Electronic and digital technologies are transforming the automotive lighting industry, offering more design flexibility, increased efficiencies and new functionalities for manufacturers and consumers alike. These trends are translating into significant market growth which is only set to intensify further over coming years.
A defining characteristic of the automotive lighting industry is how technology has continually evolved over the past century, providing new solutions for manufacturers. Today it is LED technology that is transforming both the exterior and interior lighting markets.
Cutting-edge technological advances are driving the industry. these technologies include OLED (organic light-emitting diode), laser lighting, AFLS (adaptive front lighting systems) and glare-free lighting. OLED lighting is among the most advanced lighting technology now available. As well as being thinner, lighter and more flexible than LEDs (they can be about one-tenth of the thickness of LEDs), they also offer major energy efficiencies (as they produce less heat) and design opportunities.
In 2017 electrification, autonomous driving, connectivity and the drive to lightweight vehicles will continue to be main drivers of M&A among automotive suppliers. Many suppliers will be forced to take a new strategic direction, which will fuel global M&A activity in the automotive industry, both in terms of growth and consolidation. In particular we expect Chinese companies to continue to play a major role in technology-based M&A, especially in the European automotive landscape.