the use of LEDs in front headlamps are in the process of being removed, which will lead to more LEDs for high- and low-beam headlight applications,” adds Webber. “At Strategy Analytics we believe, however, that early implementation will be cost-limited and that it will be another two years before demand from exterior applications overtakes traditional lighting markets."

"Questions still remain regarding costs associated directly with LED device manufacturing, as well as the additional application costs of complex heat dissipating assemblies and electronic control,” cautions Asif Anwar, director of Strategy Analytics’ GaAs service. “This will hinder high-brightness LED deployment in low-margin volume vehicle segments.”

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Visit: www.strategyanalytics.net