The global automotive lighting market size was valued at USD 34.66 billion in 2021 and is projected to reach USD 66.45 billion by 2030 at a CAGR of 7.5% from 2022 to 2030.
A lighting system comprises lighting and signaling devices placed at various locations in an automobile, such as rear, side, front, and interior. It provides illumination to the driver and pedestrians and enhances the vehicle's interior and external appearance. Increase in the sales of automotive vehicles is one of the significant factors driving the growth of the global automotive lighting market. For instance, according to the Organization International des Constructeurs d’Automobiles (OICA), an increment of more than 30% in automotive sales is recorded every year. The sales of automotive vehicles was pegged at 93.9 million units in 2016, as compared to 89.7 million units in 2015.
Government initiatives and programs targeting to reduce road accidents and enhance driving experience are projected to stimulate the growth of the automotive lighting market. Besides, eco-friendly product development initiatives executed by key players are also expected to propel the market growth. However, fluctuating raw material cost and high processing measures for LED are some of the factors hindering the growth of the automotive lighting market. The development and integration of laser technology and LEDs in modern vehicles is expected to create opportunities for the growth of the market. Government regulations such as the ECE regulation by the European Commission regarding the manufacturing of general and automotive lighting products to regulate chemical usage and its effects on the environment are encouraging the need for modern lighting technologies.
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The global automotive lighting market is segmented by technology, vehicle type, application, and region.
Based on technology, the market is segmented into LED, Halogen, and Xenon. Halogen technology is expected to enjoy remarkable popularity in the global market during the forecast period. A halogen lamp has a highly-engineered filament, which provides up to a 150-meter-long beam and 20% whiter light as compared to the minimum legal standard.
Based on vehicle type, the market is segmented into passenger cars, commercial vehicles, and two-wheelers. Passenger cars have been dominating the global market, and they are expected to retain their hold over the market throughout the assessment period. This can be majorly attributed to the global demand for passenger cars; for instance, according to the Indian Brand Equity Foundation, the sales of passenger cars increased by 7.87% in 2016.
Based on application, the market is segmented into interior lighting, side lighting, rear lighting, and front lighting/headlamps. The interior lighting segment is expected to grow at an accelerated CAGR during the forecast period. This is attributed to the growing emphasis of automotive manufacturers on enhancing vehicle interiors, especially in passenger cars. Interior lighting provides a refreshing, attractive, and pleasant ambiance in a car or commercial vehicle.
Geographically, the automotive lighting market is segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
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Asia Pacific is expected to dominate the market during the forecast period, owing to the adoption of innovative technologies such as ambient lighting and adaptive lighting. Moreover, rising population and increasing concerns for vehicle safety are also expected to boost market growth.
North America ranks second in the market, driven by population growth, increase in vehicle production, change in consumer lifestyle, and economic growth. The U.S. holds the largest share in the region, owing to a high standard of living and increasing sales of vehicles equipped with the latest technologies in the country.
The Latin America and the Middle East & Africa region account for the least share of the market, owing to the low awareness regarding technological advancements. Regional growth in Latin America is restricted by a lack of raw materials and well-trained human resources. On the other hand, steady growth in Africa’s automotive industry is providing a much-needed fillip to the region’s automotive lighting industry. Considering all factors, the outlook of the automotive lighting market is expected to be positive as the cost of raw materials and labor is low.
Some of the major players in the global automotive lighting market include
In October 2016, HELLA GmbH & Co. KGaA announced its partnership with Covestro for the development of new and innovative designs for vehicle lighting systems, consisting of front & rear lighting products.
|Market Size||USD in 66.45 Billion By 2030|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Technology (LED, Halogen), Vehicle Type (Passenger, Two-Wheelers), Application (Interior Lighting, Rear Lighting)|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||General Electric, Osram GmbH, Magneti Marelli S.P.A, Koninklijke Philips N., Koito Manufacturing Co. Ltd, Stanley Electric Co., Ltd., Lumax Industries Zizala Lichtsysteme GmbH, Ichikoh Industries Ltd., and Hella KGaA Hueck & Co.,|
|Key Market Opportunities||The development and integration of laser technology and LEDs in modern vehicles|