Panasonic announced it will be raising its lighting revenue from JPY 320.3 billion (US $3.02 billion) from 2015 to JPY 400 billion by 2018, according to a report from Nikkei.

Panasonic’s LED lighting products have a high shipment volume in Japan, and a 40% market share in the market there. The company stated as LED lighting market penetration rises in Japan, conventional lighting revenues declined resulting in its negative market outlook for the lighting industry. Prior to the announcement, Panasonic’s lighting businesses included luminaire products in residential and retail applications. Additionally, its product lineup covers LED bulbs and lighting components, and it will be shifting its focus from residential applications to smart buildings and streetlights.

According to the report, Panasonic Lighting is prioritizing development of automotive headlights. In 2015, Panasonic started to use aluminum nitride to develop new semiconductor lasers, which raised output power to 4.5 W, and could illuminate a distance of 700 meters. A much higher illumination distance compared to most headlights on the market. The Japanese company intends to commercialize the product by 2019. Panasonic and Chinese Xingyu Automotive Lighting System signed a strategic partnership on May 9, 2016 to collaborate on automotive lighting, sensors, and other automotive electronics.

Panasonic also announced its revenue target for the European market will be raised from JYP 30 billion in 2014 to JYP 36 billion in 2018, and observed LED market penetration was still fairly low compared to Japan. The company’s market strategy in Europe mainly be positioning itself in the LED lighting component industry.