Automotive LED Lighting Market Size

The automotive LED lighting market is experiencing significant growth, driven by the increasing demand for electric vehicles and technological advancements in the automotive industry. The market's expansion is particularly notable in the Asia-Pacific region, which holds a substantial share due to supportive government incentives and a strong focus on domestic automobile industries. Headlights dominate the market share, with directional signal lights also playing a crucial role. The shift towards electrification and autonomous vehicles is transforming the market landscape, contributing to the overall increase in market size and share across various segments.

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Market Size of automotive led lighting Industry

Automotive LED Lighting Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 8.97 Billion
svg icon Market Size (2030) USD 14.34 Billion
svg icon Largest Share by Automotive Utility Lighting Headlights
svg icon CAGR (2024 - 2030) 8.13 %
svg icon Largest Share by Region Asia-Pacific

Major Players

Automotive LED Lighting Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Automotive LED Lighting Market Analysis

The Automotive LED Lighting Market size is estimated at 8.97 billion USD in 2024, and is expected to reach 14.34 billion USD by 2030, growing at a CAGR of 8.13% during the forecast period (2024-2030).

8.97 Billion

Market Size in 2024 (USD)

14.34 Billion

Market Size in 2030 (USD)

3.04 %

CAGR (2017-2023)

8.13 %

CAGR (2024-2030)

Largest Segment by Automotive Utility Lighting

51.80 %

value share, Headlights, 2023

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The total sales of LEDs in this category is expected to reach USD 4,513.5 million by 2023. It is driven by government regulations and the need for safe driving.

Largest Segment by Automotive Vehicle Lighting

76.78 %

value share, Passenger Cars, 2023

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Out of the 37.5 million passenger vehicles sold in the Asia-Pacific and Middle East region, in 2022, more than 23.6 million were sold in China.

Largest by Region

42.31 %

value share, Asia-Pacific, 2023

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Emission regulations and subsidies for hybrid and electric vehicles in the Asia-Pacific region have enabled to capture a significant share of the overall electric and hybrid vehicle market.

Fastest-growing Segment by Region

12.82 %

Projected CAGR, South America, 2024-2030

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South America is projected to exihibit fastest growth rate driven by Brazil and Colombia attributed to the government norms such as declaration of 100% of emission-free public transport by 2035.

Leading Market Player

17.51 %

market share, OSRAM GmbH., 2022

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Osram GmbH leads the automotive LED lighting market. Innovations and expansions are the major revenue factor, as in recently, Osram received approval from German government for EUR 400 million sale of its Lamps unit.

The rising accident rates, growing demand for EVs, and supportive government policies drive the market’s growth

  • In terms of value share, in 2022, headlights accounted for most of the market share (51.8%), followed by others (miniature LED lights, LED license plate lights, fog Lights, and interior LED lights), directional signal lights (DSLs), day time running lights, and stop lights. The headlights segment is expected to gain a higher market share in the future. Along with the rising number of accidents, the penetration rate of fog LED lamps and headlamps is anticipated to rise. Approximately 1.3 million people die each year as a result of road traffic crashes globally.
  • In terms of volume share, in 2023, DSLs accounted for most of the market share (27.9%), followed by headlights (17.7%), others (miniature LED lights, LED license plate lights, fog Lights, and interior LED lights) (16.4%), and stop lights. The market share is expected to remain the same for all the segments during the forecast period, with a slight reduction in the others and stop lights segment and an increase in the DSLs and headlights segments. External lights (primarily signal lights) are highly likely to be affected in minor to major accidents in all types of vehicles and require replacement.
  • EVs are one of the primary drivers for the surging demand for automotive LEDs globally. China led the EV market, accounting for 60% of global electric car sales in 2022, followed by Europe and the United States, which saw strong sales growth of 15% and 55%, respectively.
  • The ambitious policy programs in major economies, such as the Fit for 55 package in the European Union and the Inflation Reduction Act in the United States, are expected to boost the market share of EVs. Key players in the market are also focusing on expanding their EV plants in developed nations.
Global Automotive LED Lighting Market

Growth in EVs, autonomous vehicles, and government incentives are expected to boost the adoption of LED lights in the automotive industry

  • In terms of value share, the Asia-Pacific automotive LED lighting market accounted for the majority share in 2022, followed by North America and Europe, respectively. The market share is expected to increase for Asia-Pacific in 2029, as most of the six Asian countries, such as China, Japan, Thailand, Taiwan, Malaysia, and India, have introduced incentives such as protecting their domestic markets and giving preferential treatment to automakers in promoting their automobile industries.
  • In terms of volume share, the Asia-Pacific automotive LED lighting market accounted for the majority share in 2022, followed by Europe and North America. In Europe, the rise of electric vehicles and technological advances in the types of fuels used in vehicles are transforming the region's automotive industry. Sales of battery electric vehicles in the European Union are still growing rapidly. For example, 12.1% of the 9.1 million cars sold on the EU market in 2022 were pure battery electric vehicles. By contrast, in 2019, this share was just 1.9%, and in 2021 it was 9.1%.
  • Electrification is the most significant transformation the industry is undergoing worldwide. Another trend rising is autonomous vehicles. It is important to note that technology contributes to auto companies' carbon-neutral goals. The Middle East is an important market for Nissan. Many modern vehicles are getting smarter and more connected. It will be equipped with intelligent mobility and autonomous driving, similar to the Nissan Ariya. Such transformations are undertaken in other parts of the region. Thus, growth in the regional automotive segment may increase the penetration of LEDs in the market.

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. Asia-Pacific, Europe, Middle East and Africa, North America, South America are covered as segments by Region.

  • In terms of value share, in 2022, headlights accounted for most of the market share (51.8%), followed by others (miniature LED lights, LED license plate lights, fog Lights, and interior LED lights), directional signal lights (DSLs), day time running lights, and stop lights. The headlights segment is expected to gain a higher market share in the future. Along with the rising number of accidents, the penetration rate of fog LED lamps and headlamps is anticipated to rise. Approximately 1.3 million people die each year as a result of road traffic crashes globally.
  • In terms of volume share, in 2023, DSLs accounted for most of the market share (27.9%), followed by headlights (17.7%), others (miniature LED lights, LED license plate lights, fog Lights, and interior LED lights) (16.4%), and stop lights. The market share is expected to remain the same for all the segments during the forecast period, with a slight reduction in the others and stop lights segment and an increase in the DSLs and headlights segments. External lights (primarily signal lights) are highly likely to be affected in minor to major accidents in all types of vehicles and require replacement.
  • EVs are one of the primary drivers for the surging demand for automotive LEDs globally. China led the EV market, accounting for 60% of global electric car sales in 2022, followed by Europe and the United States, which saw strong sales growth of 15% and 55%, respectively.
  • The ambitious policy programs in major economies, such as the Fit for 55 package in the European Union and the Inflation Reduction Act in the United States, are expected to boost the market share of EVs. Key players in the market are also focusing on expanding their EV plants in developed nations.
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
Region
Asia-Pacific
Europe
Middle East and Africa
North America
South America
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Automotive LED Lighting Market Size Summary

The automotive LED lighting market is poised for significant growth, driven by the increasing adoption of electric vehicles (EVs) and advancements in automotive technology. The market is experiencing a shift towards LED lighting solutions, with headlights and directional signal lights (DSLs) leading in market share. The rise in EV production, particularly in regions like Asia-Pacific, Europe, and North America, is a major factor propelling the demand for automotive LEDs. This growth is further supported by policy initiatives such as the European Union's Fit for 55 package and the United States' Inflation Reduction Act, which aim to boost the adoption of electric vehicles and, consequently, the need for advanced lighting solutions. The Asia-Pacific region, with its robust automotive industry and supportive government policies, is expected to maintain its dominant position in the market.

The market landscape is moderately consolidated, with key players like HELLA GmbH & Co. KGaA, KOITO MANUFACTURING CO., LTD., Marelli Holdings Co., Ltd., OSRAM GmbH, and Stanley Electric Co., Ltd. leading the charge in innovation and expansion. These companies are actively investing in new technologies and expanding their product offerings to meet the growing demand for automotive LEDs. The market is also witnessing a surge in the development of smart and connected vehicle technologies, which are expected to further drive the adoption of LED lighting solutions. As the automotive industry continues to evolve with trends like electrification and autonomous driving, the demand for efficient and advanced lighting systems is set to increase, positioning the automotive LED lighting market for substantial growth in the coming years.

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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 Region

      1. 1.3.1 Asia-Pacific

      2. 1.3.2 Europe

      3. 1.3.3 Middle East and Africa

      4. 1.3.4 North America

      5. 1.3.5 South America

Automotive LED Lighting Market Size FAQs

The Global Automotive LED Lighting Market size is expected to reach USD 8.97 billion in 2024 and grow at a CAGR of 8.13% to reach USD 14.34 billion by 2030.

In 2024, the Global Automotive LED Lighting Market size is expected to reach USD 8.97 billion.

Automotive LED Lighting Market Report Snapshots