Automotive Lighting Market Size By Technology (LED, Halogen, Xenon), By Vehicle Type (Passenger Cars, Commercial Vehicles, Two-Wheelers), By Application (Interior Lighting, Side Lighting, Rear Lighting, Front Lighting/Headlamps), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2021-2027

Industry Trends

Automotive Lighting Market size exceeded USD 30 billion in 2020 and is anticipated to grow at around 5% CAGR between 2021 and 2027. Increasing production of commercial and passenger vehicles is likely to propel the industry growth. According to the International Organization of Motor Vehicle Manufacturers (OICA), South Africa recorded a 3.5% increase in vehicle production in 2019 as compared to 2018.
 

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An automotive lighting system provides enhanced visibility in low light areas and ensures safety of pedestrians and other drivers. The ability of brake lights and indicators to alert passengers about vehicle presence and travel direction will drive the market growth.
 

Technological advancements in automotive lighting field are providing numerous growth opportunities to the automotive lighting market. The amplifying market trend of integrating lights with Advanced Driver Assistance System (ADAS) into autonomous vehicles will accelerate the market revenue during the forecast period. Lighting systems integrated with ADAS reduces the number of collisions on road and aids drivers in detecting the speed of the oncoming traffic with accuracy. The ability of automotive lighting to enable vehicle to vehicle communication, transportation management centers, and vehicle infrastructure systems will surge the market demand.
 

The fluctuating costs of raw materials and high R&D expenditure for continuous development of innovative technologies in automotive lighting ecosystem are challenging the industry growth. The incumbent industry players invest heavily in R&D activities to develop advanced technologies, making it difficult for new players to enter the market. Varying trade regulations in North America, Asia Pacific, and Europe are affecting the prices of raw materials and sourcing strategies of key players. Moreover, the dynamic landscape of the lighting industry is contributing to the fluctuation revenues of the companies.
 

The automotive lighting market growth was severely impacted by the COVID-19 pandemic. The decline in market demand can be accredited to the significant reduction in automobile sales during 2020. Several commercial and passenger vehicle manufacturers faced a decline in sales of new vehicles due to global economic uncertainties. This led to reduced demand for automotive lighting systems. Additionally, automotive lighting manufacturers observed severe shortage of skilled labor and critical electronic components impelled by restrictions on foreign trade and movement. However, the automotive lighting market is expected to witness a steady recovery in the first half of 2021.
 

High demand for LED lights owing to energy efficiency

The LED technology segment is anticipated to see a CAGR of over 8% through 2027 on account of the growing integration of LEDs in interior and front lighting in automobiles. The automotive LEDs offer several advantages including enhanced durability, low power consumption, high power output, and superior brightness compared to halogen and xenon.
 

Market leaders are emphasizing on launching new automotive LED products to cater to the growing demand from OEMs and aftermarket. For instance, in April 2021, Samsung introduced PixCell LED, an advanced automotive LED module for smart headlights. The automotive lighting module provides improved driving visibility, contributing to the industry statistics. Smart headlights, such as Adaptive Driving Beam (ADB) system powered by PixCell LED, improve visibility and safety at night and in poor weather conditions and enhance the overall driving convenience.
 

Rising integration of automotive lighting into passenger vehicles to enhance road safety

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The automotive lighting market from passenger vehicles is projected to register a growth rate of above 5.5% through 2027. Huge investments by car manufacturers in R&D & innovation to develop automotive lighting systems compatible with driver assistance systems and proximity sensors will support the market statistics. Increasing number of road accidents has led to rising concerns related to vehicle and passenger safety on road, resulting in increasing demand for automobile lighting solutions. Stringent regulations established by government and transport authorities to improve road safety are driving the market revenue.
 

High demand for ambient lighting will drive the growth of interior lighting

Automotive interior lighting market captured more than 10% share in 2020. The rising implementation of interior lighting in vehicles to provide ambient lighting and enhance the aesthetics features will fuel the market demand. Owners of contemporary and luxury cars prefer to incorporate smart interior lights that are sensitive to surroundings in their vehicles. The interior lighting products are also used in commercial vehicles including taxicabs, buses, and pickup trucks to provide better visibility to on-board passengers.
 

Presence of several prominent automobile manufacturers will augment the Europe market revenue

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The Europe automotive lighting market is poised to reach USD 9 billion in 2027. The presence of several prominent automobile manufacturers including Volkswagen, Volvo, Mercedes, and BMW will spur the regional market growth. Manufacturers of automobile lighting including Samsung, Osram, and Philips, emphasize on establishing long-term contracts along with mergers & acquisitions to increase their market share. For instance, in February 2019, Osram acquired Ring Automotive, an automotive company based in the UK, to expand its product range in the automotive sector. The acquisition will enable to increase additional sales, create strong distributional channel and synergies in product portfolio, and expand its market expertise.
 

High focus of market players on new product launches

Automotive lighting manufacturers are focusing on developing new lighting solutions with improved LED technology. For instance, in June 2021, Hella Group launched new work lights for the automotive lighting market. The newly launched products include S-series LED work lamps for agricultural and construction machines. The increasing focus of heavy equipment manufacturers on procuring automobile lighting products will augment the industry growth.
 

Similarly, in April 2021, Lumileds, launched new LED X-tremeUltinon headlight bulbs and fog light bulbs to illuminate the roads clearly without reduced glare and create uniform beam pattern. Other prominent strategies adopted by market players include strategic partnerships, acquisitions, and joint ventures with technology players in the industry.
 

The prominent players in the automotive lighting market include Osram Group, General Electric, Hella GmbH & Co., Magneti Marelli S.p.A., Samsung Electronics, Varroc, Valeo, Koninlijke Philips N.V., Hyundai Mobis Co., Ltd., and Lumileds.
 

This automotive lighting market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2021 to 2027 for the following segments.

Market, By Technology

• LED
• Halogen
• Xenon

Market, By Vehicle Type

• Passenger cars
• Commercial vehicles
• Two-wheelers

Market, By Application

• Interior lighting
• Side lighting
• Rear lighting
• Front lighting/headlamps

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
• MEA
  • South Africa