Automotive Lighting Market Analysis | 2023-2028

Market Insights

The automotive lighting market was estimated at USD 20.94 billion in 2022 and is likely to grow at a CAGR of 5.60% during 2023-2028 to reach USD 29.12 billion in 2028.

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Market Dynamics

Introduction

The lighting system of an automobile incorporates lighting and signaling devices usually present in the front, rear, side, or interior of the vehicle. Automotive lights are an integral part of a motor vehicle majorly utilized in the automotive industry to enhance the visibility of the vehicle.

Market Drivers

The market is driven by a host of factors, some of which are noted below:

Automotive lighting aids in the viewpoint of a driver and aids in the recognition of dangerous areas on the road as well as enhances the level of elegance. It is seen on the front, the sides the back, and the interior of the car which makes it easier for other vehicles to see and it's appealing.
There is a supply of vehicle lights in the market due to the increase in automobile accidents as well as the need for lights that are proportional to the sales of automobiles. It is apparent that lights are fundamental in the synchronization of the production process − and the severe standards may raise the demand for certain lights. The introduction of new technologies in lighting for example the switch from halogen bulbs to LED or HID lights would raise the demand as both customers and manufacturers would be looking for cost-effective and durable lighting solutions.
Because of increased safety consciousness, many consumers are replacing older vehicle lighting systems causing a demand for quality lights. Geographic variables, climatic conditions, and vehicle activity patterns may be attributed to this demand, which may be cyclical, reacting to economic conditions, trends in the automobile industry, and various regulatory regimes.

Surge Adoption of Advanced Vehicle Lighting Technologies to push Market Growth

The adoption of advanced vehicle lighting technology has increased as a result of technological advances, safety regulations, and even some consumer preferences. LED technology is featured with energy-savings, life span, speedier response time, and design capabilities. Automotive companies can incorporate LED headlamps, LED tailamps, and other interior LEDs with comfortable viewing angles, and better styling. Adaptive lighting is based on the use of sensors and algorithms to change the direction, intensity, or beam patterns of the headlights, hence enhancing visibility, and safety, and reducing glare.

Laser light technology is also penetrating the automotive marketplace because of its capability of visibility to distances and its illuminated range is promising. Its parameters of brightness, efficiency, and high compactness have big potential. As one of the leading manufacturers, Ford launched a smart lighting system in April 2021 geared to corner beams towards the target to move the cock blocking way better.

Key Players

The following are the key players in the automotive lighting market:

• General Electric Company
• Hella KGaA Hueck & Co.
• Hyundai Mobis
• Koito Manufacturing Co., Ltd.
• Koninklijke Philips N.V.
• Magneti Marelli S.p.A.
• Osram Licht AG
• Samsung Electronics
• Valeo
• Varroc

Note: The above list does not necessarily include all the top players in the market.

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Segment Analysis

Vehicle Trends

"PCV is expected to witness a significant growth rate in the market during the forecast period"

The market is segmented into PCV, LCV, HCV, and two-wheelers. PCV is expected to witness a significant growth rate during the forecast period owing to the frequent launch of passenger car models and multiple offers provided by vehicle manufacturers.

In addition, increasing investments by the premium and luxury car manufacturers to manufacture new products with enhanced features, and growing demand for passenger car sales in developed economies are further expected to drive the market growth during the forecast period. 

Technology Trends

"LED technology type is anticipated to register a high growth rate in the market during the forecast period"

The market is segmented as LED, halogen, and xenon. LED technology type is anticipated to register a high growth rate in the market owing to its attributes such as reduced power consumption, increased longevity, and power output, which are boosting the product demand in the market during the forecast period.

To meet the industry demand, major industry players are coming up with LED-focused products. Various efforts and investments are being made by automobile manufacturers to innovate better lighting solutions and enhance safety measures.

Application Trends

"Interior lighting application is estimated to account for the major share of the market during the forecast period"

The market is segmented into interior, side, rear, and front lighting. The interior lighting application is estimated to account for the major market share during the forecast period on account of the growing usage of lighting in automobile interiors to supply enhanced lighting attributes. Interior lights sensitive to motion and surroundings are a preferred choice for customers who own expensive luxury and modern passenger cars. In addition, the integration of interior lights in buses and other commercial vehicles in order to avail enhanced visibility experience for passengers is further expected to drive the market progress during the forecast period. 

Regional Analysis

"Europe is estimated to be the leading region in the market during the forecast period"

Europe is estimated to be the leading region in the market owing to the factor that the region is home to major automobile manufacturers such as BMW, Mercedes, Volkswagen, and Volvo. These companies are the growth engines of the region contributing to the growing demand for automotive lighting products during the forecast period. To expand their businesses, manufacturers such as Philips, Osram, and Samsung are likely to maintain long-term settlements with the manufacturers in the European region and this is further expected to fuel the market progress over the forecast period. North America and Asia-Pacific are also expected to offer substantial opportunities during the forecast period.

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Recent Developments

• Melexis, a player in automotive LED drivers for ambient lighting on 13th June 2024, announced the extension of its LIN RGB family with the MLX81123. This fourth-generation IC features compact packaging is a miniaturized LED driver for automotive ambient lighting, that utilizes advanced silicon-on-insulator technology, enhancing production efficiency. Manufactured using cutting-edge silicon-on-insulator (SOI) technology, the MLX81123’s miniaturization allows for an increased number of ICs per wafer. It also supports the MLX81123 supports RGB lighting per LIN 2.x standards and integrates safety features compliant with ASIL B. Its low standby current and robust temperature range make it suitable for various automotive applications, facilitating seamless integration into existing designs while meeting the growing demand for ambient lighting solutions.

• On April 15, 2024, ams OSRAM, a global player in intelligent sensors and emitters, and DOMINANT Opto Technologies, a leading Malaysian manufacturer of automotive LED solutions, collaborated to foster innovation in automotive lighting, allowing manufacturers to source components flexibly while supporting ambient lighting features.

Research Methodology

• This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s automotive lighting market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The automotive lighting market is segmented into the following categories:

By Vehicle Type 

• PCV
• LCV
• HCV
• Two-wheelers

By Technology Type 

• LED
• Halogen
• Xenon

By Application Type 

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

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

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Customization Options

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Segmentation

• Current market segmentation by any one of the technology types by application type.  

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at sales@stratviewresearch.com.