The global automotive lighting market was valued at USD 19.15 Billion and expected to reach USD 31.46 Billion by 2027, with a compound annual growth rate (CAGR) of 6.4% during the forecast period 2020 to 2027.
Increasing sales and production of automotive vehicle across the world expected to drive the demand for automotive lighting during the forecast period. Rising disposable income, rising need for transportation services, and improvement in lifestyle are the major factors that boost the production of automotive vehicle, thereby propelling the growth of automotive lighting. Furthermore, government regulation for automotive lighting along with rising concern for road safety are some of the prime factors that drive the automotive lighting market growth. Increased number of road accidents is the major cause to propel the demand for adaptive lighting system along with safety features in the automobile. Vehicles with advanced and adaptive lighting can detect objects on road; this prevents the upcoming accident by alerting the driver in proper time to take necessary action. Furthermore, rising demand for vehicle as well as driver safety as a concern regarding increasing accident cases eventually leads to the deployment of efficient lighting systems that provides optimum illumination on road.
In 2019, halogen technology led the global automotive lighting market with prominent revenue share and expected to register stagnant growth over the forecast period. Easy availability along with less replacement & purchasing cost of the halogen lights are few factors that drive the growth of the segment. They are easily available at low cost and in different dimensions that make them a preferred choice for the consumers. Besides this, excessive heat loss during light radiation restricts the usage of halogen.
As a counterpart, Light Emitting Diode (LED) technology registers lucrative growth over the forecast period. This is primarily attributed to its diverse applications such as brake lights and indicators. Furthermore, their benefits such as energy saving and optimum as well as constant illumination contribute as the other major factors to drive their adoption in automotive lighting industry. Presently, LEDs have penetrated in almost every automotive lighting application along with headlamp sector.
The front/headlamps application segment estimated to register significant growth prospect over the forecast period. This is mainly attributed to the rising advancement in the headlamps along with incorporation LED technology in the front view lighting sector. In electric or battery-powered vehicles energy saving is a prominent aspect and implementation of LED fulfills the requirement for energy saving, thus flourishing demand for electric cars or vehicles expected to drive the growth for LED demand in headlamps segment. Further, adaptive lighting are the most demanded safety features in the advanced vehicles to enhance the driver’s visibility also in low lighting condition.
Rear lights are the lighting solution mounted on the back side of the vehicle that comprises indicators, tail lights, brake, and back-up lights. These lights are the most important lighting system that indicates or alerts other drivers on road about the vehicle position, direction, and movement. Presently, halogen lighting is commonly used lighting technology for rear lights in a vehicle; however, LEDs are expected to emerge as the prominent solution in vehicles during analysis period.
The Asia Pacific emerged as the most promising region in the global automotive lighting market with significant revenue share of nearly 40% in 2019 and anticipated to witness the fastest growth over the analysis period. This is primarily due to the high production and sales of passenger vehicles in the region. Increasing purchasing power of the consumers along with rising GDP in the emerging economies attributed to the significant demand for passenger vehicle sales in the region. Further, China, India, Japan, and Taiwan are the major automotive manufacturing hub, thereby fuelling the growth of automotive lights production in the region. In addition, rising number of road accidents in the region are likely to boost the aftermarket sales of automotive lighting. Automotive lighting cover or mirror are the most critical part and easily break while collision, thus automotive lighting is one of the most replaceable part of the automotive vehicle.
Key Companies & Market Share Insights
The global automotive lighting market consist of large number of players operating in the market; however, is consolidated and dominated by some of the major players that include Hella, Stanley Electrics, Hyundai Mobis, Valeo, ZizalaLichtsysteme, Philips, and General Electrics. The degree of competition among these players is very high as they invest significantly on the new product development, and other inorganic growth strategies. For instance, in 2017, Osram India introduced Rallye, a new automotive lighting solutions that is compatible with four-wheelers, two-wheelers, and other commercial vehicles.
Some of the conspicuous market contestants in the global automotive lighting market are as follows:
Report Scope of the Automotive Lighting Market
|Market Size||USD 31.46 Billion by 2027|
|Growth Rate||CAGR of 6.4% from 2021 to 2027|
|Largest Market||Asia Pacific|
|Fastest Growing Market||North America|
|Forecast Period||2021 to 2027|
|Segments Covered||Technology, Product, Vehicle, Application, Region|
|Companies Mentioned||Hella, Stanley Electrics, Hyundai Mobis, Valeo, ZizalaLichtsysteme, Philips, and General Electrics|
Segments Covered in the Report
This research study comprises complete valuation of the market revenue with the help of widespread quantitative and qualitative insights, and prognoses of the market. This report presents breakdown of market into forthcoming and niche segments. Additionally, this research study gauges market revenue growth and its drift at global, regional, and country from 2016 to 2027. This report includes market division and its revenue assessment by categorizing it depending on technology, product sale, vehicle type, application, and region:
By Product Sale
By Vehicle Type
By Regional Outlook
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