LED is widely used in the automotive field. LED in the vehicle instrument panel, backlight lighting switch, car reading light or head display system and other internal applications are more mature, the dashboard backlight has been 100% use LED. On the outside of the car, such as the car combination taillights, brake lights and other small lights have also adopted LED. In the headlights representing high-end technology, LED has also been widely used in recent years.

 In recent years, the penetration rate of LED headlights has continued to rise, increasing from 23% in 2018 to 33% in 2019. In 2020, the penetration rate has reached 68%, and the LED headlights market has gradually released its potential.

 At present, the existing domestic automobile lighting manufacturing enterprises are mainly small and medium-sized enterprises; there are few large enterprises, joint venture, sole proprietorship and private enterprises, which occupy the vast majority of the market.

 There are many competitors in the automobile lighting industry, and the competition is gradually increasing in recent years: firstly, with the gradual liberalization of policy, foreign lamp manufacturers set up joint ventures or sole proprietorship enterprises in China, which intensifies the competition between domestic and foreign-funded enterprises and foreign-funded enterprises; secondly, domestic enterprises have cost advantage, some enterprises adopt low price strategy to compete for the market, which intensifies the market competition; again, the vehicle manufacturing enterprises gradually change the mode of internal procurement, which increases the market competition degree to some extent.

The headlight industry pattern is developing to multi-polarization, and the competition is gradually fierce. China's headlight industry will benefit from import substitution, product upgrading, etc., the industry concentration is expected to gradually increase, and the share of independent brands is expected to increase.