Automotive lighting is the transmission device that is incorporated into the vehicle’s interior and exterior parts. Automotive protection, illumination, which is a crucial feature of automotive cars, plays a significant role. The automotive vehicle is made up of various lights, which maximizes the visibility in gloomy and poor weather. Early road vehicles used infused lamps before electrical lighting was available. A long-standing accord largely standardizes the color of light produced by vehicle lights. It was first enforced in the Road Traffic Convention of 1949 and later mentioned in the Road Traffic Convention of the United Nations of Vienna of 1968. Generally, emergency vehicles bring identifying illumination devices to alert drivers and signify the importance of traffic flow.
The global automotive lighting market size was valued at USD 25.9 billion in 2019 and projected to reach USD 38.6 billion by 2027, growing at a CAGR of 5.11% during the forecast period of 2020-2027 due to the propelling disposable income across the globe. In addition, the rising production of automobiles to meet consumer demands is estimated to drive the market share of automotive lighting. Furthermore, the rapid innovation in the automotive sector and focus on lighting effectiveness are among the driving factors of the global market for automobile lighting. Moreover, the advanced automobiles organize sophisticated technical systems such as light control and driving assistance systems. Implementation and integration of the LED and laser equipment into modern vehicles are expected to create several opportunities for the growth of the market.
However, the high cost of Lights is predicted to hamper the growth of the automotive lighting market globally at a significant rate. Additionally, fluctuation in the price of raw materials is projected to challenge the development of the market.
The increasing emphasis on roads’ safety is expected to fuel the global automotive lighting market at a significant rate. Vehicles with integrated and sophisticated lighting will sense obstacles on the lane, thereby allowing the driver to take the necessary steps. Automotive lights primarily installed to improve exposure in extreme conditions and increase visibility in harsh circumstances for automobiles. According to the WHO, the lives of about 1.35 million individuals are cut short each year as a consequence of a road traffic accident. In addition, around 20 million to 50 million people suffer non-fatal injuries, with many risking a disability. Road traffic accidents cost 3% of their gross domestic product. Moreover, automotive companies are also developing and implementing new lighting systems designed with various features, including such interacting with pedestrians to ensure safety and meet customer requirements.
The rising upgradation in technology across the globe is estimated to propel the market. Some of the new and promising technologies for automotive lighting manufacturers are AEB, Backup Camera, Matrix LED, OLED, and ECS. ECS or Electronic Stability Control is a revolutionary system that does an outstanding job of preventing cars from slipping out of balance, even in hazardous environments. ECS has proven to be very effective in preventing around 50% of total rollovers or automobile accidents. Thus, the growth in technology in the automotive sector is projected to drive the global market.
The currently underway coronavirus pandemic has led to a sharp reduction in global economic growth and is anticipated to harm the economy for automotive lighting. The epidemic of COVID-19 has disrupted the vehicle supply chain across the globe. According to the WHO (World Health Organization), more than 8,993,659 contaminated cases and more than 469,587 COVID-19-related deaths were reported worldwide as of June 23, 2020. The R&D budget allocation is likely to be substantially impacted, which is expected to hinder the adoption of innovative automotive lighting solutions. The production for automotive lighting is, above all, proportional to the production of vehicles. This will affect current automotive lighting sales owing to declining automotive supply, and is predicted to proceed over the short-term projections. The R&D budget allocation is likely to be substantially impacted, which is expected to hinder the adoption of innovative automotive lighting solutions. This will affect current automotive lighting sales owing to declining automotive supply, and is predicted to proceed over the short-term projections.
Based on the technology, the global automotive lighting market is bifurcated into Halogen, LED, and Xenon. The LED technology segment is projected to dominate the market over the forecasted period of 2020-2027 as LEDs are highly effective, robust, and last longer compared to other technology segments. In addition, increasing regulatory stringency in inefficient lighting technologies and increasing government efforts towards sustainable development are major factors anticipated to drive the market.
Based on the vehicle type, the global automotive lighting market is classified into Passenger Car, Light Commercial Vehicle (LCV), Bus, and Truck. The passenger car vehicle type segment is anticipated to hold the largest share by 2027 due to the rise in consumers’ disposable income and the increasing economic growth across the region. In addition, the rising emphasis on improving fuel efficiency and reducing exhaust pollution, the demand, and sales of electric vehicles, particularly electric cars, are projected to see a significant growth rate.
However, the light commercial vehicle segment is estimated to have a substantial growth due to sensor technologies, robotics, maps, and digital computational skills that pave the way for market autonomy.
Based on the adaptive lighting, the global automotive lighting market is segmented into Front Adaptive Lighting, Rear Adaptive Lighting, and Ambient Lighting. The rear adaptive lighting segment is expected to dominate the market during the forecasted period of 2020-2027 across the globe, owing to the lower power consumption.
However, the front adaptive lighting market is estimated to have a significant growth rate due to the swift installation coupled with the durability of colors of it as compared to other adaptive lighting segments.
Based on the application, the global automotive lighting market is segmented into Exterior Lighting and Interior Lighting. The indoor lighting application segment is projected to dominate the market owing to the introduction of improved LED lighting in high-end and new passenger vehicles, ambient and environment lighting features. The screen regulates lights are essential to safety, as they display the information, including speed, engine insulation, and level of fuel, which is predicted to drive the market.
Based on the product sales, the global automotive lighting market is segmented into Original Equipment Manufacturers (OEMs) and Aftermarket Products. The OEM market is predicted to hold the largest share over the forecasted period of 2020-2027 due to the rising stringent safety regulation.
However, the aftermarket segment is estimated to have a considerable growth rate. The expanding growth of wear-and-tear and crash-related parts drives the market demand for aftermarket services and fuel the global automotive lighting market.
By geography, the global Automotive Lighting market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific is estimated to dominate the market due to the rising population and increasing production of vehicles across the nation. China and Japan acquired the most significant shares on the market, owing to the high domestic automobile manufacturing and sales. Moreover, suppliers in these countries focus on developments in technologies, especially illumination, thereby increasing demand for the automotive lighting market.
However, Europe is expected to have a significant growth rate due to regional vehicle producers and the suppliers of automobile parts, who have continually invested in protection product research and production.
Companies such as General Electric Company, HELLA GmbH & Co. KGaA, Continental, Marelli, Peterson Manufacturing Company, Denso Corporation, Bosch, OSRAM Group, Hyundai Mobis, Koninklijke Philips N.V., Ichikoh Industries Ltd, Samsung Electronics Co. Ltd., Namyung Lighting, Zizala Lichtsysteme GmbH, Seoul Semiconductor Co. Ltd., Stanley Electric Co. Ltd., Valeo, Koito Manufacturing Co. Ltd., Varroc Group, ZKW Group are the key players in the global Automotive Lighting market.
By Vehicle Type
By Adaptive Lighting
By Product Sale