Automotive lighting: a mutating industry
According to Yole's analysts, automotive lighting is becoming one potential critical node for autonomous driving because lighting systems could represent a key location for the integration of sensors such as local cameras, radio and light detection and ranging (radar and LiDAR).
Traditional automotive component suppliers are now expanding their business in this field. A good example of this trend is the recent acquisition of Magnetti Marelli by CK Holdings, a holding company of Calsonic Kansei Corporation, a leading Japanese automotive component supplier, for 6.2B€.
Electronic companies seem also to be eyeing automotive lighting. Indeed, with the increased implementation of electronic components in vehicles, automotive electronics should surpass the consumer electronic business in the middle/long term. LG has made the first move in this direction with the acquisition of ZKW for more than 1.1B€.
Several new players are likely to enter this market in the future, and some current leading automotive lighting tier-1s are therefore trying to reinforce their position. Valeo has taken over Ichikoh, Varroc has kicked off an Initial Public Offering (IPO) process to raise capital, and Magna has acquired Olsa.
But such moves are not restricted only to car maker and Tier-1s. Some Tier-2 and Tier-3 players also want bigger pieces of the pie. In this field, Osram has recently developed a joint venture with Continental to supply lighting modules and Electronic Control Units (ECUs), which will become the heart of lighting system development in the future.
This industrial evolution is likely to continue as solid state lighting technologies are integrated. The rapid evolution of these technologies coupled with the AFLS trend and increased use of non-visible lighting systems such as LiDAR, autonomous emergency braking (AEB) or driver monitoring systems might reshuffle the cards in an industry that’s mutating.
Yole Développement – www.yole.fr