The global automotive lighting market reached a value of nearly USD 32.20 Billion in 2023. The market is assessed to grow at a CAGR of 6.10% during the forecast period of 2024-2032 to attain around USD 54.86 Billion by 2032. The market growth can be attributed to the rising automobile production, the growing adoption of electric vehicles, the rising focus on vehicle safety, the increasing deployment of adaptive lighting systems in vehicles, and technological advancements and innovations.
Base Year
Historical Year
Forecast Year
| Global Automotive Lighting Market Report Summary | Description | Value |
| Base Year | USD Billion | 2023 |
| Historical Period | USD Billion | 2018-2023 |
| Forecast Period | USD Billion | 2024-2032 |
| Market Size 2023 | USD Billion | 32.20 |
| Market Size 2032 | USD Billion | 54.86 |
| CAGR 2018-2023 | Percentage | XX% |
| CAGR 2024-2032 | Percentage | 6.1% |
| CAGR 2024-2032 - Market by Region | Asia Pacific | 7.0% |
| CAGR 2024-2032 - Market by Country | India | 7.6% |
| CAGR 2024-2032 - Market by Country | China | 6.7% |
| CAGR 2024-2032 - Market by Technology | LED | 6.9% |
| CAGR 2024-2032 - Market by Vehicle Type | Electric Vehicles | 13.2% |
| Market Share by Country 2023 | India | 3.7% |
The automotive lighting market expansion is being fuelled by the rising automotive production. 85.4 million motor vehicles were manufactured around the world in 2022, a surge of 5.7% compared to 2021. Regions dominating automotive production were China, Europe, North America, Japan/Korea, South Asia, South America, and the Middle East/Africa. In 2022, 10.9 million passenger cars were manufactured in the European Union, witnessing a y-o-y surge of 8.3%. The increasing production of vehicles is surging the demand for different lighting solutions, including interior lights, headlights, taillights, and side lights.
The growing focus on vehicle safety amid the introduction of stringent government regulations is surging the demand for dynamic and adaptive lighting solutions that can automatically adjust to weather, traffic, and road conditions and improve the visibility of drivers. Automotive lighting systems are also increasingly integrated with ADAS systems to dynamically adjust to surroundings and improve vehicles’ interaction with the environment.
Value in USD Billion
2024-2032
Automotive Lighting Market Outlook
*this image is indicative*
The growing customer demand for holistic and personalised driving experiences, coupled with the rising awareness regarding the impact of lighting on health, is aiding the market. Lighting solutions that can align with the body's natural circadian rhythms, reduce driver fatigue, and create a more relaxing and energising atmosphere are gaining traction.
As vehicles become more connected, there is a rising demand for intelligent and sophisticated lighting solutions. The increasing need for external vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication in connected vehicles is opening new avenues for innovative lighting technologies, including programmable and interactive lights. In the forecast period, surging attempts to integrate innovative lighting systems with technologies such as infotainment systems, vehicle performance monitoring, and in-car navigation are expected to bolster the automotive lighting market.
Growing adoption of adaptive lighting systems; rising demand for electric vehicles; technological advancements and innovations; and the increasing emphasis on sustainability are favouring the automotive lighting market expansion.
As per the global automotive lighting market analysis, there is a growing adoption of adaptive lighting systems, such as matrix LED lights and adaptive front lighting systems (AFS), as they provide better illumination by adjusting the light beam depending on the direction, speed, and environment of vehicles. Governments globally are implementing stringent regulations mandating the use of adaptive lighting systems to enhance road safety and meet safety standards. For instance, the European Union has mandated the use of adaptive lighting technologies in vehicles to improve nighttime visibility and reduce accidents. Moreover, there is a rising integration of adaptive lighting systems with other advanced driver assistance systems (ADAS) and autonomous driving technologies.
The increasing production and sales of electric vehicles are boosting the automotive lighting market revenue. In 2023, nearly 14 million new electric cars were registered globally whereas sales of EVs witnessed a y-o-y surge of 35% (3.5 million higher). In the same year, electric cars represented nearly 18% of all cars sold, up from 14% in 2022. China accounted for 60% of new electric car registrations, followed by Europe (25%) and the United States (10%). As energy efficiency is a crucial factor in electric vehicles, the demand for power-efficient lighting technologies, such as OLEDs and matrix LEDs, that consume minimal energy and offer superior illumination is surging. In the forecast period, advancements in autonomous electric vehicles that rely on communication systems and sensors are expected to lead to the development of innovative lighting solutions that can facilitate better communication between a vehicle and other road users and improve object detection in low-light conditions.
Technological advancements and innovations are significantly driving the automotive lighting market development. The emergence of laser lights, matrix headlights, and adaptive lighting systems that can provide higher luminosity and a longer reach to improve the safety of vehicles is aiding the market. In January 2023, KYOCERA SLD Laser, Inc. introduced the world’s first LaserLightTM Headlight Modules that offer improved brightness white and infrared (IR) dual illumination for night vision and sensing for increased safety and visibility in the automotive and mobility sectors. Furthermore, key players are exploring the usage of 3D printing technology to precisely and accurately manufacture customised and complex lighting solutions with unique designs and reduced production costs. Technologies like artificial intelligence (AI), machine learning (ML), and augmented/virtual reality (AR/VR) are also anticipated to improve the functionality, safety, and design of automotive lighting systems in the coming years.
The growing focus of the automotive industry to reduce its carbon footprints is shaping the automotive lighting market trends and dynamics. Companies are increasingly using sustainable materials such as recyclable plastics, metals, and glass in manufacturing automotive lighting systems to improve their sustainability profiles and promote a circular economy. For instance, in May 2023, ZKW, along with JOANNEUM RESEARCH, University of Leoben, and the Polymer Competence Center Leoben, developed reusable materials, including polymers based on renewable raw materials, for use in the manufacturing of sustainable vehicle headlights. Besides, key players are also developing innovative production techniques to lower the energy consumption and weight of automotive lighting solutions. In January 2024, Marelli announced the launch of its LeanLight headlight and rear light concepts, featuring a 20% reduction in weight, up to 20% fewer components, and a 6 kg reduction in CO2 emissions.
The global automotive lighting market growth is being driven by the growing demand for electric vehicles (EVs), technological advancements, and a focus on sustainability. In 2023, nearly 14 million new EVs were registered globally, with sales increasing by 35%. EVs, representing 18% of all vehicle sales, are boosting the demand for energy-efficient lighting technologies like OLEDs and matrix LEDs, which offer minimal energy consumption and superior illumination. Innovations in autonomous vehicles also promise new lighting solutions for improved communication and object detection. Technological advancements, such as laser lights, adaptive headlights, and 3D printing, are enhancing vehicle safety and design. The use of AI, ML, and AR/VR is expected to further enhance lighting systems. Sustainability is also a key focus, with automakers using recyclable materials and developing energy-efficient lighting systems. For example, Marelli's LeanLight concept reduces weight, components, and CO2 emissions in lighting solutions.
The growth of the automotive lighting industry can be impeded by the high initial costs of laser, OLED, and LED lighting technologies, limiting their reach among budget-conscious customers and fleet operators. The market growth can also be challenged by supply chain disruptions and shortages of key materials such as LED chips, semiconductors, and other electronic components caused by geopolitical tensions, economic downturns, and rising fuel costs.
Stringent and complex safety regulations and compliance with global lighting standards can pose challenges for automotive lighting manufacturers. Moreover, advanced lighting solutions such as matrix and LED lighting and laser systems require high maintenance costs due to their complexity and the need for specialised repair.
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The EMR’s report titled “Global Automotive Lighting Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Market Breakup by Technology
Market Breakup by Vehicle Type
Market Breakup by Application
Market Breakup by Sales Channel
Market Breakup by Region
By Technology Insights
As per the automotive lighting market analysis, LED lighting solutions are expected to dominate the market share in the forecast period. Such lighting solutions are energy-efficient, durable, generate minimal heat, boast quick start-up, improved brightness, and better visibility, and can be designed in different sizes and shapes. Technological advancements and the development of matrix LED systems and adaptive LED lights are expected to further fuel the market expansion. In November 2023, Ams OSRAM launched the next generation of its OSLON Submount PL family of LEDs, boasting improved design flexibility, higher brightness, and lower costs.
Meanwhile, xenon/HID lights provide brighter illumination and a broader light spread, improving visibility on dark roads. Though less durable and energy-efficient than their LED counterparts, they are used in luxury and higher-end vehicles and cars with premium lighting packages. Conversely, halogen lights are gradually being phased out in favour of more energy-efficient and durable technologies as they have a short lifespan and generate a substantial amount of heat.
By Vehicle Type Insights
The rising demand for improved aesthetics, energy efficiency, and safety features in passenger vehicles is creating lucrative automotive lighting market opportunities. Customisable ambient lighting that can change colour and brightness levels is increasingly gaining popularity in premium and mid-range passenger vehicles. With growing customer demand for comfort, there is also a rising integration of smart lighting solutions that can adjust lighting based on road types, driving conditions, and weather in passenger vehicles.
In electric vehicles, LED lights are gaining traction to improve their safety, driving experience, and usability. Features such as compact sizes, lightweight, diverse colour ranges, unique sizes and shapes, and programmability are also surging the usage of LED lighting in EVs. Moreover, the rising usage of lighting solutions to enhance the driving and ownership experiences of electric vehicles is fuelling the automotive lighting demand growth. For instance, Hyundai Motor’s BEV, IONIQ 6, features fully customisable Dual Colour Ambient Lighting with 64 colour options, creating a soothing interior illumination and improving the mental and physical health of passengers.
Meanwhile, commercial vehicles typically use rugged and durable lighting solutions that can operate under extreme conditions. With safety being a major concern in commercial vehicles, high-performance lighting systems such as warning lights, daytime running lights (DRLs), and fog lights are increasingly installed.
By Application Insights
Front lighting solutions, including headlights, fog lights, and daytime running lights (DRLs), are essential for the safety, visibility, and aesthetics of vehicles. Technological advancements and innovations in front lights are revolutionising the automotive lighting market landscape. In April 2024, Marelli announced a collaboration with Hesai Group to integrate the former’s innovative headlamp design with Hesai's advanced LiDAR technology. The integration provides optimal object detection while enhancing the overall vehicle safety, without impacting vehicle aesthetics or aerodynamics, at affordable costs.
Interior lighting, comprising dashboard lights, glove box lights, dome lights, and reading lights, is gaining significant popularity amid the growing consumer demand for luxurious and personalised experiences inside vehicles. Meanwhile, rear lighting, encompassing taillights, reverse lights, brake lights, and indicator lights, plays a crucial role in ensuring the safety of vehicles, especially in low-light or nighttime driving conditions.
As per the automotive lighting market analysis, rear lighting, including tail lights, turn signal lights, reverse lights, and brake lights, plays a crucial role in enhancing the safety of vehicles and reducing rear-end collisions. With vehicles increasingly becoming more sophisticated, the demand for customisable rear lighting solutions that can create distinct brand identities is rising. Conversely, side lighting solutions like side marker lights, side reflectors, and side turn signal lights enhance the visibility of vehicles while improving its style and design.
By Sales Channel Insights
OEM lighting solutions are installed on new vehicles’ overall design and engineering directly by the manufacturer. The increasing installation of advanced lighting solutions such as laser, LED, and OLED headlights to improve the functional and aesthetic appeal of vehicles is boosting the automotive lighting market revenue.
Meanwhile, the aftermarket segment comprises custom lighting upgrades, replacement lights, and performance lighting systems that vehicle owners install or upgrade after purchasing their vehicle. Aftermarket lighting solutions boast ease of installation, hence they can be installed by customers or professional service providers. The robust growth of the e-commerce sector and the availability of a wide range of lighting solutions at competitive prices on online retail channels are driving the automotive lighting demand forecast.
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North America Automotive Lighting Market Trends
The introduction of government regulations aimed at improving the safety of vehicles and vulnerable road users is driving the automotive lighting market expansion. In February 2022, the US Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) allowed US car manufacturers to install adaptive driving beam headlights to improve the safety of bicyclists and pedestrians and prevent crashes. Besides, in 2022, the total number of registered road motor vehicles in Canada reached 26.3 million, with light-duty vehicles representing 91.7% of total registrations. This is surging the demand for lighting systems that can improve the aesthetics, safety, and visibility of vehicles.
| CAGR 2024-2032 - Market by | Country |
| India | 7.6% |
| China | 6.7% |
| Canada | 5.7% |
| France | 4.8% |
| Italy | 4.3% |
| USA | XX% |
| UK | XX% |
| Germany | XX% |
| Japan | 4.2% |
| Australia | XX% |
| Saudi Arabia | XX% |
| Brazil | XX% |
| Mexico | XX% |
Europe Automotive Lighting Market Overview
The Europe automotive lighting market expansion is being fuelled by a robust automotive manufacturing base in the region, coupled with the growing focus on vehicle safety. In 2023, the number of registered passenger cars in the European Union reached nearly 257 million, led by Germany (approximately 49 million cars), Italy (nearly 41 million cars), and France (over 39 million cars), hence boosting the demand for efficient automotive lighting solutions. In addition, new electric car registrations in Europe reached 3.2 million in 2023, witnessing a y-o-y growth of around 20%. This is driving the installation of smart lighting systems and LED headlights in electric vehicles to improve their performance and preserve their battery life.
Asia Pacific Automotive Lighting Market Dynamics
The increasing vehicle production in countries such as China, Japan, India, and South Korea and the presence of leading automotive manufacturers such as Nissan, Toyota, Hyundai, and Kia, among others, are shaping the automotive lighting market dynamics. LED lighting solutions are increasingly gaining popularity in the region for headlights, taillights, and interior lighting due to their benefits such as energy efficiency, cost-effectiveness, and long lifespan. Moreover, there is a rising demand for customisable lighting solutions that enable customers to personalise the interior and exterior lighting of vehicles, especially in mature markets such as Japan and South Korea.
Latin America Automotive Lighting Market Drivers
Latin American countries, such as Mexico and Brazil, have positioned themselves as prominent automotive manufacturing hubs due to favourable trade agreements (such as the United States-Mexico-Canada Agreement) and lower labour costs. With automotive companies increasing their investments in the region, the demand for automotive lighting systems is rising. As per the automotive lighting market regional analysis, factors such as improving road infrastructure, rapid economic development, and the increasing demand for both passenger and commercial vehicles are aiding the market in Latin America. As the awareness regarding road safety surges in the region, the adoption of adaptive lighting systems that improve visibility during driving is rising.
Opportunities in the Middle East and Africa Automotive Lighting Market
Extreme weather conditions in the Middle East and African countries, such as high temperatures and sandstorms, are surging the demand for reliable and durable automotive lighting solutions that can perform under extreme conditions. The growing demand for luxury vehicles, buoyed by the rising affluent population in countries such as Saudi Arabia, the UAE, and South Africa, is driving the demand for premium lighting solutions, such as dynamic headlights, ambient lighting, and signature lighting systems. Furthermore, the increasing development of smart cities, supported by initiatives such as Saudi’s Vision 2030, is propelling the automotive lighting market development. In the forecast period, lighting manufacturers are expected to develop smart automotive lighting systems that can integrate with urban infrastructure.
Key automotive lighting market players are actively investing in OLED and LED lighting solutions due to their durability, energy efficiency, and design flexibility. Automotive lighting companies are also collaborating with leading automakers to provide customised and advanced lighting solutions for vehicles.
HELLA GmbH & Co. KGaA, founded in 1899 and headquartered in Lippstadt, Germany, is a global leader in automotive lighting and electronics. The company’s lighting solutions, including matrix headlights, adaptive lighting systems, and LED lighting solutions, are used in a wide range of vehicles.
Valeo SA, founded in 1923, is a leading automotive company that is engaged in the design, production, and sale...
OSRAM GmbH, founded in 1919, is a leading company that offers lighting and optical solutions. Headquartered in...
Marelli Automotive Lighting Reutlingen (Germany) GmbH, headquartered in Reutlingen, Germany, is a company that...
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the automotive lighting market are Hyundai Mobis Co.,Ltd., KOITO MANUFACTURING CO., LTD., STANLEY ELECTRIC CO., LTD., and Koninklijke Philips N.V., among others.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2023, the market reached an approximate value of USD 32.20 Billion.
The automotive lighting market is assessed to grow at a CAGR of 6.10% between 2024 and 2032.
The market is estimated to witness healthy growth in the forecast period of 2024-2032 to reach a value of around USD 54.86 Billion by 2032.
The major industry drivers are growing adoption of vehicles, rising safety concerns and need for enhanced driving experience, and adverse weather conditions.
The key industry trends guiding the market growth include increasing cases of road accidents, government measures, and advancements in lighting technologies.
The major regions in the industry are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.
The different market divisions, based on technology, include halogens, xenon/HID, and LED, among others.
The significant market divisions, based on vehicle type, include passenger vehicles, commercial vehicles, and electric vehicles.
The various applications of the product are front lighting, interior lighting, rear lighting, and side lighting.
The major market divisions, based on sales channel, include original equipment manufacturers products (OEMs Products) and aftermarket products.
The major players in the industry are HELLA GmbH & Co. KGaA, Valeo SA, OSRAM GmbH, Hyundai Mobis Co.,Ltd., Marelli Automotive Lighting Reutlingen (Germany) GmbH, KOITO MANUFACTURING CO., LTD., STANLEY ELECTRIC CO., LTD., and Koninklijke Philips N.V., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment
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| Breakup by Technology |
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| Breakup by Vehicle Type |
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| Breakup by Application |
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| Breakup by Sales Channel |
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| Breakup by Region |
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| Market Dynamics |
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| Trade Data Analysis |
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| Price Analysis |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124
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