Key Market Overview:
Automotive Lighting Market size was valued at USD 20.7 Billion in 2022, registering a CAGR of 5.5% during the forecast period (2023-2030), and the market is projected to be worth USD 33.5 Billion by 2030.
Automotive lighting is a system of lighting components including headlights, taillights, and interior lights that are installed in vehicles to help drivers gain clear vision. Governments worldwide have implemented safety regulations to ensure that automotive lighting systems meet minimum safety requirements and ensure safe driving conditions. The automotive lighting market has seen significant growth in recent years and is expected to continue to grow in the coming years. The market is driven by factors such as increasing vehicle production, growing demand for energy-efficient lighting, and technological advancements such as LED and OLED lighting systems.
The increasing number of road accidents globally has tend to promote the demand for advanced automotive lighting systems. Adequate automotive lighting plays a crucial role in ensuring road safety by enabling drivers to have a clear view of the road and identify potential obstacles or dangers. Additionally, automotive lighting makes vehicles more visible to other drivers and pedestrians on the road, reducing the risk of accidents. For instance, according to the World Health Organization (WHO) report of 2022, approximately 1.3 million people die each year as a result of road accidents. Also, road traffic injuries are the leading cause of death for children and young adults aged 5-29 years that increased the demand for automotive lighting.
Market Dynamics:
Driver:
Technological advancements such as LED lighting, OLED lighting, laser, and matrix-led lighting are driving the growth of the automotive lighting market. Advanced technologies have revolutionized the automotive lighting industry by providing advanced lighting solutions that offer superior performance and efficiency compared to traditional lighting technologies. Matrix-led lighting has energy-efficient properties, a longer lifespan, and brighter illumination becoming an ideal solution for automotive lighting. The matrix-led lighting has a high-beam unit connected to the sensors that automatically activates, deactivates, or dims the light in a vehicle, ensuring proper vision to the driver. For instance, in January 2023, Nichia Corporation collaborated with Infineon Technologies to create a high-definition front illumination system comprising 16,384 micro-LED matrix solutions. The revolutionary solution is expected to transform automotive lighting by offering superior brightness and high resolution, providing greater flexibility and design options for automotive manufacturers.
Restraint:
High voltage fluctuations are the major restraint for the growth of the market as automotive lights require a current below the indicated ratings and a voltage above the threshold. Voltage fluctuations are a significant factor limiting the growth of automotive lighting, especially for advanced lighting systems such as OLED lighting. Voltage fluctuations caused by several factors, including changes in the electrical system or fluctuations in the engine’s RPM results in fainting or dimming of light, thus reducing the overall performance and visibility of the lighting system.
Opportunities:
The integration of advanced automotive lighting technologies with advanced safety features such as adaptive headlights, automatic high-beam control, and pedestrian detection systems is projected to create future opportunities. The features use sensors and cameras to detect obstacles and adjust the lighting system accordingly, providing enhanced visibility and safety for drivers. For instance, adaptive headlights use sensors to detect the movement of the vehicle and the position of oncoming traffic hence, adjusts the direction of the headlights to provide optimal visibility to the drivers. Similarly, automatic high-beam control uses sensors to detect the presence of other vehicles, automatically switching between high and low beams to provide optimal visibility while avoiding glare for other drivers. Therefore, the application of adaptive headlights and automatic high-beam control is expected to create opportunities for automotive lighting market.
Automotive Lighting Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | 33.5 Billion |
| CAGR (2023-2030) | 5.5% |
| By Technology | Xenon/HID, LED, and Halogen |
| By Position | Front Lighting, Rear Lighting, Interior Lighting, and Side Lighting |
| By Vehicle Type | Passenger Vehicle, Commercial Vehicle, and Electric Vehicle |
| By Electric Vehicle | Battery Electric Vehicles (BEVs), Plug-In Hybrid Electric Vehicles (PHEVs), Hybrid Electric Vehicles (HEVs), and Fuel Cell Electric Vehicles (FCEVs) |
| By Sales Channel | Original Equipment Manufacturers (OEMs) and Aftermarket |
| By Geography | North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
| Key Players | Continental AG, Hyundai Mobis, Nichia Corporation, Infineon Technologies AG, CM18 Vehicle Safety Lights, AUDI AG, UK Automotive Products Ltd, Magneti Marelli S.p.A., XENOMATIX N.V., HELLA GmbH & Co. KGaA |
Market Segmentation:
By Technology
The technology segment is divided into xenon/HID, LED, and halogen. LED lighting technology dominates the market as LED lights offer low power consumption and excellent power output as compared to other lighting technologies. Additionally, LED lights result in reduced CO2 emissions and longer battery life thereby, becomes an ideal solution for modern vehicles. Furthermore, LED lighting provides brighter and more efficient illumination than traditional lighting technologies and is an appropriate solution for headlights, taillights, and other automotive lighting components. For instance, in February 2023, CM18 Auto Lights introduced cutting-edge LED lighting solutions for trucks. LED lights are designed to provide superior illumination for a wide range of trucks, including semi-trucks, pickup trucks, and off-road trucks. CM18 Auto Lights offer a variety of LED lighting options, including headlights, fog lights, taillights, and auxiliary lights.
The halogen lighting technology is expected to witness the fastest CAGR during the forecast period. The use of special coatings, such as dichroic and titanium nitride to improve the performance of halogen bulbs is driving the growth of the market. The coatings improve the efficiency of the bulb by reflecting heat onto the filament hence, reducing the amount of energy required to produce light. Additionally, the replacement of the filament in halogen bulbs from tungsten to titanium and tantalum has increased the durability of halogens which in turn increased the adoption of halogens in automotive. For instance, in August 2022, Lumileds launched a road-legal H4-LED headlight bulb for retrofitting halogen headlights. The new product, called the Philips Ultinon Pro9000, offers drivers a significant upgrade in lighting performance while meeting the strict legal requirements for road use.
By Position
The position segment is classified into front lighting, rear lighting, interior lighting, and side lighting. The front position in automotive lighting dominates the market as front lights (headlights) provide visibility to the driver to avoid accidents on the road. Also, front lights improve visibility in adverse weather conditions, such as fog and heavy rain that further enhances the safety of vehicle and passengers. Moreover, many countries have legal requirements for front lighting on vehicles, including minimum brightness and beam patterns. The legal requirements ensure that all vehicles on the road are visible to other drivers and help to prevent accidents. For instance, in July 2020, Audi introduced the next generation of its lighting technology, digital OLED (organic light-emitting diode) technology, in the headlights of the Audi Q5. Unlike traditional lighting technologies, digital OLED technology allows each light source to be controlled independently, providing greater flexibility and precision.
The rear lighting position in automotive lighting is expected to register the highest CAGR in the market as rear lighting plays a crucial role in ensuring the safety of both the driver and other road users. Additionally, the automotive industry is continuously evolving, with manufacturers developing new technologies to enhance the safety, comfort, and convenience of vehicles. The incorporation of advanced features such as adaptive lighting, automatic brightness control, and dynamic turn signals are expected to increase the demand for rear lighting systems and drive the CAGR of the market.
By Vehicle Type
The vehicle type segment is classified into passenger vehicles and commercial vehicles. Passenger vehicles dominate the market due to the increasing demand for luxury passenger vehicles equipped with advanced lighting systems to offer better functionality, styling, and aesthetics. Also, the adoption of advanced driver assistance systems (ADAS) in passenger vehicles increases the demand for vehicle lighting systems, such as headlights, taillights, and signal lights, to function effectively. For instance, in September 2022, X2F collaborated with Covestro to develop a new automotive lighting system that is more efficient, cost-effective, and environmentally friendly. The technology used has the potential to improve the performance, design, and cost-effectiveness of lighting systems, making passenger cars more appealing and helping to drive growth in the automotive lighting market.
Commercial vehicles are anticipated to register the fastest CAGR in the automotive lighting market owing to the growth of e-commerce and logistics industry. The growth in the sales of commercial vehicles is increasing the demand for automotive lighting, driving the growth of the market. Additionally, commercial vehicle manufacturers are adopting advanced lighting technologies such as adaptive lighting, laser headlights, and OLEDs to enhance the safety and efficiency of the vehicles that is expected to fuel the market growth.
By Electric Vehicle
The electric vehicle segment is divided into battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), hybrid electric vehicles (HEVs), and fuel cell electric vehicles (FCEVs). The battery electric vehicles (BEVs) dominate the market owing to the rapidly decreasing cost of batteries that has made BEVs more affordable for consumers. Additionally, the growing awareness among consumers about the environmental impact of ICE vehicles is also driving the market growth. BEVs produce zero emissions at the tailpipe, becoming more environmentally friendly choice and accelerating the market growth.
The plug-in hybrid electric vehicles (PHEVs) is predicted to witness the fastest CAGR as PHEVs provide greater flexibility than battery electric vehicles (BEVs). PHEVs have both an electric motor and a conventional internal combustion engine (ICE) that offers high flexibility. The high flexibility allows PHEVs to be driven in all-electric mode for short distances, or switch to the ICE when the battery is depleted, driving the growth of the market.
By Sales Channel
The sales channel is bifurcated into original equipment manufacturers (OEMs) and aftermarkets. The OEMs dominate the market as OEMs work in collaboration with automakers to design and integrate lighting systems into new vehicles. OEMs ensure that the lighting system is optimized for the specific vehicle and also functions seamlessly with other vehicle components. Additionally, OEMs are well-established and trusted brands in the automotive industry and have a reputation for producing reliable, high-quality products that meet industry standards and regulations. For instance, in January 2022, UK Automotive Products and J.W. Speaker, both well-respected companies in the automotive industry collaborated to provide LED lighting solutions for commercial vehicles. UK Automotive Products provides LED lighting solutions and J.W. Speaker is responsible to improve visibility, reducing maintenance costs, and increasing energy efficiency.
The aftermarket sector is anticipated to witness the fastest CAGR owing to the increasing demand for the replacement of vehicle defected parts and accessories. The aftermarket sector is well-positioned to meet such demand, offering a wide range of parts and accessories at competitive prices. Furthermore, the market is driven by the growing consumer preference for customizing the parts and accessories of the vehicle to improve performance, appearance, or functionality. The aftermarket sector provides a wide range of options for customization, from performance upgrades to cosmetic enhancements boosting the growth of the market.
By Region
Europe dominates the automotive lighting market as Europe has the most stringent automotive safety regulations. The regulations imposed by the European government create a strong demand for high-quality, energy-efficient lighting solutions to meet the defined standards. For instance, the European Government of Mobility and Transfer mandated the use of daytime running lights (DRLs) on all new motor vehicles to increase road safety. Daytime running lights (DRLs) are primarily intended to enhance the visibility of a vehicle to other road users, rather than to aid the driver in seeing the road. Therefore, the implication of such strict regulation is increasing the demand for automotive lighting in European countries.
Asia-Pacific is expected to witness the fastest CAGR due to the easy availability of raw materials and enormous demand for cost-effective electrical components from countries like Japan, China, and India. Additionally, the presence of global players is driving the adoption of safety features and advanced lighting technology including laser and matrix-led lighting in vehicles. Key players such as Hyundai Mobis, Varroc Group, and Denso apply innovations to strengthen the market position and promote the growth of automotive lighting in Asia Pacific.
Automotive Lighting Market Competitive Landscape:
The automotive lighting market is highly competitive, with several global players competing for market share. The companies compete based on product innovation, quality, performance, and price. Key companies invest heavily in research and development to develop new and innovative products that meet the changing needs of the market. The companies also focus on improving the manufacturing processes to increase efficiency and reduce costs. Following are the major market players that comprise the latest market concentration–
- Continental AG
- Nichia Corporation
- Infineon Technologies AG
- CM18 Vehicle Safety Lights
- Hyundai Mobis
- AUDI AG.
- UK Automotive Products Ltd
- Magneti Marelli S.p.A.
- XENOMATIX N.V.
- HELLA GmbH & Co. KGaA
Recent Developments:
- In January 2020, Marelli and XenomatiX signed a joint development agreement for LiDAR Solutions in the autonomous driving field. Under the agreement, the companies will develop new LiDAR solutions that meet the requirements of the autonomous driving market. The focus is on developing LiDAR systems that are more compact, energy-efficient, and cost-effective than existing solutions.
- In January 2020 Hella launched Hella FlatLight technologies, a new lighting innovation for rear combination lamps. The optics that are of small size, allow the diffraction properties of light to be exploited.
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