Global Automotive Lighting A $48.8 Billion Industry by 2028

The global automotive lighting market in 2022 stood at US$33.67 billion, and is likely to reach US$48.80 billion by 2028. The global automotive lighting market value is projected to grow at a CAGR of 6.38%, during the forecast period of 2023-2028.

One of the reasons leading to the rising demand for automotive lighting in recent years is the increased emphasis on safety and visibility. As automotive technology advances, there is a growing awareness among consumers and regulatory bodies about the crucial role that lighting systems play in ensuring road safety. Thus, representing a need and large market opportunity for the automotive lighting market.

Some other factors driving the rise in automotive lighting demand include the rising disposable income and improved lifestyle which has led to increased sales of automobiles globally. Additional trends include the styling and individualization of cars, interior lighting, electrification, new functions, rising electronics content, the increased sophistication of products, and ongoing technological advancements like introduction of LEDs, OLEDs, laser lights, adaptive lighting system. In the coming years, these improvements or trends are expected to significantly stimulate demand for automotive lighting.

Global Automotive lighting Market Dynamics:

Growth Drivers: Increasing sales and production of automotive vehicles has the potential to boost the growth of the automotive lighting market. When the automotive industry experiences growth, there is a parallel surge in the demand for automotive lighting components. This is because every vehicle requires lighting systems for safety and compliance with regulations.

As more vehicles are manufactured and sold, the need for headlights, taillights, turn signals, and interior lighting also rises. Further, the market is expected to increase due to rising disposable income, increasing number of road accidents, stringent government regulation, replacement exposure etc.

Challenges: High cost of LED lighting can present challenge for the automotive lighting market. LED technology comes with a higher initial cost compared to traditional lighting sources such as halogen or incandescent bulbs.

This is due to the significant investment required in research, development, and production, as well as the increased heat emission and additional installation costs. Despite its superior performance, this cost remains a barrier. Other challenge that automotive lighting market faces are shortage of raw materials like semiconductor.

Trends: A major trend gaining pace in automotive lighting market is personalization and pay-per-use. The global automotive lighting market is set to see a shift towards customization and innovative payment models. Carmakers are offering customers the ability to personalize their vehicle's lighting, using LED and OLED technologies for flexible designs. Pay-per-use features, such as adaptive lighting or high-definition projectors, can be offered as optional extras.

This aligns with sustainability efforts and user-centric vehicle design. Also, ambient lighting in automotive design is becoming a key element, enhancing the aesthetic and functional interior environment. As cars evolved from transportation to mobile living spaces, ambient lighting became an integral part of the design language, enhancing the emotional experience for drivers and passengers.

More trends in the market are believed to augment the growth of automotive lighting market during the forecasted period include connectivity and digitalization, electrification, autonomous driving and technological advancements in lighting systems like introduction of uAFS LED headlights, flexible OLEDs, laser lights and adaptive lighting systems etc.