Global Automotive Lighting Market Overview
Lighting systems play an integral role in automotive design. The lighting system enhances the appeal of interior furnishing and creates a comfortable and pleasant atmosphere, and provides maximum driver and passenger safety. Vehicle lighting provides adequate and convenient illumination under all ambient lighting conditions, from complete darkness to bright sunlight. The lightings help in increasing the visibility of the vehicles for the driver. Moreover, it allows a pedestrian and driver to see a vehicle’s presence, position, size, the direction of travel, and the driver's intentions regarding the direction and speed of travel. An automotive is designed with various lightings such as headlamps, auxiliary lamps, dipped beam, driving lamps, front fog lamps, cornering lamps, spotlights, front position lamps, daytime running lamps, dim-dip lamps, side marker lights, and reflectors, turn signals, electrical connection, and switching, rear position lamps, stop lamps, center high mount stop lamp, emergency stop signal, reversing lamps, among others.
According to Value Market Research, the global Automotive Lighting market size was valued at about USD 32 billion in 2020 and is estimated to grow at a CAGR of around 5 % during the forecast period 2021 to 2027.
Automotive lighting makes the driving experience as comfortable and convenient as possible, combining functional and ambient lighting to create consistent but discreet illumination. Automotive lighting has undergone many significant shifts in the last five decades. Electrical light sources have shifted to LED. The new lighting has led to faster design cycles, lower prototyping costs, efficient virtual workshops supporting unique and ambitious automotive-lighting products. Spurring production and sale of passenger and commercial vehicles, growing buying power, and expanding logistics and other transportation businesses are primary factors steering automotive lighting demand. Increased safety and convenience demand, stringent standards, the launch of new car models, and customization drive innovation in the market. The increasing demand for premium vehicles, high demand for adaptive lighting, and lighting regulations for better visibility and safety further accelerate the need for automotive lighting. However, the high cost of LED lights and low penetration of advanced lighting in hatchback, compact sedan, and entry-level SUVs is expected to hamper the market growth. At the same time, the evolution of new technologies in automotive lighting is likely to create potential opportunities over the forecast period.
The global automotive lighting market is hugely competitive. The market consist of players including DENSO Corporation, Hella KGaA Hueck & Co., Hyundai Mobis, Koito Manufacturing Co. Ltd., Koninklijke Philips N.V., Osram Licht AG, ROBERT BOSCH GmbH, Stanley Electric Co. Ltd., Valeo, and Zizala Lichtsysteme GmbH.
In this research report, the automotive lighting market is segmented by adaptive lighting, vehicle type, technology, and region.
Analysis, By Adaptive Lighting:
Based on adaptive lighting, the global automotive lighting market is segmented into front adaptive lighting, rear adaptive lighting, and ambient lighting. Front and rear adaptive lighting acquired a more significant share in the global automotive lighting market. Front and rear lighting play a greater significance in the efficient functioning and safety of the driver than ambient lighting. Front and rear adaptive lighting serves as protection to driver and occupier and prevents accidents. Headlight and turn light are two very crucial lightings essentially required. Spurring production of automotive, both commercial and passenger, will drive the application segment market. New car models are coming up with more innovative lightings and distinct features.
Analysis, By Vehicle Type:
Based on vehicle type, the global automotive lighting market is segmented into passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles. Light and heavy commercial vehicles are loaded with greater lightings than passenger cars. However, passenger car generates higher revenue due to greater production and sales than commercial vehicle. Passenger car is generating majority revenue in the global automotive lighting market. Growing buying power and growing penetration of vehicle finance are regulating vehicle finance segment growth. Escalating electrification and connectivity trends are estimated to create new opportunities for the market.
Analysis, By Technology:
Based on technology, the automotive lighting market is fragmented into halogen, LED, and xenon. The LED segment is the largest and fastest-growing segment in the global market. The use of LED is preferred for interior and exterior lighting. The LED is widespread due to its benefits, including extended lifetime, directional light, and small package size. All modern vehicles are lit with LEDs as it offers small carbon footprint, brightness and uniformity, diversity of light-guide designs, and suitability to daytime lighting.
Analysis, By Region
Based on region, the market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The Asia Pacific is the most lucrative market for automotive lightings. The region occupied the largest share and is anticipated to grow at an impressive rate during the forecast period. Rising purchasing power, prospering middle class, and favorable rules imposed by regional government are projected to drive demand for new automotive, thus lightings. New vehicle launches with increased lighting features are also complementing regional growth. Asian automakers and the design teams are growing their lighting innovation. Asian automakers realize that lighting innovations can complement production innovations in gaining a competitive advantage.
Market Segmentation covered in the Report:
By Vehicle Type
- Front Adaptive lighting
- Rear Adaptive Lighting
- Ambient Lighting
- Passenger Car
- Light Commercial Vehicle (LCV)
- Heavy Commercial Vehicles
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
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