North America Same Day Delivery - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

Middle East and Africa Automotive LED Lighting - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

The Middle East and Africa Automotive LED Lighting Market size is estimated at 78.77 million USD in 2024, and is expected to reach 144.58 million USD by 2030, growing at a CAGR of 10.65% during the forecast period (2024-2030).

The headlights segment is expected to hold the highest market share

• In terms of value share, in 2023, headlights accounted for the majority of the market share, followed by fog lights (other segmentations) and directional signal lights. The market share for headlights is expected to increase during the forecast period. The major reason for their adoption is the government policy, more energy efficiency, and accident prevention. In Africa, traffic deaths account for about a quarter of the global number of victims, even though the continent has barely 2% of the world’s vehicle fleet. According to Article No 95 of the Federal Traffic Act in the UAE, whiter and brighter headlamps can attract an AED 200 fine. This has given more consideration to LED.
• In terms of volume share, in 2023, directional signal lights (DSL) accounted for the majority share, followed by headlights and fog lights. Currently, passenger cars accounts for the majority share in DSL and fog lights demand due to their high rate of accidents. In the UAE, the number of crashes increased by 13% in 2022 to 3,945, up from 3,488 in 2021. Such factors indicate a major volume demand for such lighting, which is expected to increase in the coming years.
• The EV policy in the region promotes EV adoption, which also increases the demand for LED lighting. The UN Environment Programme is currently active in nine African countries, working on introducing electric two and three-wheelers. Despite low fuel prices, GCC countries are now focusing on EV adoption at a slow pace. In Dubai, commercially, there has been an increasing focus on EVSE, demonstrated through the January 2023 announcements of the partnership by Regeny and EvGateway to deploy 10,000 EV charging networks throughout the UAE by 2030. Such factors are expected to boost the market.

Middle East and Africa Automotive LED Lighting Market Trends

The LED market is driven by government regulations and initiatives to encourage the purchase of EVs

• The total automobile vehicle production across Middle East and African countries was 2.33 million units in 2022, and it was expected to reach 2.45 million units in 2023. The Middle East and Africa were not exempt from the COVID-19 pandemic's effects, with the automobile industry seriously impacted. In March 2020, sales of automobiles in Saudi Arabia fell by 35–40%. As a result of shutdowns and falling oil prices, the UAE's auto industry also experienced a steep decline in the same period, with car sales falling by 45–50% in March 2020. The GCC region had a 70% reduction in periodic maintenance in March 2020 alone and a staggering 50% decline in automotive part sales in the same month. The automotive market in South Africa declined by 2.8% to 536,626 vehicles, confirming a nearly ten-year trend of continuous declines. Overall, the auto industry's use of LED lights was negatively impacted by the fall in output of vehicles and auto parts.
• The Middle East and African electric vehicle (EV) market is still in its early phases but is already exhibiting encouraging signs of expansion. Governments of regional countries are enacting regulations to encourage the use of EVs as they realize the need to minimize their carbon footprints. For instance, the United Arab Emirates, Saudi Arabia, Bahrain, and Oman have already declared their net-zero goals. In addition, several nations in the region are providing subsidies and tax breaks to encourage the purchase of electric vehicles. The demand for LED lighting is anticipated to increase because EVs offer tremendous potential for growth in the regional market.

Government initiatives and strategic partnerships to boost the EV industry in the region

• EV adoption across the Middle East is growing rapidly. EV charging stations in the UAE had risen by nearly 60% Y-o-Y by the start of 2023. Electric vehicle sales are increasing rapidly in the UAE, with EVs making up more than 1% of the country's overall car market. Adnoc Distribution and Abu Dhabi National Energy Company (TAQA) agreed to form E2GO, a mobility joint venture, in early 2023 to build and operate EV infrastructure in Abu Dhabi and the wider UAE. By 2028, EV demand is expected to increase by 30% each year.
• In Line with Vision 2030, the Saudi Green Initiative (SGI) was announced in 2021. Some of the primary goals of this initiative are to boost sales of EVs in the country and ensure that at least 30% of cars are electrified by 2030. Further, in alignment with SGI, the government announced an agreement with US automaker LUCID Group in 2022 to purchase at least 50,000 EVs (up to 100,00 over the next ten years) with a goal of electrifying its fleet.
• Electric vehicle sales in South Africa in Q1 2023 had already surpassed more than half of the previous year’s total sales. Further, 4,764 NEVs were sold in South Africa in 2022, compared to 896, 324, and 407 in 2021, 2020, and 2019, respectively. Although the electric vehicle market in Africa is at a nascent stage, various key players are trying to establish new charging stations to support EV adoption in the region. In February 2023, Audi South Africa, in partnership with Rubicon, an EV charging solution provider, brought 43 additional EV charging stations online across the country. Thus, the above instances lead to the development and production of new power stations because of the growing demand for EVs, which boosts the demand for automotive LEDs in the region.

Middle East and Africa Automotive LED Lighting Industry Overview

The Middle East and Africa Automotive LED Lighting Market is fairly consolidated, with the top five companies occupying 73.30%. The major players in this market are GRUPO ANTOLIN IRAUSA, S.A., HELLA GmbH & Co. KGaA (FORVIA), HYUNDAI MOBIS, Marelli Holdings Co., Ltd. and OSRAM GmbH. (sorted alphabetically).

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