The Automotive Smart Lighting Market was valued at USD 4,096.54 million in 2021, and it is expected to reach USD 6,908.37 million in 2027, witnessing a CAGR of 9.09% during the forecast period.
The COVID-19 pandemic harmed the market studied, primarily attributed to halted manufacturing activities. The economic slowdown, coupled with the tariffs imposed on importing lights and other products, is expected to hamper the growth of this market. In addition, country-specific regulations for external auxiliary lights may affect the growth of the market studied.
Many vehicle manufacturers show great interest in integrating LED lights into their vehicles, as these lights use less power and have a longer lifespan than halogen and HID lights. Furthermore, LED lights offer durability, strength, and high quality.
The automotive manufacturers are investing in developing new lighting technologies and solutions focusing on the major lighting application, headlights. OEMs are launching vehicles with adaptive headlights to provide a safe driving experience at night.
There are a few major factors driving R&D in automotive smart lighting, such as the adoption and sales of electric vehicles. This is in an effort to extend the range of electric drives and the adoption of advanced features by existing and upcoming vehicles. Moreover, this scenario is expected to continue in the future.
Some of the major players operating in the automotive smart lighting market are Stanley Electric Co. Ltd, ValeoGroup, Osram LichtAG, and others. These players are focusing on upgrading their product portfolio and are investing in new technologies to offer innovative solutions to their customers.
Key Market Trends
Exterior lightening will lead the automotive smart lighting market.
Automobile manufacturers and governments are focusing on developing and promoting safe driving technologies, especially in passenger vehicles. Most of those technologies are expected to become essential. For instance, the Canadian government announced the safe testing of every vehicle and the deployment of automated and connected vehicles while creating awareness regarding driver-assistance technologies.
In an effort to lower the number of accidents in the nation, the Ministry of Road Transport and Highways announced that it is working on making ADAS (advanced driver assistance systems) essential for automobiles.
Driver assistance systems, such as adaptive headlights, driver drowsiness attention systems, blind-spot information systems, lane-departure warning systems, forward collision warnings, and others, were under discussion by the ministry. Hence, the demand for smart lighting technology is increasing as new vehicles are loaded with various ADAS features. To stay ahead in this competitive market, the major players are investing in new R&D facilities.
In July 2021, Magna International Inc. announced its plans to acquire safety tech major VeoneerInc., a leading player in automotive safety technology. With this acquisition, Magna aimed to strengthen and broaden its ADAS portfolio and industry position.
In the competitive automotive business, automakers are increasingly looking for ways to set themselves apart. This is accomplished by developing new external and interior lighting system style characteristics. New technologies that offer greater flexibility and scalability across several applications and vehicle types are allowing automotive designers to establish their distinct style, appearance, and feel.
The smart lighting manufacturing companies collaborate with other industry participants to provide various ADAS solutions to the automakers. For instance,
Asia Pacific is Anticipated to Lead the Automotive Smart Lighting Market
The Asia Pacific is among the leading automobile producer and markets in the world in 2021, China sold around 26.28 million vehicles in 2021. China, India, and Japan are the major economies in the regional market that are anticipated to grow at a faster rate in the global market.
In recent years, China has seen an increase in demand for luxury automobiles. The increased spending habits and booming economy can be attributable to the strong demand. In 2021, AITO brand of SERES officially released the Wenjie M5, an all-new luxury smart SUV. The vehicle is offered in three versions and is now available for pre-order, with prices ranging from CNY 250,000 to CNY 320,000. The vehicle is equipped with features such as a 10.4-inch curved full LCD dashboard, a 15.6-inch 2K HDR intelligent center console screen, a panorama sunroof covering a total area of about 2 square meters, and interactive intelligent lighting, and L2+ autonomous driving functions.
Significant investments in R&D and innovation by manufacturers to develop automobile lighting systems compatible with driver assistance systems and proximity sensors will boost market revenue. In addition, growing number of road accidents has raised concerns regarding vehicle and passenger safety on the road, driving up demand for automobile lighting solutions. Government and transportation authorities’ strict restrictions to increase road safety are boosting market revenue.
Recently, two GB standards regarding automotive lighting systems have been updated. The old standard GB 5920-2008 will be replaced by GB 5920-2019 (“Photometric characteristics of front and rear position lamps, end-outline marker lamps and stop lamps for motor vehicles and their trailers”), and GB 23255-2009 will be superseded by GB 23255-2019 (“Photometric characteristics of daytime running lamps for power-driven vehicles”).
In December 2021, Toyoda Gosei Co., Ltd. has created full color LED bulbs that illuminate automobile interiors. The color may be freely adjusted from a range of 64 variations to meet the user’s mood and respond in a variety of different ways to individual preferences.
In August 2021, ZKW developed a micromirror module for dynamic lighting function, with Silicon Austrian Labs, Evatec, EV Group, and TDK Electronics joining teams to onboard micromirror technology, which can be used in headlamps, rear lamps, side projection, and LIDAR systems for optical distance measurement.
In August 2021, Kia announced EV6 electric crossover being equipped with class-leading levels of safety and convenience, including an advanced suite of driver assistance systems (ADAS). It has got Front-lighting System (IFS), a technology that enables each LED to light independently.
Considering the aforementioned factors and developments, it is evident that the impact of cost can influence the purchasing behavior of consumers. With the rising embedment of technology in electric and autonomous vehicles, the cost factor will be further influenced by the mid-level category.
The automotive smart lighting market is moderately consolidated and majorly dominated by a few players, such as Koito Manufacturing Co., Ltd., Stanley Electric Co., Ltd., Valeo Group, OsRam Licht AG, Magneti Marelli SpA. The market is highly driven by factors like advanced technology, more use of sensors, growing investment in R&D projects, and growing market of electric and autonomous vehicles. To provide more luxurious experience to the car owner, major automotive smart lighting manufacturers are developing new technology for the future and acquiring small players to expand their market reach. For instance,
In May 2022, Grupo ZKW laid the first stone of what will be its third phase of a USD 102 million expansion at its plant in Silao, Guanajuato that produces headlights, fog lamps and auxiliary lamps. The 15,700-square-meter expansion, which will have the capacity to produce 1.5 million headlights per year, ZKW will manufacture headlights and center bar lamps for BMW, Ford and GM EVs and SUVs.
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