Frost & Sullivan's Analysis of the European Automotive Lighting Technologies Market
European Automotive Lighting Technologies Market Gears Up For Technological And Competitive Overhaul Technological advances, legislation, and new market competitors are poised to fundamentally impact the EUR 2.54 billion European automotive lighting market. While innovative light source technologies are expected to offer safer, more economical, and efficient automotive lighting products, they are also likely to allow new companies to muscle into niche segments and redefine the competitive arena. By 2015, the European automotive lighting market (front, rear, and indicators) is forecast to reach EUR 3.3 billion, with growth derived mainly from new products such as active front lighting systems (AFS) and night vision systems. Together, AFS and night vision systems are expected to amass over EUR 942.0 million in 2015. These are just some of the key conclusions drawn in Frost & Sullivan's (http://www.transportation.frost.com) latest analysis of the European automotive lighting technologies market. An increasing emphasis on safety is expected to motivate new product developments and upgrading of existing offerings. Already, bending light and advanced front lighting system (AFS), along with improved light sources such as light emitting diodes (LED) and high intensity discharge (HID) are enhancing driver and pedestrian safety and reducing the number of accidents. Vehicle manufacturers (VMs) are also wielding such safety promoting, technologically advanced products as a tool of competitive differentiation. The emergence of new technologies such as adaptive front lighting systems and infrared night vision that complement existing products are further boosting overall market revenues. Realising the growth opportunities that AFS and night vision present, suppliers are queuing up to develop such products. At the same time, price reduction of new technologies, such as Xenon, are set to positively impact uptake rates. Continued price lowering means that more VMs are able to justify adding the technologies to their vehicle planning schedules. Product penetration is likely to see a steady increase as prices decrease and volumes increase. However, widespread cost-cutting by VMs has meant that suppliers have had to fulfil cost reduction goals, while upholding quality standards. Ongoing rationalisation initiatives are expected to pose difficulties for lighting manufacturers, more so with shorter product development times. Over the long term, cost-cutting initiatives are expected to squeeze R&D budgets and constrain the development of new lighting technologies - a trend detrimental to both suppliers and VMs. Legislative changes have helped expand the lighting market through endorsing the use of complementary technologies in conjunction with mandatory ones. Legislation was critical to the acceptance of light sources such as HID and LED and has been instrumental in the use of bending light and dynamic AFS with low-beam lighting. Forthcoming legislation is expected to advance the prospects of dynamic AFS that adapts to city driving conditions and integral brake lights. In 2003, front lighting accounted for 48 per cent of the overall market, rear lighting 45 per cent and indicators 5 per cent. By 2015, this scenario will have changed dramatically, with front lighting representing the lion's share of the market at the expense of rear and indicators. With their comprehensive product portfolios, Valeo, Hella and Automotive Lighting dominate the market. Visteon, Delphi, Denso, Koito and Ichikoh are other major participants. However, the projected 30 per cent market growth over the 2003-2015 period is poised to trigger competitive upheaval. The reality is expected to be a redistribution of existing market share fuelled by new market competitors and the introduction of new technologies, and that is likely to make for an uncertain future in terms of market leaders. Strategies for success are forecast to include improving end-user understanding and expectations of the true potential of automotive lighting. By raising consumers' expectations, the lighting industry can place greater pressure on vehicle manufacturers to include technologically advanced products as standard offerings. Educating the consumer is also expected to better prepare them to accept and pay for future lighting developments. Also, in a market place defined by rapidly changing technology, first-to-market status is not likely to provide sustained advantage until suppliers are able to establish long-term, large-scale contracts with large volume production VMs. If you are interested in a summary of this research service providing an introduction to the European automotive lighting technologies industry, please send an email to Kristina Menzefricke, Corporate Communications at kristina.menzefricke@frost.com with the following information: full name, company name, title, contact telephone number, email. Upon receipt of the above information, the summary will be emailed to you. Title: Frost & Sullivan's Strategic Analysis Of The European Automotive Lighting Technologies Markets Code: B262 Background Frost & Sullivan, an international consultancy firm, has been supporting clients' growth for over four decades. 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