The Automotive Lighting Industry Size is projected to grow from an estimated USD 22.5 billion in 2023 to reach USD 30.4 billion by 2030 at a CAGR of 4.4% during the forecast period.
Automakers are putting a lot of effort into creating new and creative lighting to improve the safety and visual appeal of the road for drivers and other users. Every car needs automotive lighting, which greatly improves visibility, safety, and aesthetic appeal. Lighting innovation OEMs develop a variety of ideas for using LED technology both indoors and outside. Nowadays, practically every OEM has integrated LED technology into their cars. Many cars now have LED rear and daytime running lights, and the newest LED matrix headlights offer far better features in terms of both style and operation. LED illumination has just become standard on all high-end four-wheelers, which is also expected to support market expansion overall.
“Throughout the forecast period, exterior lighting will continue to be the most popular application.”
During the research period, the automotive lighting market is expected to be led by the external lighting application. The mandatory installation of various lighting components, including headlights, tail lamps, indicators, Center High Mounted Stop Lamps (CHMSL), brake/reverse lights, and license plates in practically all vehicle categories, is primarily responsible for the segment’s expansion. Additionally, government regulations requiring the installation of adaptive lighting and daytime running lights (DRL) as well as ongoing improvements in front and rear lighting technology will boost this market’s expansion. Throughout the predicted period, external adaptive lighting systems are becoming more popular. With the use of sensors that determine the steering angle to swivel depending on the direction of motion of the vehicle, this illumination enhances vehicle visibility at a poorly lit crossroads. For example, the European Union required both commercial and passenger vehicles to be installed. Furthermore, DRLs are required for passenger cars made in Canada and Japan, while other nations like the US, China, India, and South Korea have seen a notable increase in the use of LED fog lights and DRLs beginning with mid- to premium range vehicles. Therefore, cutting-edge features like rear light signaling, high beam aid in front illumination, and automated ON/OFF enable to interact with the driver and the environment while driving. As a result, the entire automotive lighting market is changing due to advancements in external lighting, which will propel this market in the years to come.
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“By 2030, LED will be the automotive lighting technology with the fastest rate of growth.”
Because LED lighting is more efficient than previous technologies and may be used for adaptive lighting features, it is expected to become a major technology in the car sector by the end of 2030. As a result, the demand for LED headlights and taillights in the passenger car market has increased. Conversely, hybrid lighting—which blends halogen and LED lighting—is being used in mid-range vehicles. Additionally, several government regulations promote the use of LED lighting. For example, the National Highway Traffic Safety Administration (NHTSA) of the US Department of Transportation released a final regulation in February 2022 that permits automakers to equip newly manufactured cars with adaptive driving beam headlights.
Additionally, new developments in LED technologies, including OLED and matrix LED, are widely used in high-end vehicles for headlamp applications; however, they are anticipated to be widely adopted in mid-range vehicles, particularly in developing nations. The use of LEDs for dome lights, gloveboxes, and dashboards is expanding quickly outside of exterior applications. To enhance the appearance of their vehicles, leading OEMs including Hyundai, Toyota, Volkswagen, BMW, and Nissan have implemented LED technology in both external and interior applications. LED headlamps are available in various heavy truck segments from major commercial vehicle manufacturers, including Daimler, Volvo, Scania, and MAN Trucks. Therefore, the increased illumination spectrum of LED technology, its design flexibility, and consumers’ growing preference for LED technology will drive its adoption in the upcoming years.
“The second-largest market for automotive lighting is Europe.”
According to estimates, Europe will continue to be the second-largest automotive lighting market region. Strict government restrictions and the presence of well-known OEMs and tier-1 suppliers who invest in cutting-edge technology to enhance vehicle and passenger safety are the primary drivers of the region’s growth. For example, European authorities have required nearly all vehicle types to utilize Daytime Running Lights (DRLs). The European Union’s standards have forced automakers to integrate cutting-edge lighting systems. Advanced vehicle lighting solutions are considered a crucial technology in accomplishing the European Union’s aim of reducing road fatalities by 50% by 2030.
According to country-by-country data, Germany is thought to hold the most market share for vehicle lighting in Europe. Approximately 90% of all passenger automobiles made in Germany are class C and higher models. Trendy LED headlights, taillights, and in-cabin illumination are more in demand in mid- and full-size SUVs, luxury sedans, and coupes. Luxury car adoption is higher in other key EU nations like Spain, France, and the UK. Due to innovations unique to LED technology, such as matrix LED, OLED, and adaptive headlights that modify the light beam according to driving circumstances, improving visibility without glaring at oncoming traffic, LED technology is more widely used in modern cars. The technology offers the freedom to develop a wide range of new design options, allowing for countless practical and aesthetic modifications. As a result, automakers like AUDI, BMW, and Mercedes-Benz use this technology as a standard feature thanks to Tier-1 suppliers like OSRAM, Magnetic Marelli, and Hella.
Similar to this, the region is seeing a rise in the creation and use of intelligent car lighting systems that use ADAS technology, such as headlamps that react to steering angle, suspension movements, road curvatures, and oncoming traffic. The market for adaptive headlamps will be driven by this. Mercedes-Benz, Audi, Volvo, Volkswagen, and other passenger car models are increasingly incorporating these capabilities. By promoting the installation of these safety features in automobiles, European legislation aims to reduce fatalities. Advanced lighting systems, including as LED headlights for increased visibility and energy economy, are also included in LCVs sold by OEMs like Mercedes-Benz and Volkswagen. The demand for cutting-edge automotive lighting in the area will be fueled by these considerations.
Key Players
The Automotive Lighting Market is dominated by globally established players, such as Koito Manufacturing (Japan), Magnetic Marelli (Italy), Valeo (France), HELLA GmbH & Co. KGaA (Germany) and Stanley Electric (Japan).
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