Automotive Lighting Market

2021 Analysis and Review: Automotive Lighting Market by Sales Channel – Original Equipment Manufacturers (OEMs) and Aftersales for 2021 – 2031

Automotive lighting Market Snapshot

The automotive lighting market is expected to reach a valuation of US$34.7 Billion in 2021. According to Future Market Insights (FMI), the overall automotive lighting market is expected to grow at a CAGR of 6.3% for 2021- 2031.

The global sales of automotive lighting are anticipated to surpass 1.813 million units in 2021. FMI presents a positive growth outlook for the market. In terms of volume, the automotive lighting market is predicted to expand at 5.2% CAGR over the course of the assessment period.

Key Points Covered in Automotive Lighting Market Study

  • Market estimates and forecast 2015-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Automotive Lighting Market and How to Navigate
  • Recommendation on Key Winning Strategies

2016 – 2020 Automotive Lighting Historic Sales Compared to 2021-2031 Forecast Outlook

The automotive sector has been swiftly transitioning to automation, encouraging advancements in electric vehicle design and digitization over the past half-decade. Rapid technological advancements in the automotive sector is fuelling the demand for more efficient and low power consuming lighting system.

These factors have encouraged original equipment manufacturers (OEMs) and automotive giants to design and develop components for optimizing power consumption and offering superior efficiency.

German automobile giants like AUDI are adopting light emitting diode (LED) light in their lighting module as it is lightweight and consumes less power than other type of lighting. Electrification and adoption of new lighting system has assisted the automotive lighting market to expand at 0.7% CAGR during 2016-2020.

Key factors driving the popularity of LED lighting amongst manufacturers include its high durability, no maintenance, and low power consumption which makes it highly sought-after for use in luxury and premium car segments.

Rising production of two wheelers will fuel the demand for automotive lighting. According to World Air Quality Index, India has third worst air quality in the world with air quality index of 141. The report also states that PM 2.5 concentration in India is nearly five times above the World Health Organization (WHO) exposure recommendation.

Increasing demand for compact smaller vehicles and two wheelers along with government initiatives to curb the pollution is a primary factor driving the growth of the market. As per FMI, the automotive lighting market will expand at 6.3% CAGR between 2021 and 2031.

How Will Demand for Passenger Cars And Commercial Vehicles Affect Automotive Lighting Market?

Rising inclination towards luxury lifestyle has fueled the demand for premium cars in developed nations. Rising number of millionaires in developing countries also has fuelled the demand for such vehicles. Increasing sales of luxury vehicles will therefore accelerate the automotive lighting market demand.

Growing population along with increasing per capita income will drive passenger car sales in developing countries. Improving standard of living in emerging economies will act as a major driver of automotive lighting sales in the region.

Increase in construction activities along with material and machinery transportation have increased the heavy commercial vehicles (HCVs) and light commercial vehicles (LCVs) sales, which also accelerates the automotive lighting market demand.

Growing urbanization along with adoption of LCV in logistics will increase the automotive lighting demand. Development of electric HCVs and LCVs to reduce the pollution, improve safety, and increase autonomy will create growth opportunities throughout the decade.

How Will Surging Electric Vehicle Sales Affect Automotive Lighting Market?

In the wake of severe environmental crisis, governments across the globe are focusing on reducing carbon footprint and air pollution. Many countries are even encouraging shift to two wheelers and electric vehicles to achieve emission-reduction goals.

According to U.S. Environmental Protection Agency, light duty vehicles (LDVs) produce around 17% of total greenhouse gas emission in U.S. followed by heavy duty vehicles (HDVs) with 6% emission.

Fluctuation in fuel prices, rising environmental awareness, and stringent government regulation regarding greenhouse gas emission will drive the adoption of electric vehicles. Increasing demand for electric vehicle will push the automotive lighting market growth.

Development in automotive industry like incorporation of safety sensors in lighting system, designing autonomous system and complete electrification without compromising the aesthetic aspects of automotive lighting will fuel the market demand.

Country-wise Insights

Why Is The U.S. Dominating North America Automotive Lighting Market?

North America is expected to offer lucrative growth opportunities during the forecast period. Future Market Insights has forecast the North America market to grow at 3.4% CAGR throughout the forecast period.

According to U.S. Department of Energy, plug-in electric vehicles (PEVs) are experiencing tremendous growth on the back of developing technology and cost reduction. The Introduction of Tesla Model 3 in 2018 bumped the electric vehicle sales. Several other leading automakers are gearing to join the bandwagon, subsequently creating opportunities for automotive lighting sales.  

How Is Increasing Traffic Congestion Affecting Growth In Brazil?

In 2019, as per the World Economic Forum, city of Rio de Janeiro, Brazil recorded the second worst traffic congestion in the world with average person losing around 190 hours to traffic in a year. To tackle such situation, people are switching to public transport and compact two wheelers for transportation.

Increasing demand for heavy duty public transport and rise in sales of two wheelers will drive the automotive lighting market sales. Introduction of electric buses in public transportation system will further elevate the automotive lighting market growth.

As per the report by FMI, Brazil is experiencing significant economic growth leading to increase in per capita income. Increased sales of passenger cars due to increased standard of living are expected to positively influence automotive lighting market demand through the forecast period.

What Are The Factors Influencing The Automotive Lighting Market In China?

China is experience increasing demand for luxury cars in recent years. The high demand can be attributed increasing spending habits and thriving economy. According to the statistics from the China Passenger Car Association, around 2.53 million luxury vehicles were sold in China in 2020 which is about 14.7% greater than that from 2019.

Automakers are developing new technologies and components in line with the stringent environment policies and consumer preferences. Automotive lighting manufacturers are working towards developing lightweight, energy-efficient, and aesthetically pleasing interior lighting to meet the demand.

According to a report published by China Association of Automobile Manufacturers (CAAM), sales of passenger cars in China experienced 10.8% year-on-year increase as of April 2021. Report also states that commercial vehicle segment also experienced 2.3% year-on-year growth in terms of sales.

Thriving automotive industry due to low production cost and improved manufacturing capabilities will accelerate the automotive lighting market growth.

How Lucrative Is India Market For Automotive Lighting Growth?

According to Indian Brand Equity Foundation (IBEF), passenger vehicles sales in India grew by 17.92% in February 2021 compared to sales registered in February 2020. The soaring demand for passenger vehicles in India will fuel the automotive lighting market growth.

As per the National Crime Records Bureau, in 2019, around 1.54 Lakh people died due to road crashes in India. High mortality rate due to accidents has fueled the demand for better automotive lighting system. Development of integrated safety and lighting mechanism in automotive lights will propel the market growth in upcoming years.

Category-wise Insights

Why Is Front Headlights Experiencing Elevated Demand?

Based on application type, front headlights surpass other lighting systems as it comprises around 60% of the lighting market in 2021.

Utilization of front headlights as a part of safety system as well in aesthetic design of the premium vehicles will drive the market growth in upcoming years.

Which Vehicle Type will Exhibit Higher Application of Automotive Lighting?

Automotive lighting is utilized in the interior designing of passenger cars as it serves wide range of purposes. Increasing demand for customized interior and exterior designing and lighting system of passenger vehicles will thereby drive the automotive lighting market growth. The market will also gain from rising passenger vehicles sales registered globally.

Which Light Source is gaining Traction in Automotive lighting?

Light emitting diode (LED) and organic light emitting diode (OLED) lights are becoming popular owing to their low power consumption and no maintenance. Market players are designing and testing ideas involving LED lights as they are compact and   very durable. Introduction of LED matrix headlamps and LED daytime running lights in two wheelers and electric vehicles for safety purposes will further elevate the automotive lighting market demand.

Which is the preferred Sales Channel for Automotive Lighting?

Growing consumer preference for cars with stunning aesthetics and better aerodynamic shape is encouraging OEMs to offer modern automotive lighting system which are highly functional and can be flexibly used in interior and exterior designing of the vehicle.

With surge in demand for better mileage and safety without compromising the performance of the vehicle, market players are developing and designing automotive lights equipped with safety sensors, to improve appearance, functionality, and safety of the car.

Competitive Landscape

According to FMI, automotive lighting market players are working towards strengthening their distribution networks, collaborating with regional players, and forming joint ventures as the market is highly consolidated.

Portfolio expansion and new market penetration is are among key strategies implemented in the market. Inorganic growth strategies are also on the table like strategic merger and acquisition. Such strategies will assist them in exploring new markets and opportunities.

The leading companies operating in the market are:

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2019-2029

Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

By Vehicle type, By Application, By Light Source Type, By Sales Channel and Region

Key Companies Profiled

  • Koito Manufacturing Co. Ltd.
  • Hella KGaA Hueck & Co.
  • Stanley Electric Co.
  • Valeo SA
  • Osram Licht AG
  • Magnetti Marelli
  • Varroc Group

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the expected valuation of automotive lighting market?

    The global automotive lighting market is forecast reach the market valuation of around US$ 34.7 Bn in 2021. It is expected to increase exponentially during the forecast period.

  • What is automotive lighting market demand outlook in terms of volume?

    Sales of automotive lighting are expected to reach 3.114 million units by the end of 2031.

  • What was the last 5 year automotive lighting market CAGR?

    Automotive lighting market recorded a CAGR of around 0.7% in terms of value between 2016 and 2020.

  • What are the key trends prevailing in automotive lighting market?

    Automotive lighting manufacturers are focusing on developing rugged and tough automotive lighting which can be coupled with the safety sensors and automated system modules to improve performance of the vehicle.

  • What are the key factors fuelling the demand for automotive lighting?

    Low power consumption, compact size and superior durability of automotive lighting will drive their demand during the assessment period.

  • What is the market share of top players in automotive lighting market?

    Koito Manufacturing Co. Ltd., Hella KGaA Hueck & Co., Stanley Electric Co., Valeo SA, Osram Licht AG, Magnetti Marelli, Varroc Group are the top market players. These companies held around 42.60% of the market in 2020.

  • What are the top 5 countries driving automotive lighting sales?

    Top 5 countries driving sales of automotive lighting are China, India, U.S., Germany, and Brazil.

  • What is the North America automotive lighting market outlook?

    The market for automotive lighting in North America is anticipated to expand at a healthy pace on the back of rising demand for passenger vehicles. The North America market will exhibit 3.4% CAGR between 2021 and 2031 in terms of value.

  • At what percentage is automotive lighting going to register growth in Europe?

    The Europe market is projected to register an average growth of 5.2% per annum during the forecast period

  • Which countries are key producers of automotive lighting?

    The U.S., Germany, U.K., India and China have been identified as the prominent production hubs of automotive lighting system.

Automotive Lighting Market by Category

By Application:

  • Front Headlights
  • Fog Lights
  • Rear Lights
  • Side Lights
  • Interior Lights

By Vehicle Type:

  • Passenger Cars
    • Compact
    • Mid
    • Luxury
    • SUVs
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles
  • Electric Vehicles
    • Battery Electric
    • Plug-in Hybrid Electric
    • Hybrid Electric
  • Two Wheelers
    • Motorcycles
    • Scooters

By Light Source:

  • Halogen
  • LED
  • Xenon

By Sales Channel:

  • OEM
  • Aftersales

By Region:

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

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