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Automotive Lighting System Market - Forecasts from 2022 to 2027

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    Report

  • 141 Pages
  • December 2022
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5716757

The automotive lighting systems market was valued at US$30.043 billion in 2020 and is expected to grow at a CAGR of 4.13% over the forecast period to reach a market size of US$39.893 billion in 2027.

Lighting has a significant value in the automobile industry. They have applications in the interior as well as the exterior of a vehicle. The automotive lighting system has a significant share of the global LED market. The growing production of automobiles is driving the market for automotive lighting systems. The LED fog lights and headlights market is boosted due to increased concerns for road safety. Collision avoidance systems, infotainment, better lighting design, connected systems, and drive-by-wire technologies are opening the avenue for the market. Environment-friendly and sustainable product development initiatives of the manufacturers are further boosting the growth of the automotive lighting system market. Geographically, the Asia Pacific region is expected to hold a significant market share due to the presence of several manufacturers in China, Japan, and South Korea. Increasing demand from North America and Europe regions for Asian automotive lighting systems owing to their low price and good quality is also boosting the market in the region. Also, the demand for economy, electric and luxury cars is increasing in the region. The market of the North American region is also expected to grow due to increasing disposable income and the high demand for vehicles with smart driving and lighting systems.

Increasing investments in research and development and the introduction of laser headlights have developed the exterior lighting segment in the global market. With the growing market, manufacturers are facing a major challenge of cost-cutting due to fluctuations in the prices of raw materials and the high cost of LED. However, the market for automotive lighting systems is expected to grow due to rapid developments, the positive regulatory framework in several countries, and the increasing demand for vehicles.

Growing demand for luxury features to propel market growth

The automotive industry is in the process of a technological revolution, which is characterized by the convergence of new technology with traditional car manufacturing. With the growing trend of electric vehicles, automotive lighting manufacturers have been developing new lighting technologies to replace old traditional lights. Further, electric vehicle manufacturers have been launching new vehicle models with the best cabin interiors. For instance, in September 2020, Lucid Motors launched Lucid Air, which was a luxurious electric sedan that offered a full-size luxury-class interior, which is based on Lucid's exclusive Space Concept philosophy. Further, in June 2021, Hyundai Mobis developed a new ‘lighting grille’ technology, which implemented an LED lighting function in the front grille of a car. Hyundai Mobis’ ‘lighting grille’ technology used the entire front grille of the car as a lighting device. It is able to implement various scenarios such as autonomous driving mode, EV charging mode, welcome light function, sound beat display, and an emergency warning light display. All these innovations in the vehicles are thus expected to create lucrative opportunities for the market.

Further, cabin lights have been gaining popularity. They primarily include reading lights and dashboard lights. Interior lights include various applications such as reading lamps, ambient interior lighting systems, and roof modules with optimized light guide technology. All these features are expected to drive the market for automotive lighting systems.

Key Developments

  • In November 2019 - Stanley Electric Co. Ltd invested in Electropolymers Pvt Limited, which is a company primarily involved in the manufacture of automotive and motorcycle lights in Pakistan, with the goal of further strengthening business operations in Asia.
  • In August 2019 - Magneti Marelli SpA partnered with China-based Highly Group to enter into a joint venture. This was created to develop compressors and heating, ventilation, and air conditioning.
  • In January 2020 - Hella launched Hella Flat Light technologies, a lighting innovation for rear combination lamps. The optics, are only a few micrometers in size and allow for the diffraction properties of light to be exploited.
  • In July 2021 - Samvardhana Motherson Automotive Systems Group, which is a Motherson Group company, signed an MoU with Marelli Automotive Lighting to explore a technological partnership focused on smart illuminated exterior body parts.
  • In May 2021, OSRAM Continental and REHAU announced a development partnership for the fusion of exterior components with light for the provision of automotive manufacturers with innovative lighting solutions with more design freedom along with functionality.
  • In April 2021, Shanghai Auto Show, Valeo announced the development of the first 360-degree lighting solution. This technology surrounds the vehicle with a band of light, which projects simple, clear, and instantaneous indications, which can be seen by nearby road users, especially road users such as cyclists and people on two-wheelers.

COVID-19 Insights

The outbreak of the COVID-19 pandemic caused a stir in the automotive lighting systems market. The mandated lockdowns and the social distancing measures implemented by the government caused the production facilities to close down, thus causing a slowdown in the industry. Further, the fall in the demand for the automotive industry during this period also caused a dip in demand for these chips. However, with the ease of restrictions, resumption of production, and steady recovery of the automotive industry, especially with the soaring demand for EVs, the market is expected to rise and showcase promising growth.

Market Segmentation:

By Technology

  • LED
  • Halogen
  • Xenon

By Vehicle Type

  • Economy
  • Mid-range
  • Luxury

By Application

  • Interior Lighting
  • Car Body Lighting
  • Ambient Lighting
  • Reading Lights
  • Roof Console
  • Exterior Lighting
  • Head Lamps
  • Rear Lamps
  • Side Lighting
  • Others

By Geography

  • North America
  • United States
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Others
  • Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Others
  • Middle East and Africa (MEA)
  • Saudi Arabia
  • UAE
  • Isreal
  • Others
  • Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Indonesia
  • Thailand
  • Taiwan
  • Others
Frequently Asked Questions about the Automotive Lighting System Market

What is the estimated value of the Automotive Lighting System Market?

The Automotive Lighting System Market was estimated to be valued at $30.04 billion in 2020.

What is the growth rate of the Automotive Lighting System Market?

The growth rate of the Automotive Lighting System Market is 4.1%, with an estimated value of $39.89 billion by 2027.

What is the forecasted size of the Automotive Lighting System Market?

The Automotive Lighting System Market is estimated to be worth $39.89 billion by 2027.

Who are the key companies in the Automotive Lighting System Market?

Key companies in the Automotive Lighting System Market include Magneti Marelli S.p.A, Osram Group, Valeo SE, HELLA GmbH & Co., Merck KGaA, Koninklijke Philips N.V., Samsung Electronics Co. Ltd., Sigma International and Magna International Inc..

Table of Contents

1. INTRODUCTION
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter's Five Forces Analysis
4.3.1. Bargaining Power of End-Users
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. AUTOMOTIVE LIGHTING SYSTEMS MARKET BY TECHNOLOGY
5.1. Introduction
5.2. LED
5.3. Halogen
5.4. Xenon

6. AUTOMOTIVE LIGHTING SYSTEMS MARKET BY VEHICLE TYPE
6.1. Introduction
6.2. Economy
6.3. Mid-range
6.4. Luxury

7. AUTOMOTIVE LIGHTING SYSTEMS MARKET BY APPLICATION
7.1. Introduction
7.2. Interior Lighting
7.3. Car Body Lighting
7.4. Ambient Lighting
7.5. Reading Lights
7.6. Roof Console
7.7. Exterior Lighting
7.8. Head Lamps
7.9. Rear Lamps
7.10. Side Lighting
7.11. Others

8. AUTOMOTIVE LIGHTING SYSTEMS MARKET BY GEOGRAPHY
8.1. Introduction
8.2. North America
8.2.1. United States
8.2.2. Canada
8.2.3. Mexico
8.3. South America
8.3.1. Brazil
8.3.2. Argentina
8.3.3. Others
8.4. Europe
8.4.1. UK
8.4.2. Germany
8.4.3. France
8.4.4. Italy
8.4.5. Spain
8.4.6. Others
8.5. Middle East and Africa (MEA)
8.5.1. Saudi Arabia
8.5.2. UAE
8.5.3. Isreal
8.5.4. Others
8.6. Asia Pacific
8.6.1. China
8.6.2. Japan
8.6.3. South Korea
8.6.4. India
8.6.5. Indonesia
8.6.6. Thailand
8.6.7. Taiwan
8.6.8. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix

10. COMPANY PROFILES
10.1. Magneti Marelli S.p.A
10.2. Osram Group
10.3. Valeo SE
10.4. HELLA GmbH & Co.
10.5. Merck KGaA
10.6. Koninklijke Philips N.V.
10.7. Samsung Electronics Co. Ltd.
10.8. Sigma International
10.9. Bosch Limited
10.10. Magna International Inc.

Companies Mentioned

  • Magneti Marelli S.p.A
  • Osram Group
  • Valeo SE
  • HELLA GmbH & Co.
  • Merck KGaA
  • Koninklijke Philips N.V.
  • Samsung Electronics Co. Ltd.
  • Sigma International
  • Bosch Limited
  • Magna International Inc.