Exterior Automotive Light Emitting Diode Animation Global Market Report 2025

The exterior automotive light emitting diode animation market size has grown rapidly in recent years. It will grow from $1.7 billion in 2024 to $1.97 billion in 2025 at a compound annual growth rate (CAGR) of 15.9%. The growth during the historic period can be attributed to increasing vehicle production, higher adoption of LED headlamps, growing consumer preference for vehicles, rising awareness among consumers, and increasing vehicle ownership.

The exterior automotive light emitting diode animation market size is expected to see rapid growth in the next few years. It will grow to $3.51 billion in 2029 at a compound annual growth rate (CAGR) of 15.5%. The growth expected in the forecast period can be linked to rising demand for energy-efficient lighting solutions, greater focus on vehicle aesthetics, increasing demand for advanced vehicle features, growing importance of software, and expanding presence in the electric vehicle segment. Key trends in the forecast period include advancements in LED technology, integration with advanced driver assistance systems, developments in vehicle lighting systems, innovations in lighting technologies, and improvements in lighting control algorithms.

The increasing vehicle ownership is expected to drive the growth of the exterior automotive light-emitting diode (LED) animation market in the coming years. Vehicle ownership refers to the legal possession and registration of a vehicle by an individual or organization. Rising vehicle ownership is largely fueled by increasing disposable income, which enables more people to afford personal vehicles for greater convenience and mobility. Exterior automotive LED animations enhance a vehicle's appeal and perceived value, making cars more attractive to buyers and potentially driving higher ownership rates. For example, in June 2024, the National Centre for Social Research, a UK-based independent institute, reported that car sales in the UK showed a strong rebound in 2023, with new car registrations rising by 17.9% compared to 2022. As a result, growing vehicle ownership is contributing to the expansion of the exterior automotive LED animation market.

Key players in the exterior automotive LED animation market are focusing on developing innovative dynamic lighting solutions, such as dynamic lighting sequences, to enhance vehicle aesthetics, improve signaling clarity, and boost road safety. Dynamic lighting sequences refer to programmable exterior LED lighting systems that create moving or animated light patterns on vehicles, enhancing their visual appeal, improving communication with other road users, and increasing safety. For instance, in September 2024, Hella GmbH & Co. KGaA, a Germany-based manufacturer, launched an RGB LED rear combination lamp with full-color light animations in series production in China. This system offers 256 color variants and dynamic lighting animations, providing a unique and customizable lighting experience. It combines essential rear lighting functions with visually striking effects such as welcome sequences and charging indicators, helping to differentiate brands and meet market demands for personalization, especially in the Chinese electric vehicle market.

In February 2022, Faurecia SE, a France-based automotive company, acquired Hella GmbH & Co. KGaA for US$6 billion. This acquisition aims to strengthen Faurecia's position as a global leader in automotive technologies by combining complementary strengths to accelerate innovation, achieve profitable growth, and lead in areas such as electrification, autonomous driving, and vehicle interior solutions. Hella GmbH & Co. KGaA is known for its expertise in exterior automotive LED animation solutions.

Major players in the exterior automotive light emitting diode animation market are Samsung LED Co. Ltd., Magna International Inc., Valeo S.A., Texas Instruments Incorporated, Infineon Technologies AG, LG Innotek Co. Ltd., FORVIA HELLA GmbH, Toyoda Gosei Co. Ltd., Koito Manufacturing Co. Ltd., OSRAM GmbH, ROHM Semiconductor, Lumileds Holding B.V., Melexis N.V., Seoul Semiconductor Co. Ltd., ZKW Group GmbH, Edison Opto Corporation, Nichia Corporation, Magneti Marelli, Lighting Trendz LLC, iJDMTOY.

North America was the largest region in the exterior automotive light emitting diode animation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in automotive light-emitting diode animation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid rise in U.S. tariffs and the subsequent trade frictions in spring 2025 are having a major impact on the electrical and electronics sector, with semiconductors, display panels, and rare-earth metals (essential for batteries and motors) subject to steep duties. Consumer electronics brands face profit erosion, as competitive markets limit their ability to pass costs to buyers. Industrial electronics manufacturers, meanwhile, grapple with delayed projects due to shortages of tariff-impacted components like printed circuit boards. Companies are responding by relocating assembly to tariff-exempt countries, increasing inventory buffers, and redesigning products to reduce dependency on restricted materials.

The exterior automotive light-emitting diode animation market research report is one of a series of new reports that provides exterior automotive light-emitting diode animation market statistics, including exterior automotive light-emitting diode animation industry global market size, regional shares, competitors with an exterior automotive light-emitting diode animation market share, detailed exterior automotive light-emitting diode animation market segments, market trends and opportunities, and any further data you may need to thrive in the exterior automotive light-emitting diode animation industry. This exterior automotive light-emitting diode animation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Exterior automotive light-emitting diode (LED) animation refers to the use of LED-based exterior vehicle lights to create dynamic, moving, or sequential lighting effects. These animations are designed to enhance road safety, improve vehicle signaling, and provide visually appealing designs by communicating actions such as braking, turning, or lane changes through animated light patterns.

The main categories of exterior automotive LED animation include front lighting, rear lighting, side lighting, and others. Front lighting covers forward-facing vehicle lights, such as headlamps and turn signals, which are designed to illuminate the road and improve visibility to other road users. These products are used in passenger cars, commercial vehicles, and electric vehicles. Common applications include headlamps, taillights, daytime running lights, turn signals, and more. They are distributed through sales channels such as original equipment manufacturers (OEMs) and the aftermarket.

The countries covered in the exterior automotive light-emitting diode animation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The exterior automotive light-emitting diode animation market consists of revenues earned by entities by providing services such as brand differentiation and customization, driver assistance support, and safety communication in autonomous vehicles. The market value includes the value of related goods sold by the service provider or included within the service offering. The exterior automotive light-emitting diode animation market also includes sales of animated headlights, animated taillights, and dynamic signal lamps. Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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