Automotive Lighting Market

Automotive Lighting Market Outlook (2022-2032)

The global automotive lighting market is set to enjoy a valuation of US$ 36.8   billion in 2022 and further expand at a CAGR of 6.4% to reach US$ 68.2 billion by the end of 2032.

Adoption of LED will grow with the highest CAGR of 7% and likely to hold around 1/4th by the end of 2022.

Report Attributes	Details
Automotive Lighting Market Size (2021A)	US$ 34.8 Billion
Estimated Market Value (2022E)	US$ 36.8 Billion
Forecasted Market Value (2032F)	US$ 68.2 Billion
Global Market Growth Rate (2022-2032)	6.4% CAGR
East Asia Market Share (2022)	~ 31.7%
East Asia Market Value (US$ Mn), 2022	US$ 11.7 Billion
Europe Market Share (%), 2022	~20.2%
Europe Market Value (US$ Mn), 2022	US$ 7.4 Billion
China Market Share (%), 2022	~22%
China Market Value (US$ Mn)	US$ 8.2 Billion
Top 3 country Market Share (%)	~40%
Key Companies Profiled	Osram Licht AG Hella Kgaa Infineon Technologies AG LG Electronics Valeo SA Marelli Magnetti Hyundai Mobis Varroc Koito Manufacturing Co. Ltd Robert Bosch GmbH.

Sales Analysis of Automotive Lighting Market (2017-2021) Vs. Market Forecast Outlook (2022-2032)

The automotive lighting industry has been through various transformations which are mostly related to development of innovation for lighting solutions. Automotive lighting solutions have evolved in terms of appearance, size and application in every vehicle as automotive manufacturers are constantly trying to adapt to the latest trends and technological trends happening in the industry.

• Short Term (2022 Q2 to 2025): Utilization and integration of automotive lighting recreational and tourism purpose is positively impacting automotive lighting market growth.
• Medium Term (2025-2028): East Asia and South Asia anticipated to witness high automotive lighting demand on the back of industrial and commercial sectors in these regions, with the presence of global leading players.
• Long Term (2028-2032): Increase in the use electric vehicles of will drive automotive lighting market demand.

Over the 2017-2021 historical period, the global automotive lighting market registered a CAGR of 0.6%, and according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 6.4% CAGR between 2022 and 2032.

Market share analysis of automotive lighting based on application and region is provided in a nutshell in the above image. Under the application segment, the front headlight sub-segment dominates with 60.7% market share in 2022.

Competitive LandsWhat’s Driving Demand for Automotive Lighting?cape

“Growing Pollution and Traffic Congestion is Creating Opportunities for Two Wheelers Lights”

Various countries in APAC and Europe, such as China, India, Italy and France have started to witness smog formation and heavy traffic congestion due to the large number of heavy vehicles and four-wheelers present on the road. There is significant increase in the commute time due to increased traffic congestion, which is a prominent concern for the working-class population.

The governments of various countries in the region have adopted multiple solutions to handle this situation, such as limiting maximum driving speed. One effective solution to the problem of growing traffic congestion could be the adoption of small-sized and compact two-wheelers. Thus the increasing demand for two-wheelers in the global market will in turn boost the growth of the two wheelers automotive lighting market.

“Lighting Regulations for Vehicle and Driver Safety”

Many countries like India, the UK, etc. have designed safety standards such as Federal Motor Vehicle Safety Standards, Australian Design Rules, EEC Regulations and Indian Standards. It is mandatory for every vehicle to be equipped with lighting devices such as headlights, fog light, reversing lights, license plate light, Indicator light, and tail light.

Growing vehicle production has resulted in an increase in the number of on- road vehicles. Car manufacturers as well as users are concerned about vehicle as well as passenger safety. To eliminate the impact of darkness while driving, many companies are investing in research & development of efficient lighting equipment in vehicles.

For instance, the first flexible HLED in the world that can be twisted, like thin film, was created by Hyundai Mobis. One LED will act as the tail lights and the stop light simultaneously. By using electrical signals to regulate it, the HLED enables the execution of the stop lamp and the tail lamp with a single LED. This HLED can provide even, strong light that will make it easier for drivers of cars or other vehicles to see when they are approaching from the side and back.

These advancements in lights due to regulations have accelerated the automotive lighting market.

Report ScopeWhat Do Automotive Lighting Manufacturers Need to Watch Out for?

“Low quality and High Cost of LED Lights”

The cost of LED light is high due to counterfeit product. The automotive lighting market has been struggling with supply of components through grey market trading and the counterfeit products. Counterfeit products are a threat to vehicle and consumer safety due to the lack of quality. Fake LED and Xenon lighting parts can endanger passenger safety as well as severely damaging a vehicle’s headlamps or electronic systems.

This factor will be a severe challenge to the automotive lighting market in sustaining long-term growth over the coming years. Furthermore, most importantly, manufacturers and companies operating in the automotive lighting market is facing severe financial drawbacks due to counterfeit product by affecting their aftermarket sales. Hence, the increase in the sales of counterfeit products will adversely impact the growth of the automotive lighting aftermarket.

Headlights are an essential part of the car when driving on a dark road. Different types of headlights used by manufacturers are Halogen, Xenon, LED, Matrix and Laser. All types of cars like Passenger cars, HCV, LCV, and Electric Vehicles use these types of lighting systems. LED lights are very popular among auto manufacturers as these lights are small and flexible and have a longer life.

Country-wise Insights

Is US a Lucrative Market for Automotive Lighting Market?

The United States automotive lighting market is currently estimated at US$ 3.5 billion and is expected to reach US$ 4.8 billion by 2032.

Fact.MR Market Research has predicted US market to be one of the prominent markets for automotive lighting industry. Automotive lighting manufacturers are trying to establish long term partnerships with suppliers and OEMs for further business. The manufacturers strive to provide a safe experience to the car owner and trying to develop new technologies for future vehicles.

Moreover, US automotive manufacturers try to constantly adapt to the technological advancements that happen in the market. The US market has many prominent OEMs such as Fiat Chrysler, Ford, and General Motors and which is a key driving factor for its growth.

Ford’s advanced front lighting system widens the light beam at the junctions for better light illumination and which helps the driver’s attention towards pedestrians and animals on & off the road. Vehicle production in US is high and is increasing which is also a major factor contributing the growth of the market.

What’s Driving Automotive Lighting Market Sales in India?

The growth in population and the increase in purchasing power of customers is also accelerating the sales of new vehicles in India which is also driving the automotive lighting market. Automotive aftermarket plays a crucial role for the lighting market as the conditions of roads in India often can cause road injuries for the vehicle which has increased the automotive lighting aftermarket in this region as well.

Improving the environmental performance of vehicles and contributing to decrease of harmful gases is an important factor that is driving the electric vehicle market in India. India is promoting key automakers to leverage their strengths and tackle global climate change with increase in production of electric vehicles. This growing demand of electric vehicles is accelerating the automotive lighting market in India.

The India’s market for automotive lighting is expected to reach a valuation of US$ 11 billion in 2032.

Category-wise Insights

Which Type of Light is Most Popular for Use in Vehicles by Manufacturers?

The automotive lighting market has LED, Halogen and Xenon as the main type of light sources for manufacturers. Halogen and Xenon lights are used on a large scale by manufacturers as they are cheap in cost. But these lights have a drawback that they do not have the expected life span and hence need replacement often.

LED lights have an average life span more than Halogen lamps. LED lighting technology is used in many high end and luxury vehicles but nowadays manufacturers have slowly begun to use LED lighting solutions due to constant development in the lighting technology.

Halogen and Xenon type of automotive lighting are going to reach combined value of US$ 32 billion by the end of the 2022.

Why Passenger Vehicle Light’s Demand is more in the Market?

Passenger vehicle hold leading market share than other types of vehicle in the automotive lighting market. Rising income and lifestyle of the population around the world is gaining demand for passenger vehicle. Passenger vehicle hold market share of 59% of automotive lightning in 2021. All over the world people prefer own vehicle over the public transport which is accelerating demand for passenger vehicle.

Passenger vehicle consumers' willingness to pay more for cars and increasing sales will also increase the market revenue in near future. The year on year of passenger vehicle is US$ 20.5 billion in 2021 and expected to generate absolute $ opportunity of US$ 16.2 billion by 2032.

Competitive Landscape

Automotive lighting manufacturers are Osram Licht AG, Hella KgaA Heuck Co. Ltd, Infineon Technologies AG, LG Electronics, Valeo SA, Marelli Magnetti, Hyundai Mobis, Varroc, Koito Manufacturing Co. Ltd, Robert Bosch GmbH,Andela Products, Inc.

With a sizable number of manufacturers functioning in the market, the automotive lighting market is moderately competitive. Some market participants are concentrating on securing the largest possible market share by introducing the most cutting-edge technology through research & development tactics.

Lighting manufacturers are also doing strategic collaborations with OEMs and maintaining long term relations with these OEMs for future business as well. Many big players are also using mergers & acquisitions as a key strategy for expanding their geographical presence and for more business in terms of revenue like Magnetti Marelli which operates under the name Marelli was acquired by Calsonic Kansei Corporation which is a leading automotive component supplier.

• 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
• 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

Fact.MR has provided detailed information about the price points of key manufacturers of automotive lighting positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Automotive Lighting Industry Research

• By Application:

  • Front Headlight
  • Fog Light
  • Rear Light
  • Side Light
  • Interior Light

• By Vehicle Type:

  • Passenger Car
  • Light Commercial Vehicle (LCVs)
  • Heavy Commercial Vehicle (HCVs)
  • Electric Vehicles
  • Two Wheelers

• By Light Source:

  • Halogen
  • Xenon
  • LED

• By Sales Channel:

  • OEM
  • Aftermarket

• By Region:

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