Automotive Smart Lighting Market size estimated to reach USD 9.59 bn by 2031

Introduction

A motor vehicle is equipped with front, rear, side, and sometimes top-mounted or integrated lighting and signaling devices. Automotive smart lighting system refers to two types of automotive lighting, i.e., smart ambient lighting and adaptive headlights. The smart lighting system adapts the vehicle's lights to the ambient light, weather, and road conditions to increase the driver's sense of safety and reduce stress.

Adaptive headlamps are smart headlamps that can adapt automatically to the driving conditions. High Beam Assist assists in preventing the blinding of oncoming motorists. Active curve lights revolve around the headlamps to illuminate the road around a curve. On the other hand, smart ambient lighting consists of smart interior lights installed throughout the cabin to improve the design and visibility of the vehicle for the driver and passenger.

Market Dynamics

Growing Adoption of New Technologies Drives the Global Market

Automakers are looking for more and more ways to distinguish themselves in the fiercely competitive automotive industry. This is attained by designing new exterior and interior lighting system characteristics. New technologies that offer greater adaptability and scalability across various applications and vehicle types enable automotive designers to establish their distinct style, appearance, and feel.

The companies that manufacture intelligent lighting collaborate with other industry participants to offer various ADAS solutions to automobile manufacturers. For instance, in July 2021, Magna International Inc. announced its intent to acquire Veoneer Inc., a leader in automotive safety technology and a major player in safety technology. With this acquisition, Magna aimed to strengthen and expand its ADAS portfolio and position in the industry. Therefore, adopting new technologies will boost market growth.

Incorporation of AI and ML in Smart Lighting Systems Creates Tremendous Opportunities

Smart lighting that combines AI and ML has the potential to completely alter the way cars interact with and make use of their headlights. Smart lighting systems can collect and evaluate data about the vehicle's surroundings, travel circumstances, and user preferences using complex algorithms and sensors. For example, machine learning algorithms can asses sensor and camera data to detect and classify various objects and road conditions and then adjust the lighting system's brightness, color, and direction accordingly. Therefore, integrating AI and ML into automotive smart lighting systems is anticipated to generate market expansion opportunities.

Regional Analysis

Europe is the most significant global automotive smart lighting market shareholder and is anticipated to exhibit a CAGR of 8.72% during the forecast period. Europe presently owns the biggest proportion of the global market for automotive smart lighting because of the region's abundance of automakers and suppliers and the EU's strict safety standards. The government of the European Union prioritizes initiatives such as the GEAR 2030 and CARS 2020 Action Plans. In addition, the Horizon 2020 program of the European Union focuses on providing funding for automotive R&D by introducing initiatives such as the European Green Vehicles Initiative and programs on "Road Transport," "ICT for Smart Mobility," "Factories of the Future," and "Logistic." Based on these developments and scenarios, the market is anticipated to experience healthy expansion over the forecast period.

Asia-Pacific is estimated to exhibit a CAGR of 9.41% over the forecast period. Increasing concerns about road safety and government lighting restrictions drive the demand for smart lighting equipment. Other factors, such as an increase in disposable income, an improvement in lifestyle, and an increase in the demand for transportation, all contribute to the rise in vehicle production, which fuels the expansion of the automotive lighting industry. Automobile manufacturers' investments in research and development and innovation to develop lighting systems compatible with driver assistance systems and proximity sensors will increase market revenue. Moreover, the rising number of road accidents has increased concerns for vehicle and passenger safety, increasing the demand for automobile lighting solutions.

Key Highlights

• The global automotive smart lighting market size was valued at USD 4.46 billion in 2022. It is estimated to reach USD 9.59 billion by 2031, growing at a CAGR of 8.89% during the forecast period (2023–2031).
• Based on vehicle type, the global automotive smart lighting market is bifurcated into passenger cars and commercial vehicles. The passenger cars segment dominates the global market and is projected to exhibit a CAGR of 8.81% over the forecast period.
• Based on application type, the global automotive smart lighting market is divided into interior and exterior lighting. The exterior lighting segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 8.93% throughout the forecast period.
• Based on technology type, the global automotive smart lighting market is segmented into halogen, Xenon, LED, and other technologies. The LED segment owns the highest market share and is estimated to exhibit a CAGR of 10.44% during the forecast period.
• Europe is the most significant global automotive smart lighting market shareholder and is anticipated to exhibit a CAGR of 8.72% during the forecast period.

Competitive Players

Competitive Players

The key global automotive smart lighting market players are Koito Manufacturing Co. Ltd., Stanley Electric Co. Ltd., OsRam Licht AG, HELLA KGaA Hueck & Co., Hyundai Mobis, Mitsuba Corporation, Koninklijke Philips NV, ZKW Group GmbH, Hasco Vision Technology Co. Ltd., Robert Bosch GmbH, and others.

Recent Developments

Market News

• In July 2023, Automotive forward lighting saw a dramatic advancement with the launch of Ams Osram's Eviyos 2.0. This intelligent multipixel LED raises the bar for headlight operation and image projection, enabling entirely adaptive and dynamic lighting for vehicles with image projection.
• In July 2023, Marelli and ams OSRAM introduced a revolutionary advancement in automotive front lighting. The system, known as an h-Digi microLED module, based on a new type of intelligent multipixel LED, is digital, designed to be a cost-effective technology, and compatible with various vehicles.

Segmentation

Global Automotive Smart Lighting Market: Segmentation

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Application Type

• Interior Lighting
• Exterior Lighting

By Technology Type

• Halogen
• Xenon
• LED
• Other Technologies

By Regions

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East and Africa