Global Automotive Lighting Market Size, Forecast and Trend Highlights Over 2025-2037
Automotive Lighting Market size was valued at USD 38.43 billion in 2024 and is expected to secure a valuation of USD 86 billion in 2037, expanding at a CAGR of 6.4% during the forecast period, i.e., 2025-2037. In 2025, the industry size of automotive lighting is evaluated at USD 40.1 billion.
The automotive lighting sales are growing substantially, due to the escalating global numbers in vehicle production and sales figures. The electrification and automation of vehicles is propelling the adoption of automotive lighting solutions. The rise in vehicle adoption in both developed and developing economies is anticipated to fuel the revenue of automotive lighting technology manufacturers. For instance, the European Automobile Manufacturers' Association (ACEA) states that in 2022, around 85.4 million motor vehicles were manufactured across the world. The same source also states that Europe made substantial contributions to global motor vehicle production, representing a 4.3% rise in new registrations in June 2024. Such developments in vehicle production are opening new opportunities for the market.
According to the Ministry of External Affairs (2023), the automotive sector in India delivered 27 million vehicles during FY2023, while reaching a total market value of USD 108 billion, where passenger vehicles held 57% of the total market share. The progressive demand for vehicles is boosting the automotive lighting sales and is expected to maintain its upward trend during the foreseeable period. Thus, high registrations of vehicles are likely to offer double-digit revenue growth opportunities to automotive lighting manufacturers.
Automotive Lighting Sector: Growth Drivers and Challenges
Growth Drivers
- Preference for aesthetic and functional lighting features: Consumers are demanding modern lighting systems that bring design quality with performance needs. This factor is anticipated to boost the demand for advanced automotive lighting technologies in the coming years. Companies are partnering with other players to deliver advanced automotive lighting solutions through high-resolution matrix headlamp systems. For instance, in July 2023, HELLA and Porsche unveiled the SSL | HD as the first high-resolution matrix headlamp system with 32,000 individually manageable LED pixels in each headlamp. Manufacturers are benefitting from emerging lighting innovations, which enhance the need for complicated automotive lighting systems to determine future design and safety specifications of vehicles.
The customization trend is also poised to fuel the demand for smart automotive lighting solutions. High-end car and SUV sales reorientation is driving manufacturers to integrate advanced features that benefit both safety operations and driver relaxation. Adaptive lighting solutions, alongside intelligent lighting to steer the future development of the automotive lighting market.
- Advancements in lighting materials and design: Modern developments in automotive lighting materials and advanced design strategies are boosting the function and appearance of vehicle lighting solutions. Various companies are forming collaborations to enable advanced LiDAR technologies in next-gen electric vehicles. For instance, in April 2023, Volvo Cars, along with Luminar Technologies, announced the introduction of a laser-based headlamp system that integrates LiDAR sensors for improved driving condition adaptation, resulting in enhanced visibility and safety features. This innovative lighting technology is set to be installed in the new Volvo ES90. By working together, these companies are improving automotive lighting efficiency and developing road lighting systems to deliver better illumination with decreased glare for drivers. Such collaborative moves are estimated to offer lucrative gains to the industry giants.
The integration of light-emitting diodes (LED), organic light-emitting diodes (OLED), and laser-based systems is one of the most sought-after lighting technologies in the automotive sector. The LEDs are gaining prominence as they generate bright illumination through lower energy usage than conventional halogen lamps. The automakers are adopting energy-efficient lighting solutions to address both environmental sustainability and economic needs for automotive components. The development of micro-optics and holographic technologies is enabling innovative materials, allowing manufacturers to create compact aesthetics for their designs and register a double-digit revenue growth in the years ahead.
Challenges
- Battery performance and longevity: Battery performance and longevity are acting as key challenges for electric vehicles. While advancements are enhancing efficiency and energy density, consumers are still concerned about battery degradation over time. The ability of batteries to retain a charge diminishes with their increasing age, resulting in reduced driving range. The high cost of replacing EV batteries remains a significant barrier, as these components constitute a large part of the vehicle’s overall price. This concern, coupled with the uncertainty surrounding battery lifespan, is discouraging potential buyers from making the switch to electric vehicles, especially for long-term investments.
Automotive Lighting Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.4% |
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Base Year Market Size (2024) |
USD 38.4 billion |
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Forecast Year Market Size (2037) |
USD 86 billion |
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Regional Scope |
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Automotive Lighting Segmentation
Technology (Light-emitting Diodes (LED), Halogen, Xenon, Laser)
The xenon segment is expected to capture a high automotive lighting market share throughout the forecast period. Xenon headlights are gaining prominence owing to the swift integration of adaptive lighting technologies in vehicles. The system of adaptive lighting modifies light distribution according to driving situations, so both driver safety and visibility are enhanced. Companies are adopting intelligent lighting solutions as consumers are seeking vehicles equipped with modern safety features and better driving comfort.
The boom in EV and premium vehicle registrations in both developed and developing economies is creating a profitable environment for xenon lighting technology producers. The performance of xenon lights produces a bright white illumination that produces superior vehicle appearances, attracting a wider consumer base. Industrial magnification of electric vehicle output and design features, focusing on safety and style, stimulates xenon lighting adoption across these vehicles.
Product Type (Front Headlights, Fog Lights, Rear Lights, Side Lights, Interior Lights)
The front headlights segment is anticipated to lead the automotive lighting market from 2025 to 2037. Advanced front-headlighting systems in the automotive industry are undergoing a major transformation due to the integration of matrix LEDs, laser lights, and adaptive lighting technologies. Road safety is becoming advanced through innovations that combine improved illumination systems and reduced glare effects for other drivers on the road. For instance, in January 2023, Nichia Corporation formed a partnership with Infineon Technologies for creating a front illumination system that integrates 16,384 micro-LED matrix solutions. Automotive manufacturers are focusing on enhanced design choices for better performance of the front lighting solutions.
The rising demand for vehicle design customization, combined with visual appeal, is also fueling the installation of innovative front lighting technologies. High-performance luxury vehicles are emerging as a game changer for front headlights with appealing designs. The current R&D activities are also focused on color-changing patterns and designs.
Our in-depth analysis of the global automotive lighting market includes the following segments:
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Product Type |
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Technology
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Vehicle Type |
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Distribution Channel |
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Customize this ReportAutomotive Lighting Industry - Regional Scope
Europe Market
The Europe automotive lighting market is projected to hold the largest revenue share through 2037. There is a rapid expansion of automotive lighting in the region owing to the development of strong manufacturing platforms for automobiles by countries including China, India, and Thailand. Auto manufacturers from around the world are directing their investments to these countries as they benefit from advanced production resources combined with supportive governmental initiatives in the form of policies and schemes. The growing domestic automotive manufacturing is directly stimulating the demand for modern automotive illumination systems throughout different types of vehicles.
The upgrades in road infrastructure are creating an opportunity for consumers to purchase safer and technologically advanced vehicles. The increasing awareness toward road security and night-time driving visibility is augmenting the sales of modern automotive lighting, such as premium front lighting systems, adaptive headlights, and LED technology solutions.
Strategic financing support from the local government for automotive technology development is creating lucrative avenues for the growth of U.K. automotive lighting systems. The government's support toward electric vehicle programs and smart transport systems is driving automakers to implement state-of-the-art lighting technologies, including adaptive front lighting and matrix LEDs. Regulatory advancements are accelerating efficient high-performance lighting technologies for the automotive, passenger, and commercial sectors.
The consumers who prioritize premium and luxury vehicles are driving the demand for enhanced lighting equipment. Advanced lighting solutions in such vehicles help enhance driving safety, brand recognition, and visual appeal. Companies within the premium segment are developing specialized high-end lighting systems that are addressing consumers' evolving automotive component needs.
North America Market Analysis
The North America automotive lighting market is set to be driven by the high demand for super and luxury cars. The regional transportation organizations and governments are mandating requirements that enforce adaptive headlights, automatic high-beam systems, and daytime running lights for vehicles. Road visibility improvements and accident reduction at night through compliance requirements are driving system development for intelligent vehicle lighting systems in all car types.
The swiftly increasing electric vehicle registrations in the region require advanced, energy-efficient, and attractive lighting systems that meet current consumer demands. Local manufacturers of electric vehicles are using exclusive lighting designs to create products that improve style and efficiency through elegant LED strips along with distinct headlamps. These developments are fueling the automotive lighting sales.
There is an evident shift in consumer preference toward premium vehicles, which is significantly impacting the demand for advanced automotive lighting solutions in the U.S. High-end vehicles often feature sophisticated lighting systems such as matrix LED and laser headlamps, which offer superior performance and design appeal. As automakers compete to enhance aesthetics and brand identity, lighting is becoming a key differentiator. The integration of automotive lighting with smart mobility and connected vehicle technologies is emerging as a vital growth factor in the U.S. market. Advanced lighting systems are being designed to communicate with external environments and assist autonomous driving features, enhancing safety and interaction, and paving the way for next-generation automotive lighting adoption.
Companies Dominating the Automotive Lighting Landscape
- Ams-OSRAM AG
- Company Overview
- Business Strategy
- Key Technology Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Marelli Holdings Co., Ltd.
- Compagnie Plastic Omnium SE
- Koninklijke Philips N.V.
- Denso Corporation
- Hella GmbH & Co. KGaA
- Varroc Group
- Stanley Electric Co., Ltd.
- Hyundai Motor Company
- Valeo
- Koito Manufacturing Co., Ltd.
The automotive lighting market is highly competitive, featuring a mix of established global players and innovative regional manufacturers. Key companies are dominating the market through continual advancements in LED, laser, and adaptive lighting technologies. These players focus on partnerships, product launches, and R&D investments to strengthen their market presence. Competition is further intensified by emerging startups introducing cutting-edge solutions, especially in the EV and autonomous vehicle segments. The market is defined by rapid technological evolution, cost competitiveness, and increasing demand for energy-efficient, aesthetic lighting systems.
Here are some key players operating in the global automotive lighting market:
In the News
- In July 2024, HELLA and Audi collaborated on a digital headlamp concept for the Q6 e-tron. The matrix-LED headlamps feature glare-free high beams and customizable daytime running lights, enhancing both safety and personalization for drivers.
- In July 2023, ams-OSRAM AG introduced the EVIYOS 2.0, a groundbreaking multipixel LED for automotive forward lighting and projection. This intelligent LED features 25,600 individually controllable pixels, enabling adaptive and dynamic lighting, including image projection onto the road surface.
Author Credits: Saima Khursheed
- Report ID: 4483
- Published Date: May 05, 2025
- Report Format: PDF, PPT
