The global automotive lighting market size will reach USD 50 billion and 1,841 million units by 2024. The increasing use of exterior and interior lighting systems that enhances the users driving experience and convenience is fueling the growth of the global automotive lighting market shares. The growing concerns for road safety and innovations in lighting systems will create lucrative opportunities for the leading vendors. The rapid adoption of ADAS technology and the development of futuristic automotive lighting technologies such as laser headlamps and OLED lights are driving innovation in the automotive industry. The introduction of LEDs and OLEDs are leading to the adoption of advanced systems. The growing demand for other systems such as navigation, entertainment, and ambient lighting will fuel the growth of the market. The exponential growth of electric cars and the development of autonomous vehicle platforms are positively impacting the evolution of the market. The declining prices of LED, advancements in the OLED technologies, increasing demand for luxury vehicles, and the promotion of sustainable and green technology are some of the major factors attributing to the growth.
The implementation of electronics, such as collision avoidance systems, infotainment, connected systems, and drive-by-wire technologies, will lead to the adoption of automotive lighting products. The introduction of anti-lock braking systems (ABS), engine control units (ECUs), electronic fuel injection systems, and automated locking systems will promote the development of safety electronics.
The introduction of laser light technology is one of the major factors attributing to the growth of the global automotive lighting market. The use of laser light technology will double the power without sacrificing the electrical efficiency and offers OEMs the flexibility to add additional technologies. Laser lights are becoming an extremely crucial component in the exterior lighting systems market. The various advantages of laser lighting technologies will boost the adoption of these devices over the next few years.
INSIGHTS BY EXTERIOR LIGHTING
Introduction of LED and laser headlights to revolutionize the global automotive lighting market
Headlamps dominated more than half of the total share in 2018, growing at a CAGR of more than 6% during the forecast period. The introduction of LED and laser headlights is one of the primary factors attributing to the development of the segment. Technological advancements and increasing investments in the R&D of manufacturing new components will propel the demand for innovative devices. The government initiatives to promote safety regulations will impact the growth and development of the headlamps segment over the next few years. Implementing the advanced front-lighting system (AFS), a technology that provides adequate lighting depending on numerous factors such as steering angle, GPS, and road curves, will boost profitability.
INSIGHTS BY INTERIOR LIGHTING
The popularity of the autonomous vehicle platform is driving the demand for the ambient lighting segment.
Ambient lighting systems are the fastest-growing segment at a CAGR of around 8% during the forecast period. The growing demand for systems that increase the safety by illuminating vehicle interiors without driver distraction is propelling the growth of this segment. The manufacturers offer innovative techniques to gain a maximum number of consumers and gain a larger market share over the next few years. The ambient lighting systems help make the vehicle more attractive and spacious, simultaneously maintaining safety without distracting the driver. The increasing adoption and popularity of electric cars and autonomous vehicle platforms will fuel the development of this segment.
INSIGHTS BY INSTALLATION
The promotion of sustainable technologies will create lucrative investment opportunities for OEMs in the global automotive lighting market.
OEM segment occupied the majority of total automotive lighting market share in 2018, growing at a CAGR of more than 6% during the forecast period. The regional economic performance, automotive demand, and the adoption of stringent safety regulations are some of the key factors contributing to the growth of this segment. Supportive government policies will encourage the adoption of the latest automotive technologies. The rapid electrification of engine components and sustainable technologies will promote development and investment in the OEM segment. The growing focus on reducing operational costs and rising demand for LED systems will boost revenues.
The increasing growth of wear-and-tear and crash-relevant parts is driving the demand for aftermarket services in the market. The rapid technological advancements and consolidation among suppliers will contribute to the development of the aftermarket services segment.
INSIGHTS BY VEHICLE
Rising demand for crossovers and compact SUVs to drive demand for mid-priced cars.
Mid-priced cars are the fastest-growing segment at a CAGR of over 9% during the forecast period. The increasing demand for crossovers and compact SUVs is majorly driving the growth of the mid-priced cars segment. The rising focus on installing powertrain and chassis systems, body electronics, safety and security systems, telematics, and infotainment systems in mid-priced cars will transform the global market over the next few years. The emergence of connected and autonomous cars has increased the demand for LED interior lighting systems. The vendors are developing cost-effective LED systems for mass-market vehicles to gain a larger global automotive lighting market share.
Vendors are integrating power electronic devices used for various safety components such as airbag systems or ECS systems and tire pressure monitoring systems in economy cars to attract a new group of consumers. Leading OEMs such as Tesla, Chevrolet, BMW, and Volvo are developing electric vehicles.
INSIGHTS BY GEOGRAPHY
OEMs setting up new manufacturing units will boost profits in the global market.
APAC dominated around half of the total share in 2018, growing at a CAGR of approximately 7% during the forecast period. The growing demand for economy and luxury vehicles and leading OEMs setting up manufacturing units will contribute to the development of the APAC region. The increasing demand for SUVs in countries such as China and Japan will drive the growth of the automotive industry in the APAC region. The automotive production industry is growing exponentially in the Indian region and contributes to the rising revenues in the APAC region. Toyota, Honda, Suzuki, and Nissan will help develop technological expertise in the region. The growing demand for premium and luxury cars in the APAC region will attract new investments.
Germany, Spain, and the UK are contributing to the increased revenues in the European region. The growing popularity of electric, connected, and autonomous vehicles across North America will boost the demand for innovation. The vendors expanding their business to the UAE, Iran, Saudi Arabia, and South Africa will fuel growth in the global automotive lighting market.
KEY VENDOR ANALYSIS
The global market is witnessing competitive pricing and the presence of several competitors. The increasing production and adoption of electric vehicles enable APAC to emerge as the world leader in the global market. The increase in export activities by global giants such as Toyota, Honda, and Suzuki will intensify the competition levels. The top players are focusing on product differentiation to gain a larger global market share. The increasing investment in innovation and business expansion will fuel the development of the worldwide market.
The automotive lighting market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
By Exterior Lighting
- Rear Lamps
- Fog Lamps
By Interior Lighting
- Roof Console
- Reading Lights
- Car Body
- North America
- Latin America
- Middle East & Africa