Automotive Lighting Market: Current Analysis and Forecast (2021-2027)

Global Automotive Lighting Market is anticipated display a CAGR of around ~11% over the forecast period (2021-2027). The demand for automobiles with modern technologies has increased as vehicle manufacturing and sales have increased around the world. As a result, automakers are developing and installing cutting-edge components in next car models. Companies such as Hella KGAA HUECK & Co., for example, are developing and introducing new lighting systems with various functions such as connecting with pedestrians to ensure safety and suit client expectations. Automobile sales are rapidly increasing in developing countries such as Brazil, Russia, India, and China (BRIC). Furthermore, factors such as urban population growth, rising income levels, and changing lifestyles all contribute to the growth of the automotive lighting industry.

Insights Presented in the Report

“Amongst Vehicle Type, Passenger Car segment dominated the market in 2020”

Based on vehicle type, the market is segmented into Passenger Car and Commercial Vehicle. The Passenger Car segment is expected to grow at a higher rate during the forecasted period. Due to rising disposable income and the evolving lifestyle of the urban population, demand for passenger vehicles is rapidly expanding. The most essential component of the development in passenger cars is that people’s thinking has shifted from vehicles as a luxury to vehicles as a necessity. Furthermore, the automobile rental industry’s expanding economic prospects are driving passenger car takeovers. Passenger automobiles are the most common means of transportation in industrialized countries, and their use is growing in underdeveloped countries as per capita income rises.

“Amongst Technology, LED segment dominated the market in 2020.”

Based on technology, the market is segmented into Halogen, Xenon, LED and Other. The LED segment is expected to grow at a higher rate during the forecasted period. During the projected period, LED is expected to increase at the fastest rate. This could be due to a shift in light control technology that is more energy efficient. LED headlights have a wide range of capabilities and versatility, making them ideal for use in a variety of vehicle lighting applications. LED lights are commonly fitted in high-end automobiles due to their multiple advantages, including low power consumption, increased adaptability, and great aesthetic value. Furthermore, when compared to xenon lights, LED headlights have a lower impact on the driver on the opposite side, and as a result, this technology is generally recognized in the market. The segment’s expansion is likely to be fueled by a rising number of newly manufactured automobiles equipped with LED lighting systems.

“Amongst Application, BEV segment dominated the market in 2020.”

Based on application, the market is segmented in Front/Headlamps, Rear Lighting, Side and Interior Lighting. The Front/Headlamps segment is expected to grow at a higher rate during the forecasted period. The growing safety concerns while driving is one of the main factors for this growth. Automobile manufacturers are working on novel lighting technologies, with a focus on major lighting components like headlights. They are forming partnerships in order to stay ahead of the competition in the industry. Headlights are an important part of creating a safe driving environment at night. Volkswagen, for example, collaborated with Hella to produce IQ.LIGHT LED headlamps.

“Amongst Sales Channel, Aftersales segment dominated the market in 2020.”

Based on sales channel, the market is segmented in OEMs and Aftermarket. The automotive aftermarket consists of the replacement of halogen lights with LEDs in newly purchased vehicles and lights that are damaged. The demand for replacement of halogen lights mainly exists in developed countries

“Asia Pacific represents as the largest market.”

For a better understanding of the market adoption of Automotive Lighting, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, UK, France, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of APAC), and Rest of World. During the projection period of 2021-2027, Asia Pacific is expected to be the largest market. Due to the presence of developing economies such as India, China, and a few other South-East Asian countries, Asia-Pacific is the fastest-growing region. In the future years, the market will be dominated by technical innovation and an emphasis on government regulations. Due to its dominant position in automotive production, Asia-Pacific has the highest adoption rate. Increased sales of new automobiles, as well as a focus on automotive lighting research and development, are likely to drive the market for automotive lighting in Asia-Pacific. The sale of passenger cars and commercial vehicles is directly influenced by the area’s economic progress. Furthermore, manufacturers in these countries place a high priority on technology improvements, which includes lighting, resulting in increased demand for vehicle lighting. The market would be pushed even further by rising consumer per capita income and strong SUV sales in emerging markets like India. Some of the major players operating in the market includes Koito Manufacturing Co. Ltd., Hella KGaA Hueck & Co., Osram Licht AG, Robert Bosch GmbH, Stanley Electric Co. Ltd., Valeo, Zizala Lichtsysteme GmbH, Koninklijke Philips N.V., Hyundai Mobis and DENSO Corporation etc.

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• The study includes market sizing and forecasting analysis validated by authenticated key industry experts


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• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry


• The study comprehensively covers the market across different segments


• Deep dive regional & country-level analysis of the industry 

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