Automotive Lighting Market Report

The major reason for the rise in the sale of the automotive lighting market is the rise in demand for passenger as well as commercial vehicles. Increasing demand for passenger and commercial vehicles is fuelled by economic growth, higher disposable incomes, and e-commerce growth. As per the data of the International Organization of Motor Vehicle Manufacturers, the total global vehicle sales from 2018 to 2023 were nearly 93 million, of which 65 million were passenger vehicles and 27 million were commercial vehicles. Thus, the rising demand for vehicles is expected to boost the demand for the automotive lighting market. The rising number of accidents is also considered a major driving factor, as according to the World Health Organization report, around 1.3 million people die annually in traffic accidents.

Improved automotive lighting systems, such as daytime running lights (DRLs), are being focused by governments to enhance visibility on the road and reduce crash risks. DRLs, mandated in the European Union since 2011, have been proven to decrease fatal crashes by 13.8% in the United States. The legalization of adaptive lighting in the US and Japan's mandate for automatic headlights signal further advancements in road safety measures. Also, the US National Highway Traffic Safety Administration (NHTSA) has registered a decrease in fatal crashes by 13% after announcing the regulatory concerns regarding automotive lightning.

Matrix LED, OLED, and laser technologies are transforming automotive lighting with unique benefits that boost safety and style. Matrix LED uses multiple LEDs to create adaptive lighting patterns for better visibility. OLED offers a sleek design with customizable ambient lighting and uniform, warm light. Laser technology delivers powerful, long-range illumination for improved night-time safety. Combining these technologies allows manufacturers to develop smarter, more efficient lighting solutions that enhance the driving experience and meet consumer demands.

Integrating IoT technology with vehicle lighting systems in the automotive sector offers transformative smart lighting solutions. This update allows lights to communicate with vehicle systems and the external environment for enhanced functionality and safety. These smart-systems can also interact with surrounding infrastructure, improving safety at intersections. Drivers can customize their lighting through mobile apps, while the IoT understands users’ habits. This interaction improves energy efficiency, data collection, and driving behavior insights. Overall, IoT integration in automotive lighting creates a safer, smarter driving experience, paving the way for future innovations in vehicle technology.

• Adaptive lighting systems enhance safety by adjusting to road conditions.
• Matrix LED headlights enable dynamic light distribution without blinding oncoming drivers.
• Smart lighting features integrate with vehicle systems for improved functionality. 
• Customization options allow consumers to personalize vehicle lighting aesthetics.

The high cost of light-emitting diode (LED) lights in the automotive lighting market is a major concern, leading to a decline in the popularity of Halogen and Xenon/HID technologies. Halogen lights waste energy due to heating, while Xenon lights have a slow brightness process. LEDs offer greater design flexibility, energy efficiency, and brightness, but their production costs are high due to materials like indium gallium nitride, aluminium gallium indium phosphide, and aluminium gallium arsenide. The shift towards projector headlights with LEDs is costlier than reflector headlights and requires more space. Advancements like OLED and matrix LEDs are expensive and not widely adopted in older cars. While LED headlights offer many benefits, their high production costs limit usage to high-end vehicles in price-sensitive regions.

Furthermore, the regulatory challenge also acts as a restraining factor, as the rising safety concerns and rules need updating in vehicles, which affects the overall cost of the final product, which needs to be paid by the end user, for example. As per the Economic Commission for Europe regulations, trucks in Europe must have automatic levelling and LED headlamps. If headlamps exceed 2,000 lumens, they must also have automatic levelling and headlamp cleaning systems. This ensures safety and visibility for commercial vehicles operating day and night but overall increases the cost. Hence, regulatory concerns also affect the overall growth of the automotive lighting market.

In June 2024, Lazer Lamps Ltd (including its US Subsidiary - Triple-R Lights), a British manufacturer at the forefront of LED engineering, launched its new Elite+ range of auxiliary LED driving lights. The innovation behind the Elite+ products was the integration of supplemental yellow LEDs within high-performance LED lights that already boasted the highest white light output available on the market at that time. This unique blend of white and yellow light enhanced night visibility with a softer color temperature, reducing glare and eye strain. The yellow LEDs could also function independently, illuminating downwards and sideways, ideal for adverse conditions such as snow, fog, or dust.

The Elite+ range boasted four distinct lighting modes, interchangeable via a momentary switch. In December 2023, OLEDWorks announced on that day that it would showcase the latest OLED lighting technology for the automotive industry and redefine the landscape with the launch of an exciting new brand at CES 2024. CES 2024 marked a pivotal moment for OLEDWorks as they introduced their new automotive brand, poised to set the industry standard for excellence in lighting communication, connected vehicles, and autonomous mobility.

The Asia Pacific market presents a lucrative opportunity due to the rising vehicle production in countries such as China, Japan, India, South Korea, etc. As per the data of the International Organization of Motor Vehicle Manufacturers, the top five vehicle manufacturers for the year 2023 are China, the USA, Japan, India, and South Korea. From the above list, four countries belong to the Asia-Pacific region, which makes these countries an automotive hub. As per the report, China produced 30 million units, Japan produced 8.9 million units, India produced a total of 5.8 million units, and South Korea produced 4.2 million units. This is expected to grow further with the rising disposable income and standard of living. North America can also be considered a lucrative market due to the rising vehicle production and a lucrative opportunity in Mexico.

As per the data of the International Organization of Motor Vehicles, the United States produces a total of 10 million units of vehicles annually, and Mexico opens up an opportunity for a major market for auto components, supplies, light vehicles, trucks, passenger cars, and technology needed for electric vehicles as per the International Trade Administration. Mexico holds 3.6 percent of the nation's gross domestic product and 18 percent of the manufacturing gross domestic product in the automotive sector, making it a lucrative market.

The report provides a detailed overview of the automotive lighting market insights in regions including North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa. The country-specific assessment for the automotive lighting market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the automotive lighting market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of the automotive lighting market. Some key countries and regions included in the automotive lighting market report are as follows:

• Automotive lighting market detailed segments and segment-wise market breakdown
• Automotive lighting market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in automotive lighting industry)
• Current, historical, and forthcoming 10 years market valuation in terms of automotive lighting market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
• Automotive lighting market demand analysis
• Automotive lighting market pricing analysis over the forecast period (by key segment and by region)
• Automotive lighting market regional insights with a region-wise market breakdown
• Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
• Latest developments and innovations in the automotive lighting market
• Regulatory landscape by key regions and key countries
• Supply chain and value chain analysis in automotive lighting market
• Automotive lighting market sales and distribution strategies
• A comprehensive overview of the parent market
• A detailed viewpoint on the automotive lighting market forecast by countries
• Mergers and acquisitions in the automotive lighting market
• Essential information to enhance market position
• Robust research methodology