Osram’s Acquisition of Novità Technologies to Meet New Demands in Automotive Lighting Sector

German lighting giant Osram announced two important developments in its automotive lighting business this month, such as supplying OLED taillights to BMW and its latest acquisition of U.S. automotive LED module manufacturer Novita Technologies. How will the acquisition affect the LED industry, though?

Novita Technologies is a U.S.-based automotive LED module manufacturer that was founded in 2007 as a spin-0ff has an annual revenue of about US $44.08 million, and is positioned in the original equipment manufacturing (OEM) and aftermarket (AM) in the automotive lighting sector. The manufacturer that specializes in on-board technology is also applying for a flexible LED-arrays patent.

The acquisition could vertically integrate Osram’s automotive lighting supply chain, making it more comprehensive and enable it to implement two strategies to better meet client demands, said a LEDinside analyst that declined to be named. “Osram is aiming to meet clients’ automotive lighting customization demands, while providing standard automotive lighting solutions to clients,” he said.

Previously, Osram supplied LED package or light source components to automotive lighting clients that was later soldered onto a circuit board by module clients. With the addition of Novita Technologies, the company will be able to provide LED module products, which would benefit clients that lack soldering capacity.

Asked if Osram might be eyeing the AM sector with the acquisition of Novita Technologies, the LEDinside analyst said the global leader in LED automotive lighting is still focused on the OEM market. This can be observed from the U.S. company’s main product line-up.

“LED modules are now trending in the automotive lighting sector,” he added. “Many new automotive LED modules are asymmetrical, making it more difficult to manufacture. In general, LED modules remains uncommon in the AM sector.”

Osram’s recent strategies in the automotive lighting sector, no doubt is aimed at further strengthening its market position as the world’s leading LED automotive lighting supplier.

(Author: Judy Lin, Chief Editor, LEDinside)

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