Automotive Lighting Industry

Things You Should Know About the Automotive Lighting Industry Trends of 2021

The automotive lighting industry keeps on progressing through the years. No wonder many businesses, both small and big ones, are embarking on this venture.

Many factors support the breakthrough of the automotive lighting industry, including the vehicle manufacturers who show great interest in the technological revolution due to the convergence of innovation with traditional car manufacturing.

Keep on reading this article as we present the market overview, key market trends, and major key players in the automotive lighting sector.

Market Overview

The global auto lighting market was valued at 26.49 billion US dollars in 2020. From this point, it is expected to reach 39.77 billion US dollars by 2026, projecting a compound annual growth rate (CAGR) of 6.55% during the forecast period 2021-2026.

The worldwide sales of sport utility vehicles (SUVs) and cars fell to 77 million units in 2020, down from a peak of almost 94.35 million units in the year 2017. The industry is projected to experience a downward trend on the back of a slowing global economy due to the COVID-19 pandemic that slowed down the global economy.

However, car headlight manufacturers are exhibiting great interest in associating LED lights in automobiles, as these lights consume less power and possess a longer life compared to HID and halogen lights. Furthermore, LED lights offer strength and durability, high-quality light-emitting diodes, and are superior to all other types of lighting technology.

The automotive manufacturers are expanding to new lighting technologies. They are focusing on the primary lighting parts, such as taillights and headlights. In addition, they are embarking on partnerships to be ahead in the competition within the market. Headlights and taillights are considered a significant factor in providing a secure environment for driving at night.

Key Market Trends

Here are the key market trends of the automotive lighting industry:

  • The Growing Demand for Cabin and Luxury Car Features

The automotive sector is in the middle of a technological revolution outlined by the new tech union and traditional car manufacturing. Automotive lighting manufacturers are establishing new lighting technologies to replace old conventional lights, thanks to the growing trend of electric vehicles.

Electric auto manufacturers are launching new contemporary models with the best cabin interiors. For example, Lucid Motors launched Lucid Air last September 2020. This vehicle is a sophisticated electric sedan that provides a full-size luxury-class interior, rooted in Lucid’s exclusive Space Concept idea.

The impending interior lighting developments will be primarily driven by comfort, security, communication, and styling demands. Light projections, micro-LEDs, smart LEDs, laser-based lighting, smart functional surfaces, guiding materials for 3D light patterns, and area backlighting with hidden-until-lit effects are just some of the new lighting technologies you should check out.

Therefore, cabin lights are gaining popularity. They mainly include dashboard lights and reading lights. Furthermore, interior lighting includes different applications in ambient internal lighting systems, reading lamps, and roof modules with optimized light guide technology. Also, the adaptive lighting system is perceiving a positive growth rate, although their demands remain much smaller than LED lights.

  • ?Asia-Pacific Region is Leading the Automotive Lighting Market

Geographically, the automotive lighting global market is headed by the Asia-Pacific zone, then the European and North American regions are tied on the second spot. Here are some of the significant factors that drive the market growth of the three regions:

  • The increase in the production of vehicles.
  • The increase in the sales of and demand for commercial automobiles, owing to the expanding logistics industry and the construction industry.
  • The rise in the sales of low-cost vehicles, due to an increase in the disposable incomes of middle-class consumers.
  • The increase in the number of accidents, especially during the night.

Europe has also been recognized as a primary region since the European automotive industry focuses on both passengers and pedestrian safety and implements safety standards for vehicles. In addition, the regional automotive manufacturers plus the automotive component suppliers are continually investing in the research and development of safety technologies.

The European region is expected to play a prominent role in the global automotive lighting market due to its rapid technological industry advancements. This area is home to several major manufacturers and suppliers, including Valeo, OSRAM Licht AG, ZKW, Hella KGaA Hueck & Co., Zizala, Philips, and Robert Bosch.

Major Key Players

The major key players in the automotive lighting industry are the following:

  • Koito Manufacturing Co. Ltd
  • Stanley Electric Co. Ltd
  • Osram
  • Valeo Group
  • Philips
  • Magneti Marelli SpA
  • HELLA KGaA Hueck & Co
  • Robert Bosch


Despite the COVID-19 pandemic occurring globally, the automotive lighting industry is still progressing and proves to be a growing industry. So, if you are thinking of starting up your business related to automotive lighting, go with it because the trends never lie. However, whether you plan to start small or big, ensure thorough research and feasibility study for marketing to guarantee business success.