After the segmentation of the LED-related application market, more and more experienced individuals have realized that the demand in the traditional mobile phone sector will not drive significant growth in the LED industry in the next two years. However, due to an optimistic outlook for the emerging automotive LED market, most industry insiders believe that the automotive LED market will become the main growth driver for the LED market in the future.

The domestic spot market shows that since the second half of last year, the LED market has seen a significant decline in revenue and profits for many LED manufacturers due to mobile phone growth not meeting expectations. As a result, industry players are eagerly anticipating growth in the LED market in other sectors this year.

Under the current global limited growth space for mobile phones, industry players have maintained a cautious attitude towards the growth momentum of LEDs this year. Recently, as new application markets such as automotive lighting and backlighting gradually emerge, industry players have indicated that the LED market will leverage automotive applications and will continue to maintain a growth trend this year. Although major LED manufacturers are still in the development and certification stages in the three major application markets of automotive lighting, backlighting, and general lighting, leading to a lack of demand that does not significantly contribute to industry growth this year, with the acceleration of industrialization, industry players believe that next year, major LED manufacturers will have a large number of applications in automotive lighting, backlighting, and general lighting.

Regarding the development of the automotive LED market, industry players believe that some high-end cars in the United States, Japan, and Europe have already begun to partially use LED lighting. With the development of the Chinese economy, the automotive and motorcycle industries have rapidly developed in recent years, and the demand for supporting products such as automotive and motorcycle lights will inevitably rise.

Although the LED automotive lighting market expanded slowly in previous years, there has been a trend of acceleration since 2002. It is expected that there will be rapid development in the next two years, with 1 to 2 lights (such as rear brake lights and rear turn signals) expected to use LED light sources in the front combination lights and rear lights of each car.

LEDs are known as the fourth generation of automotive light sources. Experienced individuals believe that LED automotive lights, while having a higher initial investment, possess advantages such as better quality and higher grade that incandescent bulbs cannot match.

It is reported that in recent years, well-known car brands such as BMW, Ford, Honda, Toyota, Mercedes-Benz, Audi, and Lexus have spared no effort in exploring new selling points, competing to launch various new models to attract customers, thus developing a variety of attractive and colorful car light styles. As the fourth generation of automotive light sources, LED lighting has been well utilized by many automotive manufacturers to create stunning car light designs. LED automotive lights have many advantages such as no delay, energy efficiency, long lifespan, low heat, shock resistance, and high color purity, making them an inevitable replacement for tungsten filament and halogen lights.

In the next five years, China's LED automotive lights will undergo large-scale development, with an expected annual output value of 1 billion yuan in the coming years, and 3 billion yuan in annual output value five years later.

It is understood that automotive LED lights are divided into two main categories: decorative and functional lights. Decorative lights are mainly used for beautifying the vehicle inside and out, often working with control circuits to achieve colorful changes. Functional LED lights are most suitable for backlighting of digital instrument clusters, turn signals, brake indicator lights, clearance lights, reverse lights, fog lights, and reading lights. The usage requirements for LEDs are generally similar to those used in other applications, but the requirements for LED angles, color differences, brightness, voltage dispersion, light decay, heat dissipation, UV protection, and reliability are higher. Only by achieving improvements in these functions can automotive LEDs realize a true industrialization process.
Regarding the industrialization process of automotive LEDs, industry players believe that the gradual transition of LEDs to most vehicles is an inevitable process for the industry. One of the biggest selling points of LEDs is their long average time between failures; the lifespan of LED lighting devices generally exceeds that of the vehicles themselves. As LED automotive lights represent a major trend in automotive lighting development, the shared massive demand for LEDs in automotive and general lighting is stimulating the development of the LED chip industry. It is expected that in the next five years, the quality and output of domestic LED chips will significantly improve to meet this demand.