Automotive Lighting Market Analysis

Automotive Lighting Market Overview:

Global Automotive Lighting Market Size was valued at USD 43.4 Billion in 2023. The market End Market is projected to grow from USD 46.48 Billion in 2024 to USD 75.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.18% during the forecast period (2024 - 2032). Government lighting rules that are stricter to improve visibility and safety, as well as a rise in the use of modern lighting in vehicles, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Lighting Market Trends

Increase in demand for premium segment vehicles is driving the market growth

Due to rising disposable money, improved lifestyles, and changing consumer preferences, premium car sales have increased globally. The use of several driver assistance systems, such as Blind Spot Detection (BSD), Lane Departure Warning (LDW), Adaptive Cruise Control (ACC), and Forward Collision Warning System (FCWS), is elective and not mandated by law. However, a number of high-end manufacturers are offering similar features in order to maintain their market share, which has spurred healthy competition between automakers. Today's vehicles, particularly those in the E, F, SUV-D, and SUV-E classes, provide a number of high-end features. Premium automobile manufacturers are refocusing their product and R&D efforts on electrification. Major OEMs like Ford, Stellantis, and Volkwagen intend to fully electrify their product lines by the end of the next decade. Consequently, numerous EV versions will be released by well-known luxury automakers. This indicates that new lighting technologies like LEDs, adaptive lights, and ambient lights will be incorporated into cars faster because they have superior efficiency and temperature control than halogen and xenon HID technologies. Because of this, it is projected that the market for automotive lighting will expand alongside the trend towards electrification and sales, particularly in countries like China, where one-third of all luxury vehicles produced globally are sold.

Industrialised nations now rely on the North American and European car lighting industry due to strict lighting regulations. Lighting for automobiles is essential, particularly while operating a vehicle on congested roadways. Governments around the world are concerned about traffic collisions. According to the World Health Organisation (WHO), 1.3 million people are killed in traffic accidents every year. Most countries lose 3% of their GDP as a result of traffic accidents. The lighting system can be improved, which is important for better driving conditions. The European Union mandated daytime running lights (DRLs) on all brand-new cars in 2011. This was done to increase road safety. Instead of assisting the driver in seeing the road, DRL is meant to make the vehicle more visible to other road users. According to the National Highway road Safety Administration of the U.S. Department of Transportation, DRL reduced fatal road accidents by 13.8%. This kind of governmental regulation is probably going to have an effect on the expansion of the global market.

It is estimated that the expanding adoption of cutting-edge lighting in automobiles will fuel the rising demand for this market over the forecasted period. Major OEMs are focusing on designing and implementing contemporary lighting to improve vehicle visibility and attractiveness. For instance, Hella GmbH develops and markets state-of-the-art lighting systems for automobiles. The lighting system carries out a number of functions, including as conversing with pedestrians to ensure their safety and satisfy customer expectations. Thus, driving the market revenue.

Automotive Lighting Market Segment Insights:

Automotive Lighting Technology Insights

The global Automotive Lighting market segmentation, based on technology, includes halogen, xenon, and LED. Halogen segment dominated the global market in 2022. Since it has been used extensively in cars since the 1960s, halogen technology is regarded as a conventional technology that has fueled the expansion of the global market. While the LED market has been identified as the one with the greatest rate of growth, this is largely because premium car manufacturers like Toyota, Honda, Audi, BMW, and others have begun incorporating LED lighting into their models.

Automotive Lighting Vehicle Type Insights

The global Automotive Lighting market segmentation, based on vehicle type, includes passenger car, light commercial vehicle, and heavy commercial vehicle. Passenger car segment dominated the global market in 2022. The growing demand for passenger cars among a sizable population, rising per capita income in emerging nations, and the expansion of global auto manufacturers into new emerging markets are the main factors driving the market for automotive lighting.

Automotive Lighting Application Insights

The global Automotive Lighting market segmentation, based on application, includes front lights, rear lights, side lights, and interior lights. Front lights segment dominated the global market in 2022. The market for front light applications has been primarily driven by rising passenger car demand and technical developments in the automotive sector.

Automotive Lighting End Market Insights

The global Automotive Lighting market segmentation, based on end market, includes OEM and aftermarket. OEM segment dominated the global market in 2022. The majority of automobile manufacturers buy automotive lights directly from the OEMs, who then construct them for the car makers.

Figure 1: Global Automotive Lighting Market, by End Market, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Lighting Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Automotive Lighting market dominated this market in 2022 (45.80%). This is a result of the ease with which raw materials are available and the large demand from countries like Japan, China, and India for affordable electrical and mechanical components. Moreover, China’s Automotive Lighting market held the largest market share, and the Indian market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Global Automotive Lighting Market Share By Region 2024 (Usd Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North America Automotive Lighting Market is expected to register significant growth from 2023 to 2032. The rapid adoption of the automotive lighting system in North America is responsible for the increase in sales of electric vehicles and the early acceptance of Advanced Driver Assistance System (ADAS) features. Further, the U.S. Automotive Lighting market held the largest market share, and the Canada market was the fastest growing market in the North America region.

Europe Automotive Lighting market accounted for the healthy market share in 2022. The market in this area is being driven by government rules. Daytime running lights (DRLs) are required to be used in all of Europe anytime the weather is bad as of 2011. The market leadership of this region is anticipated to be maintained by the early adoption of cutting-edge automotive lighting solutions by significant key players. Further, the German Automotive Lighting market held the largest market share, and the U.K market was the fastest growing market in the European region.

Automotive Lighting Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Automotive Lighting market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Automotive Lighting Industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Automotive Lighting Industry to benefit clients and increase the market sector. In recent years, the Automotive Lighting Industry has offered some of the most significant advantages to medicine. Major players in the market, including Magneti Marelli, Philips Lighting NV, Ichikoh Industries Ltd, HELLA KGaA Hueck & Co, KOITO MANUFACTURING CO., LTD, ZKW Lichtsysteme GmbH, Peterson Manufacturing Company, OSRAM GmbH, Stanley Electric Co. Ltd, and General Electric, are attempting to increase market demand by investing in research and development operations.

OSRAM Licht AG (OSRAM), an affiliate of ams AG, sells lighting and opto semiconductors. The business provides lighting solutions, luminaires, light-emitting diodes, lamps, and light management systems. The opto semiconductors business area of OSRAM provides a broad selection of LEDs for use in infrared, laser, and optical sensors, as well as general lighting, automotive, consumer, and industrial applications. The company's automotive business section creates and manufactures lights, light modules, and sensors for the automobile sector as well as the market for replacement parts. The headquarters of OSRAM are in Munich, Germany. The world's first hybrid LED, dubbed "Eviyos," by Osram was released in September 2019 and was created specifically for auto headlights. To broadcast warnings or symbols to other drivers, Eviyos can project HD images onto the road.

Global, family-owned HELLA GmbH & Co KGaA (HELLA) develops and produces lighting and electronic systems and components for the automotive industry. The business also creates goods for specialised vehicles. Additionally, it offers auto diagnostics, repairs, and parts. It offers cutting-edge lighting and technology products to municipalities, energy providers, and construction machinery manufacturers. For auto-mobile manufacturers, it offers headlamps, rear combination lamps, automobile body, and interior illumination items. Additionally, it offers cutting-edge services to drivers, core competency, wholesalers, garages, and Original Equipment Manufacturers (OEM). The corporation has operations in Asia-Pacific, Europe, and the Americas. Germany's Lippstadt serves as the home base for HELLA. Global automotive supplier HELLA has created a new line of small work lights that will debut in November 2020. The new work lamp can be mounted flat on the vehicle's wall to improve visibility of the surrounding work area.

Key Companies in the Automotive Lighting market include

• Magneti Marelli


• Philips Lighting NV


• Ichikoh Industries Ltd


• HELLA KGaA Hueck & Co


• KOITO MANUFACTURING CO., LTD


• ZKW Lichtsysteme GmbH


• Peterson Manufacturing Company


• OSRAM GmbH


• Stanley Electric Co. Ltd


• General Electric

Automotive Lighting Industry Developments

SUSS MicroOptics, an industry leader in micro-optics for industrial and automotive applications, has introduced its newest product, MiraLuz, in October 2023. It is a toolbox containing consumable and modular building elements for constructing ultraslim automotive headlights, integrating various lighting functions, and developing lighting designs of the next generation. The availability of reference designs facilitates the rapid adoption of the technology by designers and engineers, reduces the complexity of the supply chain, and enables modular repairability, all of which contribute to a sustainable future.

OLEDWorks introduced the Atala brand in March 2024; the company will focus on the automotive industry and the forthcoming opportunities. By dedicating the Atala brand to the automotive sector, OLEDWorks can offer its automotive clientele a more concentrated focus. Miller noted that the Atala OLED technology is well-suited to meet the industry's specific needs and demands. Atala panels are modifiable to include the segmentation and luminance specifications necessary for each function and location on the vehicle. Additionally, highly segmented Atala OLED lighting improves road safety by enabling homogenous light signatures through the use of highly uniform segments/pixels featuring sharp, high-contrast boundaries and narrow to invisible gaps. It has taken some time and considerable testing, but the use of OLEDs in automobiles is now expanding significantly. Atala lighting's fundamental benefits reside in its exceptional segmentation and homogeneity capabilities, which contribute to the anticipated expansion of OLED usage in automobiles.

Automotive Lighting Market Segmentation:

Automotive Lighting Technology Outlook

• Halogen


• Xenon


• LED

Automotive Lighting Vehicle Type Outlook

• Passenger Car


• Light Commercial Vehicle


• Heavy Commercial Vehicle

Automotive Lighting Application Outlook

• Front Lights


• Rear Lights


• Side Lights


• Interior Lights

Automotive Lighting End Market Outlook

• OEM


• Aftermarket

Automotive Lighting Regional Outlook

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  Middle East
  
  


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  Africa
  
  


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  Latin America