The automotive lighting market size is estimated at USD 39.25 billion in 2024 is expected to reach USD 58.25 billion by 2032, growing at a CAGR of 5.21% during the forecast period.
Unlock Infinite Advantages: Subscribe to Annual Membership
Global car and SUV sales experienced a downturn, dropping to below 77 million units in 2020 from a peak of around 94.35 million units in 2017. This decline can be attributed to the global economic slowdown and the repercussions of the COVID-19 pandemic, which have affected major industries worldwide. The pandemic has introduced uncertainty into the market, slowing down business growth and instilling fear among consumers. Widespread lockdowns and temporary suspensions announced by local governments have disrupted operations and sales across all sectors, including the automotive industry. Limited working capacities, inadequate health and safety measures, and the overall impact of the pandemic have led to decreased efficiency in the automotive sector. However, with the gradual easing of restrictions and the implementation of new policies to promote trade, industries are slowly recovering worldwide.
Lighting plays a crucial role in automobiles, providing illumination for drivers to see the road clearly and aiding other road users in identifying the vehicle's position and direction of travel. HELLA GmbH & Co. developed integrated OLED technology for the taillights of the new Audi A8 in 2018, offering consistent and self-controlled segments. Automobile manufacturers are increasingly incorporating LED lights into vehicles due to their energy efficiency, longevity, and superior performance compared to traditional halogen and HID lights. LED lighting not only enhances visibility but also adds aesthetic appeal to both the interior and exterior of vehicles. Safety concerns and government regulations regarding lighting have driven the demand for advanced lighting equipment.
Factors such as a focus on road safety, stringent government regulations, and the growth of automobile production have fueled the expansion of the automotive lighting industry. However, challenges such as the high cost of LEDs and fluctuations in raw material prices have hindered market growth. Nevertheless, increasing demand for vehicles, particularly in developing countries, presents significant growth opportunities for the automotive lighting market.
Automobile manufacturers are investing in new technologies and partnerships to stay ahead in the competitive market. For instance, Volkswagen collaborated with Hella to produce IQ.LIGHT LED headlights, featuring LED matrix technology with 256 LEDs in the new luxury-class Touareg SUV. The automotive lighting industry is segmented based on lamp type, vehicle type, location, sales channel, and region, covering front, rear, side, and interior lighting. Regions analyzed include North America, Europe, Asia Pacific, and Latin America.
The automotive industry is currently undergoing a significant technological revolution, marked by the integration of new technologies into traditional vehicle designs. With the increasing popularity of electric cars, automotive lighting companies are at the forefront of developing innovative technologies to replace outdated lighting systems. Electric vehicle manufacturers are introducing new models equipped with cutting-edge interior panels, exemplified by Lucid Motors' luxury electric car, the Lucid Air, launched in September 2020, featuring a high-end interior based on Lucid's unique space concept.
Traffic accidents remain a major global concern, particularly on congested roads and in adverse weather conditions. Consequently, there has been a surge in demand for safety features and adaptive lighting systems to address the pressing issue of traffic accidents. This has led to the necessity for installing modifications and high-quality lighting to enhance visibility and reduce the risk of accidents, especially on highways. Automotive manufacturers are responding by investing heavily in research and development to develop lighting systems compatible with driver assistance systems and proximity sensors, thereby driving market demand for automotive lighting.
Despite advancements, traffic injuries remain a significant public health challenge, often exacerbated by inadequate vehicle lighting. To address this, governments worldwide have introduced stringent regulations regarding headlight usage. For instance, Canada implemented new lighting standards in September 2021, mandating features such as headlights with daytime running lights (DRLs) and automatic activation of side lights in darkness. Some US states permit the use of neon lights in vehicle headlights under specific regulations. Moreover, many countries are implementing measures to curb vehicle CO2 emissions, further underscoring the importance of government safety regulations in driving the growth of the automotive lighting industry.
According to the World Health Organization, approximately 1.25 million people die in traffic accidents annually, with headlights being a significant contributing factor. Leading automotive lighting companies like HELLA GmbH & Co. have developed advanced solutions to improve road safety, such as full LED high beam headlights with EdgeLight technology, which enhances flash performance and driver visibility. Collaborations between companies, like the one between Valeo and Ichikoh, have led to the development of image beam-integrated lighting systems that offer high performance and improve vehicle comfort and safety by reducing glare. Consequently, the significant advancements in road safety have propelled the growth of the automotive lighting industry.
The future development of interior lighting will be driven by the need for security, communication, comfort, and style. Emerging technologies such as area lighting, projection light, smart LEDs, micro LEDs, smart workspaces, laser-based lighting, and data-guided 3D light models are poised to revolutionize cabin lighting. While cabin lights, including reading lamps and dashboard lights, remain popular, there is also growing demand for applications such as ambient interior lighting and ceiling modules using optimized lighting technology. Additionally, lighting modifications have seen growth, albeit at a slower pace compared to LED lights.
Geographically, the automotive lighting market is primarily dominated by the Asia-Pacific region, followed by Europe and North America. Several key factors contribute to the economic growth in these regions:
Europe is particularly noteworthy for its emphasis on passenger and pedestrian safety, along with adherence to stringent vehicle safety standards. Regional automotive manufacturers and dealerships continue to invest in research and development of safety technologies. With rapid technological advancements in the automotive sector, Europe is poised to play a pivotal role in the global automotive lighting industry.
The automotive lighting industry features key players such as Koito Manufacturing, Valeo Group, Magneti Marelli, Stanley Electric, Hella, Lumax Industries, Zizala Lichtsysteme, Osram, and Tungsram. These companies are actively engaged in establishing joint ventures and expanding their global footprint.
For Instance,
However, the high cost of LED lights poses a significant challenge in the automotive lighting industry. LED bulbs, commonly used in projector headlights, are more expensive and space-consuming compared to reflector headlights. While halogen, xenon, and LED lights are prevalent in high-end or premium cars due to advantages like low power consumption and extended LED lifespan, they also present drawbacks such as energy wastage and high production costs, particularly for LED bulbs made from materials like indium gallium nitride and aluminum gallium arsenide. Additionally, the complex installation process of LED lights contributes to their higher cost, thereby restraining the growth of the automotive lighting market during the forecast period.
Nevertheless, with rapid advancements and innovations in the automotive industry, automakers are continuously enhancing lighting features in future models. Technologies like matrix LED, OLED, and laser lighting are being adopted by expanding lighting companies to provide value-added lighting, enhance safety, and satisfy a broader customer base. Furthermore, the development and integration of adaptive lighting with advanced driver assistance systems (ADAS) in upcoming vehicles are expected to improve traffic communication and reduce accidents.
In 2019, Hyundai Mobis introduced its new lighting communication system utilizing LEDs, digital displays, lighting, and voice communication to enhance situational awareness and traffic safety. Such initiatives are anticipated to drive demand and create opportunities in the automotive lighting industry. Therefore, the increasing adoption of low-energy vehicles and the utilization of lighting technology in both passenger and commercial vehicles offer significant advantages to the automotive lighting sector.
The automotive lighting market is categorized into several segments based on different factors. Firstly, it's segmented by vehicle type, distinguishing between passenger vehicles and commercial vehicles. Secondly, it's segmented by application type, which includes both interior and exterior lighting components. Thirdly, the market is divided based on the technology used, with options such as halogen, xenon, LED, among others. Lastly, it's segmented by sales line, separating sales between original equipment manufacturers (OEM) and the aftermarket.
Moreover, the report provides comprehensive coverage of the automotive lighting market across 17 countries spanning major regions. It offers detailed insights into the market size and forecasts for each segment mentioned earlier. This includes providing the estimated value of the automotive lighting market in billion US dollars for these segments, offering a thorough understanding of the market landscape and its dynamics.
By Vehicle Type
By Application Type
By Technology
By Geography
Adriel Mergulhao is a distinguished professional renowned for his expertise in consulting, market research, and primary market analysis. With over the year of experience, Adriel has solidified his position as a senior solution advisor, providing invaluable insights to numerous clients across diverse industries. His proficiency in primary market research methodologies allows him to uncover deep-seated consumer preferences and trends, empowering businesses to make strategic decisions confidently.
Adriel's strategic insight and analytical prowess have earned him a reputation for delivering actionable recommendations that drive business growth and profitability. He has a proven track record of success in translating market insights into tangible results, making him a sought-after advisor in the competitive market research landscape. Adriel's dedication to excellence and commitment to client success underscore his position as a trusted expert in the field.
We offer automotive expertise for market projections and customizable research, adaptable to diverse strategic approaches.
Contact Us