Demand for Automotive Lighting Market exhibits robust growth at CAGR 6% by 2031
The sales for automotive lighting are expected to surpass US$ 45 Bn by registering a positive CAGR of 6% through the forecast period 2021-2031. Increasing demand for LED lights along with halogen lights is propelling the demand for automotive lighting.
Historically, from 2016 to 2020, the sales of automotive lighting exceeded the sales of US$ 20 Bn by the end of the aforementioned period. As the COVID-19 pandemic took hold, sales of vehicles observed a decline in the initial quarters, attributed to substantial shortfalls in automotive output amid mandatory lockdowns. However, since Q4 2020, restrictions have lifted. This, in turn, is expected to upsurge the sales of automotive lighting.
Manufacturers of automotive lighting are focusing on improving the efficiency of lights. In addition, these lights consume lesser energy. Due to the factors mentioned above, the demand for automotive lighting has increased over time. As of 2021, the expected valuation for the market is US$ 25 Bn.
Key Takeaways from the Market Study
- By vehicle type, passenger vehicles are expected to hold 50% of market share for automotive lighting.
- By light source, halogen and xenon are expected to possess 40% of market share for automotive lighting.
- China is expected to be the most lucrative market, expected to capture 60% of global market demand
- 2/5th of the global market demand for automotive lighting to be fuelled by the U.S
India to be an opportunistic market, expected to account for nearly 3 out of 5 sales
“As governments look to promote automotive performance efficiency, attributed to elevated concerns regarding increasing carbon emissions is prompting automotive manufacturers to install efficient lighting systems, widening growth prospects,” opines a senior analyst.
Competitive Landscape
The market is moderately competitive in nature, with the presence of a large number of players operating in the space. Introducing latest technologies in the market is a key expansion strategy, as are collaborations with OEMs and maintaining long-term relations with them for future business prospects.
- In December 2020, OSRAM Licht AG introduced the Ostune E1608 and E3030 automotive interior lighting, offering a wide color temperature range from 2700 to 6500 K, which are highly energy-efficient
- Likewise, in September 2021, HELLA KGaA introduced a new Modular Lightbar equipped with advanced LED technology for municipal vehicles. This light helps ensure optimum signalling effects as well as homogeneous illumination of the working area
These insights with feature image are based on a report on Automotive Lighting Market by Fact.MR.