Automotive Lighting Market to Grow by USD 12.38 Billion (2024-2028)

The global automotive lighting market  size is estimated to grow by USD 12.38 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 8.09%  during the forecast period. Increasing demand for effective interior lighting is driving market growth, with a trend towards development of autonomous vehicles. However, high cost of led lamps  poses a challenge.

The Automotive Lighting Market is experiencing significant growth due to increasing demand from car users for advanced lighting systems in both passenger cars and commercial vehicles. Luxury vehicles lead the trend with adaptive lighting systems, such as LED lights and Xenon or HID headlights, becoming standard features. Indium gallium nitide and aluminum gallium arsenide are popular materials for these systems. Adaptive lighting includes projector headlights, reflector headlights, OLED, matrix LEDs, and laser glare-free lighting systems.

These technologies enhance visibility during vehicle movements, especially on road tracks with pedestrians, road hazards, and traffic collisions. Passenger cars, buses, LCVs (light commercial vehicles) like pickup trucks, delivery vans, and heavy trucks are all adopting energy-efficient LED technology for headlights, tail lights, brake lights, reversing lights, turn signal lights, and interior lighting. Vehicle manufacturers focus on dynamic light sequencing, Dynamic Light System, and smart lighting systems to improve safety and road safety.

The two-wheeler lighting market also follows this trend. Autonomous driving and specialized lighting technologies further boost the market growth. Traditional fixtures like halogen bulbs are being replaced by LED lamps due to their superior illumination and cooling equipment efficiency. Battery technology and charging infrastructure development in electric vehicles also impact the automotive lighting market. The market size is expected to grow based on increasing per capita income, vehicle aesthetics, and lighting design considerations.

Leading automotive companies, including Delphi, Continental, Bosch, Daimler, Scania, and Volvo, are making significant strides in expanding the autonomous driving market. Their efforts, such as research and development, have led to increased acceptance of semi-autonomous features in both passenger and commercial vehicles. By the end of the forecast period, self-driving cars may become a reality, with a substantial number of these vehicles expected to be on the road within the next decade. These prominent automotive vendors have advanced in their research on autonomous vehicles, and the development and testing of features in advanced driver-assistance systems (ADAS) and telematics/connected vehicle applications and services are estimated to continue.