Automotive Lighting Market size worth over $45 Bn by 2027
Published Date: July 12, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
Automotive Lighting Market size is set to surpass USD 45 billion by 2027, according to a new research report by Global Market Insights Inc.
Rapid changes and advancements in automotive lighting systems to enhance the visibility, brightness, and safety of drivers are propelling the automotive lighting industry growth. The vehicle manufacturers are focusing on integrating LED lights as they consume low power and have a longer working life as compared to the previous lighting technology. Similarly, in April 2021, Ford Motor Company developed a new headlight tech that uses GPS to intelligently illuminate the road based on the moment of the steering, to increase visibility and avoid accidents during travel.
The increasing production and sales of various vehicles including passenger cars, two-wheelers, and commercial vehicles is showing a positive impact on the automotive lighting market size. The growing need for automobiles has influenced the demand for automotive lighting systems. Several companies are investing in the development of new production facilities to increase the production of lighting systems. For instance, in November 2020, Grote Industries, a lighting manufacturing company, launched a new LED headlamp line production facility in Madison, Indiana. The production facility was developed to manufacture headlights for various vehicles including commercial vehicles, heavy-duty trucks, and off-highway vehicles.
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The fluctuating prices of raw materials and components is a major factor hampering the market growth. The rising prices of metals, glass, plastic, and components owing to high demand and low supply are hindering the market demand. However, to overcome the challenge, the companies are focusing on strengthening their supply chains and aiming toward long-term contracts with raw material suppliers to reduce the impact on the market size.
The market sales of automotive lighting declined during 2020 driven by the spread of COVID-19 pandemic globally. The disruption in the supply chain, shortage of labor and raw materials impelled by the restriction on trade and international moment is showing a negative impact on the market statistics. Moreover, the manufacturers are focusing on stabilizing the supply chain and increasing the prices to overcome the challenges faced due to COVID-19.
Browse key industry insights spread across 160 pages with 133 market data tables & 21 figures & charts from the report, “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” in detail along with the table of contents:
Low cost of halogen lights is driving the market revenue
The halogen technology is expected to grow at 3% CAGR through 2027. The low cost, easy manufacturing, and early adoption of halogen lighting in the automotive are some major factors boosting the market demand. Several companies manufacturing vehicles use halogen lights with built-in fog lights. For instance, Ford EcoSport SES 2021 models use auto halogen headlamps, which is influencing the market positively.
Rising demand for commercial vehicles is enhancing the market growth
The commercial vehicle held around 20% of the market share during 2020 led by the increasing demand for vehicles including vans, buses, and trucks coupled with the integration of improved lighting systems with these vehicles. For instance, according to International Organization of Motor Vehicle Manufacturers, in 2020, the number of commercial vehicles sold were over 24 million units, fueling the demand for automotive lighting.
Changing government standards and policies related to headlamps
The front lighting/headlamps segment crossed above USD 20 billion in 2020 and is set to grow at 5% CAGR through 2027. These lights play a vital role in reducing accidents by illuminating the area and allowing the driver to have a clear view of the environment. Additionally, the rising government regulations associated with road vehicles are also driving the automotive lighting industry. For instance, The SAE International Lighting Committee issued a standard the J3069 for the Adaptive Drive Beam (ADB) headlamps used in automobiles. The standard instructs manufacturers to perform test based on guidelines before selling.
High demand for vehicles in Asia Pacific is augmenting the market revenue
The Asia Pacific automotive lighting market exceeded around USD 15 billion in 2020. The growing demand for vehicles in the region owing to rising disposable income, population, and technologically advanced vehicles is supporting the market growth. The presence of various market players, such as Magnetti Marelli S.p.A, Koito Co, Ltd, Stanley Electric Co.Ltd, and Hyundai Mobis Co., Ltd, plays a vital role in spurring the market by launching new and advanced automotive lighting systems for vehicles.
Leading manufacturers in the industry of automotive lighting systems are focusing on product launch, strategic partnership, and acquisition to gain a competitive edge in the market. In April 2019, Hella signed a strategic agreement with Wuling Automotive Industry, a Chinese Guangxi Automobile Group for the development of new lighting technologies such as headlamps for several vehicles.
Some of the automotive lighting market players include Valeo, Koito Co, Ltd, HELLA KGaA Hueck & Co, Ltd, Magnetti Marelli S.p.A, Hyundai Mobis Co., Stanley Electric Co.Ltd, ZKW Group, Varroc Lighting Solutions, OSRAM GmbH, and Seoul Semiconductor.
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