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Automotive lighting market to register a considerable growth rate from the increasing installation of interior lighting systems over 2018-2024, surging deployment of LEDs to fuel the industry trends

Publisher : Fractovia | Published Date : 2018-10-17Request Sample

The shifting focus of the automakers toward the betterment of vehicle ergonomics and functionality has been propelling automotive lighting market. Over the last few years, the automotive industry has observed notable changes in technological disposition such as autonomous vehicles and connected cars which have transformed the overall design of vehicles. With the integration of attractive lighting systems in the exterior as well as the interior design of the vehicles, the automotive lighting market has been experiencing a remarkable business growth. In addition, on-going dynamic changes such as the infotainment system in the interior of vehicles also will fuel the product demand considerably.

China Automotive Lighting Market, By Technology, 2017 & 2024 (USD Million)
China Automotive Lighting Market, By Technology, 2017 & 2024 (USD Million)


Taking into account the continuous transformation in the automotive technologies, lighting systems, and other additional functions, automotive lighting market magnates have been investing in the development of innovative lighting systems. The constant involvement of the key players in product enhancements for tailoring the future mobility facilities accordingly is poised to augment the industry growth. Merely a few days back for instance, considering the increasing popularity of autonomous vehicles, well-known contributor in the automotive lighting industry, Osram has developed smart LEDs (light emitting diodes) for interior lighting systems.

Presently, lighting systems have become an integral part of passenger cells and static & dynamic functions of the vehicles which will encourage players to develop a new range of lighting systems. The surging use of lighting systems in the vehicles for safety and pleasant ambiance is poised to improve the automotive lighting system market share over the years ahead. Incidentally, the rising deployment of these lighting systems in the interiors of automobiles has had a transformative impact on automotive lighting industry size from interior applications. As per estimates, automotive lighting market share from interior applications is poised to depict a CAGR of 7.1% over 2018-2024.

Earlier, lights had been deployed only in the interiors of luxury automobiles however, of late, they have come to be deployed in passenger & commercial vehicles as well, for ensuring a clear visibility and providing driver safety. These systems are specifically in high demand across Europe and North America, on account of the presence of pivotal OEMs such as Mercedes, Audi, and BMW. The U.S. government has also been undertaking initiatives to reduce the incidences of road accidents and better driver safety, creating further demand for LED-based lighting products. The consistent efforts by prominent companies and regional governments are certain to propel automotive lighting market share from interior applications.

In problematic climatic conditions such as fog and other obstacles, driving often turns out to be a hinderance due to low-intensity lighting systems. But the advent of LED lighting systems has changed the scenario owing to their illumination capability that helps the driver to drive through the dark even in autumn and winter. Modern LED lighting systems also reduce the illumination intensities on reflective road conditions. With the increasing popularity of such active lighting systems, leading automotive manufacturer, VW has been striving to enhance the LED lighting systems to empower vehicle safety. The extensive use of LED headlights for achieving vehicle safety is poised to stimulate the automotive lighting industry size significantly.

In order to bring about innovation in automotive lighting systems, currently, several companies in the automotive lighting market have been teaming up with each other for short-term and long-term projects. In September 2018 for example, the Canada-based automotive components supplier, Magna has formed a joint venture with Micro LED startup company, Rohinni for manufacturing flexible and thin LED lights for vehicles. The focus here is on the development of lighter, brighter, and energy efficient lighting solutions with the help of Rohinni’s lighting technology and Magna’s software and electronics expertise.

In yet another instance, in 2017, Chinese LED product manufacturer for automotive applications has signed a four-year strategic deal with the Taiwanese LED chip manufacturer, Epistar to achieve a dominating position in APAC region. Both the companies have been mainly looking forward to raising their capabilities to produce automotive lighting products and control the infringement. They also have been planning to reduce the product prices in order to speed up their reach across myriad geographies. The rapid growth in the automotive lighting industry across Asia Pacific region will turn out to be beneficial for the companies which have been implementing new business tactics over the last few years.


In the future, the continuous development in the automotive sector will generate lucrative opportunities for the players in the automotive lighting industry. The substantial growth in the use of LEDs in various automotive components such as headlights, interior designs, and backlights is poised to improve the industry outlook over the years ahead. For the record, the automotive lighting market will generate a revenue of more than USD 40 billion by the end of 2024.

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