Global Next-Generation Automotive Lighting Market Research Report Forecast (2023-2028)

Market Definition

Next-Generation Automotive Lighting is referred to as the incorporation of advanced technologies in the lighting systems to improve the efficiency & safety of the vehicle. This lighting helps to enhance the visibility of the driver & minimizes the risk of accidents. The implementation of regulations & policies laid by governments across the globe to lower road accidents is facilitating the demand for next-generation automotive lighting.

Market Insights & Analysis: Global Next-Generation Automotive Lighting Market (2023-28)

The Global Next-Generation Automotive Lighting market is estimated to grow at a CAGR of around 5.40% during the forecast period, i.e., 2023-28. The factors attributing to the growth are the growing adoption of new & advanced automotive lighting, such as Organic Light-Emitting Diode (OLED) & Light Emitting Diode (LED) by the automobile manufacturers like Audi & others. These automobile companies are readily adopting these technologies to provide end-users with improved safety features since the lighting systems enhance the visibility range of the drivers, thereby reducing or minimizing the risk of a road accident. In addition, these advanced systems are energy-efficient, therefore automobile manufacturers are incorporating these lighting systems in place of traditional lighting to improve fuel efficiency & extend the driving range of the vehicles. Hence, the rising integration of intelligent lighting in motor vehicles by automobile manufacturers, including BMW, Tesla, and others, is enhancing the market.

In addition, the government of countries like the US, Japan, Russia, and others is actively encouraging the integration of intelligent lighting owing to the rising incidents of road accidents. Consequently, leading automobile manufacturers use intelligent lighting systems instead of traditional lighting systems to minimize the risk of accidents by upgrading the apparentness of the drivers. According to the World Health Organization (WHO) Report 2022, over 1.3 million individuals died because of road traffic injuries. The surging incidents of road crashes owing to the reasons like overspeeding, drunken driving, and others, heavily impact the economy of the country. As a result, the government is taking strict measures & implementing policies to adopt intelligent lighting. Thus, the preventive actions by the government are compelling the automotive manufacturers to amalgamate the next-generation lighting systems. 

Moreover, the rising demand for luxury passenger vehicles owing to the surge in the net disposable income of individuals across the globe is also advancing market growth since these vehicles use intelligent lighting in lieu to bring forth consumers with unique styling & design features. In 2022, the luxury car makers like Bentley, Rolls Royce, etc., witnessed a wave in their sales, thus facilitating the market. These lighting systems also provide indubitable features relating to energy efficiency, enhanced safety features, and others, owing to which, luxury automobile manufacturers are gradually inclining to incorporate these lighting systems to gain a competitive advantage over the other motor car manufacturers. In 2023, the automobile manufacturer Mercedes Benz launched its new car series, "Mercedes-Benz E-Class 2024," with new ambient lighting. Consequently, the expanding focus of the automotive manufacturers to provide individuals with advanced features in motor cars would further enhance the market maturation in the coming years.  

Market Dynamics

Key Driver: Rising Demand for the Autonomous Vehicles

Over the past few years, there has been a surge in the stipulation for connected vehicles owing to their advantages, such as enhanced safety, personalized driving experience, etc., over traditional motor vehicles. This has led the automobile manufacturers like Ford, Tesla, and several others, to integrate cars with digitally advanced technologies, including the Internet of Things (IoT), Artificial Intelligence (AI), and others, resulting in a substantial boost in demand for next-generation automotive lighting.

Moreover, these lighting systems are energy efficient, therefore resulting in lower fuel consumption & providing a longer distance range. Thus, reducing the carbon footprint of the vehicles & lowering the emissions by the motor vehicles. Additionally, automobile manufacturers are also seeking to utilize the solution to deliver the consumers with excellent safety features. Hence, they are actively integrating next-generation lighting to minimize potential road accidents, further enhancing the Global Next-Generation Automotive Lighting market size.

Possible Restraint: Uncertainty of Raw Materials Causing Disruption in the Supply Chain

The next-generation automotive lighting systems are equipped with additional sensors & control units, consequently making them more complex & expensive. Also, these systems are integrated with digitally advanced technologies like LED Lighting & Laser Lighting, etc., thus the cost associated with these technologies is higher than that of conventional automotive lighting systems. The uncertainty of these raw materials & the shortage of microchips globally, owing to the reasons such as geopolitical tension, a halt in the production of chips & fire breakout in the chip-manufacturing industry of Japan, is also hampering the market expansion since automotive lighting systems are fabricated using sensors & semi-conductors. Therefore, the unavailability of the chips & sensors is giving rise to a challenge for the overall automotive industry.

Further, the Original Equipment Manufacturers (OEMs) are also facing a challenge due to the scarcity in the supply of semi-conductor, consequently leading to a halt in the production of vehicles. For instance, in 2022, the car maker Avtovaz suspended its production of vehicles for a few days in light of the unavailability of chips globally. Therefore, the unavailability of the chips is restraining the production of passenger vehicles, ultimately limiting the market growth during 2023-28.

Growth Opportunity: Growing Demand for the Electric Vehicles to Amplify the Market Growth

The surge in the adoption of electric vehicles due to reasons such as government policies & incentives to use Electric Vehicles (EVs) instead of conventional fuel-based automobiles is driving the demand for these technologies. Individuals & government agencies across the globe are gradually adopting electric vehicles in light of the Paris 2030 agreement, where more than 195 countries signed a pact to lower their carbon emissions by embracing alternative solutions. Thus, the inclination of individuals in lieu to shield the environment & contribute towards a green climate is facilitating the demand for electric cars across the globe.

The mitigation of individuals towards electric vehicles is augmenting the requirement for these vehicles, consequently leading to the surge in the usage of these technologies since these lighting systems are used during the manufacturing of these vehicles to enhance the feature of the motor cars. Hence, the upliftment of electric motor vehicles due to the growing concerns regarding pollution would pose an opportunity for the companies to offer their lighting systems to electric vehicle (EVs) manufacturers in the forthcoming years.

Key Trend: Gradual Inclination Towards the Human Centric Lighting Gaining Traction

The advent of technology has led to the evolution of lighting systems over the past few years & facilitated the emergence of human-centric lighting systems. These advanced systems work as per human behavior & adjust the light of the cars to improve the well-being of the individuals. Thus, the automobile makers like BMW & others are seeking to use human-centric lighting solutions to enhance the features of their vehicles.

Moreover, the benefits of using these lights include enhanced driving performance since they change the magnitude of illumination in the cars or passenger vehicles differently in varied situations. For instance, during the day, the lights are of calm tone colors to improve alertness & focus, whereas, during the night time, the intensity of the lights is dim & pleasant such that it doesn’t affect the eyes. Thus, the upgradation of the lighting systems & significant adoption of advanced lighting systems technology would propagate the demand for next-generation automotive lighting in the forecast years.

Market Segmentation

Based on Product Type:

• Adaptive Lighting
  • Auto ON/OFF
  • Bending/Cornering Lights
  • High Beam Assist
  • Headlight Leveling
• Ambient Lighting
• Communicable Lighting
• Flexible Lighting

The surge in the inclination towards customized lighting solutions in cars has significantly increased the demand for Ambient Lighting during the historical period. Individuals nowadays prefer an aesthetic appeal & unique designs for their car interiors. Thus, they prefer to opt for ambient lighting solutions since these lights create a comfortable & personalized ambiance in the car & the lights are designed in a way that they change their color based on the drivers’ preference or driving conditions. Moreover, the lights also alter the color to warn the driver in case of any potential hazard. Hence, the enhanced safety feature & the aesthetic appeal is leading to the rise in the market share of this product type. Further, the luxury car makers, such as BMW & Mercedes, also use this Therefore, the enhanced features of this lighting would further accelerate the market share in the forthcoming years.

Based on Technology Type:

• Halogen
• Xenon
• Light Emitting Diode (LED)
  • OLED
  • Mini LED
  • Micro LED
  • Matrix LED
• Laser

Light Emitting Diodes (LED) are highly energy-efficient, compact, and have a longer life span. As a result, they were used widely by automotive manufacturers during the historical period. These lights are environment friendly & improve the fuel efficiency of the vehicles, thus the automobile makers, seeking these solutions to provide consumers with better services & enhance the efficiency of motor cars. Further, the evolution of different types of LED, like Organic (OLED), Mini LED, etc., in recent years is also contributing to the ripple in the gain in market share of LED in the Global Next-Generation Automotive Lighting Market. Further, the emergence of laser light & its significant adoption in the automotive industry to enhance the visibility & safety of the drivers & passengers would oscillate the demand in the following years.

Regional Projection

Geographically, the market expands across:

• North America
• Europe
• Asia-Pacific
• Rest of the World

The prevalence of the automotive industry in the Asia-Pacific countries like China, India, etc., has led the region to acquire a significant share in the Global Next-Generation Automotive Lighting market. Asian countries are the manufacturing hub of automobiles owing to the availability of cheap labor & strategic location for export & imports. Thus, the presence of automobile manufacturing facilities is augmenting the demand for automotive lighting in the region. Further, the countries like Singapore & others have also witnessed a surge in the net-disposable income of individuals, thereby facilitating the rising demand for luxury vehicles. In the countries such as India, the desire for premium vehicles has escalated. For instance:

• In 2023, the luxury automaker Lamborghini announced that the exclusive cars of the company are sold out for the current year.

Thus, the growing inclination of individuals to purchase high-end luxury cars is also leading to a spike in the requirement for this lighting. Further, the rising incidents of fatal road accidents in the Asia-Pacific countries are a growing concern for the government. As such, to minimize the risk of road accidents, the government of the regional countries is laying out policies to encourage automobile manufacturers to use intelligent lighting solutions. Hence, the focus of the government on better lighting solutions in vehicles in lieu to lower road crashes would further enhance the market growth in the forecast years.

Regulatory Landscape in the Global Next-Generation Automotive Lighting Market

In 2021, the government of India updated the regulations regarding the requirement of the chromaticity coordinates of the color of the light emitted from Lighting & Light signaling devices. The chromaticity coordinates describe the color of the wide range of lighting available in the automobile, like headlights, taillights, etc. The enforcement of the regulation by the Indian government would propel automotive manufacturers to use standardized automotive lighting, thereby supplementing the demand for next-generation automotive lighting in the forthcoming years.

Recent Developments by the Leading Companies

• 2023: Marelli Holding Co. Ltd. announced to demonstrate the latest innovations at the Auto Shanghai 2023 to offer the consumer an interactive & engaging experience. The company would showcase its automotive lighting & sensing technologies to create a future of mobility with the technology partners.

Gain a Competitive Edge with Global Next-Generation Automotive Lighting Market Report

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