Automotive Lighting Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Vehicles and Commercial Vehicles), By Technology (LED, Halogen, and Xenon), By Position (Rear Lighting, Front Lighting, Side Lighting, and Interior Lighting), and Regional Forecasts, 2023-2030

The global automotive lighting market size was valued at USD 33.64 billion in 2022. The market is projected to grow from USD 36.51 billion in 2023 to USD 67.39 billion by 2030, exhibiting a CAGR of 9.2% during the forecast period.

Automotive lighting is essential in cars as it improves the driver's vision. 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 vehicle's front, side, back, and inside.

The increasing number of road accident cases is one of the major factors driving the growth of the market. The overall demand for vehicle lights is closely tied to the number of vehicles sold. When automobile sales are high, the demand for lights increases accordingly. Vehicle manufacturers require lights as essential components during the production process. As the production of vehicles increases, so does the demand for lights. Stringent safety regulations imposed by governments and regulatory bodies often require vehicles to have specific types of lights, such as daytime running lights, High-Intensity Discharge (HID) headlights, or LED tail lights. These regulations can surge the demand for specific lighting technologies. Advancements in lighting technology, such as transitioning from traditional halogen bulbs to LED technology or HID lights, can surge the demand as consumers and manufacturers seek more efficient, longer-lasting lighting solutions.

Moreover, increasing awareness about road safety and proper vehicle lighting encourages consumers to maintain and upgrade their lighting systems, driving demand for quality lights. Demand for vehicle lights can vary based on geographic factors such as climate conditions (extreme weather requiring specialized lighting) and vehicle usage patterns (off-road vehicles may require specific lighting configurations). The demand for vehicle lights can be cyclical and may vary in response to economic conditions, automotive industry trends, and regulatory changes.

COVID 19 IMPACT

Pandemic Impacted the Market Negatively Due to Supply Chain Disruptions

The COVID-19 pandemic caused huge growth fluctuation in the global automotive supply chain. The outbreak disrupted international manufacturing facilities and global vehicle sales. Manufacturing facilities were shut down and new car sales were halted, affecting vehicle lighting components' production. In 2020, demand for conventional and electric vehicles dropped, impacting the market. Furthermore, the funding for R&D significantly reduced, which impeded the research & development of new vehicle lighting solutions. Lighting demand is primarily proportional to vehicle production. Vehicle production and sales declined substantially with the outbreak of COVID-19, with a 14% fall predicted in 2020.

LATEST TRENDS

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Rising Adoption of Advanced Vehicle Lighting Technologies to Boost Market Growth

The adoption of advanced vehicle lighting technology has steadily increased in recent years. This rising adoption can be attributed to several factors, including technological advancements, safety regulations, consumer preferences, and the desire for enhanced aesthetics. Light Emitting Diode (LED) technology has become increasingly popular in vehicle lighting. LEDs offer several advantages: energy efficiency, longer lifespan, faster response times, and a wide range of design possibilities. Automakers widely adopt LED headlights, tail lights, and interior lighting for improved visibility, durability, and distinctive styling options. Adaptive lighting systems are gaining traction in the automotive industry. These systems use sensors and advanced algorithms to adjust headlights' direction, intensity, and beam patterns based on factors such as vehicle speed, steering angle, and environmental conditions. Adaptive lighting enhances visibility, improves safety, and reduces glare for drivers and other road users.

Laser lighting technology is an emerging trend in the automotive industry. Laser headlights use laser diodes to generate an intense and focused beam of light, providing improved visibility and a longer illumination range than traditional lighting technologies. Laser lighting offers potential advancements in brightness, efficiency, and compactness. The increasing advancement and investment in lighting technology will boost market growth. For instance, In April 2021, Ford, one of the leading automotive manufacturers, developed a smart lighting system that points beam in the approaching corners, preventing obstacles more efficiently.

DRIVING FACTORS

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

 Strict lighting regulations have pushed developed countries toward the vehicle lighting industry globally. 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), traffic collisions kill 1.3 million people annually. Most countries lose 3% of their GDP due to road accidents. Therefore, enhancing driving conditions is vital, which can be achieved partly by improving the lighting system. In 2011, the European Union mandated using 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 see 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 regulatory regulation will likely impact the global automotive lighting market growth.          

RESTRAINING FACTORS

High Cost of LED Lights 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 LEDs 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 Vehicle Type Analysis

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Increasing Demand for Advance Lighting System in Passenger Vehicles Propels Segment Growth

Based on vehicle type, the market is segmented into passenger vehicles and commercial vehicles. The passenger vehicles segment is expected to dominate during the forecast period. A passenger vehicle is a common mode of transportation globally. The increasing passenger vehicle sales and advancement in lighting technology are anticipated to boost the market growth. Also, increasing demand for electric vehicles is anticipated to propel the market growth as all-electric vehicles are equipped with high-end lighting setups. Moreover, the increase in per capita income is a major factor propelling the sales of the passenger vehicle, which indirectly boosts the market growth.

The demand for lighting systems in commercial vehicles is also surging due to the increasing demand for safety. Heavy vehicles need a more advanced lighting system to avoid accidents while traveling at night. Adopting intelligent lighting in commercial vehicles is anticipated to boost the market growth.

By Position Analysis

Front Lighting Segment Dominates the Market due to Rising Adoption of LED Headlamps

By application, the market is segmented into rear lighting, front lighting, side lighting, and interior lighting.

Due to continuous headlamp development, the front lighting (also known as headlights) segment is anticipated to dominate the market. Adopting new technology in the front lighting system, such as laser lighting, is anticipated to boost the front lighting segment growth. The increasing demand for redefined front lighting systems to have clear sight for drivers during the night is anticipated to boost the demand for LED. Moreover, every vehicle sold nowadays comes with led-fitted headlights, especially electric vehicles.

The rear lighting segment is anticipated to hold the second-largest position in the market over the forecast period. The rear system consists of tail lights, brake lights, reversing lights, rear fog lights, and turn signal lights. The rear segment accounted for an 8.5% CAGR in 2020.

The interior lighting segment is anticipated to grow highly during the forecast period. The segment’s growth is attributed to the rising adoption of the enhanced internal lighting system in mid and high-end vehicles. For instance, in 2022, Motherson announced a partnership with Valeo to develop an advanced lighting system for cabin interiors.

By Technology Analysis

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

Based on technology, the market is classified into 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, are likely to witness growth. Leading manufacturers are focusing on developing advanced LED lights that will eventually replace halogen bulbs.

The halogen segment is anticipated to hold the second-largest position in the market over the forecast period. It has seen steady growth over the forecast period. Halogen lights are most commonly used in heavy vehicles due to their unique characteristics and low heat compared to LED. Also, halogen lights provide better visibility, improving drivers' safety and comfort.

REGIONAL INSIGHTS

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Asia Pacific holds the Highest Market Share Owing to Increasing Vehicle Production in the Region

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

Asia Pacific held the leading automotive lighting market share in 2022 due to the rising production of vehicles in the region. The growing demand for vehicles, including passenger and commercial vehicles is fueling the market growth. As vehicle production continues to rise, so does the demand for automotive lighting systems.

Factors influencing the market growth include technological advancement, increased vehicle production, changing consumer preferences, and stricter safety regulations. In the automotive industry, automotive lighting manufacturers have advanced significantly, particularly LED lighting. North America is a hub of automotive manufacturing, with several major automakers and manufacturing plants across the region.

Europe is anticipated to grow at a healthy rate during the forecast period. 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. 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.

KEY INDUSTRY PLAYERS

Strategic Collaborations and Partnerships Helped Magneti Marelli in Maintaining Dominant Position in the Market

Magneti Marelli is a significant player. The company's global market position is 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:

• Robert Bosch GmbH (Germany)


• Hella KGaA Hueck & Co. (Germany)


• OSRAM Licht AG (Germany)


• Valeo (France)


• Koito (Japan)


• Marelli Corporation (Italy)


• Continental AG (Germany)


• Hyundai Mobis (South Korea)


• Koninklijke Philips (Netherlands)


• Varroc Engineering Limited (India)


• Stanley Electric Co., Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS

• April 2023 - Continental AG introduced its automotive lighting product NightViu for construction and off-road vehicles. The company introduced 16 new products under the NightViu product line. The products are specifically engineered for construction, mining, and off-road equipment applications.


• July 2022 - Hella KGaA Hueck & Co., a German supplier of automotive lighting and electronics components, launched a new vehicle lighting plant in China. The plant will focus on developing innovative vehicle lighting technologies for front vehicle lighting.


• April 2022 - Osram announced a new USD 800 million investment to build a LED plant in Malaysia. The company is refocusing on optical technology to improve its market position.


• February 2022 - Hyundai Mobis announced its contract of USD 830 million of global orders involving automotive lighting solutions for various OEMs. The company aims to lead in the automotive lighting sector through differentiated strategies and innovative product launches.


• January 2020 - Marelli and XenomatiX announced their joint development to develop Lidar solutions. According to the agreement, XenomatiX will provide its Lidar products for Marelli’s Automotive Lighting solutions. 

REPORT COVERAGE

An Infographic Representation of Automotive Lighting Market

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The report provides detailed market analysis and focuses on key aspects such as leading companies, services, and 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 in recent years.

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