Automotive Lighting Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Technology:

Based on the technology, the market is segmented into Led, Xenon, Halogen And Other.

Trends in Technology:

• The cost-sensitive segment of the market drives the adoption of halogen lights, which in turn propels the market.
• Xenon lights produces brighter illumination as compared to halogen driving the adoption of Xenon lights in the market.

LED accounted for the largest revenue share of 47.29% in the year 2024 and is anticipated to register the fastest CAGR during the forecast period.

• Automotive LED lighting systems ensure that the lighting devices mounted on different directions of the vehicle meet the highest standards for achieving performance and reliability.
• Moreover, the key advantages of LED lights include longer lifespan, energy efficiency, flexibility, easy installation and increased brightness among others. Also, LED lights reduce power consumption, increases lifecycle, offers design freedom and improves overall control which in turn boost the automotive lighting market size.
• Further, the progress of electric vehicles is propelling automakers to adopt LED lights which in turn is propelling the automotive lighting market share. Furthermore, the technological advancement in LED lights such as matric LED light, LiDAR LED lights and more is fueling the progress of LED segment.
• For instance, in November 2024, Melexis collaborated with Geely Automotive Group for adoption of Melexis’ MLX81116 Smart RGB LED driver in the new Z10 model, the first EV by Lynk & Co.
• Thus, according to the automotive lighting market analysis, development of electric vehicles and technological advancement in the LED lighting system is in turn driving the market.

By Vehicle Type:

Based on the vehicle type, the market is bifurcated into passenger vehicle and commercial vehicle.

Trends in the Vehicle Type:

• The trend towards rising need for electric vehicles with advanced LED lighting systems is driving the progress of passenger vehicle segment.
• The rising focus towards safety regulations and durability is driving the adoption of advanced lighting system into commercial vehicles.

The passenger vehicle accounted for the largest revenue share in the year 2024.

• The stringent rules and regulations across the globe is propelling the adoption of DRL’s, adaptive lighting and brighter rear light to improve safety.
• Further, the proliferation of electric vehicles is propelling the progress of passenger vehicles which in turn is boosting the automotive lighting market share.
• Furthermore, the consumer shift towards adoption of advanced lighting system for headlamps and rear lighting mounted on luxury and electric vehicles drives the automotive lighting market size.
• For instance, According to International organization of Motor Vehicle Manufacturers, the European region has witnessed a significant progress rate of passenger car sales in the year 2022 to 2023 which has increased from 7% to 18% driving the progress of passenger car sales.
• Thus, according to the automotive lighting market analysis, the development of electric vehicles and adoption of advanced LED lighting system is driving the passenger vehicle segment progress.

The commercial vehicle is anticipated to register the fastest CAGR during the forecast period.

• A commercial vehicle is any motor vehicle designed and primarily used for transporting goods, passengers, or services that generate income.
• Moreover, the types of commercial vehicles include cargo trucks, tippers, tractors, pickups, buses.
• Additionally, the key advantages of commercial vehicles include increased efficiency, cost effectiveness, flexibility and control, and revenue generation among others.
• Further, the key factors driving the adoption of commercial vehicles include the growing economies worldwide, expanding logistics and e-commerce business, rising safety standards and others.
• For instance, According to International Organization of Motor Vehicle Manufacturers, the commercial vehicle sale across the world has witnessed a significant growth rate which has increased from 3% to 13% in the year 2022 to 2023, driving the progress of commercial vehicle sales.
• Therefore, as per the market analysis, the expanding logistics and e-commercial business and growing economies among others is anticipated to boost the market during the forecast period.

By sales channel:

Based on the sales channel, the market is bifurcated into OEM and aftermarket.

Trends in the Sales Channel:

• The trend towards adoption of OLED lighting is propelling OEM to advance the lighting system to offer enhanced energy efficiency, longevity, flexibility and other benefits.
• The trend towards customization of vehicles and growing e-commerce business is driving the progress of aftermarket segment.

OEM accounted for the largest revenue share in the year 2024.

• OEM stands for original equipment manufacturer which produces components for other companies integration into their products.
• The advantages of OEM in the market include reduced development time, availability, cost effective, enhanced quality, reliability and others driving the adoption of OEM for lighting system in automotive.
• Further, the key role of OEM in the lighting market is to provide high quality lighting systems to the automotive industry as well as drive innovation in the lighting system such as Matrix LED light and others.
• For instance, in September 2024, Orion Energy Systems, Inc. secured a USD 2 Million contract for management, installation, and contracting of LED lighting systems across multiple manufacturing facilities in the United States.
• Thus, as per the market analysis, the rising demand for high quality lighting systems as well as driving innovation in the lighting system is boosting the OEM segment progress.

Aftermarket is anticipated to register the fastest CAGR during the forecast period.

• The aftermarket segment is a secondary market for automotive parts such as accessories, spare parts, lighting systems, music systems and more as well as providing service of mounting the parts as per the requirement.
• Moreover, the expanding e-commerce business is propelling the aftermarket segment to cater to a larger customer base as well as providing affordable lighting solution.
• Further, the growing culture towards retrofitting or customizing or tuning the old vehicles with advanced features drives the adoption of aftermarket parts which are cost effective and are durable.
• For instance, in July 2023, Continental which is a provider of OE-engineered aftermarket parts launched NightViu Lighting Solutions line designed for automobile, truck, and agriculture/construction equipment manufacturers. Also, the lighting system aims to help improve operational safety by dramatically increasing nighttime visibility.
• Therefore, as per the marker analysis, the growing culture towards retrofitting or customizing or tuning as well as expanding e-commerce business is anticipated to boost the market during the forecast period.

By Application:

Based on the application, the market is segmented into headlamp light, rear light, side light and interior light.

Trends in the Application:

• The trend towards adoption of ambient lighting system in the interior of vehicles is driving the automotive lighting market trend.
• The increasing adoption of daytime running lights which utilizes LED technology used for improving vehicle visibility is driving the automotive lighting market trend.

Headlamp light accounted for the largest revenue share in the year 2024.

• The headlamp lights are positioned at the front of the vehicle, playing a primary role of enhancing visibility and ensuring safety as well as helping drivers navigate safely.
• The primary role of headlamp lights includes enhanced illumination, increased vehicle visibility, enhanced aesthetics and communication with other drivers among others.
• Further, the growing demand for high quality advanced LED lighting systems as well as expanding electric vehicles and luxury vehicles sales is propelling the progress of headlamp light segment in automotive lighting industry.
• For instance, in July 2023, Marelli launched h-Digi microLED designed for digital front lighting for automotive vehicles. The lighting system includes 40,000 LED pixels to create flexible light distribution of low-beam and high-beam, which adapt to driving situations.
• Thus, as per the market analysis, the advancement in the LED lighting system as well as growing popularity of electric vehicles is driving the headlamp light segment.

Rear light is anticipated to register the fastest CAGR during the forecast period.

• Automobile rear lights include turn signal lights, brake lights, position light, rear fog light, reversing light and others. Also, rear lights provide vital data to other drivers by indicating movements such as slowing down.
• Further, the rising adoption of OLED lights as rear lights in electric vehicles and luxury vehicles is driving the market progress for rear lighting system.
• Furthermore, the evolution of connected vehicles and autonomous vehicles is propelling the adoption of rear lighting system which in turn is driving market progress.
• For instance, in October 2024, OLEDWorks supplies Atala OLED rear light panels to upgraded 2024 Audi Q7 SUV. The Q7 model provides options to select digital OLED rear lights.
• Therefore, as per the market analysis, the evolution of connected vehicles and autonomous vehicles as well as rising adoption of OLED lights is anticipated to boost the market during the forecast period.