Automotive Lighting Market

Market Snapshot

According to Fact.MR, the sales of automotive lighting exceeded US$ 25 Bn by the end of 2021. Demand for automotive lighting has witnessed substantial growth in the last few years due to an increase in the number of on-road vehicles and rise in global vehicle production.

In addition, demand for front lights and their components remaining high are driving the sales of automotive lighting. Thus, the automotive lighting industry is projected to expand at over 6% CAGR by garnering a revenue of US$ 45 Bn from 2021 to 2031.

Key Points Covered in Automotive Lighting System Industry Analysis

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Automotive Lighting and How to Navigate
• Recommendation on Key Winning Strategies

Automotive Lighting Revenue Analysis 2016-2020 Vs Outlook 2021-2031

As per Fact.MR’s report, over the last five years, the sales of automotive lighting exceeded US$ 20 Bn by the end of the aforementioned period, expanding at a CAGR of over 4%. Manufacturers of automotive lighting are making optimum use of technological advancements in order to adapt to different vehicles.

Amid the COVID-19 pandemic, prospects dipped significantly, attributed to global shutdowns of automotive and associated components manufacturing units due to the imposition of a global lockdown. Fortunately, this recessionary impact was short-lived as governments worldwide introduced stimulus packages to buoy out the automotive industry.

Furthermore, the demand from passenger vehicles is driving the sales of automotive lighting. Thus, in the forecast period, the sales of automotive lighting are expected to surpass US$ 45 Bn by registering a CAGR of 6% through 2021-2031.  

What is the Commercial Potential of Automotive Lighting?

Apart from vehicles, lighting is used in industrial & commercial applications. Industrial lighting is mainly found in factories, chemical plants, and manufacturing plants, while commercial lighting is found in homes, offices, restaurants, schools, and any other commercial centres.

Lighting technology has made advancements in all segments over the years. Manufacturers are trying to improve the efficiency of lighting solutions for automotive as well as industrial use. Halogen, LED, and xenon headlight technologies are driving market expansion across regions. The potential for the lighting market is not only limited to automotive but across many different sectors.

Which Recent Trends are Increasing Demand for Automotive Lighting?

Modern automotive lighting solutions have enhanced performance, improved security, and sleek designs. Many manufacturers who are opting for energy-efficient electronics in cars are using LED lights for automobiles these days. LEDs have a high-tech look and longer lifespan, which is why, they are becoming so popular among manufacturers. Some companies are producing LED headlights with a bendable light source.

Laser lighting is also an upcoming trend in the automotive industry, as they are smaller in size and have brightness almost four times that of an LED. The primary benefits for drivers is that laser lighting has a long reach and offers increased visibility of the road.

Country-wise Insights

Why is the U.S. a Lucrative Market for Automotive Lighting Manufacturers?

Fact.MR has predicted the U.S. to be one of the prominent markets for automotive lighting systems. Automotive lighting manufacturers are trying to establish long-term partnerships with suppliers and OEMs for furthering their businesses.

Moreover, U.S. automotive manufacturers are adapting to technological advancements that happen in the market. The U.S. market has many prominent OEMs such as Fiat Chrysler, Ford, and General Motors, which is a major driving factor for its growth.

For instance, Ford’s advanced front lighting system widens the light beam at junctions for better light illumination, which enhances the driver’s attention towards pedestrians and animals on and off the road. Thus, U.S is expected to hold more than 40% of the market share for automotive lighting in the forecast period.

What is the Outlook for China’s Automotive Lighting Industry?

The Chinese market for automotive lighting equipment is expected to expand over the coming years mainly because of the presence of large manufacturers in the country. China is one of the main exporters of electronic components to lighting manufacturers.

China’s market is surging mainly because of rapid growth in the manufacturing of LED headlamps with additional functions such as ABD (adaptive driving beams) and AFS (adaptive front-lighting systems). The Chinese government has been promoting the sales of electric vehicles, which has accelerated demand for automotive lighting as well. Fact.MR expects the Chinese landscape to hold a market share of over 60% of the total market share of automotive lighting.

Why are Automotive Lighting Sales Surging in India?

The Indian automotive lighting industry is mostly driven by increase in production of vehicles. Growth of the population and increase in purchasing power of customers are also accelerating the sales of new vehicles in India, which is also impacting demand for automotive lighting, both, automotive rear lights and automotive front lights, in a positive way.

The automotive aftermarket plays a crucial role for lighting manufacturers, as the condition of roads in India often can cause injuries. Attributed to these trends, the market for automotive lighting is expected to capture a market share worth 58% until 2031.

Category-wise Insights

Why are Passenger Vehicles Key Beneficiaries of Automotive Lighting?

The market share of passenger vehicles is significantly higher than other types of vehicles. Demand for use in passenger vehicles is increasing due to rising income and lifestyle of the population.

People are preferring to have their own vehicle over public transport, which is accelerating demand for passenger vehicles, and, in turn, heightening demand for automotive lighting. Thus, passenger vehicles are expected to hold 50% of market share for automotive lighting.

What is the Scope for LED Automotive Lighting?

LED lights are highly energy efficient, compared to halogen or other headlights. LED lighting technology is used in many luxury and high-end vehicles, but nowadays, manufacturers have slowly started to use LED lighting solutions across vehicle types due to constant development in lighting technology.

In addition, they draw less energy from the vehicle which in turn increases energy efficiency, thus enabling automobile users to economize on costs. Thus, LED lights are expected to possess 40% of market share for automotive lighting.

Competitive Landscape

The market is moderately competitive in nature, with the presence of a large number of players operating in the space. Introducing latest technologies in the market is a key expansion strategy, as are collaborations with OEMs and maintaining long-term relations with them for future business prospects.

• In December 2020, OSRAM Licht AG introduced the Ostune E1608 and E3030 automotive interior lighting, offering a wide color temperature range from 2700 to 6500 K, which are highly energy-efficient
• Likewise, in September 2021, HELLA KGaA introduced a new Modular Lightbar equipped with advanced LED technology for municipal vehicles. This light helps ensure optimum signalling effects as well as homogeneous illumination of the working area

Report Scope

Key Segments Covered

• Application

  • Front Headlights
  • Fog Lights
  • Rear Lights
  • Side Lights
  • Interior Lights

•  Vehicle Type

  • Automotive Lighting for Passenger Cars
  • Automotive Lighting for Light Commercial Vehicles (LCVs)
  • Automotive Lighting for Heavy Commercial Vehicles (HCVs)
  • Automotive Lighting for Electric Vehicles
  • Automotive Lighting for Two Wheelers

• Light Source

  • Halogen Automotive Lighting
  • Xenon Automotive Lighting
  • LED Automotive Lighting

• Sales Channel

  • Automotive Lighting through OEMs
  • Automotive Lighting through Aftermarket

Automotive Lighting Market- Scope of Report

A recent study by Fact.MR on the automotive lighting market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with offering automotive lighting.

The study also provides the dynamics responsible for influencing the future status of the automotive lighting market over the forecast period. A detailed assessment of value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report. A list of prominent companies operating in the automotive lighting market, along with their product portfolios, enhances the reliability of this comprehensive research study.

Report Summary

The study offers comprehensive analysis on diverse features, including production capacities, demand, product developments, revenue generation, and sales of automotive lighting across the globe.

A comprehensive estimate on the market has been provided through an optimistic as well as a conservative scenario, taking into account the sales of automotive lighting during the forecast period. Price point comparison by region with global average price is also considered in the study.

Key Questions Answered in Report

• Which are the most lucrative automotive lighting markets?
• Which factors will impact the growth of automotive lighting?
• How will changing trends impact the strategies of market players?
• How can market players capture the low-hanging opportunities across regions?
• Which companies are leading the automotive lighting industry?
• What are the winning strategies of stakeholders in the market?

Analysis on Market Size Evaluation

The market has been analyzed for each segment in terms of volume ('000 Units) and value (US$ Mn).

Estimates at global and regional levels for automotive lighting are available in terms of “US$ Mn” for value and in “‘000 Units” for volume. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report.

Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global automotive lighting market.

Inspected Assessment on Regional Segments

Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the automotive lighting during the forecast period.

Country-specific valuation on demand for automotive lighting has been offered for each region, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value & volume for emerging countries has also been included in the report.

In-depth Analysis on Competition Analysis

The report sheds light on leading manufacturers of automotive lighting, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in offering automotive lighting has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.

Company profiles have been included in the report, which include essentials such as product portfolios and key strategies, along with all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the automotive lighting domain. 

Research Methodology

In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the automotive lighting industry, and reach conclusions on the future growth parameters. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the drawn conclusions.

Secondary resources referred to by analysts during the preparation of the market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the research report as a primary resource.