Automotive Lighting Market Trends

Growth Drivers

• Increasing Demand of Dashboard Lights – which includes warning lights and indicators in a variety of colors. As per the 2020 data, over 100 passenger cars were produced every minute around the world, which is responsible for rising demand of dashboard lights, as car manufacturers today use more than 100 different dash board warning lights in a car. As there are lights for every conceivable system and situation of a vehicle, dashboard lights being the key, the automotive lighting market is expected to escalate in the projected period.

• Growing Adoption of Organic Light-emitting Diodes (OLED) – shipments of which is expected to rise from ~120,000 units in 2022 to more than 4 million units by 2029.

• Rising Popularity of Laser Headlight – as it can produce light up to ~1,000 times stronger light, while only using 2/3 of the power than the light produced and power used by LED technology.

• Policies Regarding Maintaining the Lights – for instance, lights maintenance on large trucks is a very important safety consideration. It was found that, nearly 100,000 large trucks were involved in crashes resulting in an injury, in 2020.

• Upsurge in the Demand of Halogen Headlights – which can be found on almost 80% of the cars on the road today.

Challenges

• High Cost of Installation of Latest Light System
• High Cost of LED Lights
• Concern Regarding Heating & Energy Wastage in Halogen Lights

The global automotive lighting market is segmented and analyzed for demand and supply by technology into halogen, LED, xenon and laser. Amongst these segments, the xenon segment is anticipated to garner the largest revenue by the end of 2033, backed by the growing popularity of xenon headlights on high-end cars as xenon headlights deliver a white-blue light providing a premium, stylish look and are energy efficient. They are around 2 to 3 times brighter than a halogen, and lasts for about 2,500 hours. Along with the surge in the sale of luxury cars worldwide. For instance, the share of new vehicles sold in the United States by luxury brands hit to ~17% in June 2022.