The LED car lamp market is hot, how do domestic brands overtake in corners?

16/06/2022
China is the world's largest auto consumer market. According to Gongxin Weibo, China's auto sales in 2021 will be 26.275 million units, a year-on-year increase of 3.8%.

The vigorous development of the automotive market has also led to the development of LED lights. At present, LED lights have been widely used in the automotive field, and even headlights representing high-end technology, LED technology has also been widely used in recent years. According to LEDinside, the optoelectronic research division of TrendForce, in 2021, the global penetration rate of LED headlights will exceed 60%, and the penetration rate in new energy vehicles will be as high as 90%.

At present, international companies occupy a large market share of LED car lights, while Chinese companies are increasing their research and development of LED car light technology. At the same time, relying on cost-effective advantages, they gradually expand their market share in the LED car light market, thereby driving Prosperity of related industry chains.

Internal and external dual drive, LED lights accelerate localization

International companies set foot in the automotive LED field earlier, and this first-mover advantage has made Chinese LED companies encounter triple barriers of brand, product and technology when entering the automotive lighting market.

In terms of brands, international companies have been widely recognized by car companies and are the first choice for car companies.

In terms of products, in the long-term cooperation with car companies, international companies are more familiar with the needs and trends of the automotive industry, and the types of products they have developed are relatively comprehensive and have a wide range of specifications.

In terms of technology, car lights must meet the strict requirements of the vehicle environment. The development process requires integrated design capabilities such as optics, structure, heat dissipation, and electronics. Moreover, the development of each product must pass the strict safety certification of the car factory. Obviously more familiar with this.

In order to reduce the cost of coordination, communication and procurement, vehicle manufacturers are more inclined to cooperate with international enterprises. But the rapid expansion of the new energy vehicle market is expected to break this deadlock.

At present, China is the most important production and sales place for new energy vehicles. According to the news from Gongxin Weibo, China's new energy vehicle sales in 2021 will be 3.521 million units, a year-on-year increase of 1.6 times, ranking first in the world for seven consecutive years.

The huge market has become a fertile ground for the growth of domestic independent new energy vehicle brands, and it has also provided a huge stage for Chinese LED auto lamp companies. According to the observation of LEDinside, the optoelectronic research division of TrendForce, LED lights have become a mainstream trend in new energy-eyed vehicles. With the advantages of cost control, local OEMs are strengthening their relationship with Chinese LED lighting companies. supporting partnership. Therefore, the rapid development of the new energy vehicle industry will become an external factor for accelerating the localization of LED lights.

On the other hand, the development and expansion of enterprises in China's LED automotive lighting industry chain has become an internal factor for accelerating the localization of LED automotive lighting.

At present, the automotive field has been fully valued by LED companies. Taking Nationstar Optoelectronics as an example, as a leading company in the domestic LED packaging industry, it is bringing more competition to local LED auto lamp companies with better price advantages, more convenient communication and services, and increasingly mature technology. Powerful cost-effective products, and then become a major "secret weapon" for Chinese auto lamp companies to improve their brand strength and narrow the gap with international companies.

Five dimensions, look at the lighting layout of Guoxing Optoelectronics

National Star Optoelectronics' automotive LED lighting business adopts the method of joint development with international and domestic automotive lighting companies. After years of polishing, Nationstar has formed a large leading advantage in the field of automotive lights.

One is the brand advantage. National Star Optoelectronics began to set foot in LED packaging in 1976, and is one of the first three LED companies in China. At present, National Star Optoelectronics is a national high-tech enterprise and a key high-tech enterprise of the National Torch Program.

It is worth mentioning that on February 18, 2022, FTSE Russell (FTSE Russell, the world’s second largest index compiling company) announced the results of the quarterly review of its flagship index for February 2022. Among them, only Nationstar Optoelectronics is included in the LED industry, and the strength of the enterprise should not be underestimated.

The second is the industrial chain advantage. Nationstar Optoelectronics is one of the first companies in the LED packaging industry to complete the upstream extension of the industrial chain.

It is reported that Nationstar Optoelectronics established Nationstar Semiconductor in 2011; on March 5, 2021, Nationstar Optoelectronics invested 220 million yuan in Nationstar Semiconductor to further optimize the upstream chip product structure. In terms of automotive applications, National Star Semiconductor will complete the development of automotive LED chip series products in 2020. The products have the characteristics of low voltage, high reliability and good heat dissipation, which can meet the needs of high-current injection applications of chips.

At the same time, Nationstar Optoelectronics has also accumulated rich experience in lamp development and optical design capabilities in the downstream. The vertical integration of the industry chain enables Nationstar to quickly respond to customer needs and achieve large-scale supply on the basis of ensuring product quality and cost-effectiveness.

The third is technical advantage. National Star Optoelectronics takes the National Star Optoelectronics Research Institute as a platform to build the company's core technology research and development base, scientific research project incubation base and technical talent training base. At present, Nationstar Optoelectronics has more than 10 doctors (post-graduates), more than 150 masters, and more than 700 technicians with a bachelor's degree or above. The annual R&D investment exceeds 100 million yuan.

The strong scientific research team has brought the leading edge in technology to Nationstar Optoelectronics. At present, Nationstar Optoelectronics has a patented welding wire design, and the product's thermal shock resistance is in a leading position in the industry; while the nano-scale coating packaging technology has greatly improved the S-resistance of LED lamp products.

Fourth, product advantages. After years of technical accumulation and market testing, Nationstar has outstanding advantages and complete series of automotive lamp LED devices.

In addition, each LED device product of Nationstar Optoelectronics is verified in accordance with the AEC-Q102 standard. From design and development, production and manufacturing to quality control, they all comply with strict standards. The product parameters are well adjustable. The matching efficiency is high.

At present, Guoxing Optoelectronics has launched front-mounted low-power TOP series products and rear-mounted ceramic high-power device products for the field of automotive lighting.
Fifth, the production capacity advantage. Based on the forecast of the market and the development needs of enterprises, Nationstar has actively expanded its production capacity in recent years. Among them, the Nationstar Optoelectronics Nanzhuang Geely Industrial Park project is an important expansion base of Nationstar Optoelectronics in the Guangdong-Hong Kong-Macao Greater Bay Area, and the first phase of the main project has been successfully completed.

It is reported that the total investment of the National Star Optoelectronics Geely Industrial Park project is 1.9 billion yuan, focusing on new smart displays, smart car lights, smart home and ultraviolet sterilization and other fields. The project will import technological resources such as intelligent display, 5G and advanced intelligent digital systems, aiming to build a "smart benchmarking factory" in the Greater Bay Area. In the future, as the project is completed and put into production, the intelligent manufacturing level of Nationstar will be comprehensively improved, and the scale of production capacity will be further expanded.

Epilogue

LEDinside, an optoelectronic research division of TrendForce, estimates that under the dual growth drivers of increased vehicle shipments and increased penetration of LED lighting, the output value of the global automotive LED market will reach US$3.51 billion in 2021, with an annual growth rate of 31.8%.

Under the huge market cake, the process of localization of automotive lamps has a long way to go and requires the joint efforts of the entire industry chain. At present, from LED chip companies such as Sanan Optoelectronics, Huacan Optoelectronics, and Zhaochi Co., Ltd., to LED packaging companies such as Guoxing Optoelectronics and Hongli Zhihui, and then to LED terminal companies such as Foshan Lighting, they are increasing their efforts in the field of automotive lighting. R&D efforts. We believe that this great situation where the industry chain makes concerted efforts will surely promote and witness the process of localization of automotive lamps.

The LED car light market is an opportunity for LED companies, but it is also a challenge. For LED companies, it is necessary to dig technology, focus on quality, be brave in innovation, and control costs, in order to speed up the localization process of car lights, and even grab international manufacturers. market share.