Global Automotive Lighting Market - 2024-2031

Global Automotive Lighting Market - 2024-2031

Global Automotive Lighting Market reached US$ 6.5 billion 2022 in 2024 and is expected to reach US$ 12.4 billion 2031 billion by 2031 growing with a CAGR 8.5% during the forecast period 2024-2031.

The automotive industry is witnessing a significant growth in vehicle electrification. The trend is driven by policy shifts in various countries, targeting bans on gasoline and diesel vehicles and growing consumer demand for more sustainable transportation options. Automakers are actively working to electrify their vehicle portfolios to meet these demands.

Automotive lighting systems are adopting slim and compact designs to enhance the exterior aesthetics of vehicles. The use of technologies like imprinted microlens arrays (MLAs) allows for smaller and lighter modules compared to conventional lighting systems. Ground projection systems using MLAs can create large sharp images on the ground, enabling safety features and personalized messages. MLA-based interior lighting projects sharp, colored and semi-dynamic images across different surfaces, enhancing driver and passenger safety, information and entertainment. The trend aligns with the growing demand for electric vehicles, where lightweight components are crucial for improving energy efficiency.

OLEDs have emerged as a promising technology in automotive lighting. Unlike LEDs, OLEDs produce light through organic molecules and can be made flexible, transparent and thin. It offers design flexibility and are particularly suitable for car interiors, signal lights, taillights and dashboard display. OLEDs are considered flat light sources that do not require reflectors and can be shaped according to specific design requirements.

Dynamics

Advancement in LED and OLED Technology

The technology advancement in automotive lighting includes a shift towards LED lighting which is driven by its longer lifespan, energy efficiency and durability. LED technology is being widely adopted in various automotive lighting applications such as headlights, daytime running lights and interior lighting. Also, the market for automotive LEDs is projected to grow significantly in the coming years.

Another emerging technology is the use of Organic Light-Emitting Diodes which offer design flexibility and thin, flexible and transparent lighting solutions, particularly for car interiors and displays. Automation technology is playing a crucial role in the efficient production and integration of advanced lighting systems in vehicles, ensuring improved visibility, energy efficiency and design possibilities.

Manufacturers are focusing on blending form and function, incorporating advanced LED solutions that offer both aesthetic appeal and practical functionality. Companies like ORACLE are leading the way with their innovative LED accessories, such as the Vector Grill for Jeep Wrangler and the StarLINER Panels, which provide customizable lighting effects and enhance the overall driving experience.

Growing Demand of EVs

According to IEA electric vehicles has experienced significant growth, with sales surpassing 10 million in 2022 - electric car sales accounted for 14% of all new car sales and showing a steady increase. The remarkable growth in electric vehicle sales is driving the growth for automotive lightning. Also, the growth in EV sales is expected to continue in 2023 with an estimated 14 million electric cars being sold.

As electric car sales continue, it increases need and demand for automotive lighting. Automakers are responding to this demand by creating new lighting designs and technologies, such as adaptive lighting and automatic high beams. Consumers are also taking notice and are beginning to demand higher quality lighting, which will continue to drive the market.

In the new EX90 BEV SUV by eely's Volvo Cars, an innovative interior lighting feature is being introduced. The interior lighting will be achieved using 72 SunLike LEDs, provided by Seoul Semiconductor. The LEDs are designed to replicate the natural spectrum of sunlight, enhancing the overall lighting experience inside the car.

High Cost of Advanced Automotive Lighting

Automotive lighting especially when it comes to replacing headlights can be quite expensive. Modern headlights, like HID and LED bulbs are not only functional but also an important aesthetic element of a car's design. The manufacturing cost is quite expensive and if these headlights need to be replaced due to accidents or other issues, the cost can be quite high.

Certain car models are known for their pricey headlight replacement costs. For example, the Ford Fusion has stylish eye-shaped headlights that can cost up to US$ 2,000 to replace the entire assembly. BMW headlights with high-intensity xenon bulbs can also be expensive, with an assembly costing around US$ 2,000 and additional costs for bulb replacement

Segment Analysis

The global automotive lighting market is segmented based on type, end-user and region.

Advanced Energy-Efficient LED and Xenon Technology for Automotive Headlights

Automotive headlights have witnessed key trends, with a shift towards more energy-efficient options like Xenon (HID) and LED headlights, replacing traditional halogen ones. LED headlights, renowned for their energy efficiency and durability, have become increasingly prevalent in newer car models and automation in headlight systems is on the rise for improved safety and convenience.

The advancements emphasize the critical importance of headlights in providing nighttime visibility, enhancing road safety, complying with regulations and signaling intentions to other drivers. As technology is continuously evolving brighter and more precise headlights contribute to better visibility, reducing the risk of accidents and ensuring optimal safety for both drivers and pedestrians.

Several popular LED lamp options are available in the market, such as Walmotor LED Fog Light Flood Driving Lamp, Tufkote Flood Beam Auxiliary LED Lamp for Cars, 9D Focus Flood LED Lamp for Car, Aorna High Power LED Fog Light Projector Cob Light and Autopowerz High Power LED Lamps for Cars. The lamps offer exceptional features like waterproofing, shock resistance, improved visibility and efficient performance in extreme weather conditions, making them essential for safer and more enjoyable driving experiences.

Geographical Penetration

Growing EV Market in Asia-Pacific

The automotive and EV industries in the Asia-Pacific are experiencing significant growth with China at the forefront contributing to about 65% of global EV sales in 2022. The surge in EV adoption is driving the demand for innovative automotive LED applications, particularly Matrix LED headlights with adaptive driving beam (ADB) technology.

The growth of EVs in India and other Asian countries is accelerating which presents significant opportunities for localized EV products and creating a highly competitive landscape in the automotive industry. As electrification continues to be a global trend the automotive lighting market in the Asia-Pacific is poised for further growth and innovation.

Competitive Landscape

The major global players in the market include Denso Corporation, Hella KGaA Hueck & Co., Hyundai Mobis, Koito Manufacturing Co. Ltd., Koninklijke Philips N.V., Osram Licht AG, Robert Bosch GmbH, Stanley Electric Co. Ltd., Valeo, ZKW Group.

COVID-19 Impact Analysis

Manufacturing facilities globally were forced to shut down or operate at reduced capacities, affecting the production of automotive lighting components. The decreased production of vehicles, both electric and conventional, resulted in a decline in the adoption of lighting devices in passenger and commercial vehicles.

The economic uncertainties caused by the pandemic led to changes in consumer behavior, with many people postponing new vehicle purchases. The shift in consumer preferences further affected the demand for automotive lighting systems and devices.

As the pandemic spread to different regions in waves, companies with a heavy production and sales footprint in affected areas faced more significant challenges. China, a major player in the automotive industry, was one of the first countries impacted, leading to a sharp drop in vehicle sales and production disruptions

Russia-Ukraine War Impact

The Russia-Ukraine war has had a significant impact on the global automotive lighting market, particularly in the European region. The conflict worsened existing logistical and supply chain issues that were already affecting the automotive industry. Shortages of critical vehicle components, especially those made in Ukraine have caused disruptions in European automotive assembly lines. Major automakers like BMW and Volkswagen Group had to halt production due to parts shortages.

Ukraine serves as a key manufacturing hub for electronic components like tail lights and entertainment systems in cars because of its skilled and relatively inexpensive labor force and proximity to European car factories. The absence of these wiring systems and other electrical components has led to assembly line stoppages in European car manufacturing plants.

Several automakers have announced price hikes in response to rising logistics costs and supply shortages. The crisis has also caused uncertainty in the market, resulting in lower production and sales forecasts for the coming years.

AI Impact

AI's integration into lighting systems for autonomous vehicles improves safety through adaptive driving beam technology, which adjusts headlights based on road obstacles. The transformation of automotive lighting is evolving by integration of AI, from a basic function to an active feature capable of detecting oncoming traffic.

Also, in both exterior and interior vehicle lightning AI is revolutionizing the trend. In the exterior lighting, OSRAM Continental (OC) employs smart-acting algorithms and sensor fusion to create systems that detect objects and automatically adjust vehicle lighting to provide the best lighting profile for each driving situation.

AI-supported functions with a wide range of sensors lead to novel user experiences and open up exciting possibilities for the future of automotive lighting. OC collaborates with automotive software provider Elektrobit to develop innovative solutions that combine sensor fusion technology with smart working algorithms, enabling ultra-fast and accurate high-resolution high beam.

By Type
• Headlight
• Driving Lamp
• Parking Light
• Direct-Signal Light
• Stoplight
• Backup Light
• Taillight
• Other

By End-User
• Original Equipment Manufacturers (OEM
• Aftermarket

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Development
• In October, 2022 Lumax Industries, a leading automotive lighting manufacturer in India, has inaugurated its Lumax European Technical Centre (LETC) in the Czech Republic. The LETC aims to develop advanced automotive lighting solutions for the Indian market, leveraging smart-acting algorithms, sensor fusion and data from various sources.
• In July 2023, Hella, in collaboration with Porsche and other partners, introduced the world's first high-resolution headlamp based on matrix LED technology.
• In July 2023, ams OSRAM introduced the third generation of its OSLON Compact PL family of automotive LEDs, offering an eight percent increase in brightness compared to the previous generation

Why Purchase the Report??
• To visualize the global automotive lighting market segmentation based on the type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-Development.
• Excel data sheet with numerous data points of automotive lighting market-Level with all segments.
• The PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global automotive lighting market report would provide approximately 53 tables, 49 figures and 193 Pages.

Target Audience 2024
• Original Equipment Manufacturers
• Automotive Manufacturers
• Fleet Operators
• Government Agencies and Institutions