Automotive Lighting Market Analysis

Automotive Lighting Market Analysis

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.

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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.

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.

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.

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.