Automotive Lighting System market Forecasts from 2023 to 2028

The automotive lighting systems market is estimated to grow at a CAGR of 11.68%, reaching US$131.386 billion in 2028 from US$60.640 billion in 2021.

Car sales have a direct impact on the overall demand for car lights. Lights are more in demand when there are more cars on the road. Governments and regulatory agencies frequently enforce strict lighting requirements for automobiles, such as daytime running lighting, High-Intensity Discharge (HID) headlights, or LED tail lights. As consumers and manufacturers look for more effective, long-lasting lighting solutions, advancements in lighting technology, such as switching from conventional halogen bulbs to LED technology or HID lights, may increase demand.

Advancements in Automobile Industry

The automobile industry is going through a technological revolution that is characterized by the fusion of new technology with conventional auto manufacturing. Automotive lighting producers are creating new lighting technologies that will replace outdated standard lights in response to the growing trend of electric vehicles. New vehicle models with the greatest interiors are being introduced by electric vehicle makers. For instance, Lucid Motors introduced Lucid Air in September 2020. This elegant electric car features a full-size luxury-class cabin and is based on Lucid's unique Space Concept philosophy.

Interior Lighting Advancements

The advancements in interior lighting are mostly motivated by demands for safety, interaction, comfort, and style. Some of the newest lighting technologies include light predictions, smart LEDs, micro-LEDs, smart functioning surfaces, laser-based lighting, directing materials for 3D patterns of light on-demand, and area backlight with hidden-until-lit effects. For instance, Hella FlatLight technology, a new lighting invention for rear combo lamps, was introduced in January 2020. The application of light's scattering properties is made possible by optical technology, which is only a few micrometers in size.

Asia Pacific is Expected to Grow Significantly

The bolstering growth for automotive lighting systems in the region is due to increasing demand & sales for commercial vehicles across different countries. The increasing production of automobiles is a major factor giving a boost to the Automotive Lighting System Market in the China market. The demand for both passenger & commercial vehicles is expected to witness an upward trend coupled with the rising disposable income of middle-income consumers. According to the estimates from the China Association of Automobile Manufacturers (CAAM), the Chinese carmaker produced around 27.02 million units in the year 2022, which is around 3.4% from the year 2021. This highlights positive prospects for the Automotive Lighting System in the China market. Further, the innovations in LED technology are expected to propel market growth till the forecast period.

Major Market Player

• Valeo SE has well established itself as one of the leading providers of automotive lighting systems. The company's sophisticated and innovative lighting technology for automobiles makes its products stand out. For instance, the company's LED Artificial Intelligence-based "PictureBeam Monolithic" technology enhances road safety at night.

Key Market Developments

• Hyundai Mobis introduced a new "lighting grille" technology in June 2021, which integrates an LED lighting function in a car's front grille. The entire front grille of the car can serve as a lighting source according to Hyundai Mobis' "lighting grille" technology.
• In October 2022, Valeo Se formed a collaboration with SRG Global to provide next-generation exterior automotive lighting systems for automakers in Europe and North America.

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
• United Kingdom
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Indonesia
• Thailand
• Taiwan
• Others