Automotive Lighting Industry Analysis in Japan

An In-depth Look at Automotive Lighting Industry in Japan

The demand for automotive lighting in Japan is expected to reach USD 2,633.7 million in 2023, compared to USD 2,513.2 million in 2022. Projected sales of automotive lighting are expected to maintain a steady growth rate from 2023 to 2033, with a CAGR of 3.9%. The sale of automotive lighting in Japan is forecasted to reach USD 3,855.6 million by 2033.

Attributes	Details
Industry size for Japan in 2023	USD 2,633.7 million
Expected Industry Size for Japan by 2033	USD 3,855.6 million
Forecasted CAGR between 2023 to 2033	3.9%

Key Insights of Automotive Lighting in Japan

• Production of cars in Japan is already significant and is rising at an impressive rate. As the number being produced increases, so does the demand for automotive lighting.
• Japan-based automotive manufacturers are witnessing the demand for their cars overseas. Japan is one of the leading exporters of cars in the world. As the export of cars continues to rise, so does the demand for fitting vehicles with automotive lighting.
• Vehicles in Japan are subjected to laws requiring lights. For example, about all vehicles here are mandated by law to have automatic headlamps. Thus, government regulations are contributing to the demand for automotive lighting in Japan.

Key Trends influencing the Demand for Automotive Lighting in Japan

• Consumers in Japan are increasingly adopting electric vehicles. Thus, there is increased production of electric vehicles. Demand for automotive lighting is also positively affected due to the increased production of electric vehicles.
• People in Japan are partial to cars that are locally manufactured. Thus, car production in Japan is ever-growing and, in turn, there is steady demand for automotive lighting.
• The high price of raw materials is expected to hamper the production of automotive lights. For example, LED lights are becoming expensive in Japan. Thus, there is a stumbling block in the road of automotive lights.
• Smart lighting is being incorporated into modern vehicles in Japan. Innovations like gesture-controlled lights, Adaptive Driving Beam (ADB) headlights, and smart dimming headlights are in demand in Japan.
• Lighting systems in Japan are no longer just standalone systems. Automotive lighting is being integrated with driver assistance systems and proximity sensors to enhance the overall driving experience.

Category-wise Insights

Headlights Top the List of Essential Automotive Lighting

Headlights continue to lead the application segment in Japan. In 2023, headlights are expected to hold 59.0% of the industry share in Japan.

Headlights are considered paramount for roadside safety, benefiting not only the vehicle they belong to, but also the surrounding vehicles. Thus, headlights are an essential component of automotive lighting. Furthermore, government regulations mandating the strict use of headlights have led to an increase in demand for automotive lighting in Japan.

Demand for Automotive Lighting in Japan Based on Application	Headlights
Industry Share in 2023	59.0%

Automotive Lighting is in High Demand for Passenger Cars

Passenger cars are the dominant type of vehicles for automotive lighting in Japan. In 2023, passenger cars are expected to account for 74.8% of the industry share by vehicle.

Japan is one of the leading car producers in the world. As of March 31, 2023, Japan had an estimated 61.95 million passenger cars in ownership, a slight increase from the previous year's figure of around 61.87 million. This type of car is the predominant choice on Japanese roads. Furthermore, Japan also has a high export volume of cars, solidifying passenger cars as the dominant force in the vehicle segment.

Demand for Automotive Lighting in Japan Based on Vehicle	Passenger Cars
Industry Share in 2023	74.8%

Competitive Landscape

With several local vehicle manufacturers in Japan, automotive lighting manufacturers too are present in the country. Further, large-scale car companies have acquired players in the industry to streamline processes. Innovation is the name of the game for many of the industry players. With the rise of smart lighting and heightened safety trends, industry players consider it crucial to adapt.

Recent Developments Observed in Automotive Lighting in Japan

• In August 2023, it was announced that Japan-based Kaga Electronics is going to open a new plant in Mexico, with an eye toward capturing the North American region.
• In October 2023, the Mazda MX-5 Miata received an update with LED lights. Initially, the changes, including the use of LED lights for all exterior lamps, were limited to vehicles in Japan.
• In December 2021, Toyoda Gosei Co. Ltd. created LED bulbs for car interiors with up to 64 color settings.

Some of the Key Players with Automotive Lighting in Japan

• Koito Manufacturing Co. Ltd.
• Hella KGaA Hueck & Co.
• Stanley Electric Co.
• Valeo SA
• Osram Licht AG
• Magnetti Marelli
• Varroc Group
• ZKW Group
• Ichikoh Industries Ltd.
• General Electric Company
• Kaga Electronics
• Toyoda Gosei Co. Ltd.

Scope of the Report

Attribute	Details
Estimated Industry Size in 2023	USD 2,633.7 million
Projected Industry Size in 2033	USD 3,855.6 million
Anticipated CAGR between 2023 to 2033	3.9% CAGR
Historical Analysis of Demand for Automotive Lighting in Japan	2018 to 2022
Demand Forecast for Automotive Lighting in Japan	2023 to 2033
Report Coverage	Industry Size, Industry Trends, Key Insights for Automotive Lighting in Japan, Insights on Global Players and Leading Industry Strategy in Japan, Ecosystem Analysis of Local and Regional Japan Providers
Key Companies Profiled	Koito Manufacturing Co. Ltd.; Hella KGaA Hueck & Co.; Stanley Electric Co.; Valeo SA; Osram Licht AG; Magnetti Marelli; Varroc Group; ZKW Group; Ichikoh Industries Ltd.; General Electric Company; Kaga Electronics; Toyoda Gosei Co. Ltd.
Key Cities Profiled	Kanto, Chubu, Kinki, Kyushu & Okinawa, Tohoku, Rest of Japan

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Industry Analysis and Outlook 2018 to 2022 and Forecast, 2023 to 2033
• 5. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Application
  • 5.1. Front Headlights
  • 5.2. Fog Lights
  • 5.3. Rear Lights
  • 5.4. Side Lights
  • 5.5. Interior Lights
• 6. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type
  • 6.1. Passenger Cars
    • 6.1.1. Compact Cars
    • 6.1.2. Mid-Size Cars
    • 6.1.3. Luxury Cars
    • 6.1.4. SUVs
  • 6.2. LCVs
  • 6.3. HCVs
  • 6.4. Electric Vehicles
    • 6.4.1. BEV
    • 6.4.2. PHEV
    • 6.4.3. HEV
  • 6.5. Two Wheelers
    • 6.5.1. Motorcycles
    • 6.5.2. Scooters
• 7. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Light Source
  • 7.1. Halogen
  • 7.2. LEDs
  • 7.3. Xenon
• 8. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel
  • 8.1. OEM
  • 8.2. Aftermarket
• 9. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Region
  • 9.1. Kanto
  • 9.2. Chubu
  • 9.3. Kinki
  • 9.4. Kyushu & Okinawa
  • 9.5. Tohoku
  • 9.6. Rest of Japan
• 10. Kanto Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 11. Chubu Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 12. Kinki Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 13. Kyushu & Okinawa Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 14. Tohoku Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 15. Rest of Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 16. Market Structure Analysis
• 17. Competition Analysis
  • 17.1. Koito Manufacturing Co., Ltd
  • 17.2. Stanley Electric Co., Ltd
  • 17.3. Denso Corporation
  • 17.4. Panasonic manufacturer
  • 17.5. Stanley
  • 17.6. Infineon Technologies AG
  • 17.7. Fiem Industries
  • 17.8. Vosla Gmbh
  • 17.9. Lumax Auto Technologies Ltd
  • 17.10. ZKW Group
• 18. Assumptions & Acronyms Used
• 19. Research Methodology