Automotive Lighting Market Size, Share & Trends Analysis growing at a CAGR of 5.95% from 2024 to 2030
The global automotive lighting market size was estimated at USD 32,599.0 million in 2023 and is projected to reach USD 48,727.0 million by 2030, growing at a CAGR of 5.95% from 2024 to 2030. The automotive lighting market is experiencing significant growth driven by factors such as the increasing emphasis on road safety, government regulations mandating advanced lighting systems, and the global rise in automobile production.
Key Market Trends & Insights
- In terms of region, North America was the largest revenue generating market in 2023.
- In terms of segment, halogen accounted for a revenue of USD 32,599.0 million in 2023.
- Halogen is the most lucrative technology segment, registering the fastest growth during the forecast period.
Market Size & Forecast
- 2023 Market Size: USD 32,599.0 Million
- 2030 Projected Market Size: USD 48,727.0 Million
- CAGR (2024-2030): 5.95%
- North America: Largest market in 2023
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The demand for automotive lighting equipment is propelled by the need to enhance driver visibility, improve vehicle conspicuity for other road users, and add aesthetic appeal to vehicles.
Additionally, advancements in technology, particularly the adoption of LED lighting solutions that offer energy efficiency, durability, and design flexibility, are contributing to market growth. As consumer preferences shift towards more advanced and efficient lighting systems, the market is expected to continue expanding. Moreover, the growing demand for vehicles in developing nations, coupled with increasing disposable incomes and lifestyle improvements, is fueling the production of automobiles equipped with sophisticated lighting systems.
Manufacturers are investing heavily in research and development to innovate new lighting solutions that meet regulatory requirements and enhance safety and aesthetics. The market is witnessing a shift towards integrated lighting solutions that offer improved functionality and design elements.
Technology Insights
LED segment accounted for the largest market revenue share of 46.4% in 2023. LEDs offer superior energy efficiency compared to traditional halogen and xenon lighting systems, aligning with global efforts towards sustainability and fuel efficiency in vehicles. Automakers and consumers increasingly prioritize eco-friendly solutions, increasing the market growth. For instance, in July 2023, Lumileds Holding B.V. launched Nightscape technology to substantially reduce the blue light content emitted by outdoor LED lighting so as not to tamper with the oncoming driver’s vision. LEDs provide versatility in design and functionality, enabling automakers to incorporate advanced lighting features such as adaptive lighting systems, dynamic turn signals, and customizable ambient lighting. These innovations enhance vehicle aesthetics and improve safety and visibility on the road, thereby appealing to safety-conscious consumers and meeting stringent regulatory requirements globally.
The Xenon/HID segment is expected to register the fastest CAGR during the forecast period. The aesthetic appeal of HID lights has played a significant role in their adoption across various vehicle segments. HID lights produce a distinctive white or bluish-white light that enhances the appearance of vehicles, giving them a modern and luxurious look. This aesthetic appeal appeals to consumers who value style and design in their vehicles, driving demand for HID lighting options among automakers. Furthermore, advancements in HID technology have led to improved efficiency and longer lifespans for these lights, addressing concerns about energy consumption and maintenance costs.
