An estimated 24 million light vehicles will feature LED headlights by 2020, according to a new report.

Should cost-reduction strategies prove successful, the report states that deployment of LED headlights will increase to approximately 21 percent of light vehicles.

This is an increase from one million vehicles at present.

Challenges facing the adoption of LED headlights include brightness levels from current LED chips, thermal issues, the complexity of controlling LED headlights and their increased functionality, and higher assembly costs.

"As with many other electronic features, intensifying competition among auto makers is forcing the growth of LED headlights," said Kevin Mak, analyst in the automotive electronics service department at Strategy Analytics. "Innovative and attractive LED vehicle headlamp designs have captured consumer attention and are raising interest in feature enhancements, such as cornering lights and automatic high beam assistance.  LEDs can offer these advantages, however they come at a cost."