The global automotive lighting market is expected to attain a valuation of USD 37.1 billion in 2023 and is projected to reach USD 69 billion by 2033, rising at a CAGR of 6.4% during the forecast period.
Asia Pacific and European countries, including China, India, Italy, and France, are experiencing smog and severe traffic congestion due to high numbers of heavy vehicles and four-wheelers. This surge in traffic is causing significant delays in commuting, particularly affecting the working-class population.
To address this issue, governments in the region have implemented various measures, including speed limits, to manage the situation. One potential solution to tackle the rising traffic congestion is the widespread adoption of small-sized and compact two-wheelers. This growing demand for two-wheelers in the global market is expected to drive the growth of the two-wheelers automotive lighting market.
Countries like India, the UK, and others have established safety standards such as Federal Motor Vehicle Safety Standards, Australian Design Rules, EEC Regulations, and Indian Standards. These regulations require all vehicles to be equipped with essential lighting devices such as headlights, fog lights, reversing lights, license plate lights, indicator lights, and taillights.
Rising vehicle production has led to a surge in on-road vehicles. Both car manufacturers and users are prioritizing vehicle and passenger safety. To address the challenges of driving in darkness, many companies are investing in research and development to enhance the efficiency of lighting equipment in vehicles.
| Report Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 37.1 billion |
| Anticipated Forecast Value (2033) | USD 69 billion |
| Projected Growth Rate (2023 to 2033) | CAGR of 6.4% |
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The automotive lighting market was worth USD 30.9 billion in 2018. It accumulated a market value of USD 36.6 billion in 2022 while growing at a CAGR of 4.3% during the historical period.
The automotive sector has been swiftly transitioning to automation, encouraging advancements in electric vehicle design and digitization over the past half-decade. Rapid technological advancements in the automotive sector is fuelling the demand for the more efficient and low-power-consuming lighting system.
These factors have encouraged original equipment manufacturers (OEMs) and automotive giants to design and develop components for optimizing power consumption and offering superior efficiency.
German automobile giants like AUDI are adopting light-emitting diode (LED) light in their lighting modules as it is lightweight and consumes less power than other types of lighting. Electrification and adoption of new lighting systems have assisted the automotive lighting market to expand at a 4.3% CAGR during 2018 to 2022.
Key factors driving the popularity of LED lighting amongst manufacturers include its high durability, no maintenance, and low power consumption which makes it highly sought-after for use in luxury and premium car segments.
The rising production of two-wheelers will fuel the demand for automotive lighting. According to World Air Quality Index, India has the third worst air quality in the world with an air quality index of 141. The report also states that PM 2.5 concentration in India is nearly five times above the World Health Organization (WHO) exposure recommendation.
Increasing demand for compact smaller vehicles and two-wheelers along with government initiatives to curb pollution is a primary factor driving the growth of the market. As per FMI, the automotive lighting market is expected to expand at a 6.4% CAGR between 2023 and 2033.
The rising inclination towards a luxury lifestyle has fueled the demand for premium cars in developed nations. The rising number of billionaires in developing countries also has fuelled the demand for such vehicles. Increasing sales of luxury vehicles will therefore accelerate the automotive lighting market demand.
The growing population along with increasing per capita income will drive passenger car sales in developing countries. Improving the standard of living in emerging economies will act as a major driver of automotive lighting sales in the region.
Increases in construction activities along with material and machinery transportation have increased the heavy commercial vehicles (HCVs) and light commercial vehicles (LCVs) sales, which also accelerates the automotive lighting market demand.
Growing urbanization along with the adoption of LCV in logistics will increase the automotive lighting demand. The development of electric HCVs and LCVs to reduce pollution, improve safety, and increase autonomy will create growth opportunities throughout the decade.
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In the wake of the severe environmental crisis, governments across the globe are focusing on reducing carbon footprint and air pollution. Many countries are even encouraging shifts to two-wheelers and electric vehicles to achieve emission-reduction goals.
According to the USA Environmental Protection Agency, light-duty vehicles (LDVs) produce around 17% of total greenhouse gas emissions in the USA followed by heavy-duty vehicles (HDVs) with 6% of emissions.
Fluctuations in fuel prices, rising environmental awareness, and stringent government regulations regarding greenhouse gas emissions will drive the adoption of electric vehicles. Increasing demand for electric vehicles will push the automotive lighting market growth.
Development in the automotive industry like the incorporation of safety sensors in a lighting system, designing the autonomous system and complete electrification without compromising the aesthetic aspects of automotive lighting will fuel the market demand.
North America is expected to offer lucrative growth opportunities during the forecast period. Future Market Insights has forecasted the North American market to grow at a 6% CAGR throughout the forecast period.
According to the United States Department of Energy, plug-in electric vehicles (PEVs) are experiencing tremendous growth on the back of developing technology and cost reduction. The Introduction of the Tesla Model 3 in 2018 bumped electric vehicle sales. Several other leading automakers are gearing up to join the bandwagon, subsequently creating opportunities for automotive lighting sales.
In 2019, as per the World Economic Forum, the city of Rio de Janeiro, Brazil recorded the second worst traffic congestion in the world with the average person losing around 190 hours to traffic in a year. To tackle such a situation, people are switching to public transport and compact two-wheelers for transportation. The demand for automotive lighting in the region is projected to rise with a CAGR of 5.8% during the forecast period.
Increasing demand for heavy-duty public transport and a rise in sales of two-wheelers will drive the automotive lighting market sales. The introduction of electric buses in public transportation systems will further elevate the automotive lighting market growth.
As per the report by FMI, Brazil is experiencing significant economic growth leading to an increase in per capita income. Increased sales of passenger cars due to increased standard of living are expected to positively influence automotive lighting market demand through the forecast period.
China is experiencing increasing demand for luxury cars in recent years. The high demand can be attributed to increasing spending habits and a thriving economy. According to the statistics from the China Passenger Car Association, around 2.53 billion luxury vehicles were sold in China in 2020 which is about 14.7% greater than that from 2019.
Automakers are developing new technologies and components in line with stringent environment policies and consumer preferences. Automotive lighting manufacturers are working towards developing lightweight, energy-efficient, and aesthetically pleasing interior lighting to meet the demand.
According to a report published by the China Association of Automobile Manufacturers (CAAM), sales of passenger cars in China experienced a 10.8% year-on-year increase as of April 2021. The report also states that the commercial vehicle segment also experienced 2.3% year-on-year growth in terms of sales. Likewise, the sales of automotive lighting in the region are expected to proliferate with a significant CAGR of 6.3% during the forecast period. The thriving automotive industry due to low production costs and improved manufacturing capabilities will accelerate the automotive lighting market growth.
According to the Indian Brand Equity Foundation (IBEF), passenger vehicle sales in India grew by 17.92% in February 2021 compared to sales registered in February 2020. The soaring demand for passenger vehicles in India is expected to fuel the automotive lighting market growth.
As per the National Crime Records Bureau, in 2019, around 1.54 Lakh people died due to road crashes in India. The high mortality rate due to accidents has fuelled the demand for better automotive lighting systems. The development of integrated safety and lighting mechanism in automotive lights will propel the market growth in upcoming years.
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Based on application type, front headlights surpass other lighting systems as it comprises around 62% of the lighting market in 2023.
Utilization of front headlights as a part of the safety system as well in the aesthetic design of premium vehicles will drive the market growth in upcoming years.
Automotive lighting is utilized in the interior design of passenger cars as it serves a wide range of purposes. Increasing demand for customized interior and exterior designing and lighting systems of passenger vehicles is expected to drive the automotive lighting market growth.
The demand of automotive lighting in passenger vehicles is expected to rise with a CAGR of 6.8% during the forecast period. The market will also gain from rising passenger vehicle sales registered globally.
Light-emitting diode (LED) and organic light-emitting diode (OLED) lights are becoming popular owing to their low power consumption and no maintenance. The LED segment is expected to grow with a significant CAGR of 8.4% during the forecast period. LEDs are expected to dominate the market by accumulating over 60% market share in 2023.
Market players are designing and testing ideas involving LED lights as they are compact and very durable. The introduction of LED matrix headlamps and LED daytime running lights in two-wheelers and electric vehicles for safety purposes will further elevate the automotive lighting market demand.
The Original equipment manufacturer (OEM) segment is expected to dominate the market by exhibiting a CAGR of 7% during the forecast period. Growing consumer preference for cars with stunning aesthetics and better aerodynamic shape is encouraging OEMs to offer modern automotive lighting systems which are highly functional and can be flexibly used in the interior and exterior designing of the vehicle.
With the surge in demand for better mileage and safety without compromising the performance of the vehicle, market players are developing and designing automotive lights equipped with safety sensors, to improve the appearance, functionality, and safety of the car.
Start-ups are crucial in identifying growth opportunities, including the automotive lighting market. They effectively translate inputs to outputs and adapt to market uncertainties, contributing to the industry's expansion. Some start-ups are expected to drive growth in the automotive lighting market.
The market for automotive lighting is highly competitive, with numerous prominent industry players making substantial investments in increasing their manufacturing capabilities. The key industry players Koito Manufacturing Co. Ltd., Hella KGaA Hueck & Co., Stanley Electric Co., Valeo SA, Osram Licht AG, Magnetti Marelli and Varroc Group.
Some key developments in the automotive lighting market are:
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | USD 37.1 billion |
| Market Value in 2033 | USD 69 billion |
| Growth Rate | CAGR of 6.4% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Application, Vehicle Type, Light Source, Sales Channel, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East & Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, India, China, Japan, Malaysia, Singapore, Thailand, South Korea, Australia, New Zealand, GCC Countries, South Africa, Israel |
| 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 |
| Customization & Pricing | Available Upon Request |
The automotive lighting market holds a valuation of USD 37.1 billion in 2023.
The projected value of the automotive lighting market is anticipated to attain USD 69 billion by 2033.
The automotive lighting market is anticipated to register a CAGR of 6.4% through 2033.
The United States emerged as a lucrative automotive lighting market, driven by its advanced automotive sector and increasing vehicle sales.
The top trend in the automotive lighting market is the rapid adoption of energy-efficient LED lighting technology for improved visibility and aesthetics.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 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. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 6.1. Passenger Cars 6.1.1. Compact 6.1.2. Mid 6.1.3. Luxury 6.1.4. SUVs 6.2. Light Commercial Vehicles 6.3. Heavy Commercial Vehicles 6.4. Electric Vehicles 6.4.1. Battery Electric 6.4.2. Plug-in Hybrid Electric 6.4.3. Hybrid Electric 6.5. Two Wheelers 6.5.1. Motorcycles 6.5.2. Scooters 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Light Source 7.1. Halogen 7.2. LED 7.3. Xenon 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 8.1. OEM 8.2. Aftersales 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Koito Manufacturing Co. Ltd. 17.2. Hella KGaA Hueck & Co. 17.3. Stanley Electric Co. 17.4. Valeo SA 17.5. Osram Licht AG 17.6. Magnetti Marelli 17.7. Varroc Group 17.8. ZKW Group 17.9. Ichikoh Industries, Ltd 17.10. General Electric Company 18. Assumptions & Acronyms Used 19. Research Methodology
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Automotive Lighting Market
