Market Trends of japan automotive led lighting Industry
Technology upgradation and increasing demand for EVs drive the LED lighting market's growth
- The total automobile vehicle production in India was 9.41 million units in 2022, and it is expected to reach 9.65 million units in 2023. The automotive supply industry in Japan was severely affected by the COVID-19 pandemic. Nissan intended to reduce global production by 20% in late May 2020. Sales in Japan fell drastically by 23% in June, with Toyota performing the best, followed by Honda and Nissan. As a result, the closure of Chinese factories led to a scarcity of the automobile components needed to produce LED lights. This led to a decline in Japan's overall manufacturing of car LED lighting.
- Japan has major automotive manufacturers such as Toyota, Mitsubishi, Nissan, Yamaha Motor Company, Isuzu Motors Ltd, Mazda, and Lexus. Japan's auto industry is moving toward developing connectivity, electrification, and automated driving. At CES 2017, Toyota unveiled its Concept-I car to demonstrate the company's vision for the future of mobility. The vehicle has an artificial intelligence (AI) helper named ‘Yui’ that communicates with the driver and other drivers on the road via LED lights and sounds.
- Sales of electric vehicles are rising rapidly in Japan, driven by cheaper "Kei" minicars (vehicles classified with engines of 660 cc or less in the case of gasoline models), which are driving the demand for the EV market. Due to their high energy efficiency, LED lights are becoming increasingly common in EVs as their demand rises. Due to the use of LED lights in strip lights for decorative purposes in dashboard strip lighting, the use of LED lights in interior lighting of vehicles in varied styling is also rising.
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An increase in imported cars and government subsidies for the purchase of EVs drive the growth of the LED lighting market
- As of 2022, there were 28,546 charging stations in Japan. The number of imported electric vehicles sold in the country during FY 2022 rose 65% from the previous year to 16,464 units. There were 3.61 million passenger cars sold in Japan, and about 77,000 were EVs during FY 2022. The higher EV percentage for imported cars may reflect the wider variety of products offered by foreign makers than their Japanese rivals. Japanese car manufacturers have generally been slow to adopt electric and plug-in hybrid vehicles compared to some of their Chinese rivals. Affordable Kei minicars lead Japan's electric vehicle sales. However, EVs accounted for only 2.1% of new passenger car sales in Japan in FY 2022 compared to roughly 20% in China and Europe.
- The Japanese government offered subsidies to purchase CEVs. The maximum amount of the CEV subsidies given per vehicle in 2021 was JPY 800,000 (USD 7,200). In January 2023, the Japanese government announced the plan to ease safety rules for fast charging stations with more than 200 kW of power to reduce installation costs. In the process, HPCs will be placed on an equal footing with DC charging stations ranging from 50 to 200 kW.
- Subaru, a Japanese automaker, declared in May 2022 that it would build a new electric vehicle plant in the country, starting operations after 2027. It would be the first EV-only factory in Japan. In addition to the new facility, the current plant will be retooled to produce a specific number of electric vehicles, with an anticipated total investment of about JPY 250 billion (USD 1.68 billion). Thus, the above instances are expected to lead to the development and production of new power stations owing to the growing demand for EVs, which, in turn, is expected to boost the demand for automotive LEDs.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing number of households to drive the growth of the LED lighting market
- Increasing auto loans and government subsidies drive the growth of the LED lighting market
- High export of LED products and increasing number of supportive government policies and campaigns promote the use of LED lights
- Innovative technology for traffic flow monitoring systems and investment in public roads drive market growth
- Increasing number of households and growing real estate industry to drive the growth of the LED market
- High penetration of headlights and taillights and increasing light motor vehicle sales drive market growth
- Increasing deaths and declining birth rates is expected to hinder the growth and demand for real estate
- The market is driven by government initiatives to increase the use of energy-efficient lights and banning of batteries containing mercury and fluorescent light
