Automotive Optoelectronics Market

Automotive Optoelectronics Market: Overview (2022 to 2032)

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.

Historic market outlook for the Automotive Optoelectronics Market

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.

What are the Various Factors Driving the Automotive Optoelectronics Market?

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.

Which Factors May Hinder the Automotive Optoelectronics Market Growth?

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.

What is the Regional Analysis of the Automotive Optoelectronics Market?

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.

Market competition

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.

Scope of the Report

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 & Pacific 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

Key segments profiled in the Automotive Optoelectronics Market

By vehicle type, the Automotive Optoelectronics Market is segmented as:

• Passenger Vehicle
  • Compact Car
  • Midsize Car
  • SUV
  • Luxury
• Commercial Vehicle

By product type, the Automotive Optoelectronics Market is segmented as:

• LEDs
• Infrared component
• Image sensors
• Laser Diodes
• Optocouplers

By application type, the Automotive Optoelectronics Market is segmented as:

• Position sensors
• Backlight control
• Convenience and safety

By sales channel, the Automotive Optoelectronics Market is segmented as:

• OEMs
• Aftermarket

Frequently Asked Questions

What was the value of the Automotive Optoelectronics Market in 2021?

In 2021, the value of the Automotive Optoelectronics market reached over US$ 6,134.6 Million.

What will be the value of the Automotive Optoelectronics Market in 2032?

The Automotive Optoelectronics market is projected to reach US$ 16,022.2 Million by the end of 2032.

Which region has the potential market for Automotive Optoelectronics?

North America Region is projected to lead the Automotive Optoelectronics market in the forecast period.

By What rate is the Automotive Optoelectronics Market expected to grow 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.