Osram reveals three-pillar strategy plans for lighting sector

Osram reveals three-pillar strategy plans for lighting sector

Business news |
By eeNews Europe

In the Specialty Lighting (SP) business, Osram is increasing the focus of the company’s automotive business on LED-based products and the system business as well as investments in new technologies such as laser and OLED. In the Lighting Solutions & Systems (LSS) segment, Osram will expand its product portfolio for Smart Cities and Smart Buildings applications in the years to come, taking account of rising urbanization. In the LED components business (Opto Semiconductors, OS), Osram aims to become the cost leader thanks to the company’s lead in technology, economies of scale, and factor cost benefits from the planned 6-inch LED chip plant in Kulim, Malaysia. The plant will be the largest of its kind.

“We are well on our way to becoming a high-tech company. With our innovation and growth initiative we are shifting the focus to sustainable growth,” said Olaf Berlien, Chief Executive Officer of OSRAM Licht AG.

Megatrends such as digitalization, mobility, or urbanization are shaping the lighting industry. With several leading positions already, Osram is preparing to benefit from such trends. Following the carve-out of the company’s general lighting lamps business, Osram will be based on three strategic pillars in the future: Specialty Lighting (SP); luminaires, solutions and electronic components (LSS); LED components (OS).

Specialty Lighting

As the global leader in automotive lighting, Specialty Lighting is planning additional investments in semiconductor-based technologies and in the system business with

light engines and light modules to realize further growth potential. Osram claims to be currently the only manufacturer worldwide to deliver laser modules for headlamps ready for series production, and the company intends to further strengthen development activities for innovative light modules. Another cutting-edge technology within automotive lighting is organic light-emitting diodes (OLEDs), which will be rolled out for broad-based use in rear lights of vehicles in the near future. The other SP businesses, such as entertainment lighting applications, will continue to be expanded.

Lighting Solutions & Systems

In the Lighting Solutions & Systems segment, Osram plans to roll out many different measures in the coming years to implement intelligent, technologically advanced lighting solutions. In particular the continuing urbanization trend, where connectivity and data integration will be key factors, offers high potential. Against this backdrop, the luminaires and solutions business will expand its offering of complete solutions, among other things. The increasing importance of complex lighting solutions also puts the expansion of electronics and software expertise in the spotlight. In this respect, Osram will build on its existing know-how, also in the field of sensor technology, to make buildings and cities even smarter in the future.

Opto Semiconductors

The profitable Opto Semiconductors business has been in a global number 2 position in the LED component market for many years. Especially in the field of specialty applications, the business has a leading position. In the meantime, Opto Semiconductors has also secured a top spot in the industry when it comes to the efficiency of chips in the field of so-called volume emitters. The new plant in Kulim is taking account of this achievement and will primarily address the LED general lighting market. In this market segment, which will see average annual growth rates of 9.5 percent until 2020, Opto Semiconductors expects further growth in the specialty markets, which include its automotive and industry businesses. In addition to economies of scale, the new manufacturing plant in Malaysia will provide factor cost benefits for Osram as compared with its competitors and thus make it the cost leader.

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