Optoelectronics Market
Optoelectronics Market for Automotive by Devices (LED, Image Sensor, Infrared, Laser Diode, Optocoupler), Application (Position Sensor, Convenience & Climate, Safety, Lighting), Vehicle (PC, CV), EV Type, Aftermarket, and Region – Global Forecast to 2025.
The Automotive Optoelectronics Market is estimated to be USD 3.88 billion in 2018 and is projected to reach a market size of USD 9.80 billion by 2025, growing at a CAGR of 14.13% during the forecast period. The major factors driving the growth of the global automotive optoelectronics market are the increase in sales of luxury and ultra-luxury vehicles and high demand for LEDs lighting and safety application.
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Objectives
- To define, describe, and project the market (2018–2025), in terms of value (USD million)
- To provide detailed information regarding the major factors influencing the growth of the market, such as drivers, restraints, opportunities, and industry-specific challenges
- To analyze and forecast the market and estimate the market size, by value, based on devices, application, EV type, vehicle type, market channel type, and region
- To track and analyze competitive developments such as joint ventures, mergers & acquisitions, new product developments, and expansions
Opportunities
Increasing R&D in the field of optoelectronics technology
The research and development programs in the optoelectronic components market are focused more on the development of technology to meet the growing consumer demand and enabling integration of these devices into various automotive components. Various R&D communities are investigating optical and optoelectronic approaches for high-speed optical computing and next-generation communication networks. These research divisions are also trying to obtain the optimal combination of materials and devices to make functional elements that perform advanced optoelectronic functions, which will ultimately be used in photonic systems.
Rising demand for electric vehicles
According to the US Environmental Protection Agency, the transportation sector was responsible for nearly 28% of the total greenhouse gas emissions in 2016, becoming one of the leading causes of the increase in global temperature. Hence, various governments are promoting the use of electric vehicles for transportation as they significantly reduce automotive emissions.
Challenges
Aftermarket Installation
As Original Equipment Manufacturers (OEMs) do not provide optoelectronics devices for all vehicles, consumers generally get them installed from the aftermarket. OEMs provide LED lighting, digital display, and LED ambiance lighting in the top variants only. Consumers prefer to install LED display and ambiance lighting in the aftermarket as these are not provided as a standard feature by OEMs. Thus, the aftermarket for automotive optoelectronics is significantly large. OEMs generally have specifications for the production of optoelectronic devices; this aspect cannot be regulated when they are manufactured as an aftermarket accessory. The aftermarket installation is thus a major challenge for the growth of the OEM automotive optoelectronics market.
The LED segment is estimated to be the fastest growing market in the automotive optoelectronics market during the forecast period, by devices
The LED segment is estimated to be the fastest growing segment, by value, of the automotive optoelectronics market during the forecast period. The high demand for aesthetic lighting to improve the comfort and safety inside the vehicle for the occupants is governing the growth of LED segment devices.
Asia Pacific is estimated to be the fastest growing regional market for automotive optoelectronics market
The Asia Pacific region is projected to be the fastest growing market for automotive optoelectronics during the forecast period. The market growth in the region can be attributed to the rapid growth of the automotive sector in countries such as China, Japan, India, and South Korea. Moreover, the improved lifestyle of consumers and rapid urbanization have boosted the demand for passenger cars and commercial vehicles, thus, driving growth of the automotive optoelectronics market in the region.