The global automotive lighting market was valued at US$ 21.9 Billion in 2022, and is projected to reach US$ 31.45 Billion by 2030, growing at a CAGR of 5.1% from 2023 to 2030. The global automotive lighting market is a growing industry, driven by factors such as increasing vehicle production, growing demand for energy-efficient lighting systems, and advancements in LED lighting technology.

The market is segmented into various products such as headlights, tail lights, interior lights, and others. Among these, the headlights segment is expected to hold the largest market share during the forecast period, owing to the increasing demand for advanced lighting technologies and growing safety concerns.

The market is witnessing a shift from traditional lighting systems to energy-efficient LED lighting systems. The LED lighting technology provides better lighting performance and lower energy consumption, making it a popular choice among vehicle manufacturers. Asia-Pacific is expected to dominate the global automotive lighting market during the forecast period, owing to the growing automotive industry in the region, increasing demand for luxury vehicles, and rising urbanization.

Market Dynamics

Driving Factors

There are several driving factors that are fueling the growth of the global automotive lighting market. Some of the key factors include:

Increasing Vehicle Production: The global automotive industry is witnessing significant growth, with the production of vehicles increasing every year. As a result, there is a growing demand for automotive lighting systems to be installed in these vehicles, which is driving the growth of the global automotive lighting market.

Increasing Safety Concerns: Safety is a major concern in the automotive industry, and lighting plays a crucial role in ensuring the safety of drivers and passengers. As a result, vehicle manufacturers are increasingly looking for advanced lighting technologies that can improve safety and visibility on the road.

Restraining Factors

There are several driving factors that are fueling the growth of the global automotive lighting market, there are also some restraining factors that are likely to affect the market growth. Here are some of the key restraining factors:

High Cost of LED Lighting Systems: LED lighting systems are more energy-efficient and offer better lighting performance, but they are generally more expensive than traditional lighting systems. This high cost can act as a restraining factor for consumers, particularly in price-sensitive markets.

Increasing Popularity of Electric Vehicles: With the increasing popularity of electric vehicles, there is a growing trend towards simplification of vehicle design and reduction of weight to improve efficiency. This trend may result in the removal of certain lighting components or the integration of lighting functionality into other vehicle systems, which could impact the demand for automotive lighting systems.

Opportunity Factors

The global automotive lighting market presents several opportunities for growth and expansion in the coming years. Here are some key opportunity areas:

Introduction of Advanced Lighting Technologies: There is a growing demand for advanced lighting technologies in the automotive industry, particularly in the areas of safety, energy efficiency, and convenience. Manufacturers can capitalize on this demand by introducing new and innovative lighting technologies that offer better performance and functionality.

Collaboration with OEMs and Tier 1 Suppliers: Collaborating with OEMs and Tier 1 suppliers can help manufacturers to gain a competitive advantage in the automotive lighting market. By working closely with these partners, manufacturers can develop customized lighting solutions that meet specific customer needs and preferences.

Challenges Factors

The global automotive lighting market also faces several challenges that could impact market growth and profitability. Here are some of the key challenges:

Intense Competition: The automotive lighting market is highly competitive, with many established players and new entrants vying for market share. Intense competition can result in pricing pressures, reduced profit margins, and increased marketing costs.

Stringent Regulations: The automotive industry is subject to stringent safety and environmental regulations, which can add to the cost of developing and manufacturing lighting systems. Compliance with these regulations can be a significant challenge for manufacturers, particularly for small and medium-sized enterprises.

Segmentation Analysis

Light Type Outlook

Halogen lights are the most common type of automotive lighting and have been in use for many years. They are relatively inexpensive and have a long lifespan, but they are not as energy-efficient as other types of lighting. LED lighting is becoming increasingly popular in the automotive industry due to its energy efficiency and durability. LED lights are more expensive than halogen lights, but they offer better performance and a longer lifespan.

Xenon or HID lights are high-intensity discharge lights that produce a bright, white light. They are more energy-efficient than halogen lights and offer better visibility in low-light conditions, but they are more expensive and can be more difficult to install.

Laser lights are a newer type of automotive lighting that use laser diodes to produce a highly concentrated beam of light. They offer improved visibility and energy efficiency compared to other lighting types, but they are currently only available in high-end vehicles due to their high cost.

The LED segment is expected to be the fastest-growing light type segment in the automotive lighting market due to its increasing adoption in vehicles. LED lighting offers several advantages, including better energy efficiency, longer lifespan, and better performance, which are driving demand for this type of lighting. However, halogen lighting is still expected to dominate the market in terms of volume due to its lower cost and widespread adoption in entry-level vehicles.

Services Outlook

Passenger cars are the largest segment of the automotive lighting market, accounting for the majority of the total demand. The increasing demand for passenger cars in emerging markets and the adoption of advanced lighting technologies in developed markets are the key drivers of growth in this segment.

The commercial vehicles segment includes light commercial vehicles, heavy commercial vehicles, and buses. This segment is expected to grow due to the increasing demand for commercial vehicles in emerging markets and the rising adoption of LED lighting in commercial vehicles for better energy efficiency and durability. The two-wheelers segment includes motorcycles, scooters, and mopeds. This segment is expected to grow due to the increasing demand for two-wheelers in emerging markets, where they are a popular mode of transportation.

The passenger car segment is expected to continue to dominate the automotive lighting market due to the high demand for passenger cars globally. However, the commercial vehicles and two-wheelers segments are also expected to grow due to the increasing adoption of advanced lighting technologies and the rising demand for energy-efficient and durable lighting systems.

Regional Analysis

North America is a significant market for automotive lighting due to the high demand for passenger and commercial vehicles in the region. The adoption of advanced lighting technologies and increasing focus on vehicle safety regulations are driving the growth of the market in this region.

Europe is another major market for automotive lighting due to the presence of several prominent automotive manufacturers and suppliers in the region. The demand for energy-efficient and eco-friendly lighting systems is driving the adoption of LED lighting in the region. The Asia-Pacific region is the largest market for automotive lighting due to the high demand for passenger and commercial vehicles in countries like China, India, and Japan. The increasing adoption of advanced lighting technologies and rising focus on vehicle safety are driving the growth of the market in this region.

Latin America is a growing market for automotive lighting due to the increasing demand for passenger and commercial vehicles in the region. The adoption of energy-efficient lighting technologies and increasing focus on vehicle safety regulations are driving the growth of the market in this region.

The Global Automotive Lighting Market has been segmented into:

By Motor Type

• Brushed Motors
• Brushless Motors
• Stepper Motors

By EV Motor Type

• Brushed Motors 
• Burshless Motors
• Induction Motors
• Traction Motors
• Stepper Motors
• Others

By Vehicle Type

• Internal Combustion Engine (ICE) Vehicles
• Hybrid Electric Vehicles (HEVs)
• Plug-in Hybrid Electric Vehicles (PHEVs)
• Battery Electric Vehicles (BEVs)
• Fuel Cell Electric Vehicles (FCEVs)

By Function

• Performance Motors
• Comfort Motors
• Safety Motors

By Region

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Market Players 

The global automotive lighting market is highly competitive and fragmented, with numerous players vying for market share. Some of the key companies in the market are:

• DENSO CORPORATION
• HELLA GmbH & Co. KGaA, 
• HYUNDAI MOBIS, 
• KOITO MANUFACTURING CO., LTD., 
• Koninklijke Philips N.V., 
• OSRAM GmbH, 
• Robert Bosch GmbH, 
• Stanley Electric Co., Ltd., 
• Valeo
• ZKW

There are several emerging players and start-ups in the market that are developing innovative lighting solutions for the automotive industry. These players are leveraging technologies such as LED, laser, and OLED to offer energy-efficient and advanced lighting systems for vehicles.

The competition in the global automotive lighting market is intense, with players competing on several fronts to gain market share. Manufacturers will need to invest in research and development activities, focus on product innovation and differentiation, and build strong distribution networks to stay competitive in the market.

Strategic Developments

• In 2021, Marelli Automotive Lighting announced a joint venture with Pforzheim University to develop advanced lighting technologies for the automotive industry.
• In 2020, Magneti Marelli S.p.A was acquired by CK Holdings Co., Ltd. (a holding company of Calsonic Kansei Corporation), and was renamed Marelli.
• In 2019, Hella GmbH & Co. KGaA acquired the front camera software business from the French company, Transics International.
• In 2018, Valeo S.A. acquired Ichikoh Industries, Ltd., a Japanese manufacturer of automotive lighting systems.
• In 2017, Hyundai Mobis Co., Ltd. announced a joint venture with Chinese LED manufacturer, Tianjin Linsen Optoelectronics Technology Co., Ltd., to develop advanced lighting technologies for the automotive industry.
• In 2016, Osram GmbH acquired Novità Technologies, a leading provider of automotive LED lighting solutions.
• In 2015, Koito Manufacturing Co., Ltd. announced a joint venture with Chinese automotive parts manufacturer, Dongfeng Motor Corporation, to develop and manufacture automotive lighting systems in China.