Global Automotive Lighting Market Overview, 2024-29

Market Dynamic

Market Drivers • Safety regulations and standards: Governments globally set stringent safety rules, which push the development of modern car lighting systems. In order to improve road safety, regulations specify illumination criteria such as brightness, beam patterns, and signaling capabilities. Compliance with these rules involves the incorporation of innovative lighting technologies and features, which promotes market growth. Furthermore, evolving safety rules encourage manufacturers to invest in adaptive lighting systems, which dynamically modify light distribution to improve vision and reduce glare, driving up market demand. • Technological advancements: Continuous advances in lighting technologies, particularly the widespread use of light-emitting diode (LED) technology, drive market development. LEDs outperform traditional lighting sources in terms of energy economy, durability, and design flexibility, resulting in their widespread acceptance in automobile applications. Furthermore, continued research and development activities led to the introduction of novel features such as adaptive headlamps, dynamic turn signals, and intelligent lighting control systems, which improve vehicle safety and aesthetics. Consumer demand for vehicles outfitted with cutting-edge lighting systems is being driven by technological innovation, resulting in a market increase. Market Challenges • Cost pressures: Cost concerns pose a significant challenge to players in the global automotive lighting market. While consumers desire improved lighting features and technologies, they are also concerned about car affordability. This presents a delicate balance for automobile manufacturers and lighting suppliers to find cost-effective solutions without sacrificing quality, performance, or safety. Furthermore, price changes in raw materials, such as rare earth elements used in LED production, can have an impact on production costs and profit margins. • Regulatory compliance: Stringent regulatory requirements for automotive lighting standards provide a considerable barrier to manufacturers. Extensive testing, certification, and documentation are required to ensure compliance with government safety, performance, and environmental rules set by agencies such as the National Highway Traffic Safety Administration (NHTSA) and the European Union (EU). Noncompliance can lead to hefty penalties, recalls, and brand reputational damage. Market Trends • Growing demand for adaptive lighting systems: Adaptive lighting systems are gaining popularity in the automotive industry, especially in the premium and luxury car categories. These systems use sensors and actuators to dynamically modify the direction and intensity of the headlights based on changing driving circumstances. Adaptive headlights improve driver vision and safety by actively reacting to elements such as vehicle speed, steering angle, and ambient lighting conditions while reducing glare from approaching traffic. As car safety rules tighten and consumer demand for enhanced safety features develops, the adoption of adaptive lighting systems is projected to rise even more in the coming years. • Integration of lighting with autonomous driving technologies: As autonomous driving technologies evolve, lighting systems are being integrated with advanced driver assistance systems (ADAS) and autonomous vehicle (AV) platforms. Lighting is critical for AV communication and signaling because it conveys information about the vehicle's intentions and behaviors to other road users and pedestrians. Innovative lighting technologies, like LiDAR (light detection and ranging) and projection systems, are being integrated into AVs to improve visibility and engagement capabilities, allowing for safer and more efficient autonomous driving experiences. Covid-19 Impacts The COVID-19 pandemic caused huge growth fluctuation in the global automotive supply chain. The outbreak disrupted international manufacturing facilities and global vehicle sales. Manufacturing facilities were shut down and new car sales were halted, affecting vehicle lighting components' production. In 2020, demand for conventional and electric vehicles dropped, impacting the market. Furthermore, the funding for R&D significantly reduced, which impeded the research & development of new vehicle lighting solutions. Lighting demand is primarily proportional to vehicle production.

Key Development

• In April 2023, Continental AG introduced its automotive lighting product NightViu for construction and off-road vehicles. The company introduced 16 new products under the NightViu product line. The products are specifically engineered for construction, mining, and off-road equipment applications. • In July 2022, Hella KGaA Hueck & Co., a German supplier of automotive lighting and electronics components, launched a new vehicle lighting plant in China. The plant will focus on developing innovative vehicle lighting technologies for front vehicle lighting. • In April 2022, Osram announced a new USD 800 million investment to build a LED plant in Malaysia. The company is refocusing on optical technology to improve its market position. • In February 2022, Hyundai Mobis announced its contract of USD 830 million of global orders involving automotive lighting solutions for various OEMs. The company aims to lead in the automotive lighting sector through differentiated strategies and innovative product launches. • On 18 October 2021, REHAU and OSRAM Continental launch a joint development initiative. The goal of the development cooperation between OSRAM Continental and REHAU is to further the integration of external components with light to provide automobile manufacturers with cutting-edge product solutions for more design flexibility and usefulness. • On 4 May 2021, LG Innotek introduced the Nexlide-E exterior car lighting platform, which combines LEDs and optical film to provide consistent illumination as well as shape and size possibilities. The manufacturer anticipates that the technology will serve in both rear- and forward-facing roles, provide brighter performance, and provide versatility, including the capacity of one Solid-State Lighting (SSL) module to fulfill numerous tasks. • In January 2020, Marelli and XenomatiX announced their joint development to develop Lidar solutions. According to the agreement, XenomatiX will provide its Lidar products for Marelli’s Automotive Lighting solutions.