In 2032, the Automotive Optoelectronics Market is expected to be worth US$ 16022.2 Million. Optoelectronics is increasingly being used in modern cars for advanced automated features. Some of the prominent applications of automotive optoelectronics include automated headlights for improved visibility, automatic brakes for increased safety, advanced driving assistance systems, night vision systems, and active or passive infrared systems.
To propel the industry forward, leading automotive optoelectronics and software providers are focusing on developing innovative solutions for existing and new automotive applications, such as night vision, where infrared sensors and lenses detect objects in low light.
According to FMI, the Automotive Optoelectronics Market is estimated to be valued at US$ 6,893.4 Million in 2022 and is projected to increase at a CAGR of 8.80 % in the forecast period from 2022 to 2032.
| Attributes | Details |
|---|---|
| Market Size (2021) | US$ 6,134.6 Million |
| Market Size 2022 | US$ 6,893.4 Million |
| Market Size 2032 | US$ 16,022.2 Million |
| Value CAGR (2022 to 2032) | 8.80 % |
The automotive optoelectronics market has been growing with a healthy CAGR due to rapid advancements in technology and their several applications in its end-use industries.
Electronic components are mostly used to improve the function and efficiency of powertrain systems. These components assist an automobile's powertrain systems in exchanging messages, sensing signals, and controlling their operations.
There are various types of sensors where optoelectronic systems are used like powertrain systems, such as pressure sensors, vibration sensors for engine knock, mass flow rate sensors for air intake, rotational and rotary motion sensors, gearshift position sensors, input/output shaft speed sensors, turbine speed sensors, transmission fluid temperature sensors, and throttle position sensors.
The use of electronic components in automobiles is increasing due to several advantages, including increased vehicle safety and improved vehicle performance. Demand for luxury and safe vehicles is high due to changing lifestyles, rising awareness about safety, and disposable income. The growing application of electronic components in automobiles has resulted in a considerable dependence on optoelectronics in every vehicle manufactured today.
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The automotive optoelectronics market has witnessed a historic growth rate of 3.70% from 2017 to 2021. The sudden outbreak of the COVID-19 pandemic had a significant impact on public health, business, as well as the electronics and manufacturing industries.
Plant closings resulted in global production losses for automotive manufacturers mainly in the first and second quarters of 2020, automotive production fell by a total of around 9.6% (approximately 7.7 million vehicles), and OEMs manufacturer reduced their capacity planning requirements for supplier parts, including electronic components and semiconductors. Many manufacturers shifted their capacity to towards IT and consumer electronic products to fulfill the rising demand in covid-19.
At the end of 2020, demand for the automotive industry has risen again surprisingly more than the projected demand for the automotive sector owing to the COVID shutdown. As a result, in the fourth quarter of 2020, bottlenecks in the production and supply of electronic components for the automotive industry arose, mainly among suppliers. Meanwhile, and as of 2022, almost all automotive manufacturers reduce or (temporarily) stop vehicle production due to a lack of electronic components. However, the market is estimated to grow in the forecast period, with manufacturing facilities in the electronic industry resuming full-capacity operations to meet the growing demand from end users for optoelectronic components across various industry verticals.
In the automotive industry, optoelectronics is gaining popularity because of its wide application. In automobiles, optoelectronic devices can be used for occupant detection, drowsy driver detection, night vision, optical immobilizer, automating vehicle functions such as lighting and brakes, and remote keyless entry. Every automobile manufacturer is heavily investing in developing a wide range of cutting-edge optoelectronic devices in order to entice customers with convenience and ease.
A healthy improvement in the economy has changed people's lifestyles and demands in every industry. The growing disposable income has changed consumer behavior along with the new lifestyle. These factors have positively influenced the demand for luxury vehicles across the world, especially in developing countries. The optoelectronic system is required for luxury features such as autonomous driving and the integration of IoT and AI for a better end-user experience. LED lights, OLED and LED displays, and ambient lighting are increasingly being used in automobiles to provide luxury performance to end users. Rising demand for luxury cars is the primary factor driving the automotive optoelectronic market.
Strengthened government norms about safety and rising awareness among end-users are expected to boost the market significantly. As per the WHO, every year the lives of approximately 1.3 million people are lost as a result of road accidents. Speeding, driving under the influence of alcohol and other psychoactive substances, distracted driving, driving fatigue, and unsafe road infrastructure is the main causes of these accidents. This change the automotive buying behavior of consumer towards safety, which is estimated to rise the demand for optoelectronics.
Luxury car manufacturers provide advanced safety features to their customers, as well as customization options. The rise in the production of vehicles, growth in the production and sales of hybrid and electric cars, and increased awareness about vehicle safety boost the demand for the global automotive optoelectronics market.
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LED lights, OLED displays, and LED televisions are integrated with optoelectronics for their operations. LEDs are both costlier and difficult to manufacture. Halogen lights are cheaper and easier to manufacture than LED lights. Xenon bulbs are brighter than LED bulbs, which are used in vehicle headlights.
Furthermore, LED manufacturing requires raw materials that are price volatile, such as aluminum, automotive plastics, electronic components, steel, and other resin materials, which restrain the market growth. Raw material Prices are affected by changing global economies, changing currency rates, natural disasters, and trade traffic. Adoption of alternative lights such as halogen lights, as well as high initial investment, are viewed as constraints. The easy availability and rapidly growing demand for these alternative products are the main factors that hamper the demand for the optoelectronic market across the world.
North America is expected to dominate global automotive optoelectronics sales. Furthermore, the rise in luxury vehicle sales, increased automobile production, and the adoption of hybrid and electric vehicles will all have an impact on market growth during the forecast period.
South Asian countries are expected to experience significant growth in the automotive optoelectronics market as they transition into automobile manufacturing hubs. Furthermore, the easy availability of raw materials further benefits the market.
South Asian regional governments are enacting new safety standards to ensure the safety of end users. One of the key factors driving the Automotive Optoelectronics Market is consumers' increasing adoption of hybrid and electric vehicles, which, along with rising per capita income, changing lifestyles, government support, and infrastructure investments are other factors benefiting the market.
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Major players such as Avago Technologies, Osram Licht AG, Sharp Corporation, Koninklijke Philips N.V. Texas Instrument Inc, Autoliv Inc, Foryard Optoelectronics Co, FOSP Optoelectronics Co Ltd, OSI Optoelectronics AS, Vishay Intertechnology are using different strategies such as innovative product launches, strategic collaborations and acquisitions, partnerships, agreements, and contracts, a cost leadership strategy or low-cost strategy, a differentiation strategy, and a market-niche or focus strategy. To offer better products and remain at the top of the market.
Key players are generating significant opportunities in the optoelectronic market through continuous innovation and development into optoelectronic systems and applications. The automotive optoelectronic market will remain demanding and attractive.
HELLA, an automotive supplier operating under the FORVIA umbrella brand, developed a chip-based headlamp system. The development of LED matrix systems is represented by HELLA's Solid State Lighting (SSL) HD technology. The light source is further small with this innovation, allowing for up to 25,000 LED pixels per chip to be deployed in a significantly reduced installation space. This improves road illumination and allows for new lighting functions such as projecting safety distances or lane markings onto the road.
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 8.80% from 2022 to 2032 |
| Base Year for Estimation | 2021 |
| Historical Data | 2017 to 2021 |
| Forecast Period | 2022 to 2032 |
| Quantitative Units | Revenue in USD Million, Volume in Units, and CAGR from 2022 to 2032 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Vehicle Type, Product Type, Applications, Sales Channel |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacificl; Middle East and Africa |
| Key Countries Covered | USA, Canada, Mexico, Brazil, Germany, Italy, France, United Kingdom, Spain, Benelux, Russia, China, Japan, South Korea, India, ASIAN, Australia and New Zealand, GCC Countries, Turkey, South Africa, North Africa |
| Key Companies Profiled | HELLA electronics; Avago Technologies; Osram Licht AG; Sharp Corporation; Koninklijke Philips N.V. Texas Instrument Inc; Autoliv Inc; Foryard Optoelectronics Co; FOSP Optoelectronics Co Ltd; OSI Optoelectronics AS; Vishay Intertechnology |
| Customization & Pricing | Available upon Request |
In 2021, the value of the Automotive Optoelectronics market reached over US$ 6,134.6 Million.
The Automotive Optoelectronics market is projected to reach US$ 16,022.2 Million by the end of 2032.
North America Region is projected to lead the Automotive Optoelectronics market in the forecast period.
During the forecast period, the Automotive Optoelectronics market is estimated to expand at a CAGR of 8.80 % from 2022 to 2032.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis and Forecast, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis and Forecast 6.1. Vehicle Type 6.2. Product Type 6.3. Application Type 6.4. Sales Channel 7. Global Market Analysis and Forecast, By Vehicle Type 7.1. Passenger Vehicle 7.1.1. Compact Car 7.1.2. Midsize Car 7.1.3. SUV 7.1.4. Luxury 7.2. Commercial Vehicle 8. Global Market Analysis and Forecast, By Product Type 8.1. LEDs 8.2. Infrared component 8.3. Image sensors 8.4. Laser Diodes 8.5. Optocouplers 9. Global Market Analysis and Forecast, By Application Type 9.1. Position sensors 9.2. Backlight control 9.3. Convenience and safety 10. Global Market Analysis and Forecast, By Sales Channel 10.1. OEMs 10.2. Aftermarket 11. Global Market Analysis and Forecast, By Region 11.1. North America 11.2. Latin America 11.3. Europe 11.4. South Asia Pacific 11.5. East Asia 11.6. Middle East & Africa 12. North America Sales Analysis and Forecast, by Key Segments and Countries 13. Latin America Sales Analysis and Forecast, by Key Segments and Countries 14. Europe Sales Analysis and Forecast, by Key Segments and Countries 15. South Asia Pacific Sales Analysis and Forecast, by Key Segments and Countries 16. East Asia Sales Analysis and Forecast, by Key Segments and Countries 17. Middle East & Africa Sales Analysis and Forecast, by Key Segments and Countries 18. Sales Forecast by Vehicle Type, Product Type, Application Type, and Sales Channel for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. Avago Technologies 20.2. Osram Licht AG 20.3. Sharp Corporation 20.4. Koninklijke Philips N.V. 20.5. Texas Instrument Inc 20.6. Autoliv Inc 20.7. Foryard Optoelectronics Co 20.8. FOSP Optoelectronics Co Ltd 20.9. OSI Optoelectronics AS 20.10. Vishay Intertechnology
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Automotive Optoelectronics Market
