The Automotive Lighting market size is projected to grow from USD 22.5 Billion in 2023 to USD 30.4 Billion by 2030 at a CAGR of 4.4% during the forecast period. The growing sales of luxury vehicles in developed countries and SUVs in developing countries primarily drive lighting sales. The luxury vehicles are mostly equipped with advanced lighting technologies, driving the demand of the automotive lighting market in North America and Europe during the forecast period.
In addition, manufacturers are encouraged to develop advanced automotive lighting as OEMs are upgrading their existing models with advanced offerings, including features such as High Beam Assist, adaptive lighting, automatic lighting, etc., to meet regulatory requirements. Toyota Avalon, Corvette, Santa FE, Kia K5, BMW series, and Tata Harrier, are some of the examples. The growing popularity of premium vehicles equipped with advanced features and lighting is expected to boost the penetration of advanced lighting.
In the electric & hybrid vehicles lighting market, the market of Battery Electric Vehicle is expected to hold the largest share and is growing significantly. The growth is mainly attributed to the expansion of BEV models, continued purchase incentives, and stringent emission standards. In 2022, nearly 40% of all BEV models were SUVs; other large cars accounted for more than 15%. The rising sales of SUVs and large cars dominate the electric car market. Major OEMs like Ford, Stellantis N.V., and Volkswagen announced their complete electrification targets by the end of the next decade. Advanced lighting technologies such as LEDs, adaptive lights, and LED ambient lighting will be more rapidly incorporated into cars due to better efficiency and lower energy consumption than halogen and Xenon/HID headlamps. China is expected to be the largest BEV lighting market, accounting for >25%% share in China, and expected to grow significantly in coming years.
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Further, LED lighting is becoming increasingly popular in the automotive industry due to its higher efficiency, lower power consumption, and design advantages compared to traditional halogen lighting. It is commonly used for daytime running lights and interior lighting and is incorporated into rear lighting, side lighting, and ORVMs in some vehicles. On the other hand, Xenon lighting technology is expected to showcase slower growth as xenon lights use more energy and are much brighter than LEDs which leads to blinding the other driver during night driving. With the continuing advancements in technology, the adoption of LED lighting is expected to increase further in the market during the forecast period. In modern cars, LEDs are gradually replacing classic bulbs due to their high luminous efficiency, increased safety, design flexibility, and great potential for cost savings.
According to MarketsandMarkets analysis, the global premium vehicle penetration increased with a growth rate of 6.8% from 2020 to 2022. The top brands, such as Mercedes-Benz, Tesla, and BMW, dominated the global luxury vehicle market in 2022. Car segments such as E, F, SUV-D, and SUV-E are now equipped with many premium features. These premium vehicles are often installed with the latest advanced lighting technologies, such as adaptive driving beams (ADB), matrix LEDs, laser, cornering, and auto leveling. Premium car buyers prioritize enhanced visibility, safety, and personalized lighting experiences. Major OEMs are launching new models with adaptive front and rear lighting, ambient lighting, matrix LED, and OLED as standard features. High-end premium vehicles like the BMW i8 and AUDI R8 LMX models are equipped with laser and OLED lights. These technologies will increase the cost of lighting systems, contributing to higher margins for manufacturers and higher average sales prices. Thus, the rising demand for premium vehicles fuels the sales of advanced automotive lighting technologies.
Asia Pacific is estimated to remain the largest market and is anticipated to grow with the highest CAGR during the forecast period of 2023–2030. The key factors driving the market growth in this region are China and Japan, which dominate markets in the Asia Pacific automotive industry. China has emerged as a key market for premium vehicles. Nearly all major OEMs have invested in the Chinese market as the automotive production level in China is growing, raising the demand for automotive lighting. Further, the ongoing collaborations between domestic and foreign companies have driven the growth of the automotive lighting market in China. In April 2023, HELLA started the NALYSES research project with BMW Group, Covestro, Geba, Miele, the Heinz Nixdorf Institute of the University of Paderborn, the Fraunhofer Institute for Mechatronic Systems Design IEM and the Hamm-Lippstadt University of Applied Sciences. This project was incorporated with the development of future generations of headlamps. Furthermore, in Japan, there is a mandate for all new vehicles sold in Japan must equipped with automatic headlamps, making it likely the first country in the world with such a mandate; with this, the strong presence of major domestic players in Japan is some of the factors which are propelling the sales of the automotive lighting market in Asia Pacific region. In August 2023, Koito Manufacturing Co., Ltd. announced its establishment of a new plant in Natori, Miyagi prefecture, Japan; the automotive lighting suppliers in the region include Varroc (India), Lumax Industries Ltd. (India), Hyundai Mobis (South Korea), Denso Corporation (Japan), Koito Manufacturing Co., Ltd. (Japan), and Keboda (China).
The Automotive Lighting market is led by globally established players such as Koito Manufacturing Co., Ltd. (Japan), Magnetic Marelli (Italy), Valeo SA (France), HELLA GmbH & Co. KGaA (Germany), and Stanley Electric Co., Ltd (Japan). Major automotive lighting manufacturers have collaborated with OEMs to design new products, which not only meet the requirements of the OEM but also advance the technological scope and knowledge of lighting manufacturers, which is expected to gain traction in the growing Automotive Lighting market. For instance, In Oct 2023, Koito Manufacturing Co., Ltd. and Denso Corporation announced their collaboration to improve autonomous vehicles’ safety during night driving. Through this collaboration, the two companies utilized Koito Manufacturing’s high-beam light distribution control technology and Denso’s image sensor object recognition technology that prevents accidents involving pedestrians at night. In Nov 2023, HELLA launched its new HELLA Value Fit BLADE auxiliary headlamp series primarily for trucks and off-road vehicles. It is equipped with innovative LED lighting technology and will provide a new growth path entry into the world of LED vehicle lighting.
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