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The automotive LED lighting market is estimated to grow at a CAGR of 4.45% between 2022 and 2027. The size of the market is forecast to increase by USD 2,005.77 million. The growth of the market depends on several factors, including the use of LEDs in automotive intelligent lighting system applications, the growing popularity of ambient lighting in automobiles, and the incorporation of energy-efficient solutions in automobiles.
This report extensively covers market segmentation by type (exterior and interior), application (passenger cars and commercial vehicles), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global automotive LED lighting as a part of the global automotive components and accessories market within the global auto components market. The global automotive components and accessories market covers companies engaged in the production of parts and accessories for automobiles like passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The growing popularity of ambient lighting in automobiles is notably driving the market growth, although factors such as rising prices of raw materials may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Automotive Light Emitting Diode Lighting Market Driver
The growing popularity of ambient lighting in automobiles is notably driving market growth. To enhance the appearance of cabins at night ambient lighting is used. This lighting uses light pipes, light rings, LED pin spotlights, and diffuser lenses that are integrated into the vehicle's console, door panels, instrument panels, and seat frames. LEDs are used for ambient lighting in cabins owing to their small size and lower energy consumption.
Furthermore, automotive OEMs have been increasing the number of light sources to make vehicles look premium. However, bright lights in automotive cabins can distract drivers, and therefore, the luminance value of cabin lighting is maintained below 0.1 cd/m square. Automotive OEMs such as Audi are continuing research on ambient lighting to determine optimum colors and brightness levels. The ambient lighting improves comfort as it illuminates necessary functions in the dark. Moreover, drivers and passengers can control the intensity and color of ambient lighting. Thus, such factors will boost the market during the forecast period.
Significant Automotive LED Lighting Market Trend
The growing adoption of adaptive lighting systems is an emerging trend in the market. Adaptive lighting systems augment the distribution of light according to the driving circumstances. These systems are also being adopted in vehicles owing to their additional safety and comfort features. They are used in both the front and rear lighting of vehicles. LED technology is becoming a crucial enabler for the efficient and reliable operation of these systems when compared with other lighting technologies. Hence, the popularity of these adaptive lighting systems is a positive trend for the growth of the market in focus.
Furthermore, developments by prominent vendors are enabling automotive OEMs to offer adaptive lighting systems. For instance, in 2022, Porsche, a subsidiary of Volkswagen AG, showcased new HD matrix LED headlight technology. The innovative headlight technology offer functions that include low and high beams, glare-free high beam, adaptive highway high beam, dynamic safety zone, and sign glare reduction. Hence, such factors will fuel the market growth during the forecast period.
Major Automotive Light Emitting Diode Lighting Market Challenge
Rising prices of raw materials are major challenges impeding market growth. Aluminum, copper, polyvinyl chloride (PVC), and paper are some of the raw materials used in automotive LED lighting. Prices of these materials have been experiencing an upward trend in recent years. Furthermore, the rising price of crude oil is increasing the price of PVC.
Since the prices of the raw materials are subject to fluctuations, manufacturers find it difficult to maintain stock, which increases the operational cost. The high prices of raw materials increase the price of LED lights when compared with other types of automotive lighting. This acts as a crucial challenge for the growth of the global market. Furthermore, innovations in lighting systems and efficient design changes are of prime importance for manufacturers. Therefore, these factors will hinder the global market growth during the forecast period.
Key Automotive Light Emitting Diode Lighting Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive LED Lighting Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Lumax Industries Ltd. -The company operates under one segment. The company under this segment is involved in manufacturing a wide range of automotive components and systems in India supplying to all segments of the market such as OEMs, aftermarkets, and exports. The key offerings of the company include automotive LED lighting solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the exterior segment will be significant during the forecast period. The exterior lighting segment includes LED lighting applications for the front, rear, side, and top portions of vehicles. The common application areas include headlights, position lamps, fog lights, DRLs, turn signals, taillights, side mirror lamps, center high-mount stop lights (CHMSLs), license plate lamps, and reflectors.
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The exterior segment was valued at USD 4,927.41 million in 2017 and continued to grow until 2021. The rising demand for energy-efficient lighting solutions has shifted the focus of LED exterior lighting vendors away from traditional applications such as turn signals and taillights. Modern vehicles are increasingly adopting LED lighting for applications such as headlights and DRLs. The increasing demand for LED lighting and rapid technological advances are allowing the vendors in the market to lower production costs, which is fueling the growth of the market. Hence, the exterior lighting segment is the highest revenue contributor to the market in focus.
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APAC is estimated to contribute 59% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC dominates the global automotive production industry due to the presence of countries that are among the largest automotive producers globally. The demand for automotive LED lighting in APAC is expected to outpace the demand in developed regions, such as North America and Europe, during the forecast period. This is mainly attributed to the growing demand for safety and convenience features in modern vehicles by the end-users from emerging markets in the region. Furthermore, the shift in consumers' preference from fuel efficiency to aesthetics and advanced features is also expected to drive the adoption of LED lighting solutions, in APAC during the forecast period.
Moreover, the significant investments being made in infrastructure and industrialization are creating significant demand for passenger and commercial vehicles in APAC. It is expected that India, China, Japan, and Indonesia will account for a significant number of new vehicle purchases, with high electronic content, during the forecast period. This would fuel the need for LED lighting in these countries in the coming years. Hence, these factors will fuel the regional market during the forecast period.
The COVID-19 outbreak declined the market growth in the region in 2020. However, in 2021, due to the vaccination drives carried out by the government of several countries many industries, including automotive production, resumed their operations, resulting in an increase in the demand for such lighting products. In addition, the rise in the demand for new technology automotive lighting, such as OLED, matrix LED, and laser lighting will foster the growth of the regional market. Hence, such factors are expected to fuel the regional market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Type (Exterior and Interior), Application (Passenger cars and Commercial vehicles), and Geography (APAC, Europe, North America, South America, and Middle East and Africa).
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Automotive LED Lighting Market Scope |
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Report Coverage |
Details |
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Page number |
168 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.45% |
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Market growth 2023-2027 |
USD 2,005.77 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.15 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 59% |
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Key countries |
US, China, Japan, South Korea, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Changzhou Xingyu Automotive Lighting System Co. Ltd., Everlight Electronics Co. Ltd., HELLA GmbH and Co. KGaA, Hyundai Mobis Co. Ltd, Koito Manufacturing Co. Ltd, Koninklijke Philips NV, LG Electronics Inc., Lumax Industries Ltd., Lumileds Holding BV, Marelli Holdings Co Ltd, Nichia Corp, OSRAM GmbH, Samsung Electronics Co. Ltd., Seoul Semiconductor Co. Ltd., SL Corp., Stanley Electric Co. Ltd., Tungsram Operations Kft., Valeo SA, Varroc Lighting, and Zumtobel Group AG |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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