Automotive Exterior LED Lighting Market

Automotive Exterior LED Lighting Market Outlook (2022-2032)

The global automotive exterior LED lighting market valued at US$1.18 Billion in 2021 and in 2022 be valued at US$1.24 Billion. During the 2022-2032 period of assessment, demand is expected to rise at a 7.6 % value CAGR, likely to reach US$2.6 Billion by the end of the said forecast period.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 1.18 Billion
Expected Market Value (2022)	US$ 1.24Billion
Projected Forecast Value (2032)	US$ 2.6 Billion
Global Growth Rate (2022-2032)	7.6 %
Growth Rate of US (2022-2032)	7.4%
Key Companies Profiled	Osram Licht AG Koninklijke Philips N.V Hella KGaA Hueck & Co Magneti Marelli S.p.A. Stanley Electric Co. Ltd Texas Instruments Incorporated Zizala Lichtsysteme GmbH Lumax Industries Ltd Changzhou Xingyu Automotive Lighting Systems Co., Ltd. Imasen Electric Industrial Co., Ltd.

Automotive Exterior LED Lighting Market Insights: Historical Trends from 2017-2021 Vs Future Market Outlook for 2022-2032

According to Fact.MR - a market research and competitive intelligence provider, from 2017 to 2021, automotive exterior LED lighting sales expanded at a CAGR of over 7.7 %, attributed to extensive uptake across the automotive electronics domain. Rapid technological advancements in the automotive sector is fuelling the demand for the more efficient and low-power-consuming lighting system.

As per Fact.MR’s insights into the automotive exterior LED lighting market, amidst the COVID-19 crisis, sales were estimated at nearly US$ 1 Billion during FY 2020-21. The commercial and passenger vehicles faced huge losses because of the lockdown. Imposition of mandatory lockdowns slowed expansion prospects, as key automotive companies temporarily ceased production. Adjusting for this downswing, prospects have been revised for the market to expand at a CAGR of 7.6% from 2022 to 2032.

Which Emerging Trends Are Driving Demand for Automotive Exterior LED Lighting Market?

Increasing adoption of LED headlamps to boost the automotive exterior LED lighting market

The demand for automotive exterior LED lighting systems has been constantly proliferating in rear and front lighting functions of vehicles. Today, advanced headlamps and tail lights, fog lights, DRLs (daytime running lights), turn indicators, signal lamps, CHMSLs (center high mount stop lights), parking lights, and number plate lights in modern vehicles majorly reply on the automotive exterior LED lighting technology.

However, headlamps will remain a significant revenue shareholder in the automotive exterior LED lighting market through the foreseeable future.

Automakers Extend Efforts to Attain the ‘Lighting Brand Image’ with Adoption of Automotive Exterior LED Lighting Systems

Vehicle owners are increasingly inclining towards automotive exterior LED lighting for enhanced driver safety and pedestrian security. Automakers on the other side are triggering a brisk shift to automotive exterior LED lighting systems in an effort to explore infinite design opportunities and achieve the model/brand distinction in terms of lighting.

A majority of leading LED producers and lighting technology innovators have also stepped into the game of automotive applications, as the profit margin is relatively higher.

Falling prices of LED to drive the market growth

Falling prices of high power LED is substantially impacting the lighting technology space. Reduced LED prices are presumed to straightaway translate into improved automotive exterior LED lighting market penetration over the next few years.

The demand for LED lights is high owing to its compact size, long life, shockproof & waterproof properties, and multiple voltage functioning without any modifications, all these factor are estimated to fuel the growth of automotive exterior LED Lighting market

The Chinese market is especially expected to reap the advantages of dramatically curtailed prices of high beam/low beam LED, which have been announced of late.

Strict government regulation for better visibility and safety drives the market growth

Against the backdrop of escalating significance of vehicular safety and vehicle emission control, government and industry authoritative bodies have established a set of stringent regulatory standards.

While a majority of structural automotive changes such as electrification, engine downsizing, overall vehicular weight reduction, carbon footprint regulation, driver safety mechanism, and enhanced connectivity have been driven to be in practice by the regulatory norms, leading companies are also focusing on the automotive lighting part.

Key stakeholders in the automotive exterior LED lighting market are directing their R&D efforts to meet specific norms set by the authorities such as the United Nations Economic Commission for Europe (ECE), The US Department of Transport (DOT), the Society of Automotive Engineering (SAE), and others operating regionally.

Which Challenges are Hampering Automotive Exterior LED Lighting Market sales?

High Costs of LED lights May Hamper the Market Growth

Although the automotive exterior LED lighting market has numerous end-uses, there are some obstacles that likely pose a challenge to market growth during the forecasting.

The high cost of LED lights, as compared to other alternatives may restrain the development of the global automotive exterior LED lighting market in coming years. As of now, the high cost of the product significantly affects the aftermarket sales of exterior LED lighting, particularly in growing economies such as China, India, and South Africa.

Also, the increasing adoption of automotive LASER lighting technology by luxury cars is a major factor expected to restrain the growth of the market.

Comparative View of Automotive Exterior LED Lighting Markets

Automotive Exterior LED Lighting Market :

Attributes	Automotive Exterior LED Lighting Market
Growth Factor	The growing interest of end – users to make their vehicle more attractive through decoration lighting and increasing statistics of accidents are the factors are likely to drive the automotive exterior LED lighting market over the course of the forecast period.
Opportunity	Advancements in automobile architecture will thus offer ample opportunities are likely to positively influence market growth over the projection period.

Automotive Lighting Market :

Attributes	Automotive Lighting Market
Growth Factor	Rising production of two-wheeler and increasing sales of luxury vehicles are some of the factors that drive the growth of the automotive lighting market.
Opportunity	The rising environmental awareness, and stringent government regulation regarding greenhouse gas emission will drive the adoption of electric vehicles. Increasing demand for electric vehicle are major factor expected to fuel revenue growth of the market in the near future.

Automotive Interior LED Lighting Market :

Attributes	Automotive Interior LED Lighting Market
Growth Factor	The advancing technology and increased acceptance of autonomous vehicles are likely to drive the automotive interior led lighting market during the forecast period.
Opportunity	Increased demand of the commercial vehicles because of the growing logistics industry and due to the region's booming e-commerce sector anticipated to accelerate the automotive interior led lighting market growth.

Countrywise Insights

What Are the Factors Influencing the Automotive Exterior LED Lighting Market in North America?

North America is expected to offer lucrative growth opportunities during the forecast period. North America market to grow at 7.4 % CAGR throughout the forecast period.

In this region, the growth is being driven by the increased demand of the commercial vehicles because of the growing logistics industry and due to the region's booming e-commerce sector. As middle-class consumers' disposable incomes rise, low-cost vehicle sales have also increased and helped the market to progress.

Why Is China Dominating North America Automotive Exterior LED Lighting Market?

The Automotive Exterior LED lighting industry revenue share in China is projected to surpass USD 1.8 billion by 2032 due to the strong presence of several prominent automobile manufacturers in the region. China is expected to play a major role in the global automotive interior LED market as a result of rapid technological advancements in the automotive industry.

The regional automotive manufacturers and the automotive component suppliers have been continually investing in the R&D of safety technologies. With rapid technological advancements in the automotive industry, the region is expected to play a major role in the global automotive exterior LED lighting market.

Category-wise Insights

Based on Volt Which Is the Most Prominent Segment in the Automotive Exterior LED Lighting Market?

Demand for 12 Volt exterior LED is high among other types

Based on volts the 12V demand is projected to grow at over 7.2% CAGR by 2032, surpassing US$ 1 Billion. 12volt LED holds the largest market share, owing to the extensive use of LEDs as rear lighting in vehicles due to their power efficiency.

Lighting systems improve visibility for drivers in case of unusual conditions and enhance the aesthetic appeal of different parts of a vehicle. 12 volts LEDs are preferred as they consume less power as compared to other types.

Start-Ups for Automotive Exterior LED Lighting Market

Some key start-ups in the automotive exterior LED lighting market include Sunway Auto parts, Varroc Engineering Limited, among others.

• Motorlamp auto electrical Pvt -manufacturer, exporter, supplier, trader, and wholesaler wide range of Lights, Tail Lights, and LED Tail Lamps. All these are manufactured by making use of superior quality raw materials, coupled with the most advanced technology.

Competitive Landscape

Some of the profiled players include Osram Licht AG, Koninklijke Philips N.V , Hella KGaA Hueck & Co, Magneti Marelli S.p.A., Stanley Electric Co. Ltd, Texas Instruments Incorporated, Zizala Lichtsysteme GmbH, Lumax Industries Ltd, Changzhou Xingyu Automotive Lighting Systems Co., Ltd., Imasen Electric Industrial Co., Ltd.

With an objective to provide light-based assistance to drivers, Osram has proposed a conceptual futuristic automotive exterior LED lighting system - Oslon Boost HX. This revolutionary lighting system is supposed to perform the function similar to that of a projector, and would help drivers negotiate the road works, on-road hazards, or icy patches with more safety.

The single LED used in this system is claimed to deliver more than 1,400lm, which would help the company become the first innovator to efficiently break in to the growing trend of special user experience.

On the other hand, Osram Opto Semiconductors has introduced Infrared (IR) LEDs, i.e. IREDs to their automotive exterior LED lighting portfolio. Typical exterior applications are likely to include pedestrian detection, even night vision, and lane departure detection.

• In November 2020 - Marelli, Japan, will open a production facility for electric drivetrains in Cologne, Germany. Start of production is targeted for the first half of 2021.
• In July 2021 - Marelli Automotive Lighting, and Samvardhana Motherson Automotive Systems Group (SMRP BV), have signed a MOU to explore new technological partnership focused on Smart illuminated exterior body parts. This intends to focus on components such as front grills and bumpers, along with other car parts that can be illuminated. These components are expected to become a growing trend in the future of mobility, with increased adoption of Advanced Driver-Assistance Systems (ADAS) and Autonomous Driving (AD) in the coming years.
• In April 2022 - The brand new Range Rover illuminates the road with an innovative lighting system from ZKW. The "Digital Light Processing" LED headlights not only generate stepless, glare-free high beam that automatically hides oncoming or other road users. The smart, digital front lighting also makes it possible to project animated images onto the road.

Key Segments Covered in Automotive Exterior LED Lighting Market Study

• By Sales Channel :

  • OEM
  • Aftermarket

• By Volts :

  • 12V
  • 14V

• By Region :

  • North America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Latin America
  • Middle East & Africa