Global Automotive Lighting Market Analysis Report 2023-2028: LEDs, OLEDs, and Laser Lights - Technological Advancements Reshape Automotive Lighting - ResearchAndMarkets.com

The "Global Automotive Lighting Market: Analysis By Technology, By Vehicle Type, By Position, By Sales Channel, By Region Size and Trends With Impact Of COVID-19 and Forecast Up To 2028" report has been added to ResearchAndMarkets.com's offering.

The global automotive lighting market in 2022 stood at US$33.67 billion, and is likely to reach US$48.80 billion by 2028. The global automotive lighting market value is projected to grow at a CAGR of 6.38%, during the forecast period of 2023-2028.

One of the reasons leading to the rising demand for automotive lighting in recent years is the increased emphasis on safety and visibility. As automotive technology advances, there is a growing awareness among consumers and regulatory bodies about the crucial role that lighting systems play in ensuring road safety. Thus, representing a need and large market opportunity for the automotive lighting market.

Some other factors driving the rise in automotive lighting demand include the rising disposable income and improved lifestyle which has led to increased sales of automobiles globally. Additional trends include the styling and individualization of cars, interior lighting, electrification, new functions, rising electronics content, the increased sophistication of products, and ongoing technological advancements like introduction of LEDs, OLEDs, laser lights, adaptive lighting system. In the coming years, these improvements or trends are expected to significantly stimulate demand for automotive lighting.

Global Automotive lighting Market Dynamics:

Growth Drivers: Increasing sales and production of automotive vehicles has the potential to boost the growth of the automotive lighting market. When the automotive industry experiences growth, there is a parallel surge in the demand for automotive lighting components. This is because every vehicle requires lighting systems for safety and compliance with regulations.

As more vehicles are manufactured and sold, the need for headlights, taillights, turn signals, and interior lighting also rises. Further, the market is expected to increase due to rising disposable income, increasing number of road accidents, stringent government regulation, replacement exposure etc.

Challenges: High cost of LED lighting can present challenge for the automotive lighting market. LED technology comes with a higher initial cost compared to traditional lighting sources such as halogen or incandescent bulbs.

This is due to the significant investment required in research, development, and production, as well as the increased heat emission and additional installation costs. Despite its superior performance, this cost remains a barrier. Other challenge that automotive lighting market faces are shortage of raw materials like semiconductor.

Trends: A major trend gaining pace in automotive lighting market is personalization and pay-per-use. The global automotive lighting market is set to see a shift towards customization and innovative payment models. Carmakers are offering customers the ability to personalize their vehicle's lighting, using LED and OLED technologies for flexible designs. Pay-per-use features, such as adaptive lighting or high-definition projectors, can be offered as optional extras.

This aligns with sustainability efforts and user-centric vehicle design. Also, ambient lighting in automotive design is becoming a key element, enhancing the aesthetic and functional interior environment. As cars evolved from transportation to mobile living spaces, ambient lighting became an integral part of the design language, enhancing the emotional experience for drivers and passengers.

More trends in the market are believed to augment the growth of automotive lighting market during the forecasted period include connectivity and digitalization, electrification, autonomous driving and technological advancements in lighting systems like introduction of uAFS LED headlights, flexible OLEDs, laser lights and adaptive lighting systems etc.

Market Segmentation Analysis:

Technology: The market is segmented into three main technology segments: Halogen, LED, and Xenon. Halogen lighting has historically been the most common and cost-effective lighting technology. LED lighting is the fastest-growing segment due to its efficiency and adaptability. The shift towards electrification and autonomous driving is expected to further boost the growth of LED technology.

Position: Automotive lighting can be categorized based on its position on the vehicle. The segments include Front Lighting/Headlamps, Rear Lighting, Interior Lighting, and Others.

Front lighting or headlamps are crucial for driver visibility and road safety and are mandated in all vehicles. However, interior lighting is the fastest-growing segment as it enhances the overall driving experience and aesthetics, with LED technology allowing for customizable and dynamic interior lighting.

Vehicle Type: The market can also be divided into two vehicle types: Passenger Vehicles and Commercial Vehicles. Passenger vehicles dominate the market, driven by consumer demand for advanced safety features and innovative lighting technologies. As consumers seek more sophisticated and technologically advanced features in their vehicles, passenger cars are experiencing rapid growth in the adoption of advanced lighting systems.

Sales Channel: The automotive lighting market is further categorized into two sales channels: OEMs (Original Equipment Manufacturers) and Aftermarket.

OEMs hold the majority of the market share and are the fastest-growing segment. OEMs prioritize safety and efficiency, and their parts are guaranteed to fit and come with manufacturer-backed warranties. Collaborations between OEMs and lighting technology providers enable seamless integration of innovative lighting features.

Region: Asia Pacific holds the highest market share and is expected to grow at the fastest rate. Factors driving this growth include increasing vehicle production, rising road fatalities, consumer preferences for advanced features, stringent safety regulations, high disposable income, and the sales of luxury cars.

Within Asia Pacific, China is the strongest market due to its focus on vehicle production and technological advances in automotive lighting. However, India is anticipated to experience the fastest growth in the region, driven by demand for premium vehicles and the introduction of new models, as well as increasing customer preferences for aesthetically pleasing automobile lights and strict safety regulations.

Competitive Landscape and Recent Developments:

The key players are constantly investing in strategic initiatives, such as adoption of new technologies, introducing their services to emerging markets, mergers and acquisitions, and more, to maintain a competitive edge in this market. For instance, recently, Faurecia acquired Hella and Plastic Omnium acquired Varroc/Osram.

Faurecia and Plastic Omnium are becoming important players in the automotive lighting (AL) market following the respective acquisitions of Hella and Varroc/Osram. They join Valeo, a historic major market player. Now, the three largest listed French OE suppliers are directly involved in global AL, with two in the top three and Plastic Omnium immediately joining the top ten.

Global automotive lighting market is competitive with the top six players controlling more than 75% of the global market. It is estimated that Valeo leads the global automotive lighting market along with Koito.

Market Dynamics

Growth Drivers

• Rising Disposable Income
• Increasing Sales and Production of Vehicles
• Increasing Number of Road Accidents
• Favorable Government Regulations
• Replacement Exposure

Challenges

• Shortage of semiconductor
• High Cost of LED Lighting

Market Trends

• Flexible OLEDs in Vehicle Lighting
• Laser Lights for Headlights
• uAFS LED Headlights
• Interior Lighting
• Electrification
• Autonomous Driving
• Adaptive Lighting System
• Connectivity and Digitalization
• Personalization

Key players of global automotive lighting market are:

• SL Corporation
• Stanley Electric Co., Ltd.
• Valeo S.A.
• LG Electronics (ZKW)
• Lumax Industries Ltd.
• Koito Manufacturing Co., Ltd.
• Forvia
• Plastic Omnium
• Koninklijke Philips NV.
• Marelli Holdings Co., Ltd

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