Global Automotive Lighting Market expected to grow at a compound annual growth rate (CAGR) of 5.5%

The global Automotive Lighting Market is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027.

The market can be segmented into halogen, xenon, LED, and others. Among these LED segmented is expected to dominate the market over the forecast period as LED has lower power consumption property as compared to halogen bulbs and also manufacturers have invested in the research and development activities to develop advanced LED lights which can also replace the halogen bulbs in future.

Further, based on the application the market is bifurcated into commercial vehicles, and passenger vehicles. Passenger vehicles will dominate the market in the forecast period due to the increase in production and sales of passenger vehicles globally and also the advanced lighting penetration is much higher in passenger vehicles as compared to other vehicles such as trucks, buses.

The growth of the global automotive lighting market is mainly attributed to the increasing demand for lighting for better visibility and safety. Moreover, stringent government regulation, high demand for adaptive lighting, and rising production of new electric cars are amongst the major driving factors for the growth of the automotive lighting market in the near future. Furthermore, rising disposal income paired with continuous new product launches by the market participants is predicted to flourish the growth of the automotive lighting market in the near future. However, the high cost of LED lights is predicted to have an adverse impact on the growth of the global automotive lighting market. Even so, advancement in technologies is estimated to offers new growth opportunities for the market participants in the coming years.

Rising production of new electric cars paired with stringent government regulation is the major driving factor for the growth of the automotive lighting market in the analysis period. Moreover, ongoing development in product offerings by key manufacturers coupled with surging demand for better visibility and safety is predicted to support the growth of the global automotive lighting market. Furthermore, the implementation of rules and regulations by different countries, rising disposable income is also a major factor expected to propel the market demand in years to come. On the contrary, the high cost of LED lights is predicted to limit the growth of the global automotive lighting market. Even so, advancement in technologies is estimated to offers new alluring opportunities for the automotive lighting market in the forecast period.