Automotive Lighting Market size worth $38.5 billion by 2026
Published Date: August 4, 2020 Authors: Preeti Wadhwani, Prasenjit Saha
Automotive Lighting Market size is set to be over USD 38.5 billion by 2026, according to a new research report by Global Market Insights, Inc.
The automotive lighting industry growth is driven by the growing installation of lights on vehicle sides, rear, and interior locations. Stringent regulations on automobile lights established by government and transport authorities across the globe are contributing to the growing market demand. Lighting systems consist of indicators and brake lights that significantly assist in enhancing the vehicle and pedestrian safety on road.
Technological advancements in the field of automotive lighting are providing several growth opportunities. The growing trend of integrating lights with Advanced Driver Assistance Systems (ADAS) to improve the driver’s visibility at night is expected to boost the market revenue through 2026. Light integrated ADAS systems assist drivers in detecting the speed of the oncoming traffic with accuracy and also reduce the glare from ambient light, thereby improving the driver experience.
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High R&D expenditure for the continuous development of innovative technologies in automotive lighting may restrain the growth. The industry is highly competitive with the presence of several large market players. These players invest huge amounts in R&D activities to develop advanced technologies to stay ahead of the competition. Furthermore, automotive lighting manufacturers are highly dependent on automobile OEMs for consistent revenues. However, the emergence of several new players in the automotive lighting market has increased the buyer power of OEMs, challenging industry growth.
Analyst view: “The industry is expected to witness growing demand for green automotive lighting solutions with low-power consumption and high durability. The integration of automotive lights with ADAS systems will also contribute to the market growth”
The rapid spread of COVID-19 pandemic in several countries across the globe has impacted the automotive lighting market. The slowdown in the automobile industry owing to the sharp decline in sales of passenger and commercial vehicles is hampering the demand for automotive lighting. Furthermore, light manufacturers are witnessing a severe shortage of raw materials and skilled labor due to restrictions on international trade and movement, posing several industry challenges. According to the market forecast, the industry is expected to gain momentum with the recovery of the automobile industry in 2021.
Browse key industry insights spread across 150 pages with 133 market data tables & 20 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), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Increasing demand for far-reaching and durable xenon lights
The xenon segment held around 20% market share in 2019 and is expected to grow at 3% CAGR from 2020 to 2026. The benefits provided by xenon lights, such as enhanced durability and high brightness, will contribute to their increasing adoption in the market. The ability of these lights to emit a white light similar to daylight will further boost their market size.
However, the high-cost of xenon lights compared to other automotive lighting technologies may hamper the market demand. Shifting preferences of vehicle owners toward low-power consuming and long-lasting LED lights are gradually reducing the adoption of xenon lights.
The proliferation of technologically advanced headlamps in commercial vehicles
Automotive lighting market from commercial vehicles segment was valued USD 7 billion in 2019. Rise in the production and sales of commercial vehicles including trucks, buses, and vans across the globe will propel the segment growth. According to the data reported by the European Union, in December 2019, registrations of commercial vehicles in the market grew by 5.7% compared to the same month in 2018.
Innovations in rear automotive lighting to drive the automotive lighting market revenue
The rear lighting segment is expected to witness a growth rate of around 3.5% through 2026. Ongoing R&D and innovations in the field of OLED technology are supporting the adoption of advanced LEDs in the rear lighting of passenger and commercial vehicles.
Growing partnerships and presence of established players to support the Asia Pacific market growth
Asia Pacific automotive lighting market share is anticipated to reach over USD 21 billion by 2026. The strong presence of several established automobile manufacturers, such as Hyundai, Kia Motors, and Maruti Suzuki, in the region is providing a positive outlook to the industry.
Furthermore, the business expansion initiatives undertaken by European players are also driving the market. For instance, in December 2019, ZKW Group announced the opening of a new manufacturing facility dedicated to automotive lighting in Seoul, South Korea. The company has integrated the rear lights business of LG Electronics to grow its business. Leading manufacturers are laying strong emphasis on launching innovative lighting solutions to increase their revenues and cater to dynamic customer requirements.
Key players in the automotive lighting market are Osram Group, Hyundai Mobis Co., Ltd., General Electric, Philips N.V., Samsung Electronics Co., Ltd., Magneti Marelli S.p.A., HELLA GmbH & Co. KGaA, Koito Manufacturing Co., Valeo, and Varroc.
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