The North American lighting components aftermarket has experienced restrained revenue growth due to the weakening of the economy and the decline in the number of vehicle collisions. Aftermarket suppliers that manufacture and distribute reverse-engineered components from offshore factories will grow at the expense of original equipment ( OE) suppliers, who control a majority of the market share.
OE suppliers will recover some gains during the medium to long term through the sale of higher priced headlights and taillights, using light emitting diode (LED) and high intensity discharge (HID) technologies. Increased sales of designer headlamps and taillights, as well as premium Bulb upgrades, will drive average component prices up by 0.9 percent payments over the 2008-2015 period, notes the analyst of this research service.
However, this will be greatly offset by the falling price of light emitting diodes (LEDs), and increased penetration of aftermarket parts.
The use of LEDs as original equipment will allow aftermarket manufacturers to develop innovative products that stimulate vehicle modification activity and the purchase of component upgrades.
They are lighter and thinner than incandescent lamps, allowing for increased styling as well as personalization, and they can be positioned in creative ways that produce unique light patterns, colors, and shapes. LEDs will also gain ground in the accessories segment as distributors reduce the Number of neon components in their programs.
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