In 2016, the global automotive light market reached approximately USD 27.5 billion, increasing by 9.6% over 2015, and the number is expected to reach USD 30.2 billion in 2017, with an increase of 9.8% over 2016. The fast growth was mainly because, for one thing, LED headlights sped up entering the market, especially the Chinese market, and for another, additional functions such as ADB (Adaptive Driving Beam) and AFS (Adaptive Front-Lighting System) surged in the world.

Related report: Research Report on Automobile Headlamp Industry in China, 2018-2022

Chart Revenue (USD, million) of Global Key Light Factories, 2013-2016

In 2016, the world’s number one automotive light manufacturer Koito accelerated its growth by 14.4%. In the fiscal year of 2017, Koito’s revenue in China reached CNY 13.5 billion, increasing by 17.4%. However, due to the appreciation of JPY, its operating profit was CNY 820 million, with an increase of only 4.1%. As the revenue has achieved double-digit growth for several consecutive years, Koito almost monopolizes the Chinese LED headlight market, not only in the joint venture brand market, but also in the local one.

The automotive light industry is highly concentrated. The aggregate market share of the top 5 light manufacturers is as high as 75%, and now continues to increase. The price of headlights is getting higher and the light system is increasingly complex, so small factories stand no chances to participate in the market.
The market size of automotive light in China was USD 6.5 billion in 2016, and is expected to be USD 7.5 billion in 2017 and USD 9.6 billion in 2020. The growth rate of automobile sales reached its peak in 2016. Both the joint venture and self-owned brands put a premium on the appearance of cars, and LED helps to design the appearance flexibly and stands out an aura of technology. Therefore, the market share of LED headlight increased significantly.
As China secures the largest auto market in the world and has great enthusiasm in applying new technologies, domestic and foreign manufacturers have increased their investment and expanded their layout in Chinese market, especially of LED auto lights. China has already become the world’s largest LED producer, which provides domestic LED manufacturers with a geographical advantage to develop auto lighting.

Research Report on Automobile Headlamp Industry in China, 2018-2022

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