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The global automotive lighting market size was USD 44.7 billion in 2019 and is projected to reach USD 53.6 billion by 2027, exhibiting a CAGR of 8.5% during the forecast period.
According to the World Health Organization, around 1.25 million people die in road accidents caused by bad weather conditions such as heavy rain, dust, fog, and others. The rising number of road accidents globally has fuelled the demand for advanced lighting solutions. Automotive lighting plays an important role in vehicles as they provide better visibility to the driver. Car lights help the driver to locate rough road tracks, other vehicle movements, pedestrians, and obstacles on the road. It offers a stylish look to the interior and exterior of the vehicle and also increases the visibility for other passing vehicles. Automotive lights are installed at different locations such as the front, side, rear, and interior of the vehicle. In the past few years, halogen bulbs have been widely used in vehicles due to their low cost. The major drawback of a halogen bulb is its low range capacity and low visibility.
Covid-19 Impact: Declined Automotive Sales and Production to Severely Affect Market
Since the beginning of 2020, the COVID-19 pandemic is affecting the automotive lighting market growth. The pandemic has severely hindered the global automotive industry. The pandemic has not only affected regions but global sales of vehicles. Commercial and passenger vehicle manufacturers have majorly faced the heat amid a sharp decline in sales of the vehicles. Additionally, budget allocation for research and development has severely affected which in turn is hampering the development of the new product. Key OEMs are focused on taking advantage of the situation and sustaining the market. For example, in April 2020 Valeo used part-time work arrangements to fluctuate the cost of all factories. Valeo adjusted the cost of support activities such as management and R&D, it also cut down on investments which were not important to the business.
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High Adoption of New Technologies is a Positive Trend
The growing adoption of new technology is a major trend in the market. Automobile manufacturers are constantly operating to produce technologically advanced components that are light in weight, consume less energy, and are compact in nature. OLED, Laser Lighting, and Matrix LED Lighting are some of the emerging technologies in the lighting market. In Matrix LED the high-beam unit consists of 25 independent parts. This allows the Matrix LED light to react accurately according to other cars. As the matrix led is connected to the sensors it automatically gets activated, deactivated, or also dim the light and does not cause blindness to other car drivers. For instance, Nichia Corporation partnered with Infineon Technologies to develop a high definition for front lighting that consists of 16000 micro LED matrix solutions. In this solution, only those lights and signaling are turned on which are required for light pattern hence enhances the energy efficiency of the solution.
Stringent Safety Norms by Government to Drive Market
The majority of the drivers use high beam light for better visibility at night. The use of high beam headlight may cause sudden glare to the driver of another vehicle approaching from the opposite end. This discomfort or sudden glare can lead to a severe road accident. Ruling bodies across the globe have imposed severe safety norms on automotive manufacture to equip adaptive headlights in the vehicle. Unnecessary use of the high beam also leads to heavy fines to the users. For example, Central Motor Vehicle Organization in India has specified the construction and use of high beam lights under rule number 106. Unnecessary use of high beam light will incur a 100 INR fine to the driver.
Increasing Adoption of Advanced Lighting in Vehicles to Drive the Market
The increasing adoption of advanced lighting in vehicles is expected to drive the market during the forecast period. Key OEMs are focusing on developing and equip advanced lights to enhance the visibility and styling of the vehicle. For example, Hella GmbH is committed to developing and equipping advanced vehicle lighting systems. The lighting system has functions such as communication with pedestrians to maintain the safety of pedestrians and meet the needs of consumers.
High Cost of LED is Restraining the Growth of the Market
LED, Xenon, and Halogen bulbs are majorly used in automotive vehicles. In recent years there has been high usage of LED lights owing to its benefits such as longer life and less power consumption. On the other hand, LED lights generate a lot of heat which is controlled by the installation of other cooling equipment. This, in turn, increases the cost of LED light and is expected to restrain its growth over the forecast period. High voltage sensitivity is also restraining the growth of LED during the forecast period. LED lights require current below specified ratings and voltage above the threshold such specific power supply required by LED is anticipated to hamper its quality and restrain its growth in the market.
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Front Lighting Segment is Expected to Dominate the Market
Based on the application type the market is segmented into the front, side, rear, and interior lighting. The front lighting segment is anticipated to dominate the market amid continuous development in the headlamp segment. Rising adoption of LEDs headlamps compared to halogen and xenon is maintaining the dominance of front lighting over the forecast period. Also, advancements in headlights are fueling the demand for front lighting.
Interior Lighting system is anticipated to hold the second-largest position in the market over the forecast period. The Interior lighting system consists of ambient lighting, roof console, car body lighting, and reading lights. The reading lights enable the occupants to read the book, especially during the dark. The car body lighting provides functional lighting and an appealing look for major luxury cars. Rising adoption of the enhanced interior lighting system in mid and high-end vehicles is anticipated to maintain its second-largest position over the forecast period. For example, in 2014 OSRAM developed advanced interior lighting called LED ambient. This interior light is wireless, less power consuming, durable, and can easily be recycled.
LED Segment is Expected to Hold the Largest Market Share
Based on the technology market is segmented into halogen, LED, and Xenon. The LED lights segment to dominate the market over the forecast period. Low consumption and high power output of these lights compared to halogen are fueling its demand in the market. Key OEMs are focusing on developing advanced LED lights that would completely replace halogen bulbs. For example, Osram launched its new LED automotive lighting series in December 2018. The lighting series has headlights with integrated LED technology, turn indicators, low and high beams, position lights, and daytime running mode. Also growing inclination of consumers towards power-efficient LED lighting systems and stringent norms imposed by governments are fueling the demand for LED lights. For example, according to BS-VI norms, it is mandated to equip LED lights at the front end of all the passenger cars. Halogen Bulbs is anticipated to hold the second-largest position in the market amid low manufacturing and maintenance cost.
Passenger Car Segment is Expected to Hold the Largest Market Share
Based on the vehicle type, the market is segmented into passenger cars and commercial vehicles. The passenger car segment holds the largest share of the global market. Road Safety and emission regulations imposed by governments, increasing sales, production, and disposable income of consumers is propelling the growth of passenger cars in the market. The growing inclination of consumers towards compact SUVs and crossovers is maintaining the dominance of passenger cars over the forecast period. The commercial vehicle segment is expected to show good growth over the forecast period. Increasing demand for low power consumption and high beam lights in HCVs will help this segment to show good growth in the market.
Europe Automotive Lighting Market Size, 2019 (USD Billion)
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Based on region the market of automotive lighting is segmented into North America, Europe, Asia Pacific, and Rest of the World. Europe is anticipated to dominate this market. Stringent norms imposed by the government are driving the market in this region. For example, since 2011 the European Union made it mandatory to use daytime running lights (DRLs) amid unfavorable weather conditions in Europe. Early adoption of advanced automotive lighting solutions in this region amid the presence of major key players is anticipated to maintain its dominance in the market. Asia Pacific to hold the second-largest position in the market owing to ease of availability of raw materials and huge demand for cost-effective electronic and mechanical components from countries such as China, Japan, and India.
Magneti Marelli is a Key Player in the Market
Magneti Marelli is the major player in the market ofautomotive lighting. Increasing partnerships and collaboration with other key players to develop high-end components is strengthening the company’s global market position. Also the constant R&D efforts by the company leading to innovative technologies, which are some of the prominent factors responsible for the dominance of the company. On 2nd May 2019, CK Holdings announced that it has acquired Magneti Marelli from Fiat Chrysler. The company business will operate under Magneti Marelli CK Holdings. This acquisition is expected to help maintain the dominance of Magneti Marelli as both the companies will operate in 170 facilities and R&D centers across Asia Pacific, North American, and Europe.
An Infographic Representation of Automotive Lighting Market
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The automotive lighting market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the automotive lighting market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD billion) & Volume (thousand units)
By Application Type
By Technology Type
By Vehicle Type
Fortune Business Insights says that the global market size was USD 44.7 billion in 2019 and is projected to reach USD 53.6 billion by 2027.
In 2019, the European market stood at USD 16.7 billion.
The market is projected to grow at a CAGR of 8.5% during the forecast period (2020-2027).
The technology type segment is expected to be the leading segment in this market during the forecast period.
Increasing adoption of advanced automotive lighting system is driving the global market
Magneti Marelli is the leading player in the global market.
Europe dominated the market share in 2019.
Adoption of adaptive lighting to drive market growth.
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