Forvia, Valeo, Plastic Omnium emerge as force in lighting market

By Peter Sigal for Automotive News Europe – Led by Forvia’s acquisition of Hella, the three companies now have more than 25% of the growing global lighting market, which is set to outpace growth in auto production.

Not long ago, automotive lighting consisted of headlights, taillights, turn signals and a few interior bulbs. But today’s cars are veritable Christmas trees, from front grilles that pulse with elaborate “lighting signatures,” through customizable mood lighting in the interior, to full-width light bars in the rear.

Lighting everywhere” is what Valeo CEO Christophe Perillat calls it.

Valeo and fellow French suppliers Forvia (formerly Faurecia) and Plastic Omnium have gone all in on lighting in the last few years. They have snapped up players as large as Hella (bought by Faurecia for $6 billion) to gain market share in a business poised to ride the megatrends of electrification, increased safety regulations and ADAS to outperform the overall auto market.

Hella is perfect because it has two main specialties, one of which, lighting, is a nice add that is aligned with what we are doing in terms of systems, design and safety — it works very well in our portfolio,” Forvia CEO Patrick Koller told Automotive News Europe in a recent interview“Then you have Hella’s electronics and software, which will give us size to achieve leading positions, especially in automated driving and in electrification.”

The automotive lighting sector is predicted to outperform production growth, as new comfort, safety and design features are introduced. Yole Group, a French consulting company that analyzes technical trends, says the overall market will grow by 5 percent annually from 2021 until 2027, but production will grow just 2 percent a year.

The value of the lighting market will increase to $42.2 billion in 2027 from $31.5 billion in 2021, said Pierrick Boulay, a senior technology and market analyst at Yole who specializes in lighting and displays.

“We are seeing more and more innovation with the application of LED technologies and matrix-based headlamps,” Boulay said. “That is why there is still growth in the market.”

Exterior lights now include central rear brake lights, lighted logos and grilles that can greet drivers as they approach the car, small turn indicators on mirrors, and mandatory daytime running lights and automatic high beams…. Full article



Automotive lighting: from basic and functional to distinctive and high-value features on September 1st, at 5.00 PM CET – Powered by Yole Group.

This webcast will discuss :

  • The evolution of lighting technologies and applications
  • The recent acquisitions among the lighting Tier-1
  • The possible convergence between lighting and sensing

Speakers: Romain Fraux, CEO of Yole SystemPlus – Pierrick Boulay, Senior Technology & Market Analyst, Lighting and Display.