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When Peugeot launches its new 308 at the Frankfurt auto show in September it will become the first automaker in Europe to offer full-LED headlamps as standard in the majority of the compact's trim lines. This is a big leap for the technology, which for years was only available on high-end models such as the Audi R8 and Mercedes-Benz CLS because of it costs about three times as much as comparable xenon lights.
Peugeot is not the only volume automaker look to gain a competitive advantage via the technology. Volkswagen Spanish subsidiary Seat offers full-LED headlamps as an option on high-end versions of the Leon compact in Europe while Ford plans to offer full-LED headlamps from Valeo in the next-generation Mondeo when it goes into production next year.
While volume automakers start to add LED headlamps, premium brands such as Audi are quickly extending their use of the technology into their lower segments.
Audi the early leader
Audi, which has been the early leader in seeking to differentiate its models through its lighting, is offering LED headlamps as an option on the A3. Andrew Herzig, a sector analyst at IHS Automotive, predicts that LED headlamps will be an option on every future Audi, either at launch or face-lift.
Author of a recent report on advanced automotive lighting system, Herzig also thinks VW brand will offer LED headlamps as an option on the Passat in the near future.
Premium brands are also finding even more ways to use LEDs in their top-of-the-line models. The new sixth-generation Mercedes S class that goes on sales in Europe next month is the first vehicle with no functional exterior lighting that is not LED sourced. Mercedes also has LED headlamps as standard on the face-lifted E class.
"The general message from suppliers and OEMs is that they expect LED headlamps will grow at the expense of both xenon and halogen in the medium term," Herzig said.
Many observers remain cautious, however, about the precise pace at which this growth will happen.
High-end option
Analysts at Oliver Wyman, for example, last year predicted that between 2011 and 2016 halogen's share of the headlamp market will fall some 10 percentage points to 70 percent, while xenon's will increase by 7 percentage points to about 27 percent and LED will increase from less than 1 percent to between 3 percent and 4 percent, with up to 90 percent of those headlamps installed in luxury models.
There are many factors underlying future growth trends. Designers love LEDs. The compact 1mm wide square cells allow them to convert plain headlights and taillights into strong fashion statements.
Engineers like them because they are highly energy efficient mono-directional light emitters that do not generate heat. Cost accountants, however, still turn pale whenever they hear the initials L-E-D. But this is changing.
In a stagnant European market, automakers are increasingly seeking ways of trying to win sales. One way is to give more car, with enhanced options, for the same money. LED headlamps could prove to be one more attractive option in this battle, as evidenced by the approach being adopted by Ford, Seat and Peugeot.
Halogen remains the cheapest source of illumination, by far. However, it is inefficient, converting only 5 percent of the energy used into light. Xenon is still on a growth trajectory, gaining share as its technology improves.
Compared with halogen and xenon, LEDs are still expensive. The cost of a low-end LED headlamp is currently comparable with a high-end, fully adaptable xenon. This price differential is reducing as increased take rate of LED headlights leads to greater economies of scale. It is expected that entry-level LEDs will eventually match or even beat xenon performance at a lower cost, but that is likely to be in about five years.
