Lighting companies look to capitalize on industry megatrends through M&As and partnerships
Mergers, acquisitions, and partnerships in the automotive lighting industry have increased lately, reflecting an ambition among the companies to develop more advanced and wider portfolio of products
Suppliers are taking the merger and acquisition (M&A) route to realign their product portfolio, boost their research and development capabilities, and expand their market reach to be better prepared to respond to any disruptions in the market driven by fast-evolving technology trends. This article highlights the significance of some of the strategic deals in the lighting industry and the resultant combined strengths of the merged entities. The market for advanced lighting solutions is expected to record strong growth in this decade and the next due to the expanding electrification and autonomous driving trend. With the rise of autonomy features in cars, IHS Markit expects demand for sensor-embedded lighting solutions to increase significantly over the next 5–10 years. Suppliers will also be required to develop bespoke software solutions for smart lighting functions in future cars. According to IHS Markit's forecast, the revenue potential for light vehicle lighting components (headlight and taillamp) is expected to reach USD82.23 billion in 2027, a growth of 45% from USD56.53 billion in 2022.