Automotive LED Lighting Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Global Automotive LED Lighting Market Trends

The increasing demand for EVs is anticipated to raise the market value

• The total automobile production globally was 143.96 million units in 2022, and it was expected to reach 150.92 million units in 2023. The gathered data indicated a 16% reduction in the manufacturing of automotive cars in 2020, following a dismal 2019, which already showed a noticeable decline of roughly 5% in global auto output. The average decline across all of Europe was more than 21%. Sharp decreases in all major producing nations ranged from 11% to roughly 40%. Manufacturing in Europe accounted for roughly 22% of the total production. Vehicle manufacturing in the Americas accounted for 20% of global production in 2020. The African continent had a severe decrease of more than 35% in manufacturing. Asia, on the other hand, held up very well, with a decline of only 10%. According to the numbers provided, the COVID-19 pandemic had a tremendous impact on the automotive industry, which decreased the demand for LEDs.
• Volkswagen Group, Stellantis, Mercedes-Benz, BMW, Porsche, Hurtan, GTA Motors, Audi, TATA Motors, Mahindra & Mahindra, SAIC Motor, Hyundai Motor Company, Kia Corporation, KG Mobility, and Renault Korea Motors are the major automotive manufacturing companies globally. In 2022, there were more than 10 million electric vehicle sales worldwide, and the sales in 2023 were anticipated to increase by another 35% to a total of 14 million. Due to this rapid expansion, the market share of electric automobiles increased from 4% in 2020 to 14% in 2022. In addition, as more electric vehicles are being used, there is a rising demand for automotive semiconductor chips because they require more processors per vehicle than conventional cars. The market for LED lighting is expected to benefit from the increase in semiconductor demand in the automobile industry.

The increasing number of battery swapping stations and battery recycling service outlets and the rising demand for EVs are expected to drive the growth of the market

• The EV markets are expanding at an exponential rate, with sales exceeding 10 million in 2022. In 2022, electric vehicles accounted for 14% of all new vehicle sales, up from roughly 9% in 2021 and less than 5% in 2020. Global sales were led by three markets. China was the leader, accounting for almost 60% of global electric vehicle sales. China accounts for more than half of all the electric vehicles on the road worldwide, and the government has already exceeded its 2025 target for new energy vehicle sales.
• By 2022, China had 1,973 battery swapping stations, including 675 built in 2022 and over 10,000 power battery recycling service outlets. Thus, the rapid growth of charging facilities indicates the booming new energy vehicle (NEV) sector in the country. In October 2022, the German government unveiled plans to boost charging infrastructure for electric vehicles. The plan consisted of a EUR 6.3 billion (USD 6.17 billion) proposal that would increase the number of charging points across the country to 1 million by 2030.
• In major markets, electric car sales were normally low in 2022, but it was a growth year in India, Thailand, and Indonesia. Sales of electric vehicles in these countries more than tripled since 2021, reaching 80,000 units. In the United States, the Inflation Reduction Act (IRA), combined with a number of states adopting California's Advanced Clean Cars II rule, is likely to produce a 50% market share for electric cars in 2030, in line with the national target. Considering the abovementioned instances, key manufacturers across the world are expected to invest more in developing and producing automotive LEDs.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Automotive Utility Lighting

Headlights Segment in Automotive LED Lighting Market

Headlights continue to dominate the automotive LED headlamps market, commanding approximately 52% of the total market value in 2024. This significant market share is driven by stringent safety regulations and the increasing adoption of advanced automotive LED headlight technologies in both conventional and electric vehicles. The segment's prominence is further reinforced by innovations in adaptive driving beam (ADB) technology and the integration of smart lighting features. For instance, Hyundai Mobis has recently introduced the HD Lighting System, a revolutionary headlight technology that projects clear LED light and displays real-time driving data, utilizing light sources with a thickness of just 0.04mm and incorporating 25,000 HD MicroLED pixels. The segment's growth is also supported by the rising demand for energy-efficient lighting solutions in electric vehicles, where power consumption optimization is crucial for extending range.

Directional Signal Lights Segment in Automotive LED Lighting Market

The directional signal lights segment is experiencing rapid growth in the automotive exterior LED lighting market, driven by increasing safety requirements and technological advancements. The segment's expansion is supported by the growing integration of smart signaling systems in modern vehicles and the rising demand for more sophisticated lighting solutions. Manufacturers are focusing on developing innovative LED signal light technologies that offer enhanced visibility and energy efficiency. The adoption of dynamic turn signals and sequential lighting patterns is becoming increasingly common, particularly in premium vehicle segments. This trend is further accelerated by the automotive industry's shift towards electric vehicles, where advanced LED signaling systems are becoming standard features. The segment is also benefiting from the development of integrated lighting solutions that combine multiple functions while maintaining high safety standards and aesthetic appeal.

Remaining Segments in Automotive Utility Lighting

The automotive utility lighting market encompasses several other important segments including daytime running lights (DRL), reverse lights, stop lights, tail lights, and other auxiliary lighting solutions. Each of these segments plays a crucial role in vehicle safety and functionality. Daytime running lights have become increasingly important due to safety regulations in many regions, while stop lights and tail lights are essential for vehicle visibility and communication with other road users. Reverse lights continue to evolve with the integration of smart features and enhanced brightness capabilities. The "Others" category includes various innovative lighting solutions such as ambient lighting, puddle lamps, and specialized signal lights, which are gaining prominence in modern vehicle designs. These segments collectively contribute to the comprehensive lighting ecosystem in modern vehicles, with manufacturers continuously innovating to improve both functionality and aesthetic appeal.

Segment Analysis: Automotive Vehicle Lighting

Commercial Vehicles Segment in Automotive LED Lighting Market

Commercial vehicles represent the dominant segment in the automotive LED headlamps market, commanding approximately 38% market share in 2024. This significant market position is driven by the expanding domestic logistics industry and increasing adoption of electric commercial vehicles globally. The segment's growth is particularly notable in key markets like China, where medium and heavy-duty electric trucks accounted for about 80% of global sales. Major automotive manufacturers are increasingly investing in commercial electric vehicle production facilities, with companies like GM Canada investing significantly in transforming their manufacturing facilities for electric vehicle production. The implementation of stringent safety regulations and the need for enhanced visibility in commercial vehicles has also contributed to the increased adoption of LED lighting solutions in this segment.

2 Wheelers Segment in Automotive LED Lighting Market

The two-wheeler segment is emerging as the fastest-growing category in the automotive LED lighting market for the period 2024-2029. This rapid growth is primarily driven by the increasing adoption of electric two-wheelers across various regions, particularly in Asia-Pacific markets. The segment's expansion is supported by technological advancements and government initiatives promoting electric mobility. For instance, Indonesia's ambitious target of having 2.5 million electric vehicles on the road by 2025, including 2 million motorcycles, exemplifies the strong growth potential. Local governments in regions like Taiwan have implemented various incentives to encourage scooter manufacturers to transition to electric motors, while countries like India have witnessed record-breaking retail sales of electric two-wheelers, demonstrating the segment's robust growth trajectory.

Remaining Segments in Automotive Vehicle Lighting

The passenger cars segment continues to play a crucial role in shaping the automotive LED lighting market landscape. This segment's significance is particularly evident in the implementation of advanced lighting technologies and innovative designs. The segment has been at the forefront of adopting sophisticated LED lighting solutions, including adaptive driving beam systems and matrix LED headlights. The integration of smart lighting features in passenger vehicles has set new standards for safety and aesthetic appeal in the automotive industry, influencing overall market trends and technological advancements in vehicle lighting systems.

Automotive LED Lighting Market Geography Segment Analysis

Automotive LED Lighting Market in China

China continues to dominate the global automotive LED lighting market, commanding approximately 27% of the global market share in 2024. The country's leadership position is reinforced by its robust electric vehicle ecosystem, with the world's largest charging infrastructure network. The government's strong push toward vehicle electrification has accelerated the adoption of advanced lighting technologies, particularly in premium and luxury vehicle segments. Chinese manufacturers have significantly invested in LED technology development, focusing on innovative solutions like adaptive driving beam systems and matrix LED headlights. The domestic market has also witnessed increased collaboration between local LED manufacturers and global automotive companies, fostering technological advancement and market expansion. The country's automotive LED lighting industry has particularly benefited from the growing domestic EV production, with local manufacturers incorporating sophisticated LED lighting systems as standard features in their vehicle designs.

Automotive LED Lighting Market in Brazil

Brazil has emerged as one of the most dynamic markets in the automotive LED lighting sector, projected to grow at approximately 13% annually from 2024 to 2029. The country's automotive lighting industry is undergoing a significant transformation, driven by stringent safety regulations and increasing consumer preference for advanced lighting technologies. Brazil's position as South America's largest automotive market has attracted substantial investments from global LED lighting manufacturers, who are establishing local production facilities to serve the growing demand. The country's shift toward electric mobility has created new opportunities for LED lighting integration, particularly in the premium vehicle segment. Local manufacturers are increasingly focusing on developing cost-effective LED solutions to cater to the mid-range vehicle market, while maintaining compliance with international safety standards. The government's support for automotive manufacturing and emphasis on vehicle safety features has further accelerated the adoption of LED lighting technologies.

Automotive LED Lighting Market in the United States

The United States represents a highly sophisticated market for automotive LED lighting, characterized by rapid technological adoption and stringent safety regulations. The country's automotive sector has witnessed a significant shift toward advanced lighting solutions, particularly in the electric vehicle segment. American consumers' increasing preference for vehicles with advanced safety features has driven the demand for sophisticated LED lighting systems, including adaptive headlights and intelligent lighting controls. The country's robust automotive manufacturing base and strong presence of leading LED technology providers have facilitated continuous innovation in automotive lighting solutions. The implementation of new safety standards and energy efficiency requirements has further accelerated the transition from traditional lighting to LED systems across various vehicle categories. The market has also benefited from substantial investments in research and development, leading to the introduction of cutting-edge lighting technologies.

Automotive LED Lighting Market in Germany

Germany maintains its position as a key European market for automotive LED lighting, driven by its strong automotive manufacturing heritage and technological leadership. The country's automotive industry has been at the forefront of LED lighting innovation, with German manufacturers setting global benchmarks for lighting technology and design. The market has witnessed significant developments in advanced lighting systems, particularly in the premium vehicle segment where German automakers have introduced sophisticated LED matrix systems and adaptive lighting solutions. The country's commitment to vehicle electrification has created new opportunities for LED lighting integration, with manufacturers focusing on energy-efficient lighting solutions for electric vehicles. The presence of major automotive lighting research centers and development facilities has fostered continuous innovation in LED technology.

Automotive LED Lighting Market in Other Countries

Beyond the major markets, the automotive LED lighting industry shows varying degrees of development across different regions. Countries like Japan, South Korea, and France have established strong positions in automotive LED technology development, while emerging markets such as India, Mexico, and Thailand are experiencing rapid growth in LED adoption. European nations including Spain, Italy, and the United Kingdom have shown consistent market development, driven by strict safety regulations and consumer preferences for advanced lighting technologies. In the Middle East, countries like the UAE and Saudi Arabia are witnessing increased adoption of premium vehicles with advanced LED lighting systems. Southeast Asian nations are emerging as important manufacturing hubs for automotive LED components, while Eastern European countries are seeing growing integration of LED lighting in their automotive manufacturing sectors. The market dynamics in these regions are shaped by factors such as local manufacturing capabilities, regulatory frameworks, and consumer preferences for vehicle safety features.

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We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 40+ free charts, the sections cover difficult to find data on various countries on Automotive Production, Lighting Electricity Consumption, Road Network, Number of Stadiums, Number of Charging Stations among others.