Automotive Lighting Market [2021-2031] - Size and Share
The automotive lighting market size is projected to reach US$ 31.40 billion by 2031 from US$ 21.30 billion in 2023. The market is expected to register a CAGR of 4.97% in 2023–2031. The surge in the sales of premium and luxury cars is driving the automotive lighting market, and it is also providing growth prospects to lighting suppliers.
Automotive Lighting Market Analysis
The automotive lighting ecosystem consists of the following major stakeholders, namely: raw material suppliers, automotive lighting manufacturers/OEMs, and end-users. The raw material suppliers include vendors who provide key raw materials components for automotive lighting such as copper, aluminum, LEDs, and Laser diodes, among others. Automotive lighting manufacturers/OESs such as Osram-Continental, Lumileds, Hella, Valeo, and Automotive-Lighting, among others, integrate and develop automotive lighting for various types of vehicle types. Automotive OEMS share the vehicle-specific headlight, taillight, and signaling lights or blueprints with the vendors. The vendors come up with unique quotations to bid for the supplier's agreement. The vendor who got selected then provides the vehicle-specific lighting systems throughout the tenure of the tender agreement. OEMs integrate these lighting components into their final vehicle.
Automotive Lighting Market Overview
Currently, LED matrix lighting solutions dominate the total automotive lighting implementations. The matrix laser technology is anticipated to further enhance roadway illumination through its high resolution characteristics. The matrix laser technology is based on the LaserSpot for high-beam lamps. With the matrix laser technology, it has become possible to converge the projector technology in the headlamps of the passenger cars. The luminance factor of the lasers is approximately five-times greater than other light sources available in the market, and therefore, the laser headlamps provide higher beam ranges to the vehicle drivers. The beam range of a typical laser headlight ranges above 500 m. The BMW i8 and BMW 7 are the other car series of passenger cars that feature laser-integrated headlights.
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Automotive Lighting Market: Strategic Insights
Market Size Value in US$ 30.50 Billion in 2018 Market Size Value by US$ 40.41 Billion by 2027 Growth rate CAGR of 3.3% from 2019-2027 Forecast Period 2019-2027 Base Year 2019
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Automotive Lighting Market: Strategic Insights
| Market Size Value in | US$ 30.50 Billion in 2018 |
| Market Size Value by | US$ 40.41 Billion by 2027 |
| Growth rate | CAGR of 3.3% from 2019-2027 |
| Forecast Period | 2019-2027 |
| Base Year | 2019 |
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Automotive Lighting Market Drivers and Opportunities
Increasing sales of premium and luxury car owing to rising disposable income
In the developed countries where consumers have huge disposable incomes, it has been witnessed that with the rise of the vehicular population, consumer preferences for buying passenger cars differs. As a result, cost- and fuel-efficiency are no longer the primary criteria for the purchase of these cars; instead, the purchases more depend on the comfort and luxury provided with them. Moreover, consumers are increasingly evaluating lighting systems and car ergonomics while making the selections.
Growing demand for LED automotive exterior lighting
As per the data from National Highway Traffic Safety Administration (NHTSA), despite only 25% of the total driving time of passenger vehicles at night, ~50% of all passenger vehicle fatalities occur in the dark. This has been mainly due to the inappropriate visibility and improper illumination on roads, and insufficient illuminations provided by the headlamps of the vehicles. Safety concerns have bolstered the automakers to look for a safer alternative. The LEDriving fog lights by OSRAM are remarkable in terms of innovation, design, and performance. Moreover, Philips has AirFlux and AirCool technologies to offer, which help control the heat produced by LED fog lights. These are smart cooling systems that avert heat from the light's critical component, thereby increasing heat resistance and effectively extending the lifespan of LEDs.
Automotive Lighting Market Report Segmentation Analysis
Key segments that contributed to the derivation of the automotive lighting market analysis are technology, application, and vehicle type.
- Based on technology, the automotive lighting market has been divided into halogen, LED, xenon, and laser. The LED segment held a larger market share in 2023.
- Based on application, the automotive lighting market is segmented into headlamp, rear lighting, interior lighting, CHMSL, fog lamps, and small lamps. The headlamp segment held the largest share of the market in 2023.
- Based on vehicle type, the automotive lighting market has been divided into passenger cars, LCV, and MCV & HCV. The passenger cars segment held a larger market share in 2023.
Automotive Lighting Market Analysis by Geography
The geographic scope of the automotive lighting market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.
The scope of the automotive lighting market report encompasses North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). In terms of revenue, APAC dominated the automotive lighting market share in 2023. Europe is the second-largest contributor to the global automotive lighting market, followed by North America.
Automotive Lighting Market Report Scope
Automotive Lighting Market News and Recent Developments
The automotive lighting market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for automotive lighting market and strategies:
- On July 2023, Marelli, together with ams OSRAM launches a ground-breaking innovation in automotive front lighting, introducing the h-Digi® microLED module, which is now in series production. This digital lighting solution, based on a new type of intelligent multipixel LED, enables fully adaptive, dynamic headlight operation and image projection, while being an affordable technology, available for a wider range of vehicles. (Source: Marelli, Press Release/Company Website/Newsletter)
- On December 2023, OLEDWorks announced that it will showcase the latest OLED lighting technology for the automotive industry and redefine the landscape with the launch of an exciting new brand at CES 2024. The OLEDWorks team, comprised of OLED technical experts and customer solution strategists, eagerly anticipates welcoming attendees to booth #3225 in the West Hall of the Las Vegas Convention Center, where they can experience the cutting-edge innovations that will shape the future of automotive lighting. (Source: OLEDWorks, Press Release/Company Website/Newsletter)
Automotive Lighting Market Report Coverage and Deliverables
The “Automotive Lighting Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed Porter’s Five Forces analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles with SWOT analysis
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Technology ; Application ; Vehicle Type
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, South Africa, South Korea, United Kingdom, United States
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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