Automotive Lighting Market is Expected to Reach $33.7 Billion, Globally, by 2020


quote Front lighting application finds the largest application in automotive, followed by rear lighting. Government regulations as well as increasing demand related to efficient front lighting in vehicles is driving the growth of this market. Interior lighting would also witness appreciable growth due to the increasing trend of installing LED lights inside the vehicle for enhancing the looks. quote

Nilesh Rajput

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Automotive Lighting Market Report, published by Allied Market Research, forecasts that the global market is expected to garner $33.7 billion by 2020, registering a CAGR of 6.8% during the period 2015-2020.Automotive lighting industry is witnessing a steady growth on account of growing automotive production across the world. The growing emphasis on vehicle safety and government regulations regarding automotive lighting systems, are contributing to the market growth. Additionally, increasing disposable income of people is supporting the demand of aesthetic looks for vehicles, which in turn, is creating the demand for advanced lighting solutions.

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Asia-Pacific, being the largest automotive vehicle market, would also be the largest market for automotive lighting. Growing automotive production, and increasing purchasing power in the two bigger markets of Asia viz.,China and India, would drive the market growth of the Asia-Pacific market.

LED lighting technology would witness the highest growth during the forecast period. Traditional Halogen lighting technology will be gradually replaced by LED technology. By 2020, LED technology will constitute 1/3rd of the total automotive lighting market, growing at the highest CAGR during the forecast period. The growth would be fueled by features such as low power consumption, longer life and compact size of LED lights. The decreasing cost of LED lights would further fuel their market growth during the forecast period. However, halogen lighting technology would maintain its leading position due to their low-cost advantages and widespread adoption.

Passenger vehicles, with their dominant market share in total vehicle segment, would be the largest vehicle type segment for automotive lighting. The demand for aesthetic lighting features would support the demand of lights in private and commercial cars.

Key Findings of Automotive Lighting Market:

  • The global automotive lighting market would grow steadily during the forecast period (2015-2020) due to rising concerns regarding road safety and growing automobile production
  • LED technology would be the fastest growing lighting technology throughout the forecast period
  • Halogen technology would continue to maintain its leading position due to lower cost and easy availability
  • Exterior lighting in vehicles would continue to maintain its dominant share compared to interior lighting
  • Asia-Pacific, with its huge automotive vehicle production capacity, would be the largest market for the automotive lighting products
  • Passenger vehicles would create more demand for automotive lighting products compared to commercial vehicles during the forecast period

Industry players are focusing on introducing advanced LED lighting solutions as well as expanding their presence in growing automotive markets such asChinaandIndia. For instance, Magneti Marelli, a leading manufacturer of advanced lighting solutions for automotive industry, has set up new plants in India and China in fiscal year 2014-15 to take advantage of these growing automotive markets.

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quote Automotive Lighting Market by Technology (Halogen, Xenon, LED), Vehicle type (Passenger and Commercial Vehicles) and Applications (Front, Rear, Side & Interior Lighting) - Global Opportunity Analysis and Industry Forecast, 2014 - 2020 quote

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