Automotive Interior LED Lighting Market

Automotive Interior LED Lighting Market Outlook (2024 to 2034)

Revenue from the global automotive interior LED lighting market is estimated at US$ 32.7 billion in 2024 and has been projected to expand at 5.2% CAGR to increase to US$ 54.28 billion by the end of 2034.

To stay ahead of the competition and rapid changes in the automotive industry, manufacturers are focusing on incorporating new technologies in vehicles. Automatic emergency braking, automatic liftgates, ambient lighting, keyless entry, and push-button start are some of the latest technologies being developed by a variety of manufacturers to stay competitive.

Key Market Growth Drivers:

• With increasing demand for a personalized driving experience, consumers are now seeking custom colors for their interior lighting, transforming cars into more distinctive and feel-good zones.
• Customizing lights adds an emotional component to the conventional use of traditional interior lighting, thereby boosting the demand for automotive interior LED lighting. These aspects are driving automotive interior LED lighting market growth.
• Different colored lighting can indicate economy or sports mode, and dynamic lighting sequences in semi-autonomous vehicles can relay information to the driver.
• Advancing technology and increasing acceptance of autonomous vehicles are likely to significantly change automotive interior lighting, with a focus on conveying more information such as current driving mode and battery charge level.
• Top automotive manufacturers predict that interior LED lighting will not only aid in navigation and present vehicle information but also be used for entertainment and communication through integrated electronics and automotive interior LEDs, thus expanding overall automotive interior LED lighting market size.

Report Attribute	Detail
Automotive Interior LED Lighting Market Size (2024E)	US$ 32.7 Billion
Forecasted Market Value (2034F)	US$ 54.28 Billion
Global Market Growth Rate (2024 to 2034)	5.2% CAGR
East Asia Market Share (2024E)	49.6%
North America Market Share (2024E)	19.9%
Passenger Vehicles Segment Value(2034F)	US$ 23.64 Billion
Revenue from OEMs (2024E)	US$ 20.37 Billion
Key Companies Profiled	Changzhou Xingyu Automotive Lighting Systems Co., Ltd.; Texas Instruments; Hella KGaA Hueck & Co.; Magneti Marelli S.p.A.; Valeo SA; Koninklijke Philips N.V.; Stanley Electric; Koito Manufacturing Co., Ltd.; Magneti Marelli S.p.A.; Osram Licht AG; Toshiba Corporation; DRÄXLMAIER Group; Oshino Lamps Limited; Innotec Group; Grupo Antolin; DOMINANT Opto Technologies Sdn. Bhd.

Why is There Increasing Deployment of Interior LED Lighting in Automobiles?

“Focus on Conveying Current Driving Mode and Battery Charge Level to Driver”

Advancing technology and increased acceptance of autonomous vehicles are likely to significantly transform automotive interior lighting, with a focus on conveying more information such as current driving mode and battery charge level. Moreover, top automotive manufacturers predict that interior LED lighting will not only aid in navigation and presenting vehicle information but also be used for entertainment and communication through integrated electronics and automotive interior LEDs.

“Experimentation with Polycarbonate to Replace Aluminum”

Manufacturers in the automotive sector are offering long service life and extreme vibration resistance, making automotive interior LED lighting increasingly popular. Once limited to high-end vehicles, automakers are now adopting LED lighting systems in mid and low-segment cars due to increasing efficiency, decreasing prices, and other factors such as faster rise time.

Besides personalization, automotive interior LED lighting makes car interiors look bigger and more spacious. Innovations in LED heat management are likely to create manufacturing opportunities by addressing the hot heat source of LEDs, which further reduces their life expectancy. Additionally, manufacturers are experimenting with polycarbonate to replace aluminum in headlights and other parts, offering additional design freedom.

What are the Challenges Faced by Manufacturers of Automotive Interior LED Lighting?

“High Pricing of Ambient Lighting Solutions”

Ambient lighting from car manufacturers is primarily available in high-end models in the C, D, and all E&F segments. In addition, there is a significant cost difference between variants with and without ambient lighting. Manufacturers of luxury cars, including Daimler, BMW, Ford, Volkswagen, and Hyundai, among others, charge extra for ambient lighting installations. Therefore, the high price of ambient lighting provided by OEMs is affecting the growth of the automotive ambient lighting market.

Country-wise Insights

East Asia is estimated to account for nearly half of the global automotive interior LED lighting market share in 2024, followed by North America, which is set to hold a market share of 19.9% in 2024. Market growth in East Asia is driven by the growing automobile sector, contributing immensely to sales of automotive interior LED lighting. Other aspects such as rising technical breakthroughs, increasing vehicle sales, and growing demand for high-quality interior vehicles are contributing to market growth in the region.

What is Complementing Market Expansion in the United States?

“Strong Demand for EVs and Luxurious, High-Performing Cars

Attribute	United States
Market Value (2024E)	US$ 4.42 Billion
Growth Rate (2024 to 2034)	6% CAGR
Projected Value (2034F)	US$ 7.95 Billion

The United States is estimated to account for a 68% share of the North America market in 2024 and is analyzed to occupy 67.8% by 2034. The interior LED lighting market for automobiles in the United States is growing at a steady pace due to the increasing production of cars and technological advancements in lighting systems. The strong demand for luxurious, high-performing cars is supporting the expansion of this market.

Growing demand for electric vehicles is a key automotive interior LED lighting market trend. The market is witnessing growth as more consumers opt for electric vehicles. In electric cars, interior LED lighting does more than just provide light; it evokes feelings and gives drivers a psychological sense of direction and spaciousness in the cabin.

What is the Demand Outlook for Automotive Interior LED Lighting in China?

“Market Players Benefitting from Government Policies Promoting Safer Driving Environments”

Attribute	China
Market Value (2024E)	US$ 10.64 Billion
Growth Rate (2024 to 2034)	5.5% CAGR
Projected Value (2034F)	US$ 18.19 Billion

China is expected to hold a 65.6% share of the East Asia market in 2024. Demand for automobile interior ambient lighting systems is projected to grow steadily due to the expansion of the automotive manufacturing industry in China. Additionally, the government's focus on road safety is driving wider adoption of LED lighting. Improved visibility from LED lights reduces accidents and boosts driver confidence, leading many vehicle owners in the country to opt for enhanced interior lighting.

Category-wise Insights

Automotive interior LED lighting market trends are being shaped by consumer demand as the automotive industry expands. Consumers favor interiors with intricate decoration and attention to detail. To cater to this demand, passenger car manufacturers are integrating advanced lighting technologies. The market is divided into passenger vehicles and commercial vehicles, with passenger vehicles expected to capture a 72.3% market share in 2024.

What Role Does Interior LED Lighting Play in Passenger Vehicles?

“Automotive Interior Lighting Improving Safety through Better Visibility”Top of Form

Attribute	Passenger Vehicles
Segment Value (2024E)	US$ 23.64 Billion
Growth Rate (2024 to 2034)	5.7% CAGR
Projected Value (2034F)	US$ 41.04 Billion

Automobile manufacturers are recognizing the value of aesthetics in passenger vehicles such as cars and SUVs, distinguishing their models and brands through interior LED lighting. Luxury cars frequently feature sophisticated lighting schemes, enhancing their perceived exclusivity and value. Daytime running lights (DRLs) and LED headlights are crucial for safety, while interior lighting improves visibility in low-light conditions and makes vehicles more noticeable on the road.

These lighting systems offer significant benefits, including enhanced driving safety. There is a growing demand for personalized experiences in cars and SUVs, with drivers able to choose dynamic patterns, colors, and intensities through ambient lighting systems. Tailored lighting options enhance the driving experience by catering to individual preferences.

Which Medium Accounts for Significant Sales of Automotive Interiors LED Lighting?

“OEMs Providing Customization and Replacement Services”

Attribute	OEMs
Segment Value (2024E)	US$ 20.37 Billion
Growth Rate (2024 to 2034)	5.7% CAGR
Projected Value (2034F)	US$ 35.5 Billion

Automotive interior surface lighting is accessible to end users through both original equipment manufacturers (OEMs) and aftermarket vendors. OEMs are working to provide convenient options to meet user needs. Global shifts in consumer mobility and technological advancements pose challenges for OEMs, including the necessity for increased investments and capabilities to address rising demand.

These challenges have created many opportunities for automotive interior surface lighting manufacturers. Many manufacturers now offer services to customize or replace vehicle lighting structures according to consumer preferences, including options like turn lights and interior LED strips.

Competitive Landscape

Key players in the automotive interior LED lighting market are focusing on incorporating new technologies, delivering top-notch post-purchase goods and services, and supplying lightweight textile/fabric designs. In addition, major industry participants are emphasizing tactics such as providing customized goods and broadening their distribution networks, both of which will support a rise in the sales of surface lighting for automobile interiors.

• In March 2023, LSI Industries Inc., a leading manufacturer of indoor/outdoor lighting and display solutions based in the United States, announced its long-term strategic growth plan, which included new five-year financial targets through FY28.
• Toyoda Gosei, an automotive component manufacturer, announced the development of full-color LED lamps for vehicle interior applications in December 2021.
• In June 2021, a Scottish LED lighting technology developer, known for designing advanced LED products, was acquired by equipment supplier Faurecia for an undisclosed amount. The Livingston-based company has developed flexible technology that is increasingly suitable for automotive lighting and human-machine interface (HMI) applications.

Fact.MR provides detailed information about the price points of leading manufacturers of automotive interior LED lighting positioned across the world, sales growth, production capacity, and technological advancements, in this updated market report.

Segmentation of Automotive Interior LED Lighting Market Research

• By Product :

  • Dashboard Lights
  • Ambient Lighting
  • Dome & Map Lighting
  • Center Stacks
  • Head-up Displays
  • Reading Lights

• By Vehicle Type :

  • Compact Passenger Cars
  • Mid-sized Passenger Cars
  • Premium Passenger Cars
  • Luxury Passenger Cars
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles

• By Voltage :

  • 12V
  • 14V

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa