Automotive Lighting Market Growth Drivers, Challenges and Opportunities

Automotive Lighting Market Size, Trends and Innovations

The automotive lighting market is projected to reach USD 61.88 billion by 2034, growing from USD 36.66 billion in 2025, at a CAGR of 5.99% during the forecast period from 2025 to 2034.

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Introduction

The automotive lighting market is a prominent segment of the automotive industry. This industry deals in manufacturing and distribution of lighting systems for the automotive sector. There are various types of products developed in this sector including LED lights, halogen lights, Xenon lights and some others. These lights find application in front lighting/headlamps, rear lighting, side lighting, interior lighting and some others. It is designed for numerous types of vehicles consisting of passenger vehicles and commercial vehicles. The automotive lighting systems are available in a well-defined sales channel comprising of OEMs and aftermarket. The growing sales of automotives has increased the demand for advanced lighting systems, thereby driving the market expansion. This market is likely to rise significantly with the growth of the automotive components industry across the globe.

• According to the Society of Indian Automobile Manufacturers, around 3890114 passenger vehicles were sold in India during 2022-23 that increased to 4301848 in 2024-25. (Source: The Society of Indian Automobile Manufacturers (SIAM))

Highlights of the Automotive Lighting Market

• North America held the highest share of the automotive lighting market.
• Asia Pacific is expected to grow with a significant CAGR during the forecast period.
• By application, the front lighting/headlamps segment held the largest share of the market.
• By application, the rear lighting segment is anticipated to rise with the highest CAGR during the forecast period.
• By sales channel, the Original Equipment Manufacturers (OEMs) segment dominated this industry.
• By sales channel, the aftermarket segment is predicted to rise with a considerable CAGR during the forecast period.
• By vehicles, the passenger vehicle segment led the industry.
• By vehicles, the commercial vehicle segment is likely to grow with the fastest rate during the forecast period.

Automotive Lighting Market: Stats and Figures

• According to the OICA, around 1,550,249 passenger vehicles were sold in Russia during 2024. (Source: The International Organization of Motor Vehicle Manufacturers)

• According to the International Organization of Motor Vehicle Manufacturers, around 4,101,600 passenger vehicles were sold in India during 2023. (Source: CEIC Data)

• According to the International Energy Agency, around 11000000 BEVs were registered globally in 2024. (Source: The International Energy Agency (IEA))

• According to the Engine Technology Forum, around 3,920,000 vehicles were sold in the U.S. during the 1st quarter of 2025. (Source: Engine Technology Forum)

Key Metrics and Overview

Application Insights

The front lighting/headlamps segment held the largest share of the market. The growing integration of LED-headlamps in luxury vehicles has boosted the market expansion. Also, the rising investment by automotive companies for developing advanced headlamps to enhance safety in automotives is playing a crucial role in shaping the industrial landscape. Moreover, the increasing trend of matrix headlights and laser lighting in western nations such as UK, Germany, U.S. is expected to drive the growth of the automotive lighting market.

• In April 2025, Uno Minda launched a new range of automotive headlights in India. These headlights are designed for the 7-seater cars across the country. (Source: Manufacturing Today India)

The rear lighting segment is anticipated to rise with the highest CAGR during the forecast period. The growing sales of commercial vehicles in different parts of the world has boosted the market growth. Also, the availability of rear lighting systems in various online platforms such as Amazon, Ebay, O'Reilly Auto Parts, AutoZone and some others is likely to shape the industrial landscape. Moreover, numerous partnerships and collaborations among automotive brands and lighting companies is further anticipated to drive the growth of the automotive lighting market.

• According to the OICA, around 415 796 commercial vehicles were registered in UK during 2024. (Source: OICA)

Sales Channel Insights

The original equipment manufacturers (OEMs) segment dominated this industry. The growing demand for genuine automotive products from car owners has boosted the market expansion. Also, the rise in number of OEM service centers coupled with rapid investment by OEMs for manufacturing high-grade automotive components is crucial for the industrial growth. Moreover, the availability of essential lighting systems in OEMs workshops for real-time replacement is further driving the growth of the automotive lighting market.

The aftermarket segment is predicted to rise with a considerable CAGR during the forecast period. The rising demand for modified automotive lights among Generation Z population has driven the market growth. Additionally, the availability of aftermarket lighting systems in third-party platforms and retail outlets is further contributing to the industrial expansion. Moreover, the affordability and uniqueness of aftermarket automotive components as compared to traditional products is accelerating the growth of the automotive lighting market.

Vehicles Insights

The passenger vehicle segment led the industry. The growing sales of passenger cars in several nations such as India, China, Japan, South Korea and some others is driving the market growth. Additionally, surge in demand for luxury sedans among elite-class consumers coupled with rapid investment by automotive companies for integrating advanced lights in passenger vehicles is adding to the overall industrial expansion. Moreover, the increasing adoption of electric SUVs in developed nations is expected to drive the growth of the automotive lighting market.

• In March 2025, Volvo launched XC90 in India. XC90 is a luxury SUV that comes with LED headlamp clusters to enhance the overall looks and safety of this car.

The commercial vehicle segment is likely to grow with the fastest rate during the forecast period. The rising production of commercial vehicles in Japan and South Korea has increased the demand for advanced lighting systems, thereby driving the market expansion. Also, the growing adoption of LCEVs by fleet operators along with ongoing trend of autonomous trucks in Europe is further adding to the industrial growth. Moreover, the rapid deployment of electric buses in developed nations such as France, Germany, Italy and some others is accelerating the growth of the automotive lighting market.

• In April 2025, FLYNT launched a new LCEV in Europe. This LCEV is equipped with advanced features and superior lighting system.

Geographical Insights

North America held the highest share of the automotive lighting market. The growing sales of passenger cars in several countries such as the U.S. and Canada has driven the market expansion. Additionally, surge in demand for eco-friendly transportation coupled with integration of smart lighting systems in automotives is playing a crucial role in shaping the industrial landscape. Moreover, the presence of several automotive brands such as Tesla, Ford, Rivian, Buick, Lucid and some others is further driving the growth of the automotive lighting market in this region.

• In April 2025, Lucid launched Lucid Gravity in North America. Lucid Gravity is an electric SUV that is equipped with advanced technologies to enhance driving experience.

U.S. dominated the market in this region. In the U.S., the market is generally is driven by the rising adoption of electric vehicles along with technological advancements in automotive sector. Additionally, the presence of various automotive light manufacturers such as Texas Instruments Incorporated, InvenSense, General Electric Company, Omnivision Technologies and some others is driving the market growth. 

• According to the International Energy Agency, around 1200000 BEVs were sold in the U.S. during 2024.

Asia Pacific is expected to grow with a significant CAGR during the forecast period. The rising production of commercial vehicles in various nations such as India, China, Japan, South Korea and some others has boosted the market expansion. Additionally, the growing use of LED lighting systems in automotives along with rapid developments in the EV manufacturing sector is driving the market in a positive direction. Moreover, the presence of several market players such as Sony Corporation, Samsung Electronics, Panasonic Corporation, Hyundai Mobis Co., Ltd and some others is anticipated to propel the growth of the automotive lighting market in this region.

• According to the OICA, around 629124 light commercial vehicles were manufactured in Japan during 2024. 

China is the major contributor in this region. The growing production and sales of EVs along with rise in number of automotive startups has driven the market growth. Also, availability of essential raw materials at less cost coupled with rapid developments in automotive components sector is further adding to the industrial expansion. Moreover, the presence of various automotive lighting companies including Carlightvision Co., Ltd, Valeo, Winson Lighting Technology Ltd., NVC International and some others is driving the market growth.

• In January 2025, Valeo announced to open a new automotive lighting plant in Changshu, China. This production facility is opened to increase the manufacturing output of automotive lights in China.

Industry Leader Announcement

• In December 2024, Yves Andres, a member of the Management Board for the global lighting business of FORVIA HELLA made an announcement stating that, “With our innovative Rear Wing Lighting concept, we are setting a new exclamation point, not only in terms of technological performance, but above all in terms of light signature and design language, The fact that we are implementing this technology for the first time in China and for a local Chinese car manufacturer once again highlights the high demand for differentiating, customized lighting solutions in this market. We are consistently addressing this trend with our technologies and our local for local approach.”

Competitive Landscape

The automotive lighting market is a rapidly growing industry with the presence of a several dominating players. Some of the prominent companies in this industry consists of Sony Corporation, Samsung Electronics, Texas Instruments Incorporated., STMicroelectronics, Omnivision Technologies, Bosch Sensortec, Analog Devices, Panasonic Corporation, Hella, Knowles Electronics and InvenSense and some others. These companies are constantly engaged in developing lighting systems for the automotive sector and adopting numerous strategies such as business expansions, collaborations, acquisitions, joint ventures, launches, partnerships, and some others to maintain their dominant position in this industry. For instance, in April 2025, NOVOSENSE Microelectronics launched NSUC1500-Q1. NSUC1500-Q1 is a System-on-Chip (SoC) designed to fulfill the needs of modern automotive ambient lighting systems. Also, in October 2024, Neolite ZKW announced to open a new manufacturing plant in Pune, India. This new production facility is inaugurated to enhance the manufacturing of automotive lights in India.

Recent Developments

• In May 2025, ROOTS CO., LTD. launched 450㎛ PiG. 450㎛ PiG is used for developing smart automotive headlights.
• In April 2025, Marelli launched a new range of automotive lighting systems. These lights are based on OLED TFT technology.
• In April 2025, Valeo partnered with Stellantis. This partnership is done for launching a new range of automotive headlamps in Europe.

Automotive Lighting Market Segments

By Vehicle

• Passenger Vehicle
• Commercial Vehicle

By Sales Channel

• Original Equipment Manufacturers
• Aftermarket

By Application

• Front Lighting/Headlamps
• Rear Lighting
• Side Lighting
• Interior Lighting

By Technology

• Halogen
• Xenon/HD
• LED

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa