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

UK Automotive LED Lighting Market Analysis

The UK Automotive LED Lighting Market size is estimated at 303 million USD in 2025, and is expected to reach 408.6 million USD by 2030, growing at a CAGR of 6.16% during the forecast period (2025-2030).

The UK automotive LED lighting industry is experiencing significant transformation driven by the rapid adoption of electric vehicles and technological innovations. As of May 2023, the UK had over 780,000 fully electric cars and 500,000 plug-in hybrids on its roads, demonstrating strong momentum in the transition to electric mobility. This shift has catalyzed innovations in automotive lighting systems, with manufacturers developing energy-efficient LED solutions specifically optimized for electric vehicles. Major automakers are incorporating advanced lighting features, as evidenced by Range Rover's February 2023 launch of the redesigned Velar, which showcases sophisticated LED technology including configurable cabin lighting with 30 interior color options and innovative ambient lighting solutions.

Technological advancements in automotive lighting systems are reshaping the industry landscape through the integration of smart and adaptive features. In September 2023, new regulations mandated all new cars sold in the UK to include intelligent speed assistance systems, which rely heavily on precise LED illumination for optimal functionality. Digital lighting technology, utilizing matrices of individually adjustable LED lights, has emerged as a prominent trend in the UK market. This innovation enables dynamic lighting effects and enhanced safety features, as demonstrated by Rolls-Royce's Spectre, which incorporates 22 LEDs in its illuminated grille design and features an advanced split headlamp configuration with ultra-slim LED DRLs.

The industry is witnessing substantial developments in sustainability initiatives and energy efficiency improvements. The UK government's strategic roadmap includes a comprehensive plan to retrofit approximately 105,000 lights on England's Strategic Road Network, with the goal of increasing the network's LED lighting percentage from 26% to at least 70% by March 2027. This initiative aligns with broader sustainability goals and demonstrates the growing emphasis on LED adoption in transportation infrastructure. Additionally, new car registrations in the UK showed strong growth, increasing by 21% year-over-year to 272,610 units in September 2023, with all-electric car registrations reaching 45,323 units, marking a 19% increase from the previous year.

Industry partnerships and collaborations are driving innovation in automotive smart lighting solutions. BMW Group, which accounted for 11% of UK pure electric registrations in 2022, has fostered strategic alliances through initiatives like the ISELED alliance, which focuses on developing comprehensive smart lighting systems for vehicle interiors. Major lighting manufacturers are actively engaging in technological partnerships to advance connectivity solutions and enhance lighting capabilities for autonomous vehicles. These collaborations are particularly significant in the development of advanced driver assistance systems (ADAS) and safety features that rely heavily on sophisticated automotive LED lighting technologies, marking a new era in automotive lighting innovation and integration.

UK Automotive LED Lighting Market Trends

Technological advancements by major automotive manufacturers and government laws to drive the growth of the LED market

• The total automobile vehicle production in the United Kingdom was 0.98 million units in 2022, and it is expected to reach 1.02 million units in 2023. The COVID-19 pandemic had a negative impact on the automotive industry in the United Kingdom. The production of cars in the United Kingdom dropped by 29.3% in 2020, reaching 920,928 units, the lowest number since 1984. All shipments to the United States, Japan, and Australia declined by -33.7%, -21.6%, and -21.8%, respectively. As a result of travel restrictions both inside and outside the country and the shutdown of UK manufacturing facilities, the demand for LED lighting in the automotive sector suffered.
• Major automakers in the nation include Aston Martin, Bentley, Caterham Cars, Daimler, Jaguar, Lagonda, Land Rover, Lister Cars, Lotus, McLaren, Mini, MOKE, Morgan, and Rolls-Royce. Automakers are constantly working to improve their automobiles with the newest technology. For instance, Rolls-Royce introduced the Spectre, the brand's first entirely electric vehicle, in October 2022. The grille is softly illuminated with 22 LEDs lighting up the sandblasted back side of each of the vans. The market for LED lights is driven by such innovation.
• New laws in the United Kingdom are encouraging the use of LED lighting. All new automobiles sold in the United Kingdom starting September 2023 must include an intelligent speed assistance (ISA) system. Another innovation in car lighting that is taking off in the country is digital lighting. Digital lighting uses a matrix of LED lights that can be individually adjusted to generate dynamic lighting effects. The trends in the United Kingdom are expected to drive the demand for LED lighting in the automotive industry during the forecast period.

The shift toward electric mobility through government initiatives may drive the growth of the LED market

• The number of electric vehicles in the United Kingdom is rapidly expanding due to rising consumer demand and increased availability of electric versions. By the end of May 2023, there were over 780,000 completely electric cars and 500,000 plug-in hybrids on UK roads. In 2016, there were 30,669 battery-electric cars in the country, reaching 784,968 by May 2023. More than 265,000 battery-electric vehicles were registered in 2022, a 40% increase over 2021.
• The British government strongly supports the people who choose EVs to increase the number of registered electric vehicles in the country. The UK government also announced a comprehensive electrification policy by 2030, and it is investing billions in the transport sector. Buyers can benefit from the Plug-In Grant, which offers a discount of up to EUR 2,500 (USD 2692.81) on new EVs. Scotland also offers interest-free loans on purchases of new and used EVs. EV owners are exempt from the Vehicle Excise Duty and can get a reduction in their Benefit-In-Kind tax rate.
• In December 2022, Ford Motor Co. (F.N) announced the investment of an extra GBP 149 million (USD 180 million) to boost the output of EV power units by 70% at its engine factory in northern England as the US carmaker accelerates its push to go electric. The production capacity of the Halewood plant's electric drive unit may increase from 250,000 units to 420,000 units per year, and it is planned to start in 2024. Automobile manufacturers are racing to develop and produce automotive LEDs due to the rising demand for EVs. LED car lights can help EVs save energy and extend their driving range, as they consume less power than halogen bulbs. Such benefits may further boost the demand for automotive LEDs in the United Kingdom.

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 lighting market in the United Kingdom, commanding approximately 40% of the market value share in 2024. The segment's prominence is driven by the increasing adoption of advanced automotive LED headlight technologies by major automotive manufacturers in the UK. Leading car makers are incorporating sophisticated LED headlight systems with features like adaptive beam control and enhanced illumination patterns. The implementation of new safety regulations requiring improved visibility standards has further strengthened the headlight segment's position. Premium vehicle manufacturers, in particular, are integrating high-performance automotive LED headlight systems with advanced functionalities like automatic high-beam control and cornering lights, contributing significantly to the segment's market leadership.

Reverse Light Segment in Automotive LED Lighting Market

The reverse light segment is emerging as the fastest-growing category in the UK's automotive LED lighting market, with projections indicating strong growth through 2029. This growth is primarily driven by increasing safety regulations and the rising demand for enhanced visibility features in vehicles. The segment is benefiting from technological advancements that allow for better integration with parking assistance systems and rear-view cameras. Automotive manufacturers are increasingly incorporating smart reverse lighting solutions that automatically adjust brightness based on ambient conditions and vehicle speed. The segment is also seeing innovation in terms of design aesthetics and energy efficiency, with new LED reverse light systems offering improved power consumption while maintaining optimal illumination levels.

Remaining Segments in Automotive Utility Lighting

The automotive utility lighting market encompasses several other important segments, including daytime running lights (DRL), directional signal lights, stop lights, tail lights, and other auxiliary lighting solutions. Each of these segments serves specific functional and safety purposes in modern vehicles. Daytime running lights have become increasingly important for vehicle visibility during daylight hours, while directional signal lights continue to be crucial for communication between vehicles. Stop lights and tail lights remain essential safety components, with manufacturers focusing on enhanced visibility and quick response times. The auxiliary lighting category includes various specialized applications such as fog lamps and automotive interior LED lighting solutions, contributing to both safety and aesthetic aspects of vehicle design.

Segment Analysis: Automotive Vehicle Lighting

Passenger Cars Segment in Automotive Vehicle LED Lighting Market

The passenger cars segment dominates the UK automotive LED lighting market, commanding approximately 91% of the total market value in 2024. This substantial market share is driven by increasing consumer demand for advanced lighting technologies and stringent safety regulations in the passenger vehicle segment. The segment's growth is further bolstered by the rising adoption of electric vehicles, with over 780,000 fully electric cars and 500,000 plug-in hybrids currently on UK roads. The UK government's commitment to promoting EVs through various incentives and grants, including the Net Zero Strategy and the Automotive Transformation Fund allocation of GBP 500 million until 2025, continues to drive the segment's expansion. Additionally, the implementation of new regulations requiring intelligent speed assistance systems in all new cars from September 2023, which rely heavily on advanced LED lighting systems, further strengthens the segment's market position.

Commercial Vehicles Segment in Automotive Vehicle LED Lighting Market

The commercial vehicles segment demonstrates significant growth potential in the UK automotive LED lighting market. The segment's expansion is primarily driven by the robust growth in the country's logistics and transportation sector, with the UK experiencing a substantial increase in commercial vehicle production. The growth is particularly notable in overseas markets, with exports of commercial vehicles increasing by 63.4% in recent years. The segment's development is further supported by government initiatives promoting zero-emission vehicles, including funding from competitions for hydrogen and electric HGV demonstrations under the GBP 140 million Zero Emission Road Freight Program. Additionally, the Advanced Propulsion Centre's funding of seven joint automotive research and development projects, totaling GBP 77 million, significantly contributes to the segment's technological advancement and market growth.

Remaining Segments in Automotive Vehicle Lighting

The two-wheeler segment, while representing a smaller portion of the market, plays a crucial role in the UK automotive LED lighting landscape. Despite facing challenges from rising inflation and lower consumer demand in urban areas, the segment maintains its significance through the growing popularity of electric motorcycles and e-bikes. The segment's development is supported by various government initiatives, including funding for new walking and cycling projects and the broader Transport Decarbonization Plan. The increasing focus on electric two-wheelers, coupled with innovations in automotive interior LED lighting technology specifically designed for motorcycles and e-bikes, continues to shape this segment's evolution in the market.

Free With This Report

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.