Automotive Lighting Market

Government Lighting Regulations for Better Safety and Visibility to Drive Automotive Lighting Market Growth

Strict lighting regulations in Europe and North America have boosted the automotive lighting market. Vehicle lighting is extremely important, especially when driving in heavy traffic and at night. Road accidents are a major source of concern for governments all over the world. According to the World Health Organization (WHO), 1.3 million people die every year due to road accidents. Most countries lose 3% of their GDP due to traffic accidents. As a result, it is critical to improve driving conditions, which can be achieved in part by enhancing the lighting system. The Canadian Vehicle Lighting Regulation introduced new lighting standards in September 2021, such as taillights with daytime running lights (DRLs), side marker lights that turn on automatically in the dark, and dark dashboards that alert the driver to turn on lights. The purpose of daytime running lights is not to help the driver in seeing the road, but to assist other road users to see the oncoming vehicle.

According to the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA), daytime running lights (DRL) have reduced fatal road accidents by nearly 13.8%. This type of regulatory legislation is expected to have an impact on the automotive lighting industry. Moreover, some states in the United States, including California, Kansas, and Arizona, allow neon under glow car lights with restrictions on colour and location. For instance, in Arizona, only amber or white lights are permitted on the vehicle's side. In addition, many countries are taking active steps to reduce CO₂ emissions from vehicles. As a result, the government's stringent safety and security regulations are expected to boost the growth of the automotive lighting market.

Huge investments in R&D and innovation by automotive manufacturers to develop automotive lighting systems compatible with driver assistance systems and proximity sensors increase market demand for automotive lighting systems. For instance, Hella GmbH & Co., developed full-LED high beam headlamps for commercial vehicles using EdgeLight technology in 2021, which provides a conspicuous flasher function with an overview to improve road safety, and driver visibility.

Lower Energy Consumption Feature of LED to Drive the Growth of Automotive Lighting Market

The LED is expected to be the fastest-growing segment of the automotive lighting market over the forecast period. LED's low energy consumption and high-power output, when compared to halogen, are likely to drive growth. Leading manufacturers are concentrating their efforts on developing advanced LED lights that will potentially replace halogen bulbs. For instance, Osram launched a new LED vehicle light series in December 2019. The series includes headlights with integrated LED technology, low and high beams, turn indicators, position lights, and a daytime operating mode. Demand for LED lights is driven by consumers' growing preference for energy-efficient LED systems and stringent government regulations. Furthermore, the advancement and integration of adaptive lighting with advanced driver assistance systems (ADAS) in upcoming autonomous vehicles allows for vehicle-to-vehicle communication, and reduces the number of road collisions.

Increased Production and Sales of Vehicles to Drive Growth of Asia Pacific Automotive Lighting Market

Asia Pacific is the largest user of automotive lighting and is expected to grow at the fastest rate throughout the forecast period. Growing vehicle production, increase in luxury car sales, rise in low-cost vehicles sale, corresponding increase in number of accidents, especially during the night, are driving regional expansion. Owing to the rapid consumer adoption and high automotive sales, Asia Pacific is expected to be the largest market in the global industry. Due to their huge domestic automotive production and sales, China, and Japan have the greatest market shares. Furthermore, manufacturers in these countries place a high priority on technology improvements, which includes lighting, resulting in increased demand for vehicle lighting. The market is fuelled further by rising consumer per capita income and strong SUV sales in emerging markets like India.

The plenteous supply of raw materials and the enormous demand for low-cost electrical and mechanical components from countries such as Japan, China, and India are driving the regional growth. There has been a high demand for advanced lighting due to the rising in premium car sales. For instance, the top 20 selling premium cars in China are provided with LED (headlights, taillights, DRLs, and Ambient light) and many of the top-selling vehicles in China are provided with LED (DRLs), and LED taillights as per government regulations. Increasing adoption of modern lighting in lower and mid-segment vehicles is likely to create new chances for the automotive lighting market to develop in this region over the forecast period.

The rapid growth of the automotive lighting market in North America can be ascribed to the increased electric vehicle sales and the early adoption of ADAS features. For safety reasons, almost all of the top-selling passenger automobiles include LED DRLs in the United States. Furthermore, the rest of the world has a negligible share of the worldwide market. With increased awareness and acceptance of new technology, ROW will grow strongly during the forecast period.

Global Automotive Lighting Market: Competitive Landscape

In December 2021, Bosch launched new 4W (four-wheeler) lighting bulbs, the Gigalight 120, 150, Sportec Bright 4000K, and LED Retrofit, which is suitable for almost any vehicle. The Bosch Bulbs Gigalight 120, 150, Sportec Bright 4000K, and LED Retrofit to provide motorists with the brightness they need to see road signs or obstacles ahead in any weather condition. On the other hand, in January 2022, HELLA launched the new Black Magic LED series in Europe. Its dustproof and waterproof, including its robust design, is specifically designed for off-road applications. They provide off-road illumination with up to 15,000 lumens depending on the variant.

A few of the players in the automotive lighting market include Denso Corporation, ZKW, Hella GmbH & Co. KGaA, Valeo, Hyundai Mobis, Stanley Electric Co., Ltd., Koito Manufacturing Co., Ltd., Robert Bosch GmbH, Koninklijke Philips N.V., and Osram GmbH.

Regional Classification of the Global Automotive Lighting Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa

*Regions and countries are subject to change based on data availability

Key Elements Included In The Study: Global Automotive Lighting Market

• Automotive Lighting Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2018 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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