Europe Automotive LED Lighting Market Size

The Europe Automotive LED Lighting Market is projected to experience growth over the forecast period, driven by the increasing adoption of LED headlights and signal lights, which are essential for enhancing road safety and reducing fatalities. The market's expansion is supported by regulatory measures aimed at lowering vehicle CO2 emissions, prompting automakers to integrate LED technology into their vehicles, including electric and hybrid models. The market share is expected to remain stable, with significant contributions from various regions, including the Rest of Europe, Germany, and Spain, due to the rising number of commercial vehicles and the adoption of electric vehicles.

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Market Size of europe automotive led lighting Industry

Europe Automotive LED Lighting Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 2.57 Billion
svg icon Market Size (2030) USD 3.35 Billion
svg icon Largest Share by Automotive Utility Lighting Headlights
svg icon CAGR (2024 - 2030) 4.53 %
svg icon Largest Share by Country Germany

Major Players

Europe Automotive LED Lighting Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Europe Automotive LED Lighting Market Analysis

The Europe Automotive LED Lighting Market size is estimated at 2.57 billion USD in 2024, and is expected to reach 3.35 billion USD by 2030, growing at a CAGR of 4.53% during the forecast period (2024-2030).

2.57 Billion

Market Size in 2024 (USD)

3.35 Billion

Market Size in 2030 (USD)

-3.72 %

CAGR (2017-2023)

4.53 %

CAGR (2024-2030)

Largest Segment by Automotive Utility Lighting

59.87 %

value share, Headlights, 2023

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Government mandate to use headlights and increasing partnership agreements for LED lighting to positively influence the segment growth.

Largest Segment by Automotive Vehicle Lighting

83.14 %

value share, Passenger Cars, 2023

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By the end of 2021, the number of battery-only electric passenger cars had increased by 75% from the end of 2020, approaching 2 million units.

Largest by Country

29.25 %

value share, Germany, 2023

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In Germany, in 2023, Federal government to provide subsidies to local LED chip makers and Increasing developments in advanced lighting to increase use of LED lights

Fastest-growing Segment by Country

5.33 %

Projected CAGR, United Kingdom, 2024-2030

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Government support to promote electric vehicles in the country by encouraging manufacturers and consumers will boost the adoption of LEDs in the automotive industry.

Leading Market Player

21.33 %

market share, OSRAM GmbH., 2022

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Osram GmbH has the highest market share in Europe. Due to its innovations in the automotive lighting such as in DRL, headlight (night breaker headlight bulbs), the demand from the automotive players has increased in the recent past.

Manufacturers are expected to get approval for exterior vehicle lighting with LED and automakers are expected to invest in road safety, technology, and digitization to increase the use of LED lights

  • In terms of value share, in 2023, headlights accounted for the majority, followed by other lights and directional signal lights. Headlights have reduced daily fatalities and accidents. About 20,600 people died in road crashes the previous year, up by 3% from 2021 as traffic recovered from the pandemic. However, this represented 2,000 fewer road fatalities (10% less) compared to the pre-pandemic year of 2019. The goal of reducing road fatalities by 2030 was set by the EU and UN. Hence, it is expected that vehicles will be fitted with LED headlights to reduce the existing rate of road fatalities.
  • In terms of volume share, in 2023, directional signal lights accounted for the majority, followed by headlights and other lights. The market share of these lights is expected to remain the same with little fluctuation. Automakers such as Volkswagen, Daimler, Bosch, ZF, and other top European suppliers will spend (USD 161.9 billion) over the next few years on digitalization, electromobility and driving, hydrogen technology, and road safety. This will increase the use of signal lights, thus increasing the use of LED lights in the country.
  • The major automakers in the market are focusing on expanding the electric vehicle market. To this end, the European Parliament and Council of 23 April 2009 set emissions standards for new passenger cars as part of the community's integrated approach to reducing CO2 emissions from light commercial vehicles under Council Regulation (EC) No. 443/2009. Manufacturers jointly applied for the approval of efficient exterior vehicle lighting with LED as an innovative technology for vehicles with internal combustion engines and hybrid electric vehicles that do not require external charging. This factor increased the market share of domestic LED lighting.
Europe Automotive LED Lighting Market

Increasing regulations to reduce vehicle CO2 emissions and the development of magnetic electric motors to boost EV demand are expected to boost the market’s growth

  • In this segment, the Rest of Europe is expected to occupy a market share of more than 30% in 2023, followed by Germany and Spain, with market shares of more than 20% and 15%, respectively. This is due to an increase in the number of commercial vehicles, two-wheelers, and passenger cars. An increase in electric vehicle adoption is also anticipated to correspond to the market’s growth in other parts of Europe.
  • In 2021, Poland had the highest proportion of very old passenger cars, with 41.3% of passenger cars being over 20 years old. The positive development of passenger cars in the region in 2023 was reflected at the country level. The strongest growth was recorded in Spain (+51.4%) and Italy (+19.0%), followed by France (+8.8%), which had slow but steady growth. Hybrid electric vehicles (HEVs) also got off to a strong start in 2021. Sales increased by 22.1% to 197,982 units. This was driven by double-digit growth in the region's four largest markets: Spain (+59.3%), Italy (+24.7%), Germany (+19.0%), and France (+12.5%). This resulted in a market share of 26.0%, an improvement of 2.3 points compared to January 2022.
  • Government regulations aimed at reducing vehicle CO2 emissions will further encourage the adoption of LED light sources by European automakers. Automakers are also launching a number of new programs to contribute to sustainability. For example, a new European R&D program to develop cheaper, more efficient, and power-dense permanent magnet electric motors for electric vehicles (EVs) was expected to start in 2023. Mondragon University leads the consortium of eight European partners and includes GKN Automotive.

Europe Automotive LED Lighting Industry Segmentation

Daytime Running Lights (DRL), Directional Signal Lights, Headlights, Reverse Light, Stop Light, Tail Light, Others are covered as segments by Automotive Utility Lighting. 2 Wheelers, Commercial Vehicles, Passenger Cars are covered as segments by Automotive Vehicle Lighting. France, Germany, Spain, United Kingdom are covered as segments by Country.

  • In terms of value share, in 2023, headlights accounted for the majority, followed by other lights and directional signal lights. Headlights have reduced daily fatalities and accidents. About 20,600 people died in road crashes the previous year, up by 3% from 2021 as traffic recovered from the pandemic. However, this represented 2,000 fewer road fatalities (10% less) compared to the pre-pandemic year of 2019. The goal of reducing road fatalities by 2030 was set by the EU and UN. Hence, it is expected that vehicles will be fitted with LED headlights to reduce the existing rate of road fatalities.
  • In terms of volume share, in 2023, directional signal lights accounted for the majority, followed by headlights and other lights. The market share of these lights is expected to remain the same with little fluctuation. Automakers such as Volkswagen, Daimler, Bosch, ZF, and other top European suppliers will spend (USD 161.9 billion) over the next few years on digitalization, electromobility and driving, hydrogen technology, and road safety. This will increase the use of signal lights, thus increasing the use of LED lights in the country.
  • The major automakers in the market are focusing on expanding the electric vehicle market. To this end, the European Parliament and Council of 23 April 2009 set emissions standards for new passenger cars as part of the community's integrated approach to reducing CO2 emissions from light commercial vehicles under Council Regulation (EC) No. 443/2009. Manufacturers jointly applied for the approval of efficient exterior vehicle lighting with LED as an innovative technology for vehicles with internal combustion engines and hybrid electric vehicles that do not require external charging. This factor increased the market share of domestic LED lighting.
Automotive Utility Lighting
Daytime Running Lights (DRL)
Directional Signal Lights
Headlights
Reverse Light
Stop Light
Tail Light
Others
Automotive Vehicle Lighting
2 Wheelers
Commercial Vehicles
Passenger Cars
Country
France
Germany
Spain
United Kingdom
Rest of Europe
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Europe Automotive LED Lighting Market Size Summary

The Europe Automotive LED Lighting Market is experiencing a significant transformation driven by the increasing adoption of electric vehicles (EVs) and advancements in vehicle technology. The market is characterized by a shift towards more efficient and sustainable lighting solutions, with LED technology playing a pivotal role. This transition is supported by stringent EU regulations aimed at reducing CO2 emissions, which encourage automakers to integrate LED lighting in both internal combustion engine vehicles and hybrid electric vehicles. The market is moderately consolidated, with key players like HELLA, Marelli, OSRAM, Stanley Electric, and Valeo leading the charge in innovation and development. These companies are actively investing in research and development to enhance vehicle safety and efficiency through advanced lighting systems.

The demand for automotive LED lighting in Europe is further bolstered by the growing number of commercial vehicles, two-wheelers, and passenger cars, alongside the rapid increase in EV adoption. Countries such as Germany, Spain, and the Rest of Europe are expected to hold significant market shares due to their robust automotive sectors. The market is also witnessing a surge in hybrid electric vehicle sales, driven by strong growth in major markets like Spain, Italy, Germany, and France. Government initiatives and subsidies, particularly in the UK and France, are promoting the adoption of EVs, which in turn is expected to drive the demand for LED lighting solutions. As the automotive industry continues to evolve with a focus on sustainability and technological advancements, the Europe Automotive LED Lighting Market is poised for steady growth in the coming years.

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Europe Automotive LED Lighting Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Automotive Utility Lighting

      1. 1.1.1 Daytime Running Lights (DRL)

      2. 1.1.2 Directional Signal Lights

      3. 1.1.3 Headlights

      4. 1.1.4 Reverse Light

      5. 1.1.5 Stop Light

      6. 1.1.6 Tail Light

      7. 1.1.7 Others

    2. 1.2 Automotive Vehicle Lighting

      1. 1.2.1 2 Wheelers

      2. 1.2.2 Commercial Vehicles

      3. 1.2.3 Passenger Cars

    3. 1.3 Country

      1. 1.3.1 France

      2. 1.3.2 Germany

      3. 1.3.3 Spain

      4. 1.3.4 United Kingdom

      5. 1.3.5 Rest of Europe

Europe Automotive LED Lighting Market Size FAQs

The Europe Automotive LED Lighting Market size is expected to reach USD 2.57 billion in 2024 and grow at a CAGR of 4.53% to reach USD 3.35 billion by 2030.

In 2024, the Europe Automotive LED Lighting Market size is expected to reach USD 2.57 billion.

Europe Automotive LED Lighting Market Report Snapshots