Automotive Exterior LED Lighting Market

Automotive Exterior LED Lighting Market Analysis by 12V and 14V Lights Used in Passenger Cars and Commercial Vehicles from 2023 to 2033

Analysis of Automotive Exterior LED Lighting Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Automotive Exterior LED Lighting Market Outlook (2023 to 2033)

Worldwide sales of automotive exterior LED lighting solutions are projected to rise at a CAGR of 7.6% during the next 10 years. As a result, the global automotive exterior LED lighting market is set to increase from a size of US$ 1.33 billion in 2023 to US$ 2.77 billion by 2033-end.

Car exterior LED lighting typically refers to the use of light-emitting diodes (LEDs) in various exterior lighting components of vehicles. LED technology is rapidly gaining traction in various industries, and more so in the automotive sector. Durability, efficiency, and versatility are the main features that are enhancing the performance of exterior car lighting.

Leading Exterior Automotive Lighting Components

  • Automotive LED Headlights: Used in modern vehicles to provide high brightness for better visibility of drivers.
  • Automotive LED Taillights: Used for the rear lighting of vehicles to provide a distinctive and recognizable appearance.
  • Automotive LED Fog Lights: Designed with improved visibility feature to guide well in fog, rain, and snow conditions.

Automotive daytime running lights (DRLs), automotive LED turn signal lights, automotive LED brake lights, automotive exterior accent lighting, and LED license plate lights are some of the advanced automotive exterior lighting technologies available in the market

Reasons behind the rapid adoption of LED lighting technology are their energy efficiency, longer lifespan, and improved design flexibility compared to traditional halogens and incandescent bulbs. LED lights also enhance the overall aesthetics and safety of modern vehicles.

  • According to the latest study by Fact.MR, global demand for 12V automotive exterior LED lights is projected to increase at a CAGR of 7.2% from 2023 to 2033.

Exterior car LED lighting technology is typically classified into 12V and 14V, based on voltage category. The most common reason behind the sales of 12V exterior automotive LED lights is their cost-effectiveness compared to other high-voltage LED lights.

12V exterior automotive LED light provides the same efficiency and durability as the high voltage ones. They also consume less power compared to higher voltage ones, which helps in lowering energy wastage and carbon emissions.

  • In April 2021, Ford revealed an excellent breakthrough – 'Development of Predictive Smart Headlight System'.
  • This innovative predictive smart headlight system proactively guides the beam of light into the upcoming corners on the highway, before the recognition by the driver. This technology is increasing the safety of occupants by quickly and efficiently illuminating the way. This advanced lighting prototype works with the combination of GPS data and precise analysis of road geometry.
Report Attributes Details
Automotive Exterior LED Lighting Market Size (2023E) US$ 1.33 Billion
Forecasted Market Value (2033F) US$ 2.77 Billion
Global Market Growth Rate (2023 to 2033) 7.6% CAGR
United States Market Growth Rate (2023 to 2033) 7.4% CAGR
China Market Value (2032) US$ 1.8 Billion
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.

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Which Market Trends are Driving Up the Demand for Automotive Exterior LED Lights?

“Innovations in Exterior Automotive LED Lights Enhancing Automotive Aesthetics & Safety”

The demand for automotive exterior LED lighting systems is constantly proliferating in the 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 rely on the automotive exterior LED lighting technology.

Vehicle owners are increasingly adopting advanced automotive exterior LED lighting for improved safety and automotive manufacturers are rapidly adopting these systems for design innovation and brand differentiation. Also, several leading LED producers and technology innovators are entering the automotive market due to higher profit margins.

“Falling Prices of LED Benefiting Exterior Automotive Lighting Providers”

Falling prices of high-power LED are substantially impacting the lighting technology space positively. However, reduced LED prices are presumed to translate into improved automotive exterior LED lighting market penetration over the next 10 years.

Demand for LED lights is high owing to their compact size, long life, shockproof & and waterproof properties, and multiple voltage functioning without much modification. All these factors are fuelling the growth of the automotive exterior LED Lighting market. The automotive manufacturers are getting benefit significantly due to the reduced prices of high-beam/low-beam LED lights.

“Strict Road & Vehicle Safety Regulations Benefiting Exterior Car LED Light Producers”

In response to the growing importance of vehicle safety and emissions control, respective government and industry bodies are imposing strict regulatory standards. These regulations are driving various automotive changes, including electrification, engine downsizing, weight reduction, emissions control, safety measures, and enhanced connectivity. Notably, automotive lighting is also gaining a focus area.

Leading producers of automotive exterior LED lighting technologies are actively conducting research and development activities to meet specific regulatory standards set by authorities such as the United Nations Economic Commission for Europe (ECE), the United States Department of Transportation (DOT), the Society of Automotive Engineering (SAE), and regional counterparts.

Automotive Exterior LED Lighting Market Size, Share, Trends, Growth, Demand and Sales Forecast Report by Fact.MR

Comparative Analysis of Automotive Lighting Industry

Automotive Lighting Market :

Attributes Automotive Lighting Market
Growth Factor Increasing production of electric and hybrid vehicles driving growth of automotive lighting market
Opportunity Growing environmental consciousness and strict government regulations on greenhouse gas emissions expected to increase adoption of smart automotive lights.

Automotive Exterior LED Lighting Market :

Attributes Automotive Exterior LED Lighting Market
Growth Factor Rising demand for decorative vehicle lighting and increasing road accident cases augmenting automotive exterior LED lighting market growth.
Opportunity Advancements in automobile design and high demand for modified cars expected to generate opportunities for automotive exterior LED lighting suppliers.

Automotive Interior LED Lighting Market :

Attributes Automotive Interior LED Lighting Market
Growth Factor Advancements in lighting technology and growing acceptance of autonomous vehicles uplifting automotive interior LED lighting market growth.
Opportunity Rising demand for commercial vehicles, driven by growing logistics industry and booming e-Commerce sector, expected to increase adoption of interior automotive LED lights for better visibility inside the vehicle.

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Which Challenges are Hampering Revenue Growth of Automotive Exterior LED Lighting Manufacturers?

“Low-budget Vehicle Owners Preferring Halogen Lights”

Although automotive exterior LED lighting has numerous applications, some obstacles are likely to hamper the market growth during the study period. The cost of LED lights, as compared to other alternatives such as halogen lights may be high for some automotive buyers and they may stick to purchasing cars with traditional lighting technology. As of now, the high cost of the product is affecting the aftermarket sales of exterior LED lighting, particularly in poor and developing economies.

Increasing adoption of automotive LASER lighting technology by luxury cars is also expected to pose a significant challenge before the suppliers of exterior car LED lights.

Start-up Scenario

  • A start-up founded in 2007 turned into an established producer of automotive exterior LED lighting - Sunway Auto Parts.
  • Ouster, founded in 2015, is well-known for its LiDAR technology that is widely used in autonomous vehicles. While not strictly an automotive lighting company, the company is involved in the development of sensors that can be crucial for advanced lighting systems.

Know thy Competitors

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Country-wise Analysis

As per the latest study by Fact.MR, a market research and competitive intelligence provider, North America boasts a mature market for automotive exterior LED lighting, where the United States and Canada are leading in technological advancements with a strong emphasis on adaptive lighting systems.

Asian countries such as China, Japan, and South Korea are also excelling in LED technology and are providing high-quality lighting solutions.

Why is Automotive LED Exterior Lighting Technology Popular in North America?

“LED Automotive Lightings Energy-efficient and Safe-alert Lighting Solutions”

  • Sales of automotive exterior LED lights in the United States are forecasted to increase at a CAGR of 7.4% during the coming decade. This can be due to the increasing demand for energy-efficient and stylish lighting solutions in super and hypercars.

Strict regulations on vehicle safety and gas emissions in the United States are increasing the adoption of LED lighting for its energy efficiency and improved visibility. Growing popularity of electric vehicles in the country and innovations such as adaptive headlights and dynamic turn signals are driving the use of LED automotive lighting solutions due to their high energy efficiency, safety, and aesthetics.

What is Making German Automotive Exterior LED Light Suppliers Profitable?

“Continuous Innovations Increasing Supremacy of Germany-based Automotive Exterior LED Lighting Technology”

Germany is well-known for its high-quality automotive manufacturing. German LED lighting technology is prized for its precision, brightness, and durability. Germany being a hub for automotive innovation is leading to the development of advanced LED lighting technologies such as Matrix LED headlights and OLED taillights.

The manufacturing base of luxury cars such as BMW, Audi, and Mercedes-Benz, German manufacturers of automotive lighting are earning more due to high investments in advanced LED lighting systems by the above-mentioned luxury car producers to differentiate their products.

How is China Faring in the Automotive Exterior LED Lighting Business?

“Cost-effective LED Solutions Uplifting Sales of Automotive Exterior LED Lighting System Providers”

  • Automotive exterior LED lighting demand in China is projected to reach US$ 1.8 billion by 2033.

China has a massive automotive market with a prime focus on affordability. LED lighting is widely installed in mainstream and budget vehicles. Government policies promoting electric vehicles are also increasing the adoption of LED lighting due to its energy efficiency and sustainability goals.

Chinese LED manufacturers often offer cost-competitive solutions which help them in making LED lighting more accessible to a wider consumer base. Moreover, China’s robust LED lighting manufacturing industry is benefitting both domestic and global automotive manufacturers.

Category-wise Analysis

Passenger cars and commercial vehicles both widely use exterior LED lights. Currently, passenger cars have a high deployment of exterior LED car lights. Interior LED lighting is widely used in commercial vehicles due to its high value for logistic purposes.

Why Automotive Exterior LED Lights Finding Extensive Use in Passenger Cars?

“Modern Preferences for Advanced & High-tech Car Features Increasing LED Lighting Popularity”

Passenger cars are highly seen on the roads due to the rising income of individuals and high standard of living. Across the globe, people prefer using their vehicles over public transport for travelling, which is increasing sales of automotive lighting technologies for safety and efficiency.

Shifting consumer preferences towards advanced and high-tech features in vehicles are driving automotive exterior LED light sales growth. LED lights are considered a modern and technologically advanced option, they are programmable and can be used to create dynamic lighting effects. This customization capability is increasing the adoption of adaptive headlights that adjust their intensity based on driving conditions.

Competitive Landscape

Some of the leading car exterior LED light producers are Osram Licht AG, Koninklijke Philips N.V, Hella KGaA Hueck & Co, Magneti Marelli S.p.A., Stanley Electric Co. Ltd, and Imasen Electric Industrial Co., Ltd.

  • Intending 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 performs a function similar to that of a projector and helps drivers negotiate road works, on-road hazards, or icy patches with more safety.
  • The single LED used in this system delivers more than 1,400lm, which is aiding the company to become the first innovator to efficiently break into 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.

Key Segments of Automotive Exterior LED Lighting Industry Research

  • By Vehicle Type :

    • Passenger Cars
    • Commercial Vehicles
  • By Sales Channel :

    • OEMs
    • Aftermarket
  • By Voltage :

    • 12V
    • 14V
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • MEA

- FAQs -

How big is the automotive exterior LED lighting market?

The global automotive exterior LED lighting market is valued at US$ 1.33 billion in 2023.

What is the projected market value of automotive exterior LED lights by 2033?

Global sales of automotive exterior LED lights are forecasted to reach US$ 2.77 billion by 2033.

At what CAGR is the automotive exterior LED lighting market predicted to expand?

Worldwide demand for automotive exterior LED lights is projected to increase at 7.6% CAGR from 2023 to 2033.

What size will the automotive exterior LED lighting market reach in China?

The market in China is forecasted to reach US$ 1.8 billion by 2033-end.

Who are the top automotive exterior LED light brands?

Leading companies are Osram Licht AG, Koninklijke Philips N.V, and Hella KGaA Hueck & Co.

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Automotive Exterior LED Lighting Market

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