Automotive LED Light Market

Automotive LED Light Market Outlook (2024 to 2034)

Worldwide automotive LED light sales are expected to reach US$ 8.35 billion in 2024. The global automotive LED light market has been projected to expand at 8.6% CAGR and reach a value of US$ 19.05 billion by the end of 2034.

Automotive lighting is essential for illuminating the driving path and providing the driver with an excellent view of the road. In addition to providing illumination for the driver's route, the lighting system aids in the detection of the size, location, and direction of movement of the vehicle by other drivers and pedestrians on the road. It highlights the vehicle's visual appeal on the outside as well as the inside while also making it more noticeable.

Both lighting and signaling devices are part of the lighting system. The lighting apparatus is positioned in several sections of the car, including the front, back, top, and interiors. Integrated OLED technology was developed by HELLA GmbH & Co. in 2018 for the rear combination lighting of the new Audi A8, providing a uniform look with individually programmable portions, contributing to the increasing automotive LED light market size.

Xenon and LED are two more well-known lighting technologies. Halogen has historically been the most widely used lighting technology because of its low cost and accessibility. Moreover, it enhances the visual appeal of the vehicle's outside and interior components. The two main drivers pushing the market for auto lighting equipment are government rules regulating illumination and a high focus on road safety.

The need for mobility, rising disposable incomes, and improved lifestyles all contribute to the expansion of the vehicle industry, which, in turn, is complementing global automotive LED light market growth.

Report Attribute	Detail
Automotive LED Light Market Size (2024E)	US$ 8.35 Billion
Forecasted Market Value (2034F)	US$ 19.05 Billion
Global Market Growth Rate (2024 to 2034)	8.6% CAGR
North America Market Value (2024E)	US$ 2.85 Billion
East Asia Market Growth Rate (2024 to 2034)	13% CAGR
Passenger Cars Segment Value (2034F)	US$ 8.49 Billion
Sidelights Segment Value (2034F)	US$ 2.09 Billion
Key Companies Profiled	OSRAM Licht AG; HELLA KGaA Hueck & Co.; Koito Manufacturing Co., Ltd.; Stanley Electric Co. Ltd.; Koninklijke Philips N.V.; Valeo SA; Imasen Electric Industrial Co., Ltd.; Texas Instruments; Nichia Corporation; General Electric Company.

What is Steering Automotive LED Light Manufacturers toward Profitability?

“Stringent Lighting Regulations to Enhance Road Safety”

Stricter lighting laws in industrialized countries such as North America and Europe pave the way for a safer driving environment globally.

• The World Health Organization (WHO) reports that traffic accidents claim around 1.3 million lives each year. As a result, governments are placing a high priority on better driving conditions, which includes installing cutting-edge vehicle lighting systems.

It is necessary to have clear vision when driving in high traffic, especially in places with little daylight. This is the area where laws such as the 2011 European Union requirement for daytime running lights (DRLs) are relevant. These are designed to make cars very visible to other road users, which lowers the danger of crashes, rather than improving the driver's visibility. The effect of DRLs in these situations is evident.

• The United States National Highway Traffic Safety Administration (NHTSA) reports a 13.8% decrease in fatal collisions. Further advancements in safety are made possible by the United States government's recent decision to legalize adaptive lighting. 2020 saw Japan take the lead and become the first nation to require automated headlights.

Roads are becoming safer places for everyone thanks to these restrictions, which are more than just words on paper. Stricter laws combined with advanced car lighting systems are bringing promise for a time when driving will be more than simply a means of transportation-it will also be about doing it safely and effectively.

“ADB Systems Providing Permanent High Beams Without Causing Glare”

The matrix for makers of vehicle lighting, new and promising technologies include OLED, laser, and adaptive lighting. A new solid-state lighting technology called OLED can generate light across wide areas. The research and development stage of this specialized technology is currently ongoing. OLED is probably going to be available in cars in the luxury market soon. However, it would take the technology ten or fifteen years to take a sizable portion of the market.

Systems for permanent high lights that eliminate glare without blinding drivers of oncoming vehicles are called adaptive driving beams, or ADB systems. The ability of the adaptive driving beam headlights to adapt to the environment and direct the beam so that it does not glare on other drivers' windshields is what sets them apart.

• Valeo unveiled its Premium Adaptive Driving Beam (ADB) technology in August 2023. This technology helps drivers feel more comfortable and safer by directing light just where it is needed and minimizing glare for approaching traffic. This Advanced Adaptive Driving Beam (ADB) technology may be found in buses, passenger automobiles, and autonomous taxis.

What Issue are LED Light Manufacturers Trying to Overcome?

“High Production Costs Associated with LED Lighting”

One of the main issues troubling automotive lighting providers is the high cost of LED lights. New technologies have led to a decline in the popularity of halogen and xenon/HID. The main drawbacks of halogen lights are overheating and energy waste, whereas xenon lights are more complicated and take longer to reach maximum brightness.

Due to their small size, LEDs can be significantly modified to create a variety of shapes and styles. They use less energy and produce brighter light compared to halogen lighting. However, their high production costs make LEDs more expensive than other technologies. The main materials contributing to these costs are indium gallium nitride, aluminum gallium indium phosphide, and aluminum gallium arsenide.

Nowadays, LEDs are used with projectors rather than traditional lights that require reflectors. Projector headlights are more expensive and take up more space inside the car compared to reflector headlights. Modern innovations such as matrix LEDs and OLEDs are more costly, which limits their use in older automobiles.

Despite the many advantages of LED headlights, their high production costs and current price point restrict their use to luxury or high-end cars, mainly in countries with tighter budgets. However, as the market for LED lights expands and attracts more consumers, prices are expected to decline, allowing LED lighting providers to increase their profit margins.

Country-wise Analysis

The market is expanding day by day as the number of vehicles increases on roads. A few of the leading countries contributing to high global revenue include the United States, Canada, Mexico, South Korea, Japan, and China. The United States accounts for a major automotive LED light market share.

What is the Reason Behind Steady Growth of the United States Market?

“Extensive Use of LED Lighting in Electric Vehicles”

Attribute	United States
Market Value (2024E)	US$ 2.43 Billion
Growth Rate (2024 to 2034)	5.2% CAGR
Projected Value (2034F)	US$ 4.03 Billion

In addition to personal vehicles, commercial vehicles are also recognizing the need for LED lighting, resulting in a steady increase in sales. Leading manufacturers are preparing to capitalize on this trend as well, which is expected to open up more lucrative prospects. The increasing production of electric vehicles is also benefitting market players to a great extent.

• The United States Department of Energy reports that the rapid expansion of plug-in electric vehicles (PEVs) may be attributed to advancements in technology and decreased costs. Sales of electric vehicles increased in 2018 with the release of the Tesla Model 3.

What are Manufacturers in China Doing to Amplify Their Sales?

“Focus on Creating Energy-Efficient Lighting Solutions to Reduce Environmental Impact”

Attribute	China
Market Value (2024E)	US$ 1.24 Billion
Growth Rate (2024 to 2034)	13.7% CAGR
Projected Value (2034F)	US$ 4.51 Billion

To comply with strict environmental regulations and meet consumer demands, automakers are developing new technologies and components. To fulfill this need, automotive lighting producers are focusing on providing interior lighting that is visually appealing, energy-efficient, and lightweight.

• A study released by the China Association of Automobile Manufacturers (CAAM) states that as of April 2021, sales of passenger automobiles in China had increased by 10.8% year-over-year.

Category-wise Insights

There are various applications of LED lighting. These include headlamps, DRLs, side lamps, turn signals, tail lights, and brake lights. Suppliers analyze purchase patterns to gain insights into which applications hold a significant market share.

Why is There Growing Demand for LED Headlamps?

“Enhanced Performance and Long Lifespan of LED Headlamps”

Attribute	Headlamps
Segment Value (2024E)	US$ 2.03 Billion
Growth Rate (2024 to 2034)	8.3% CAGR
Projected Value (2034F)	US$ 4.49 Billion

Widespread adoption of LED lighting in headlamp designs is due to its energy efficiency and durability. LED headlights surpass traditional lighting sources in performance and longevity, whether used in automotive, outdoor, or personal lighting applications. The growing popularity of LED headlights reflects consumers' rising demand for reliable and cost-effective lighting solutions across various contexts.

What is the LED Lighting Scene for Passenger Cars?

“Better Energy Efficiency of LED Lighting Driving Extensive Use in Passenger Cars”

Attribute	Passenger Cars
Segment Value (2024E)	US$ 3.97 Billion
Growth Rate (2024 to 2034)	7.9% CAGR
Projected Value (2034F)	US$ 8.49 Billion

Sales of vehicle LED lights are being primarily driven by high demand from passenger car owners, who are increasingly opting for LED lighting in their vehicles. These drivers are demanding more LED lights due to their numerous advantages, such as enhanced visibility, extended lifespan, and improved energy efficiency. These lights help provide safer driving conditions in addition to enhancing the cars' looks, and this is increasingly becoming a new automotive LED light market trend.

Competitive Rivalry

The spread of LEDs in the general lighting sector has ushered in a new era of competition, shrinking net profitability, increasingly homogeneous goods, and business models. The industry's innovation has stalled. To deal with such market constraints, key players in the automotive LED light market have shifted their focus to specialist lighting sectors, such as automotive lighting, which has a higher entry barrier and higher earnings and is also launching new products such as LED lighting solutions and LED lighting controllers.

• HELLA introduced the HELLA Value Fit BLADE auxiliary headlight series in November 2023, mainly for use on trucks and off-road vehicles. There are custom market research services available with these supplementary headlights. If the report mentioned above does not quite match your needs, we will tailor the study for you. The business data you need to make informed and lucrative company decisions will be fully covered by our bespoke research. cutting-edge LED lighting technology and offer a fresh avenue for expansion into the LED car lighting market.
• The world's first matrix LED-powered high-resolution headlight was introduced by HELLA and Porsche in July 2023. This led to a breakthrough in vehicle lighting technology.
  HELLA debuted the next ambient lighting generation in July 2022.
• HELLA also debuted the next ambient lighting generation in July 2022. Wide-area lighting, like that in the entrance, may be enabled and the interior atmosphere can be subtly adjusted using the new HELLA Slim Light System. This system's lightweight and thin design are its most remarkable features. It may be inserted up to eight millimeters thick and sandwiched between many layers. Current systems measure about 20 millimeters, for comparison.

Fact.MR provides detailed information about the price points of key manufacturers of automotive LED lights positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Automotive LED Light Market Research

• By Technology :

  • Halogen
  • LED
  • Xenon/HID

• By Application :

  • Head Lamps
  • DRL
  • Side Lights
  • Turning Lights
  • CHMSL
  • Tail Lights
  • Break Lights
  • Interior Illumination Lights
  • Interior Indication Lights

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

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