In a recent publication, Future Market Insights (FMI) provides a perspective on the growth trajectory of automotive lighting market for the period between 2019 and 2029. According to the study, worldwide sales of automotive lighting reached ~2 billion units, equating a value of ~US$ 36.5 billion in 2018.
Gains remain driven by growing popularity of luxury cars and high purchasing power of middle class demographic in developing countries that increased the sales of passenger cars. In the view of rapid industrialization and expansion of construction industry, LCVs and HCVs have witnessed increasing sales in recent years, which worked in tandem with growing demand for automotive lighting.
Increasing technical advances in automotive lighting have inspired motorists to seek the latest innovations. New concepts and electronic modules such as LED matrix and laser light systems have been rigorously developed. FMI study analyzes that emergence of lightweight modules in automotive components and rising popularity of electric and autonomous vehicles will further bring significant changes in the automotive lighting landscape.
However, an increase in penetration of counterfeit products, especially in developing economies, is likely to represent as a threat to consumer safety as well as to the growth of the market, according to FMI’s findings.
LED Lights over HID and Halogen Lights - The Shift is Underway
For More Detailed Insights on Automotive Lighting Market Trend Analysis
According to the study, the automotive lighting market is likely to grow at a CAGR of ~6% over the predefined timeframe. Technological research and developments around automotive lighting are centered on better performance, improved safety, and innovative designs.
Although HID and halogen lights are still in use in most vehicles as they are relatively inexpensive and easy to replace, LED and OLED lights are increasingly becoming a standard in newer models, especially in premium cars. Considering the consumption of less power, increased efficiency and longer life, manufacturers are directing their massive investments in LED and OLED technologies. OEMs remained focused on introducing new headlamps technologies such as adaptive matrix headlamps, however several regulations set by NHTSA and IIHS have been making it difficult for manufacturers to embrace such cutting edge designs.
According to the study, exterior lighting including front headlights and rear lights continues to gather increasing traction, collectively accounting for ~84% revenue share in 2018. With growing consumers’ interest in improved ‘in-car ambience’, OEMs are placing their bets in the development of innovative interior lighting as a means of brand differentiation and gaining distinct competitive advantage.
The study opines that automotive lighting for passenger cars continues to account for major share of the manufacturers’ bottom lines. Considering the mass urbanization and an increased in trade economies, market players are capitalizing on LCVs and HCVs which are increasing in demand for logistics and other applications. In addition, rising traffic congestion in developing countries has been driving the sales of two wheelers, thereby creating new opportunities for stakeholders in automotive lighting market.
As per the study, Asia Pacific, particularly in eastern region, continues to provide high growth prospects for the automotive lighting market. Robust automobile production in the region to address the increasing demand along with rising deployment of technically-advanced systems such as lighting control systems and driving assistance in modern vehicles is likely to work to the advantage of automotive lighting market players.
The business asset offers an insightful outlook on the competitive landscape of automotive lighting market by analyzing new developments and key strategies adopted by the players. The market shows a fair level of consolidation, with leading players maintaining their focus on solid collaborations and acquisitions for firmer global footprint. Aligning with the global trend of ‘customization’ also remains a key focus area of the market players.
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Future Market Insights (FMI) is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India. FMI’s research and consulting services help businesses around the globe navigate the challenges in a rapidly evolving marketplace, with confidence and clarity. Our customized and syndicated market research reports deliver actionable insights that drive sustainable growth. We continuously track emerging trends and events in a broad range of end industries to ensure that our clients prepare for the evolving needs of their consumers.