Market Snapshot
| Study Period: | 2018 - 2026 |
| Base Year: | 2020 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | Asia Pacific |
| CAGR: | 6.55 % |
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Market Overview
The automotive lighting market was valued at USD 26.49 billion in 2020, and it is expected to reach USD 39.77 billion by 2026, projecting a CAGR of 6.55% during the forecast period.
Global sales of cars and SUVs fell to just under 77 million units in 2020, down from a peak of almost 94.35 million units in 2017. The sector is projected to experience a downward trend on the back of a slowing global economy and the advent of the coronavirus pandemic in all key economies.
Vehicle manufacturers are showing great interest in integrating LED lights in vehicles, as these lights consume less power and have a longer life when compared to halogen and HID lights. Furthermore, LED lights offer durability and strength, have high-quality light-emitting diodes, and are superior to all other forms of lighting technology.
The automotive manufacturers are developing new lighting technologies and are focusing on the major lighting components, such as headlights. They are entering into partnerships to be ahead in the competition within the market. Headlights are a major factor in providing a safe environment for driving at night. For instance, Volkswagen partnered with Hella to develop IQ.LIGHT LED headlamps. The new luxury-class Touareg SUV uses the IQ.LIGHT-LED Matrix Headlamps and 256 LEDs.
Scope of the Report
The automotive lighting market has been segmented on the basis of vehicle type (passenger cars and commercial vehicles), application type (interior lighting and exterior lighting), technology (halogen, xenon, LED, and other technologies), and sales channel (OEM and aftermarket). The report also covers market size and forecast for the automotive lighting market in 17 countries across the major regions. The report offers the market size of and forecast for the automotive lighting market in value (in USD billion) for all the above segments.
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Key Market Trends
Growing Demand for Cabin Comfort and Luxury Features
The automotive industry is in the midst of a technological revolution characterized by the convergence of new technology with traditional car manufacturing. With the increasing trend of electric vehicles, automotive lighting manufacturers are developing new lighting technologies to replace the old traditional lights. Electric vehicle manufacturers are launching new vehicle models with the best cabin interiors. For instance, in September 2020, Lucid Motors launched Lucid Air, a luxurious electric sedan that offers a full-size luxury-class interior, which is based on Lucid's exclusive Space Concept philosophy.
Upcoming interior lighting developments will be mainly driven by safety, communication, comfort, and styling demands. Light projections, smart LEDs, micro-LEDs, smart functional surfaces, laser-based lighting, guiding materials for 3D light patterns on-demand, and area backlighting with hidden-until-lit effects are some of the new lighting technologies.
Cabin lights are gaining popularity. They mainly include reading lights and dashboard lights. Interior lights include various applications in the form of reading lamps, ambient interior lighting systems, and roof modules with optimized light guide technology. Additionally, the adaptive lighting system is seeing a positive growth rate, although their demands remain much smaller than LED lights.
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Asia-Pacific is Leading the Automotive Lighting Market
Geographically, the automotive lighting market is led by the Asia-Pacific region, followed by the European and North American regions. Some of the major factors driving the growth of the markets in these regions are -
- An increase in the demand for and the sales of luxury cars.
- An increase in the production of vehicles.
- An increase in the sales of and demand for commercial vehicles, owing to the growing logistics industry (primarily due to the propelling e-commerce sector in the region) and the construction industry.
- A rise in the sales of low-cost vehicles, due to an increase in the disposable incomes of middle-class consumers.
- An increase in the number of accidents, especially during the night.
Europe has been recognized as a major region, focusing on both passengers and pedestrian safety and implementing safety standards for vehicles. The regional automotive manufacturers and the automotive component suppliers have been continually investing in the R&D of safety technologies. With rapid technological advancements in the automotive industry, the European region is expected to play a major role in the global automotive lighting market. The region is home to numerous major manufacturers, such as Hella KGaA Hueck & Co., Philips, OSRAM Licht AG, Valeo, Zizala, Robert Bosch, and ZKW.
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Competitive Landscape
The automotive lighting market is fairly consolidated with key players such as Koito Manufacturing, Valeo Group, Magneti Marelli, Stanley Electric, Hella, Lumax Industries, Zizila Lichtsysteme, Osram, and Tungsram. Companies are entering into joint ventures and are expanding their global presence. For instance,
- Valeo announced the acquisition of 10.5% of the stake in Aledia, a technology startup company dedicated to the development of cutting-edge LED technology for general and automotive lighting.
- Koito Automotive inaugurated the Hubei Koito Automotive Lamp Co. Ltd plant in China.
- ZKW started the production of the world's first laser-beam headlamps for the BMW i8.
- In 2017, Osram India launched a new automotive lighting solution called Rallye, which is compatible with two-wheelers, four-wheelers, and other commercial vehicles. The product is being manufactured in Osram’s manufacturing plants in Germany and China.
Recent Developments
In November 2019 - Stanley Electric Co. Ltd invested in Electropolymers (Private) Limited, a company primarily involved in the manufacture of automotive and motorcycle lights in Pakistan, with the aim of further strengthening business operations in the Asian region.
In August 2019 - Magneti Marelli SpA partnered with China-based Highly Group to establish a joint venture, which may be created to develop compressors and heating, ventilation, and air conditioning (HVAC).
In January 2020 - Hella launched Hella FlatLight technologies, a new lighting innovation for rear combination lamps. The optics, which are only a few micrometers in size, allow the diffraction properties of light to be exploited.
In July 2021 - Samvardhana Motherson Automotive Systems Group BV (SMRPBV), (a Motherson Group company), has signed an MoU (Memorandum of Understanding) with Marelli Automotive Lighting to explore a new technological partnership focused on smart illuminated exterior body parts.x`
In June 2021, Hyundai Mobis has developed new ‘lighting grille’ technology, which implements an LED lighting function in the front grille of a car. Hyundai Mobis’ ‘lighting grille’ technology can use the entire front grille of the car as a lighting device. It is characterised by being able to implement various scenarios such as the autonomous driving mode, the EV charging mode, the welcome light function, the sound beat display, and an emergency warning light display.
In May 2021, OSRAM Continental and REHAU announced a development partnership for fusion of exterior components with light to provide automotive manufacturers with innovative lighting solutions with more design freedom and functionality.
In April 2021 Shanghai Auto Show, Valeo is announced the development of the first 360° lighting solution. The technology surrounds the vehicle with a band of light, which projects clear, simple, and instantaneous indications that can be seen by nearby road users, especially vulnerable road users such as cyclists and people on scooters and motor scooters.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Challenges
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Vehicle Type
5.1.1 Passenger Cars
5.1.2 Commercial Vehicles
5.2 By Application Type
5.2.1 Interior Lighting
5.2.1.1 Ambient Lighting
5.2.1.2 Footwell Lights
5.2.1.3 Roof Lights
5.2.1.4 Boot Lights
5.2.2 Exterior Lighting
5.2.2.1 Headlamps
5.2.2.2 Fog Lamps
5.2.2.3 Taillights
5.2.2.4 Daytime Running Lights (DRLs)
5.2.2.5 Puddle Lamps
5.2.2.6 High Mounted Stop Lamp
5.3 By Technology
5.3.1 Halogen
5.3.2 Xenon
5.3.3 LED
5.3.4 Other Technologies
5.4 By Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 Rest of the World
5.4.4.1 Brazil
5.4.4.2 Saudi Arabia
5.4.4.3 United Arab Emirates
5.4.4.4 Other Countries
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Koito Manufacturing Co. Ltd
6.2.2 Stanley Electric Co. Ltd
6.2.3 Valeo Group
6.2.4 Magneti Marelli SpA
6.2.5 HELLA KGaA Hueck & Co.
6.2.6 Tungsram
6.2.7 Hyundai Mobis
6.2.8 Lumax Industries
6.2.9 Osram
6.2.10 Philips
6.2.11 Zizala Lichtsysteme
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Automotive Lighting Market market is studied from 2018 - 2026.
What is the growth rate of Automotive Lighting Market?
The Automotive Lighting Market is growing at a CAGR of 6.55% over the next 5 years.
What is Automotive Lighting Market size in 2018?
The Automotive Lighting Market is valued at 30 Billion USD in 2018.
What is Automotive Lighting Market size in 2026?
The Automotive Lighting Market is valued at 39 Billion USD in 2026.
Which region has highest growth rate in Automotive Lighting Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive Lighting Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Automotive Lighting Market?
Koito Manufacturing Co. Ltd, Stanley Electric Co. Ltd, Valeo Group, Magneti Marelli SpA, HELLA KGaA Hueck & Co. are the major companies operating in Automotive Lighting Market.
