CAGR: 9.6%Current Market Size: USD 45.3 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The global automotive lighting market is expected to grow from USD 45.3 billion in 2022 to USD 94.3 billion by 2030, at a CAGR of 9.6% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the rising demand from the automotive sector.
The automotive lighting system consists of a combination of headlights and signaling devices that are integrated into the front and rear sides of the vehicle. A vehicle's lighting helps pedestrians and other drivers determine the direction, size, and positioning of the vehicle. Besides adding aesthetic value to the interior and exterior of a vehicle, automotive lighting is also vital from a safety perspective for the driver and other road users. The market is growing due to the increasing production of passenger cars as well as commercial vehicles. Additionally, as a result of increasing concern for safety on the road is boosting the market growth. Due to an increase in disposable income, the demand for automobiles has increased as well, driving the automotive lighting market. Since LED lights use less electricity and have a longer lifespan than halogen and HID lights, vehicle manufacturers are very interested in incorporating them into their vehicles. Additionally, LED lights are superior to all other lighting technologies since they are strong and durable and have high-quality light-emitting diodes. New lighting technologies are being developed by the automakers, who are concentrating on the main lighting fixtures like headlights. To stay ahead of the competitors in the market, they are forming alliances. A key element in creating a secure environment for nighttime driving is the use of headlights. For example, Volkswagen and Hella collaborated to create the IQ.LIGHT LED headlamps. The IQ.LIGHT-LED Matrix Headlamps with 256 LEDs are used on the new Touareg SUV in the luxury segment.
Sample Request: - Global Automotive Lighting Market
Developing innovative lighting systems for better vision in poor air quality and the environment will create huge opportunities for the market in the future. Technology will open up new opportunities for this market in the future, as people are willing to switch to new types of lighting for their cars as a result of the development of technologies.
For light commercial vehicles, the major challenge is that they tend not to use automotive lighting because they travel a longer distance and the lighting system costs more, so they avoid spending money on it. Lack of acceptance of automotive lighting among consumers is hampering the growth of the market.
It is becoming very popular among the new generation to use halogen technology, as a result of which consumers are shifting towards advanced automotive lighting systems. There is an increase in accidents owing to bad weather conditions and technological advancements. The increasing pressure from the regulatory bodies to reduce the number of accidents is expected to provide growth opportunities for the market during the Projection period.
The high cost of LED lights is expected to challenge the market’s growth. Consumers are finding it difficult to afford such expensive lighting for their automobiles. Consumers’ preference for traditional lighting over advanced is hampering the market growth.
The global automotive lighting market has been segmented based on sales channel, vehicle type, technology, application, and region.
By Sales Channel
The sales chanel segment includes aftersales and OEM. The OEM segment led the largest share of the automotive lighting market with a market share of around 56% in 2022. OEMs are being encouraged by growing consumer demand for vehicles with breathtaking aesthetics and improved aerodynamics to offer cutting-edge automotive lighting systems that are extremely functional and can be creatively used in both the interior and external styling of the vehicle. Automotive lights equipped with safety sensors are being developed and designed by market participants to enhance the aesthetic, functionality, and safety of the car in response to the spike in demand for better mileage and safety without compromising the performance of the vehicle.
By Vehicle Type
The vehicle type segment includes two wheelers, passenger cars, electric vehicles, heavy commercial vehicles and light commercial vehicles. The passenger cars segment led the largest share of the automotive lighting market with a market share of around 37.1% in 2022. Due of its versatility, automotive lighting is used in the interior decoration of passenger vehicles. Thus, the expansion of the automotive lighting market will be fueled by rising consumer demand for individually designed interior, exterior, and lighting systems for passenger cars. Additionally benefiting the market will be increased passenger vehicle registrations worldwide.
The technology segment includes halogen, LED and xenon. The halogen segment led the largest share of the automotive lighting market with a market share of around 41% in 2022. Lighting like halogens is an upgraded version of incandescents. The tungsten filament is heated to incandescence by an electrical current entering the socket. The hybrid halogen incandescent light bulb is a direct replacement for incandescent light bulbs that consume more energy. In addition to easy availability, halogen lights cost less to replace and purchase, which fuels the segment's growth. The fact that they are easily available at low prices and in various dimensions makes them a popular choice among consumers. Also, excessive heat loss during light radiation makes halogens unsuitable for use.
The application segment includes interior lighting, front/headlamp and rear lighting. The front/headlamps segment led the largest share of the automotive lighting market with a market share of around 46% in 2022. Over the Projection period, the front/headlamps application is projected to grow significantly, primarily because the headlamps have been advanced and LED technology has been introduced into the front-view lighting sector. The implementation of LEDs fulfills the requirement for energy saving in electric vehicles and battery-powered vehicles, resulting in a flourishing demand for
Global Automotive Lighting Market- Sales Analysis.
The sale of automotive lighting expanded at a CAGR of 3.1% from 2016 to 2022
Over the past few years, the automobile industry has been rapidly moving toward automation, promoting improvements in the design of electric vehicles and digitization. Rapid technological improvements in the automotive industry are driving up demand for lighting systems that are more energy-efficient and use less power.
These factors have propelled original equipment manufacturers (OEMs) and industry giants in the automotive industry to design and create components that minimize power usage and provide higher efficiency. Light emitting diode (LED) lighting is being used in lighting modules by German auto industry heavyweights like AUDI since it is lightweight and uses less electricity than other types of lighting. The growth of the automotive lighting market has been aided by electrification and the adoption of innovative lighting systems.
The high durability, lack of maintenance, and low power consumption of LED lighting, which makes it highly sought-after for use in the luxury and premium automotive classes, are major reasons influencing its appeal among manufacturers.
The demand for automotive lighting will increase due to the increased manufacturing of two-wheelers. India has the third-worst air quality in the world, according to the World Air Quality Index, with a score of 141. The World Health Organization's (WHO) exposure recommendation for PM 2.5 is approximately five times higher in India, according to the paper. The market is expanding primarily due to rising demand for small, compact cars and two-wheelers as well as government measures to reduce pollution.
Thus, owing to the aforementioned factors, the global automotive lighting market is expected to grow at a CAGR of 9.6% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the automotive lighting market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the automotive lighting market and held a 38.3% share of the market revenue in 2022.
Global Automotive Lighting Market - Country Analysis:
Germany's automotive lighting market size was valued at USD 3.39 billion in 2022 and is expected to reach USD 7.1 billion by 2030, at a CAGR of 9.7% from 2023 to 2030.
As a consequence of significant automotive norms and regulations, OEMs have developed technologically advanced automotive lighting systems in response to these regulations by the EU. Automotive lighting has been widely adopted in the country as a result of significant advancements in safety and driver assistance systems. Sales of two-wheelers and the demand for heavy-duty public transportation will propel the automotive lighting market. The introduction of electric buses into the public transportation system will accelerate the market growth for vehicle lighting.
China’s automotive lighting market size was valued at USD 4.5 billion in 2022 and is expected to reach USD 9.6 billion by 2030, at a CAGR of 10% from 2023 to 2030.
Rising demand for lighting installation in vehicles is driving the growth of the market. Moreover, the expansion of the automotive sector in the country will contribute a large share of the market growth. In recent years, China has seen a rise in the demand for luxury vehicles. The strong economy and rising spending patterns are to blame for the increased demand. Around 2.53 million luxury cars, or 14.7% more than in 2019, were sold in China in 2020, according to data from the China Passenger Car Association.
India's automotive lighting market size was valued at USD 3.4 billion in 2022 and is expected to reach USD 7.23 billion by 2030, at a CAGR of 9.9% from 2023 to 2030.
Major factors driving the growth of the automotive lighting market in this country are a strong automotive sector and an increasing focus of western automakers on expansion into the country. According to the Indian Brand Equity Foundation (IBEF), sales of passenger cars increased in India in February 2021 over February 2020 by 17.92%. The market for automotive lighting will expand due to India's surging demand for passenger cars. According to the National Crime Records Bureau, vehicle accidents in India claimed the lives of approximately 1.54 lakh persons in 2019. The demand for better automobile lighting systems has increased as a result of the high accident death rate. The expansion of the market will be fueled in the coming years by the development of integrated safety and illumination mechanisms in vehicle lights.
Key Industry Players Analysis:
To increase their market position in the global automotive lighting market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Scope of the Report
Global Automotive Lighting Market by Sales Channel:
Global Automotive Lighting Market by Vehicle Type:
Global Automotive Lighting Market by Technology:
Global Automotive Lighting Market by Application:
Global Automotive Lighting Market by Region:
Global automotive lighting market is expected to reach USD 94.3 billion by 2030, at a CAGR of 9.6% from 2023 to 2030.
Leading players in the automotive lighting market are Varroc Group, Lear Corporation, Hyundai Mobis, Magneti Marelli, Denso, Hella GmbH, Robert Bosch GmbH, Continental AG, Koninklijke Philips, OSRAM, Valeo among others.
Rising innovation in automotive lighting, rising cases of accidents in poor weather and advancement in technology.
Asia Pacific region will witness more growth in the automotive lighting market.
Political Factors- As they significantly affect how regulations are produced, pressure group, social/environment, and labour union protests should be closely examined by automotive lighting marketplaces. Working closely with these organisations could enhance the automotive lighting market for civic participation and the achievement of long-term business goals. Furthermore, a strong governance framework and a politically stable environment benefit international firms like the automotive lighting market. Both bureaucracy and corruption have a negative impact on the business environment. Due to the decreased public trust in corporate institutions and the overall political and economic system, the automotive lighting market is more unstable in countries with high levels of corruption and lax law enforcement.
Economic Factors- A country's economic development has a direct impact on organisational performance. Growing economies provide the automotive lighting sector many opportunities for growth. In a similar vein, understanding the stage of the industrial lifecycle is crucial. Entry into mature industries may be more challenging than entry into enterprises in the growth stage due to market saturation. The amount of money the host nation's government spends on developing necessary infrastructure also affects how profitable the automotive lighting market is. A developed infrastructure makes it easier to conduct business, which also increases the possibility for the gold sector in that country to thrive. The GDP growth rate will determine if the automotive lighting market is able to achieve its long-term growth objectives.
Social Factors- The automotive lighting market must do study on this subject in order to match its marketing and communication tactics with the roles traditionally assigned to men and women. Societies with less gender stereotypes will employ different marketing and human resource strategies than traditional, patriarchal civilizations with well defined gender roles. Managers of international marketing consider culture to be a crucial factor. Every culture has its own norms and values, which play a key role in dictating how individuals behave as consumers. In order to create marketing strategies that are specifically suited to each unique cultural environment, automotive lighting marketplaces should form local alliances and teams to better grasp local perspectives and social mores.
Technological Factors- The market for automotive lighting market needs to carefully analyse current technology breakthroughs in order to stay ahead of the competition. It's important to keep an eye on the 5G's potential to boost productivity by enhancing user experience, speed, and access. These technical developments have the potential to radically change an industry and rewrite the rules for market actors' success. The technology's level of development and maturity in the pertinent industry must also be taken into account. The automotive lighting market can increase its market share by forging into industries where technology is still in its infancy and focusing on new technical advancements.
Environmental Factors- More people are choosing to use green or eco-friendly products. The automotive lighting market sector can take advantage of the opportunity and apply green business practises to win over stakeholders. Due to regulatory organisations' emphasis on assuring compatibility with environmental requirements, priorities for product innovation are changing. Instead of focusing on their standard value propositions, the automotive lighting market sector has to place more of an emphasis on marketing their goods' environmental friendliness. If the automotive lighting market uses excessive resources, it can come under fire from the media, environmental groups, consumers, and the general public. The market for automotive lighting market must examine the local environmental laws to ascertain which resources (such as water, energy, etc.) are rare or which species are endangered.
Legal Factors- The laws governing employee/labor health and safety must be followed by the automotive lighting market because certain countries have strict regulations to ensure labour safety. The automotive lighting market industry has a moral and ethical obligation to provide a secure working environment for all of its personnel. Similar to this, anti-discrimination laws (such as equal employment opportunity laws) must also be carefully taken into account when creating human resource practises because discriminatory lawsuits against employers harm the organization's reputation and impair its ability to attract and retain talent.
List of Table
List of Figures