Japan Automotive LED Lighting Market Size

The Japan Automotive LED Lighting Market is projected to experience significant growth over the forecast period, with headlights currently holding the largest market share, followed by directional signal lights and other types. The market's expansion is driven by trends such as the integration of daytime running lamps with projector lights and the increasing demand for automated headlamps and directional signal lights, spurred by government safety initiatives. As Japan continues to be a major player in automotive production, the focus on electric vehicles is expected to further enhance the market's growth trajectory, leading to greater penetration of LED lighting solutions.

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Market Size of japan automotive led lighting Industry

Japan Automotive LED Lighting Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 0.76 Billion
svg icon Market Size (2030) USD 1.17 Billion
svg icon Largest Share by Automotive Utility Lighting Headlights
svg icon CAGR (2024 - 2030) 7.41 %
svg icon Fastest Growing by Automotive Utility Lighting Directional Signal Lights

Major Players

Japan Automotive LED Lighting Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Japan Automotive LED Lighting Market Analysis

The Japan Automotive LED Lighting Market size is estimated at 0.76 billion USD in 2024, and is expected to reach 1.17 billion USD by 2030, growing at a CAGR of 7.41% during the forecast period (2024-2030).

0.76 Billion

Market Size in 2024 (USD)

1.17 Billion

Market Size in 2030 (USD)

14.58 %

CAGR (2017-2023)

7.41 %

CAGR (2024-2030)

Largest Segment by Automotive Utility Lighting

41.17 %

value share, Headlights, 2023

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The Japanese Ministry of Transport set the policy for automakers to begin supplying all new vehicles with automated headlamps further complementing the growth of this category.

Largest Segment by Automotive Vehicle Lighting

76.18 %

value share, Passenger Cars, 2023

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Government measures, such as Japan's commitment to having 100% electric passenger cars by 2050, favour the market for passenger vehicles.

Fastest-growing Segment by Automotive Utility Lighting

7.42 %

Projected CAGR, Directional Signal Lights, 2024-2030

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The expansion of automotive lighting production capacities drives the LED signal light demand in the country leading the total expected sales to USD 81.9 million in 2023.

Fastest-growing Segment by Automotive Vehicle Lighting

7.89 %

Projected CAGR, 2 Wheelers, 2024-2030

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Government actions, such as allowing e-scooter riding without a driver's licence, favour a booming e-scooter and e-bike business leading the expected sales to reach USD 22.2 million by 2023.

Leading Market Player

57.86 %

market share, KOITO MANUFACTURING CO., LTD., LTD.

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KOITO's lighting systems are designed to meet any driving condition, making night driving safe and comfortable. The most recent headlamps, back combination lights, and automotive lamps use energy-efficient LEDs that last many years.

Increasing demand for EVs and the increasing number of accidents are driving the growth of the market

  • In terms of value share, in 2022, headlights accounted for the majority of the share, followed by others and directional signal lights. The market share is expected to remain the same for directional signal lights, reversing lights, taillights, and stoplights during the forecast period, with a small reduction in headlights. The combination of DRLs (daytime running lamps) with projector lights in frontal illumination is one of the increasing trends in the Japanese automobile lighting market.
  • In terms of volume share, in 2022, directional signal lights accounted for the majority, followed by headlights and others. The market share is expected to remain the same with less fluctuation for these lights. Directional signal lights are the prime part that has a high probability of getting affected in minor to major accidents in all types of vehicles and require replacement.
  • The government aims to reduce accidents by increasing its safety standards, resulting in increasing demand for automated headlamps and directional signal lights. For instance, the Japanese government has set a goal of reducing traffic-related deaths to less than 2,000 by 2025. In 2022, the Traffic fatalities nationwide declined to 2,610, which is down by 1% from 2021.
  • In terms of expansion and innovations, Japan is one of the significant auto-producing nations in the world. The key automotive manufacturers in the market are focusing on expanding electric vehicles in the market. For instance, in 2021, new electric vehicles accounted for 36.2% of total new car sales, up from 35.2% in 2019 and 32.9% in 2017. Thus, the growth in NEV would increase the penetration of LED in the market.
Japan Automotive LED Lighting Market

Japan 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.

  • In terms of value share, in 2022, headlights accounted for the majority of the share, followed by others and directional signal lights. The market share is expected to remain the same for directional signal lights, reversing lights, taillights, and stoplights during the forecast period, with a small reduction in headlights. The combination of DRLs (daytime running lamps) with projector lights in frontal illumination is one of the increasing trends in the Japanese automobile lighting market.
  • In terms of volume share, in 2022, directional signal lights accounted for the majority, followed by headlights and others. The market share is expected to remain the same with less fluctuation for these lights. Directional signal lights are the prime part that has a high probability of getting affected in minor to major accidents in all types of vehicles and require replacement.
  • The government aims to reduce accidents by increasing its safety standards, resulting in increasing demand for automated headlamps and directional signal lights. For instance, the Japanese government has set a goal of reducing traffic-related deaths to less than 2,000 by 2025. In 2022, the Traffic fatalities nationwide declined to 2,610, which is down by 1% from 2021.
  • In terms of expansion and innovations, Japan is one of the significant auto-producing nations in the world. The key automotive manufacturers in the market are focusing on expanding electric vehicles in the market. For instance, in 2021, new electric vehicles accounted for 36.2% of total new car sales, up from 35.2% in 2019 and 32.9% in 2017. Thus, the growth in NEV would increase the penetration of LED in the market.
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
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Japan Automotive LED Lighting Market Size Summary

The Japan Automotive LED Lighting Market is poised for significant growth, driven by the increasing adoption of LED technology in vehicles. This market is characterized by a strong focus on safety and innovation, with the Japanese government implementing stringent safety standards to reduce traffic-related fatalities. This has led to a heightened demand for automated headlamps and directional signal lights. The market is also witnessing a trend towards the integration of daytime running lamps with projector lights, enhancing frontal illumination. As Japan continues to be a major player in the global automotive industry, the expansion of electric vehicles is expected to further boost the penetration of LED lighting. The rise in electric vehicle sales, particularly among Kei minicars, underscores the growing importance of energy-efficient LED lights in the automotive sector.

The market landscape is fairly consolidated, with key players such as KOITO MANUFACTURING CO., LTD., Marelli Holdings Co., Ltd., OSRAM GmbH, Stanley Electric Co., Ltd., and Valeo dominating the scene. These companies are actively investing in research and development to advance automotive lighting technologies. The COVID-19 pandemic had a notable impact on the automotive supply chain, affecting the production of LED lights due to component shortages. However, the market is recovering, with manufacturers like Subaru planning new electric vehicle plants to meet the rising demand. Government initiatives, such as subsidies for clean energy vehicles and the easing of safety rules for fast charging stations, are expected to further stimulate the market. As a result, the Japan Automotive LED Lighting Market is set to experience robust growth, driven by technological advancements and a shift towards electrification and automation in the automotive industry.

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Japan 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

Japan Automotive LED Lighting Market Size FAQs

The Japan Automotive LED Lighting Market size is expected to reach USD 761.01 million in 2024 and grow at a CAGR of 7.41% to reach USD 1.17 billion by 2030.

In 2024, the Japan Automotive LED Lighting Market size is expected to reach USD 761.01 million.

Japan Automotive LED Lighting Market Report Snapshots