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Optoelectronic technology is a new technology formed by the combination of photon technology and electronic technology. Optoelectronics is the field of technology concerned with electronic device application to the sourcing, detection and control of light. Optoelectronics is described as “a device that responds to optical power, emits or modifies optical radiation or utilizes optical radiation for its internal operation” or “any device that functions as an electrical-to-optical or optical-to-electrical transducer.”
The optoelectronics field consists of wide range of devices such as LEDs and elements, information displays, optical storages, remote sensing systems, and optical communication systems. It encompasses the design, manufacture and study of electronic hardware devices that, as a result, converts electricity into photon signals for various purposes such as medical equipment, telecommunications and general science. Good examples are X-ray machines used in hospitals and fiber optic technology for telecommunication.
Automotive Optoelectronics is the study and application of electronic devices and systems that source, detect and control light, usually considered a sub-field of photonics on automotive. In this context, light often includes invisible forms of radiation such as gamma rays, X-rays, ultraviolet and infrared, in addition to visible light.
Optoelectronic devices are electrical-to-optical or optical-to-electrical transducers, or instruments that use such devices in their operation. 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.
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.
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 behaviour of consumer towards safety, which is estimated to rise the demand for optoelectronics.
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.
A healthy improvement in the economy has changed people’s lifestyles and demands in every industry. The growing disposable income has changed consumer behaviour 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 marke
According to FMI, the Automotive Optoelectronics Market is estimated to be valued at US$ 6,893.4 Mn in 2022 and is projected to increase at a CAGR of 8.80 % in the forecast period from 2022 to 2032. In 2032, the Automotive Optoelectronics Market is expected to be worth US$ 16022.2 Mn.
Drivers:
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.
Automotive manufacturers across the globe are constantly increasing their focusing towards the integration of several electronics and technologies in order to attract an increased number of
customers. The rising number of luxury vehicles and ultra-luxury vehicles is a major influencing the automotive optoelectronics market. This is due to the fact that, luxury cars and ultra-luxury passenger car manufacturers integrate their vehicles with the most advanced technologies, providing enhanced safety features and other parameters. Another factor bolstering the automotive optoelectronics market in the current scenario is the investments from the mid-range passenger vehicle manufacturers and
Modern optoelectronics products have a much longer lifespan than traditional components, thereby, increasing the adoption rate of these components. This factor is facilitating the automotive optoelectronics market to soar in recent years.
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.
Restraints:
The easy availability of counterfeit products is hampering the growth of automotive
optoelectronics market.
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 prices volatile, such as aluminium, 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.
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.
MARKET SEGMENTATION
On the basis of devices, the market is segmented into LED, image sensor, infrared components,
laser diode, and optocoupler.
LED
The LED devices segment is projected to register the fastest growth, in terms of value, in the automotive optoelectronics market during the forecast period. The growth of the LED segment can be attributed to the increasing demand for ambient lighting to enhance the comfort & convenience in the vehicle.
LED light is a recent innovation in automotive lighting technology. Compared to xenon/HID lights, LEDs offer a better reflection in terms of light returns from road signs. In vehicles, LEDs can be used for lighting, safety, and convenience & climate applications. LEDs are primarily used in headlights, daytime running light (DRL), side indicators, and ambient lighting. Continuous innovations in the lighting sector are leading to the adoption of new technologies like adaptive LED lighting.
Optocoupler
Increased in the electrification inside the vehicles has paved the way for integrating advance electronics components for smooth functioning of technology. Optocoupler is one such component integrated in the electronics architecture of the vehicles which prevents high voltages from affecting the system receiving the electrical signal. Thus, key market players are developing advanced optocouplers to gain traction in the global automotive optoelectronics market.
Based on application, the global automotive optoelectronics market is segmented into backlight
control, convenience and climate, lighting, position sensors, safety, communication, and others. By application, the safety segment is expected to register the fastest growth, by value, in the automotive optoelectronics market during the forecast period. The increasing number of safety mandates by several governments across the globe along with the high consumer preference for safety applications is driving the growth of the automotive optoelectronics market.
Based on vehicle type, the market is segmented into passenger car, LCVs, and M and HCVs.
By market channel, OE market segment is estimated to be the largest segment of the automotive optoelectronics market during the forecast period. The growth of this segment can be attributed to the offering of features such as ambient lighting, convenience & climate features, and safety features as standard fitment by the automakers. OE is expected to remain an attractive market in the near future due to the increase in demand for such features by the consumers.
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.
Geographical
The North American region is projected to be the largest market for automotive optoelectronics by 2025. The increasing production of automobiles and a significant rise in demand for premium segment passenger cars are driving the market growth in this region.
On the other hand, Western Europe followed by North America is other significant regions to positively influence the growth of the global Automotive Optoelectronics market in the coming years.
The Asia Pacific region is anticipated to register the fastest growth in automotive optoelectronics by 2025. The adoption rate of applications such as safety and lighting in vehicles is expected to show incremental growth in the region in the coming years. The increased adoption rate makes the Asia Pacific region the fastest growing market during the forecast period.
The automotive optoelectronics market is dominated by a few global players and comprises several regional players. Some of the key manufacturers operating in the market are Osram (Germany), Hella (Germany), Texas (US), Broadcom (US), and Vishay (US). Leading automotive optoelectronics manufacturers/software providers are focused to develop innovative solutions for existing and new applications of automobiles to drive the industry forward.
Key players include Broadcom, Grupo Antolin, HELLA GmbH and Co. KGaA, KOITO MANUFACTURING CO., LTD., Marelli Holdings Co., Ltd., OSRAM Opto Semiconductors GmbH, Renesas Electronics Corporation, STANLEY ELECTRIC CO., LTD., Texas Instruments Incorporated, Vishay Intertechnology, Inc.
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.
References and Resources also include:
https://www.futuremarketinsights.com/reports/automotive-optoelectronics-market
https://www.futuremarketinsights.com/reports/automotive-optoelectronics-market#:
