Automotive Interior Ambient Lighting Systems Market By Technology (LED, Others), Vehicle (Compact, Sedan, Executive), Application (Doors, Roof), Sales Channel (OEM, Aftermarket) & Region Forecast to 2019 - 2029

Automotive Interior Ambient Lighting Systems Market - Key Research Findings

1. The global automotive interior ambient lighting systems market size in 2018 was ~US$ 3 Bn.
2. The automotive interior ambient lighting systems market is expected to grow at a CAGR of ~6% during the forecast period of 2019-2029.
3. Besides the growing trend of customization for interior ambient lightings among customers, availability of a variety products has been recently driving the sales of automotive interior ambient lighting systems.
4. Collectively, East Asia, North America, and Europe are likely to account for half of the revenue shares in the automotive interior ambient lighting systems industry by the end of 2029.
   • North America, attributing to the robust automotive industry in the U.S., will continue to be a prominent regional market for automotive interior ambient lighting system manufacturers.
5. The centre console and dashboard segment is expected to remain a prominent application area to invest in, for automotive interior ambient lighting systems market players.
   • The automotive industry has witnessed significant growth over the recent past, and the revival of interior lighting systems has been particularly striking.
   • Significant application potential of automotive interior ambient lighting systems has been identified in the doors lighting category.

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Key Factors Shaping the Automotive Interior Ambient Lighting Systems Market

Growing Trend of Customization among Customers

With the growing demand for customization in automotive related to its appearance, features, and convenience, the demand for ambient interior lighting is also increasing as aftermarket lighting upgrades is one of the most cost-effective and fastest ways to change the vehicle’s style and ambience. LED light strips, and wheel lighting, among others, are most commonly preferred lighting options for upgrading car interiors, thus, contributing majorly to the growth of the automotive interior ambient lighting market.

Moreover, with upcoming innovations in automotive interior ambient lighting systems such as LEDs and OLEDs, there is a significant shift in the demand for the same, especially in developing and developed countries.

Large OEMs Incorporating Automotive Interior Ambient Lighting

Large OEMs, particularly in developed regions of the world such as Europe and North America have begun installing automotive interior ambient lighting systems at factory level. This is because of the high disposable income of consumers and are consumers are prepared to pay a special price to make their vehicle noticeable in the parking lot.

They are willing to customize their vehicles to suit their individual personality and status. In addition to this, the presence of a large number of aftermarket automotive interior ambient lighting system manufacturers should strengthen the regional automotive interior ambient lighting systems market.

• For instance, Ford is an iconic American car manufacturer and was a pioneer in implementing automotive interior ambient lighting systems in all of its models across the range. Ford sold almost 6.5 million cars by the end of 2017, boosting the prospects of the automotive interior ambient lighting systems market.

Moreover, an additional advantage of OEMs offering options for ambient lightings as preinstalled or special accessory is being touted as the most prominent factor boosting the prospects of the automotive interior ambient lighting systems market in the near future. The global transformation in consumer mobility and technological advancements possess several challenges for OEMs, such as required investments and capabilities to deal with such growing trends.

This has created several opportunities for automotive interior ambient lighting manufacturers over the past few years.

Increasing Frequency of Innovative Product Launches

Increasing emphasis of manufacturers on introducing innovative automotive interior ambient lighting systems is expected to assist the market growth in the near future. Technological advancements and recent developments has taken the automotive interior ambient lighting systems market to the next level.

Introduction of wireless automotive interior ambient lighting kits have made it possible for many vehicles owners to customize their vehicles with these kits. The major trend to be established in the automotive interior ambient lighting market is the smart connect technology via Bluetooth or Wi-Fi. With the advent of LED and OLEDs in the automotive lighting era, the demand for better technical features is rapidly increasing.

New technical features such as app controlled LED lights, provides an appealing contemporary touch in cars for better driving experience. This is expected to create lucrative opportunities for car manufacturers and automotive lighting manufacturers in the near future.

High Adoption of Electric Vehicles in Developing Regions

Several countries have been at the front of the electric vehicle trend, be it a case of cars, heavy vehicles, two wheelers or other vehicles. Regional municipalities play significant role in this shift to electric vehicles.

Further, volatile fuel prices in developed markets of Europe and North America, growing environmental awareness, and increasing government regulations pertaining to the reduction of release of harmful gases will improve the odds of consumers opting for electric vehicles. These factors fuel the development of the automotive interior ambient lighting market over the forecast period.

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Market Structure Analysis

• The global automotive interior ambient lighting systems market represents a fairly consolidated competition landscape, where a majority of key players maintain their strategic focus on the development of solid distribution partnerships and joint ventures, targeting a firmer global footprint.
• The automotive interior ambient lighting systems market has been relatively moderate in size, which remains a key factor for its dynamic competitive nature.
• Prominent manufacturers of automotive interior ambient lighting systems are currently prioritizing R&D and new product launches to resonate with the growing consumption of eco-friendly coatings in North America, Europe, and China.
• Portfolio extension is also identified to remain as one of the key developmental strategies adopted by manufacturers of automotive interior ambient lighting systems.
• For a stronger foothold in target markets, automotive interior ambient lighting system manufacturers will continue to rely on inorganic strategies, such as mergers and acquisitions.
• Profound understanding of market trends and preferential shifts of end-use segments across several regions are likely to create a bottleneck for prominent players, looking forward to untapped opportunities in the automotive interior ambient lighting systems market.

Ambient Lighting Systems Market – Tracking the Shift to Less Luxurious Models

Interior ambient lighting systems have come a long way to a point of becoming a style statement in high-end vehicles - Audi, BMW, Mercedes, and Jaguar - and are working their way down to less-luxurious models, albeit at a slow pace. From once being a cosmetic feature, automotive interior ambient lighting systems are turning functional with driving controls and mood lights to ensure drivers’ alertness.

As the trends of ‘customization’ set in, the introduction of wireless automotive interior ambient lighting kits, with varying magnetic fixings have been gaining popularity for mounting these systems as per the liking of vehicle owners. With ‘space’ being the front of the mind concern among automakers, innovation in the technological range has inspired the development of LED and OLED lighting systems.

These innovations will aid automakers to achieve low energy consumption, more environmental protection, and low heat value, thereby bumping up the adoption of automotive interior ambient lighting systems.

Sedans to Light up the Road Ahead, Executive Vehicles to Follow

As interior lighting systems can do both - assist and distract - to drivers, introduction of connected things will add a new dimension to these systems with their acquired intelligence to ‘sense and adjust’ automatically. With automakers strenuously adopting cost-effective and compact technologies - LED and OLED - automotive interior ambient lighting systems are found blurring the boundaries between the luxury and economical cars.

Sedan - a mid-range luxurious car - has been catapulting high adoption in recent times, which are being tracked by executive vehicles, in light of the surging proclivity of consumers for premium choices for vehicles.

With the penetration of DIY and DIFM concepts, sales through aftermarket channels have been evincing an exponential improvement; however, with the popular myth regarding aftermarket products being not up to par have been restoring the reliance of consumers in OEM parts. In the future, as automakers will face stiff competition in distinguishing their green cars, automotive interior ambient lighting systems will remain a key differentiating proposition.

Ambient Lighting Systems to Ride on the Back of Dual Quest for Comfort and Aesthetics

The modern consumers stay abreast with the technological leaps made by the automotive sector and add ‘comfort’ and ‘aesthetics’ in their sorting list. This has instigated automakers to intensify their focus on the visual appeal and cabin comfort and hand over the key to personalization to consumers.

Such episodes have been increasingly spectated in East Asia, wherein mature countries like Japan have been leading the global market. However, as manufacturing and sales of luxury and premium vehicles have been high in Europe, the region holds high RoI potential.

Incisive Outlook on Market Trends and Opportunities

With aggressive competition among automakers, high fuel efficiency, low emission, high speed, and excellent performance are turning less of a differentiator and more of an integral feature. This has turned automotive interior ambient lighting systems as the new front of competition and optimization of novel technology has been the key strategy of market players.

Amidst the consolidated landscape, innovation - wireless systems, app-based control, and automatic control - primarily strengthens the brand recall value and surfaces a barrier that contenders cannot breach easily, which has been followed diligently by leading players. As consumers begin comprehending the concept - Quality comes at a price - selling of premium products have been easier than ever.

With the future of the automotive industry being driven by the quest for lightweight vehicle components and accessories to keep emission in check, automakers can capitalize on converging these systems into mid-size and entry-level variant vehicles to add an element of luxury. As sales through e-Commerce channels have been on a rise, automakers can push their products by collaborating with online stores, besides employing forward integration and cross-border sales strategies.

How Growth Will Unfold

Since the future of automotive industry will be moulded by autonomy, research and development activities have been undertaken by leading players to position their vehicles in the best of the light by drawing a line of separation with aesthetic appeal.

Besides appeal, manufacturers will remain focused on value-added offering by enhancing the driving-specific functionalities of automotive interior ambient lighting systems. A leeway offered to consumers to fix lightings to their desired positions is likely to influence impulsive buying behaviour among consumers.

However, high infiltration rate of counterfeit lighting systems in developing countries continue to pose brand-shaming threats for automakers. With the increasing efficiency of OLED technology, automakers will further be able to achieve low space and power consumption, which is likely to replace the incandescent-based lighting systems.

Key Segments

By Technology

• LED
• Others

By Vehicle Type

• Compact
• Sedan
• Executive
• SUV/MUV
• Luxury
• Sports
• LCV
• HCV

By Application

• Centre Console and Dashboard
• Doors
• Roof
• Floor
• Others

By Sales Channel

• OEM
• Aftermarket

By Region

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East and Africa