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Automotive Lighting Market Size, Share & COVID-19 Impact Analysis, By Application Type (Front, Side, Rear, and Interior), By Technology Type (LED, Halogen, and Xenon), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI101978

 

KEY MARKET INSIGHTS

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The global automotive lighting market size was USD 37.74 billion in 2020. The market is projected to grow from USD 30.19 billion in 2021 to USD 57.01 billion in 2028 at a CAGR of 9.5% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with automotive lighting witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of -10.85% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


ccording to the World Health Organization (WHO), around 1.25 million people die each year in road accidents due to adverse weather, such as heavy rain, dust, fog, and other factors. The demand for advanced lighting solutions has increased as the number of road accidents has risen worldwide. Automotive lighting is essential in cars because it improves the vision of the driver. Car lights assist the driver in detecting uneven road tracks, other vehicle movements, pedestrians, and other road hazards. It gives the inside and outside of the vehicle a fashionable appeal while also increasing the visibility of other passing cars. Automotive lights are mounted in various areas, including the front, side, back, and inside of the vehicle. Because of their inexpensive cost, halogen lights have been increasingly popular in automobiles in recent years. The main disadvantage of halogen light is its limited range and visibility.


Drop-in new vehicles sales amid COVID-19 to Hamper Market Growth


The COVID-19 epidemic has caused damage to the global automotive supply chain. The outbreak has disrupted not only international manufacturing facilities but also global vehicle sales. Manufacturing facilities have been shut down, and new car sales have been halted, which affects the production of the vehicle lighting components. In 2020, demand for conventional and electric vehicles was projected to drop, impacting the market. Furthermore, the funding for R&D is going to be significantly reduced, which is expected to impede the research and development of new vehicle lighting solutions. Lighting demand is primarily proportional to vehicle production. Vehicle production and sales have declined substantially with the outbreak of COVID-19, with a 20% fall predicted in 2020.


LATEST TRENDS


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Rising Adoption of Advanced Technologies Due to Advance Safety Features to Foster Market Progress


A key trend in the market is the growing adoption of advanced technology. Vehicle manufacturers are constantly working to develop technologically advanced components that are lightweight, efficient, and small. Emerging technologies include OLED, laser, and matrix-led lighting. The high-beam unit of a matrix led is made up of 25 separate components. The matrix LED light can react appropriately to other automobiles thanks to the high-beam feature.


Because matrix led is connected to the sensors, it automatically activates, deactivates, or dims the light, ensuring that other drivers are not blinded. For example, Nichia Corporation collaborated with Infineon Technologies to create a high-definition front illumination system comprising 16,000 micro LED matrix solutions. Only those lights switched on in this solution are necessary for the light pattern, increasing the solution's energy efficiency.


DRIVING FACTORS


Strict Government Regulations on Lighting for Better Visibility and Safety to Boost Market Progress


Strict lighting regulations have pushed developed countries towards the vehicle lighting industry in Europe and North America. Vehicle lighting is essential, especially while traveling on congested highways. Governments around the world are concerned about road accidents. According to the World Health Organization (WHO), road traffic collisions kill 1.3 million people per year. The majority of countries lose 3% of their GDP due to road accidents. Therefore, it's vital to enhance driving conditions, which can be achieved in part by improving the lighting system. In 2011, the European Union mandated the use of daytime running lights (DRLs) on all new motor vehicles to increase road safety. The purpose of DRL is to assist other road users in seeing the car, not to help the driver in seeing the road. According to the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA), DRL reduced fatal road accidents by 13.8%. This type of regulatory regulation is likely to impact the global automotive lighting market growth.


Increasing Adoption of Advanced Lighting in Vehicles to Facilitate Market Development


The increasing demand for this market is expected to be driven by the increasing adoption of advanced lighting in vehicles during the forecast period. Key OEMs are focusing on developing and installing advanced lighting to improve vehicle visibility and appearance. Hella GmbH, for instance, is engaged in developing and supplying advanced automotive lighting systems. The lighting system has functions, including communication with pedestrians to ensure pedestrian safety and satisfy customer requirements.


RESTRAINING FACTORS


High Cost of LED is Restraining the Growth of the Market


LED lamps generate a lot of heat controlled by installing other cooling equipment, which increases the cost of LED light and is expected to restrain its growth over the forecast period. High voltage sensitivity is also hindering the growth of LED during the forecast period. LED lights require a current below the indicated ratings and a voltage above the threshold. Such a specific power supply needed by LED is anticipated to hamper its quality and restrain its growth in the market.


SEGMENTATION


By Application Type Analysis


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Front Lighting Segment Dominates the Market Because of Rising Adoption of LED Headlamps


The application type of this market is segmented into the front, side, rear, and interior lighting. The rear (also known as Taillights) segment is anticipated to dominate the market owing to continuous development in the headlamp segment. The rising adoption of LEDs headlamps compared to halogen and Xenon maintains the dominance of front lights over the projected period. Also, development in headlights is fueling the demand for front lights.


The rear segment is anticipated to hold the second-largest position in the market over the forecast period. The interior system consists of tail lights, brake lights, reversing lights, rear fog lights, and turn signal lights. The rear segment accounted for a 25.70% market share in 2020.


Interior segment has high growth and low penetration in 2020. The segment accounted for 23.05% market share in 2020. The segment will grow during the forecast period due to the rising adoption of the enhanced internal lighting system in mid and high-end vehicles. For instance, in 2014, OSRAM developed LED ambient, a type of advanced indoor lighting. This interior light is wireless, uses less energy, is long-lasting, and can be easily recycled.


By Technology Type Analysis


LED Segment Holds the Largest Automotive Lighting Market Share Due to Lower Energy Consumption and Excellent Power Output.


Based on technology, the market is classified into three groups, halogen, LED, and Xenon. Over the forecast period, the LED segment will dominate the market. The low energy consumption and excellent power output of LED, as compared to halogen, is likely to witness growth. Leading manufacturers are focusing their efforts on developing advanced LED lights that will eventually replace halogen bulbs. In December 2018, Osram, for example, launched a new LED vehicle lights series. Headlights with integrated LED technology, low and high beams, turn indicators, position lights, and daytime operating mode are all part of the series.


Consumers' growing preference for energy-efficient LED systems and stringent government- regulations can drive demand for LED lights. For example, all passenger vehicles must be equipped with LED lights at the front end. Due to cheap production and maintenance costs, Halogen Bulbs are expected to maintain the second-largest market share.


The Halogen light segment is anticipated to hold the second-largest position in the market over the forecast period. The Halogen Light Segment will be dominating in the forecast period due to technological advancement in the segment. The halogen segment accounted for a 38.16% market share in the global market in 2020.


By Vehicle Type Analysis


Passenger Vehicle Segment to Dominate the Market Owing to Rising Sales and Production of Passenger Car in Developing Countries.


Based on the vehicle type, the market is bifurcated into passenger cars and commercial vehicles.


The passenger car segment holds the highest share globally in the market and is expected to dominate the forecast period. Due to rising individual disposable income, the rising sales and production of passenger cars in developing countries will push this segment's market growth. The passenger car segment accounted for 79.76% market share in 2020. The commercial vehicle segment is also expected to show lucrative growth in the market over the forecast period due to governments' initiatives for improving commercial vehicle safety standards.


REGIONAL INSIGHTS


Europe Automotive Lighting Market Size, 2020 (USD billion)

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The market is studied across North America, Europe, Asia Pacific, and the Rest of the World.


This industry is expected to be dominated by Europe. The government's regulations are pushing the market in this region. Since 2011, the European Union has made it mandatory to use daytime running lights (DRLs) across Europe whenever the weather is terrible. This region's dominance in the market is expected to be maintained by the early adoption of innovative automotive lighting solutions among major key players.


The Asia Pacific holds the second-largest position in the market due to the easy availability of raw materials and enormous demand for cost-effective electrical and mechanical components from nations such as Japan, China, and India


North America is anticipated to show significant growth in the market. The boost in electric vehicles' sales and the early adoption of Advanced Driver Assistance System (ADAS) features are attributed to the high adoption of the automotive lighting system in North America. North America accounted for a 23.8% market share in 2020.


The rest of the world contributes minimal market share in the global market. ROW will show good growth during the forecast period due to increasing awareness and acceptance of advanced technology.


KEY INDUSTRY PLAYERS


Strong Portfolio and Advanced Lighting system to Enable Companies to Lead Market Position


Magneti Marelli is a significant player. The company's global market position is being strengthened by increasing partnerships and collaboration with other major companies to create high-end components. The company's constant R&D efforts result in the development of novel technology, which is one of the main reasons for the company's supremacy. CK Holdings announced the acquisition of Magneti Marelli from Fiat Chrysler on May 2, 2019. Magneti Marelli CK Holdings will manage the company's operations.


LIST OF KEY COMPANIES PROFILED:



  • Hyundai Mobis (‎Seoul, South Korea)

  • Continental AG (Hanover, Germany)

  • Koninklijke Philips (Amsterdam, Netherlands)

  • Robert Bosch GmbH (Gerlingen, Germany)

  • Varroc Group (Aurangabad, India)

  • Valeo (Paris, France)

  • Hella GmbH (Lippstadt, Germany)

  • Denso (Aichi, Japan)

  • Lear Corporation (Michigan, U.S.)

  • OSRAM (Munich, Germany)

  • Magneti Marelli (Corbetta, Italy)


KEY INDUSTRY DEVELOPMENTS:



  • January 2020–A joint development agreement for LiDAR solutions has been signed between Marelli and XenomatiX.

  • September 2019 – Osram introduced the world’s first hybrid LED called “Eviyos,” specially designed for car headlights. Eviyos can deliver HD projections on the road that will display warnings or symbols to other vehicles.

  • November 2020- HELLA, a global automotive supplier, has developed a new compact work light series. The new work lamp can be placed flat on the vehicle's wall and enhance the vision of the work area around the car.


REPORT COVERAGE


An Infographic Representation of Automotive Lighting Market

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The market report provides a detailed analysis and focuses on crucial aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.


Report Scope & Segmentation















































  ATTRIBUTE



  DETAILS



Study Period



2017-2028



Base Year



2020



Estimated Year



 2021



Forecast Period



2021-2028



Historical Period



2017-2019



Unit



Value (USD Billion)



Segmentation



By Application Type



  • Front

  • Rear

  • Side

  • Interior



By Technology Type



  • LED

  • Halogen

  • Xenon



By Vehicle Type



  • Passenger Cars

  • Commercial Vehicles



By Geography



  • North America (By Application Type; By Technology Type;By Vehicle Type)

    • U.S. (By Vehicle Type)

    • Canada (By Vehicle Type)

    • Mexico (By Vehicle Type)



  • Europe (By Application Type; By Technology Type;By Vehicle Type)

    • U.K. (By Vehicle Type)

    • Germany (By Vehicle Type)

    • France (By Vehicle Type)

    • Rest of Europe (By Vehicle Type)



  • Asia Pacific (By Application Type; By Technology Type;By Vehicle Type)

    • Japan (By Vehicle Type)

    • China (By Vehicle Type)

    • India (By Vehicle Type)

    • South Korea (By Vehicle Type)

    • Rest of Asia Pacific (By Vehicle Type)



  • Rest of the World (By Application Type; By Technology Type;By Vehicle Type)



Frequently Asked Questions

Fortune Business Insights says that the global market was USD 37.74 billion in 2020 and is projected to reach USD 57.01 billion by 2028.

In 2020, the European market stood at USD 14.19 billion.

The market is projected to grow at a CAGR of 9.5% during the forecast period (2021-2028).

The LED technology type segment is expected to be the leading segment in this market during the projected period.

The increasing adoption of advanced lighting systems is driving the global market

Magneti Marelli and Hella are the leading players in the global market.

Europe dominated the market share in 2020.

The rising adoption of adaptive lighting is expected to drive the market growth.

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