Automotive Lighting Market Size, Share, Competitive Landscape and Trend Analysis Report, by Light Type, Vehicle Type, Position and Sales Channel : Global Opportunity Analysis and Industry Forecast, 2021-2030

The global automotive lighting market size was valued at $32.31 billion in 2020, and is projected to reach $58.59 billion by 2030, registering a CAGR of 6.3% from 2021 to 2030. 

Lighting plays a vital role in automotive vehicles to illuminate the vehicle path, thus allowing the driver to get a clear visibility of the road. Along with meeting the need for illuminating the path of the driver, the lighting system also helps other vehicle drivers and pedestrians on the road to detect the vehicle’s size, position, and direction of movement. It adds aesthetic looks to both, the interior and exterior parts of the vehicle and, at the same time, increases the conspicuity of the vehicle. The lighting system comprises lighting and signaling devices. This lighting equipment is placed at different locations in the vehicle, such as front, rear, top, and interiors. In 2018, HELLA GmbH & Co. developed integrated OLED technology for the rear combination lamps of the new Audi A8, which offers a homogenous appearance and individually controllable segments. 

Traditionally, halogen for being low cost and easily available technology, is the majorly used lighting technology and includes xenon and LED as the other prominent lighting technologies. Furthermore, it also adds aesthetic looks for both interior and exterior parts of vehicles. Increase in concerns regarding road safety and government regulations for lighting are the major factors that drive the demand for lighting equipment. Other factors such as increase in disposable incomes, improving lifestyle, and rise in transportation requirement contribute to the increase in production of vehicles, which fuels the growth of the automotive lighting market. 

Factors such as rise in emphasis towards road safety, increase in implementation of government regulations, and growing automobile production foster the growth of automotive lighting market. However, high cost of LEDs and fluctuating prices of raw materials hinder the growth of market. Furthermore, the rise in demand for vehicles in developing nations and increase in demand for advanced technology in vehicles are factors anticipated to provide a remarkable growth opportunity for the players operating in the market.

The automotive lighting market is categorized into light type, vehicle type, position, sales channel, and region. On the basis of light type, the market is categorized into halogens, xenon/HID, and LED. On the basis of vehicle type, the market is categorized into passenger vehicles, commercial vehicles, and electric vehicles. On the basis of position, the market has been segmented into front lighting, rear lighting, side lighting, and interior lighting. On the basis of sales channel, the market is categorized into original equipment manufacturers (OEMs) and aftermarket. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Growing Emphasis Toward Road Safety

Road accidents are a significant concern globally, especially while driving on roads with heavy traffic and terrible weather conditions. Therefore, the demand for safety features and adaptive lighting systems has increased, owing to an upsurge in road traffic collisions. Hence, the rise in concern regarding road accidents leads to the installation of adaptive & advanced lighting systems to detect objects on the road, thereby, enabling the driver to take appropriate actions. Moreover, the adoption of intelligent, high-resolution LED headlights allows the driver to take every conceivable bend on the road with the aid of sensors to illuminate oncoming traffic, which leads to an essential contribution towards, reducing the risk of accidents specially while driving at night. Thus, huge investments by automotive manufacturers in R&D and innovation to develop automotive lighting systems that are compatible with driver assistance systems & proximity sensors increase the demand for automotive lighting systems in the market. 

According to World Health Organization, nearly 1.25 million people die in road accidents each year, including a major share to improper lighting systems in the vehicle. HELLA GmbH & Co., one of the leading manufacturers of automotive lighting, developed full-LED high beam headlamps for commercial vehicles, ensured by EdgeLight technology, which offers conspicuous flasher function with an overview to increase road safety and increase the driver’s visibility. In addition, Valeo in alliance with the Japanese lighting specialist, Ichikoh, designed and launched a picture beam monolithic adaptive lighting system to provide drivers with an exceptional and unique anti-glaring function to improve comfort and safety of the vehicle. Thus, growing emphasis on road safety fosters the growth of the automotive lighting market.

Increase in Implementation of Government Regulations

Road traffic injuries remain a significant public health problem due to insufficient lighting on roads as well as the absence of effective lighting system in vehicles. Meanwhile, governments across the globe have formulated stringent regulations relating to the use of effective lightings in automobiles. In September 2021, the Canadian Vehicle Lighting Regulation introduced a new lighting standards, such as tail lights with daytime running lights (DRLs), side marker lights to turn on automatically in the dark, and dark dashboards to alert the driver to turn on lights.

Furthermore, some of the U.S. states, including California, Kansas, and Arizona allow neon under glow car lights with restrictions on a particular color and location. For instance, Arizona traffic laws only allow amber or white lights on the side portion of the vehicle. In addition, numerous countries are taking active initiatives to curb CO2 emission levels in vehicles. Thus, the government's stringent regulations for safety & security are anticipated to boost the growth of the automotive lighting market.    

High Cost of LED Lights

The high cost of LED lights is a crucial concern for the automotive lighting market. Nowadays, LED bulbs are used with projector headlights, which are more expensive than reflector headlights and require more space within the vehicle. Meanwhile, halogen, xenon, and LED lights are commonly used lighting technologies in high-end or premium vehicles, owing to their benefits, such as reduced power consumption, cooler temperatures, and longer self-life of LED lights. However, halogen lights have a major disadvantage of heating and energy-wasting, whereas LED bulbs are attributed with their high production cost materials such as indium gallium nitride, aluminum, gallium indium phosphide, and aluminum gallium arsenide. In addition, the complicated installation procedure for the acquisition of LED lights requires a high cost as compared to other options. This eventually increases the cost of LED lights used in automobiles; thus, restraining the growth of the market during the forecast period. 

Increase in Demand for Advanced Technology in Vehicles

The automotive business prospers with the rapid development and innovations and increase in demand and production of vehicles across the globe. This has allowed vehicles manufacturers to develop and install latest lighting components in the upcoming vehicle models. For instance, matrix LED, OLED, and laser lighting are some of the new and advanced lighting technologies available for automotive lighting manufacturers, extended to make the lightings more worth-added, more secure, and satisfying for clients. Furthermore, the enhancement and integration of adaptive lighting with advanced driver assistance systems (ADAS) in upcoming autonomous vehicles enable vehicle-to-vehicle communication and reduce the number of road collisions.

In 2019, Hyundai Mobis showcased its latest communication lighting concept that uses LEDs, digital boards, headlamp projection, and sound to communicate with nearby pedestrians and vehicles to reduce the number of accidents. This is expected to increase the demand and opportunity for the automotive lighting industry. Hence, the increase in demand for autonomous vehicles and the adoption of advanced lighting technology in passenger cars and commercial vehicles provides lucrative growth opportunities in the automotive lighting market.  

Key Benefits For Stakeholders

• This study presents the analytical depiction of the automotive lighting market analysis along with the current trends and future estimations to depict the imminent investment pockets.
• The market opportunity is determined by understanding the profitable trends to gain a stronger foothold.
• The report presents information related to market growth, key drivers, restraints, and opportunities with a detailed impact analysis.
• The current market trends is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of buyers and suppliers in the market industry.

Covid-19 Impact Analysis on Automotive Lighting Industry

• The COVID-19 crisis is creating uncertainty in the market by slowing down the supply chains, hampering business growth, and increasing panic among the customer segments.
• Governments across different regions announced total lockdown and temporarily shutdown of industries, which adversely affected the overall production and sales.
• The global business outlook has changed dramatically post COVID-19 health crisis.
• Moreover, the overall production activities of market players have declined, owing to operations with limited workforce capacity and inadequate health safety measures along with current demand dynamics of the automotive industry.
• With the advent in pandemic, the automobile & transportation sector came to halt due to the imposed lockdown across the globe, which has also created an adverse effect on the automotive industry across the globe.
• As per the current scenario, overall world is getting back on track slowly with the new restriction and policies to support the economic activities in all industries.

  Automotive Lighting Market Report Highlights

Aspects	Details
By LIGHT TYPE	Halogen Xenon/HID LED
By VEHICLE TYPE	Passenger Vehicle Commercial Vehicle Electric Vehicle
By POSITION	Front Lighting Rear Lighting Side Lighting Interior Lighting
By SALES CHANNEL	Original Equipment Manufacturers (OEMs) Aftermarket
By Region	North America  (U.S, Canada, Mexico) Europe  (Germany, France, UK, Italy, Rest of Europe) Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific) LAMEA  (Latin America, Middle East, Africa)
Key Market Players	HYUNDAI MOBIS, KOITO MANUFACTURING CO., LTD., Koninklijke Philips N.V., Valeo, OSRAM GmbH, HELLA GmbH & Co. KGaA, Robert Bosch GmbH, DENSO CORPORATION, ZKW, Stanley Electric Co., Ltd.

Analyst Review

Lighting, plays a crucial role in automotive safety. The automotive vehicle consists of various lights, which increase visibility during darkness and bad weather conditions. In addition, the lights increase the conspicuity of vehicles. The lighting system comprises of lighting and signaling devices placed at different locations in the vehicle such as in the front, rear, top, and interiors. The automotive lighting market currently witnesses steady growth due to the rise in production of automotive globally.

Furthermore, the increase in population and increase in purchasing power mainly contribute to the growth of the automotive lighting market across the globe. The vehicle's lighting system comprises of two main categories: Exterior and interior lights. Exterior lights are installed at different locations such as at the front, rear, and lateral sides of the vehicle and contribute the largest share in the overall vehicle lighting market. Besides increasing the vehicle's conspicuity, these lights allow drivers and pedestrians to determine the vehicle’s presence, size, and direction of the vehicle’s movement. In January 2019, the automotive lighting manufacturer, Valeo, in alliance with the Japanese lighting specialist, Ichikoh, designed and launched a picture beam monolithic adaptive lighting system to provide drivers with an exceptional and unique anti-glaring function to improve comfort and safety of vehicles. Various types of lights are used in automobiles, such as halogens, xenon/HID, and LEDs. However, most consumers are now inclined towards the adoption of LEDs in automobiles due to their longer life and increased visibility.

Factors such as growing emphasis towards road safety, increase in implementation of government regulations, and rise in automobile production foster the growth of automotive lighting market. However, high cost of LEDs and fluctuating prices of raw materials hinders the growth of automotive lighting market. Furthermore, increase in demand for advanced technology in vehicles is a factor that is anticipated to provide a remarkable growth opportunity for the players operating in the market.

Among the analyzed regions, currently, Asia-Pacific is the highest revenue contributor during the forecast period, followed by Europe, North America, and LAMEA. Meanwhile, LAMEA is projected to register a significant growth rate during the forecast period owing to the increased demand for vehicles equipped with advanced features such as adaptive lighting.

Author Name(s) : Abhay Singh | Lalit Janardhan Katare

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