Implementation of government regulations, rise in automobile production, and growing emphasis on road safety propel the global automotive lighting market to grow at a CAGR of 6.3% from 2021 to 2030.
According to the recent report on Automotive Lighting Market - Global Opportunity Analysis and Industry Forecast, 2021–2030, published by Allied Market Research, the global automotive lighting industry accounted for $32.31 billion in 2020 and is expected to reach $58.59 billion by 2030.
Despite several factors favouring the growth, fluctuating raw materials prices and the high cost of LED lights hinder the market growth. However, increased application in light commercial vehicles and a rise in demand for advanced technology in vehicles are expected to open lucrative opportunities for the market players in the coming years, the report said.
The outbreak of COVID-19 severely impacted the global automotive lighting industry, as several automotive industries have stopped their operations or delayed their projects to curb the spread of the virus.
Due to the imposed lockdown across the globe, automobile & transportation activities came to a halt, thus affecting the automotive industry worldwide.
Due to the pandemic, the global supply chain has been disrupted, and various manufacturing industries have halted their production activities, thus hampering the global automotive lighting market.
Some of the major players in the automotive lighting market include Hyundai Mobis, Koninklijke Philips, Robert Bosch, Valeo, ZKW, Hella KGaA Hueck, Denso, Osram, Koito Manufacturing and Stanley Electric.
LEDs
Based on light type, the LED segment contributed to nearly half of the global automotive lighting market share in 2020 and is anticipated to rule the roost by 2030 due to its longer life and better efficiency compared to other lighting technologies used in vehicles. Moreover, this segment is expected to grow with the fastest CAGR of 7.4% throughout the forecast period.
Passenger Vehicles
The passenger vehicle segment accounted for more than half of the global automotive lighting market revenue in 2020 and is expected to lead the trail by 2030, owing to the broader application of automotive lighting in passenger vehicles to provide a better view of the inner and outer environment. However, the electric vehicle segment would register the fastest CAGR of 13.1% during the forecast period. This is due to the introduction of the electric vehicle concept as a vehicle type to be used in the future, the report said.
Based on region, Asia-Pacific, followed by North America, garnered a significant share in 2020, holding nearly half of the global automotive lighting market. This is attributed to the growing production and sales of vehicles across the region. However, the market across LAMEA would cite the fastest CAGR of 8.4% from 2021 to 2030. This is due to the increased demand for advanced vehicles with advanced safety features such as adaptive lighting to be present in vehicles running across the region.
Courtesy: Allied Market Research. NB: Photo is representational; courtesy: Hyundai Mobis.