Asia-Pacific to be the Fastest Growing Automotive Lighting Market, With China & India Accounting for 35% of Global Automotive Production
Automotive vehicles, including passenger cars and commercial vehicles, require cost-effective and energy-efficient lighting systems for a safe driving experience. Increasing purchasing power and automotive production propel the demand for automotive lighting systems. According to an analysis by the Organisation Internationale des Constructeurs d’Automobiles (OICA), the sales of passenger cars increased from 68.5 million units to 66.4 million units from the year 2015 to 2016. The acceptance of intelligent lighting technologies such as driver assistance at night and situation-based light control in commercial vehicles is creating growth opportunities for the automotive lighting market. Furthermore, the increasing demand for passenger cars is aiding the consumption of automotive lighting products globally. Automobile companies are focusing on improving vehicle aesthetics, which is surging the demand for high-quality lighting systems. Additionally, the demand for commercial vehicles is escalating, owing to government infrastructure development projects and improvement in trade and transportation.
Lighting systems improve visibility for drivers in case of unusual conditions and enhance the aesthetic appeal of different parts of a vehicle. The emergence of new technologies such as OLED, LED, and laser is providing substantial growth potential, which is anticipated to boost the automotive lighting market; however, the development and implementation of such solutions are complex. Key players and OEMs in the automotive lightening industry possess substantial purchasing power, which allows them to procure lighting systems in bulk and negotiate favorable pricing. Governments are taking initiatives to enhance driving experience and reduce accidents, which is positively influencing the market growth. For instance, the National Road Safety Policy in India has introduced several measures, including safer vehicles, establishing a road safety information database, and safer road infrastructure.
Geographically, the automotive lighting market can be segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
Got questions about your regional growth of
Automotive Lighting Market?
Just drop us a line or call on +1 646 480 7505
Asia Pacific is expected to dominate the automotive lighting market, owing to the presence of major market players and manufacturers in China, Japan, and South Korea. Additionally, the demand for Asian-made automotive components is increasing in the U.S. and Europe, which is expected to drive the market. South Korea plays a major role in the expansion of the Asian automotive lighting market due to the increasing sales, manufacturing, and export activities in the country. The presence of critical automotive players, namely Kia Motors, Hyundai, and SsangYong, is also responsible for triggering growth opportunities in the country. China and India collectively account for 35% of global vehicle production and nearly 34% of global passenger car production, making Asia Pacific the fastest growing automotive lighting market. Besides, the Indian automotive lighting market is projected to witness significant growth, owing to increasing automotive sales and economic expansion. Furthermore, government regulations and initiatives in Japan to regulate environmental hazards and mercury usage are generating high demand for advanced lighting solutions. According to an analysis by the Organisation Internationale des Constructeurs d’Automobiles (OICA), the sale of passenger cars in China was pegged at approximately 24.37 million units in 2016 as compared to 21.21 million units in 2015. Additionally, in 2016, around 2.967 million units and 4.15 million units of passenger cars were sold in India and Japan, respectively.
Europe is expected to emerge as a developing region in the automotive lighting market during the forecast period. Growing demand and technological advancements are inspiring manufacturers to reduce production cost and increase yield. Additionally, growth in R&D for technological expansion has amplified the effective integration of LEDs into automotive exterior lights, which is foreseen to enhance market growth during the forecast period. Moreover, prominent automotive manufacturers such as Audi, BMW, and Mercedes-Benz are experiencing rapid growth in the regional market. For instance, in October 2017, Osram India launched an innovative lighting solution named Rallye, which is well-suited with commercial vehicles, two-wheelers, and four-wheelers. This product is manufactured in Osram’s manufacturing plants in Germany and China.
In June 2017, Magneti Marelli announced the commencement of its new automotive lighting production plant in China for the manufacturing of LED headlamps and rear lamps.
The global automotive lighting market can be segmented by technology, vehicle type, application, and region.
Based on technology, the market is segmented into LED, Halogen, and Xenon. LED holds the largest market share, owing to the extensive use of LEDs as rear lighting in vehicles due to their power efficiency. In China, manufacturers of lighting systems are making rapid advancements in the technology of Daylight running lights (DRL) for vehicles, and numerous manufacturers are using standard LEDs for DRL products.
Based on vehicle type, the market is segmented into passenger cars, commercial vehicles, and two-wheelers. Passenger cars hold the largest market share, owing to their high consumption across the globe and the integration of interior & exterior, rear, side, and front-lighting in these vehicles.
Based on application, the market is segmented into interior lighting, side lighting, rear lighting, and front lighting/headlamp. Interior lighting holds the largest market share owing to its high implementation in modern passenger cars. Additionally, it provides driver safety features during night time and in odd conditions.
Automotive Lighting Market: Segmentation
By Vehicle Type
" Crucial Insights The Report Provides:"
* Known and Unknown Adjacencies Influencing the Growth of Market
* Explorable Revenue Sources
* Customer Behaviour Analysis
* Target Partners
* Customized Geographical Data Based on Customers as well as Competitors
* Analysis of Market Size and CAGR between the Forecast PeriodsView Full Report Buy This Report Now