North America Automotive LED Lighting Market Size

The North America Automotive LED Lighting Market is projected to experience significant growth over the forecast period, driven by an increase in vehicle sales and the rising demand for LED lights, particularly in the context of growing electric vehicle adoption. The market's expansion is influenced by factors such as the increase in domestic vehicle production and the need for replacement parts due to accident trends. While the United States currently holds a substantial portion of the market share, there is an anticipated shift with the Rest of North America gaining ground. The implementation of trade agreements like the USMCA further supports the local automotive industry, contributing to the market's growth trajectory.

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Market Size of north america automotive led lighting Industry

North America Automotive LED Lighting Market Summary
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https://s3.mordorintelligence.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2030
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2024) USD 2.19 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2030) USD 3.04 Billion
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by Automotive Utility Lighting Headlights
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg CAGR (2024 - 2030) 5.59 %
https://s3.mordorintelligence.com/globe/1629285706162_test~globe_globe.svg Largest Share by Country United States

Major Players

North America Automotive LED Lighting Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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North America Automotive LED Lighting Market Analysis

The North America Automotive LED Lighting Market size is estimated at 2.19 billion USD in 2024, and is expected to reach 3.04 billion USD by 2030, growing at a CAGR of 5.59% during the forecast period (2024-2030).

2.19 Billion

Market Size in 2024 (USD)

3.04 Billion

Market Size in 2030 (USD)

-3.26 %

CAGR (2017-2023)

5.59 %

CAGR (2024-2030)

Largest Segment by Automotive Utility Lighting

40.93 %

value share, Headlights, 2023

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The total sales of LEDs in this category is expected to reach USD 908.8 million by 2023. Growing Demand for EV's and Supportive Government Policies Drives the Growth of this category.

Largest Segment by Automotive Vehicle Lighting

91.62 %

value share, Passenger Cars, 2023

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In 2022, 5.7% of US car sales were fully electric car sales. Which is up from 3.2% in 2021, 1.7% in 2020, and 1.4% in 2019. The overall sales increased 43% in 2022 compared to 2021.

Largest by Country

78.77 %

value share, United States, 2023

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The total sales of LEDs in this category is expected to reach USD 1749 million by 2023. The U.S. vehicle production increased from 8.8 million units in 2020 up to 9.1 million units in 2021.

Fastest-growing Segment by Country

4.75 %

Projected CAGR, United States, 2024-2030

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Electrification of cars in the United States significantly accelerated in early 2023, out of 1.24 million new light vehicles registered in January 2023, 87,708 units, or 7.1% were all-electric.

Leading Market Player

20.49 %

market share, OSRAM GmbH., 2022

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In 2022, it introduced a new, hyper-efficient automotive LEDs for front lighting system, the OSLON Black Flat X series and also, it is focusing on implementing projection lighting systems in new passenger car designs.

Rising accident trend, penetration rate of fog LED lamps, and increasing sales of electric vehicles drive market growth

  • In terms of value, in 2022, headlights accounted for a major share, followed by others (miniature LED lights, LED license plate lights, fog lights, and interior LED lights), directional signal lights (DSLs), daytime running lights, and stop lights. The market share is expected to remain the same for all lights, with a small reduction in others and DSLs, and grow for headlights. With the rising accident trend, the penetration rate of fog LED lamps is anticipated to rise. In the US, the number of motor vehicle deaths reached an estimated 46,000 in 2022 compared to the pre-pandemic death rate, an increase of nearly 22%.
  • In terms of volume, in 2022, directional signal lights accounted for a major share, followed by headlights, others (miniature LED lights, LED license plate lights, fog lights, and interior LED lights), and stop lights. External lights are the prime parts that have a high probability of getting affected in minor to major accidents in all types of vehicles and require replacement.
  • The year 2022 ended with new light-vehicle sales reaching 13.7 million units. The Y-o-Y 2022 sales decreased by 8.2% compared to 2021, with the decrease primarily attributed to the ongoing microchip shortage and additional supply chain disruptions. With sales of hybrid, plug-in hybrid, and battery electric vehicles (BEVs) accounting for 12.3% of all new vehicle sales in 2022, an increase of 2.7% from 2021, alternative fuel vehicles gained market share. Thus, the increase in vehicle sales resulted in an increase in the requirement for LED lights.
North America Automotive LED Lighting Market

Adoption of EVs across countries and favorable laws to develop local automotive industry drive the demand for LED lighting

  • In terms of value, in 2022, the US LED light market accounted for the majority of the share, followed by the Rest of North America (RONA). The market share is expected to decline for the US and increase for the Rest of North America, with less fluctuation in the coming years. The domestic vehicle production in the US increased from 9.1 million units in 2021 to 10.06 million units in 2022. The vehicle production includes cars and commercial vehicles. In Canada, in 2022, vehicle production increased by 10.2% compared to 2021, accounting for 1.2 million units. The increase in domestic vehicle production creates more demand for automotive LEDs in the market.
  • The demand for EVs grew across many countries in North America. Mexico saw 1.08 million new car sales in 2022, a 7% improvement from 2021, and US EV sales increased by 65% in 2022.
  • In sub-sectors of the automotive industry, the US and Mexican commercial services experienced strong opportunities in OE parts, aftermarket, and electric vehicle (EV) parts. The value of Mexican automotive parts for OEMs and aftermarket production increased from USD 78.4 billion in 2020 to USD 94.7 billion in 2021, and it is expected to reach more than USD 101 billion by 2022.
  • The United States, Mexico, Canada Agreement (USMCA) went into effect on July 1, 2020. The USMCA requirement stated that 75% of a vehicle’s content must be produced in North America and that core auto parts originate from the United States, Canada, or Mexico. Considering the above-mentioned factors, such as the adoption of EVs and favorable laws to develop the local automotive industry, the growth of LEDs is expected across North America in the coming years.

North America 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. United States are covered as segments by Country.

  • In terms of value, in 2022, headlights accounted for a major share, followed by others (miniature LED lights, LED license plate lights, fog lights, and interior LED lights), directional signal lights (DSLs), daytime running lights, and stop lights. The market share is expected to remain the same for all lights, with a small reduction in others and DSLs, and grow for headlights. With the rising accident trend, the penetration rate of fog LED lamps is anticipated to rise. In the US, the number of motor vehicle deaths reached an estimated 46,000 in 2022 compared to the pre-pandemic death rate, an increase of nearly 22%.
  • In terms of volume, in 2022, directional signal lights accounted for a major share, followed by headlights, others (miniature LED lights, LED license plate lights, fog lights, and interior LED lights), and stop lights. External lights are the prime parts that have a high probability of getting affected in minor to major accidents in all types of vehicles and require replacement.
  • The year 2022 ended with new light-vehicle sales reaching 13.7 million units. The Y-o-Y 2022 sales decreased by 8.2% compared to 2021, with the decrease primarily attributed to the ongoing microchip shortage and additional supply chain disruptions. With sales of hybrid, plug-in hybrid, and battery electric vehicles (BEVs) accounting for 12.3% of all new vehicle sales in 2022, an increase of 2.7% from 2021, alternative fuel vehicles gained market share. Thus, the increase in vehicle sales resulted in an increase in the requirement for LED lights.
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
United States
Rest of North America
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North America Automotive LED Lighting Market Size Summary

The North America Automotive LED Lighting Market is poised for significant growth, driven by the increasing adoption of LED technology in vehicles across the region. The market is characterized by a diverse range of applications, with headlights dominating the value share, followed by directional signal lights and other LED components such as fog lights and interior lights. The rising trend of electric vehicles (EVs) and the subsequent demand for advanced lighting solutions are key factors propelling market expansion. The market landscape is moderately consolidated, with major players like GRUPO ANTOLIN IRAUSA, S.A., KOITO MANUFACTURING CO., LTD., Marelli Holdings Co., Ltd., OSRAM GmbH, and Stanley Electric Co., Ltd. leading the charge in innovation and production.

The market's growth trajectory is further supported by favorable regulatory frameworks and initiatives aimed at boosting local automotive production and EV adoption. The United States, Mexico, and Canada are witnessing a surge in vehicle production and sales, with a notable increase in EV registrations. Government investments in infrastructure, such as the development of EV charging stations and incentives for EV purchases, are expected to enhance the demand for automotive LEDs. Despite challenges posed by supply chain disruptions and the COVID-19 pandemic, the market is set to recover and thrive, with advancements in lighting technology and strategic collaborations among key industry players.

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North America 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 United States

      2. 1.3.2 Rest of North America

North America Automotive LED Lighting Market Size FAQs

The North America Automotive LED Lighting Market size is expected to reach USD 2.19 billion in 2024 and grow at a CAGR of 5.59% to reach USD 3.04 billion by 2030.

In 2024, the North America Automotive LED Lighting Market size is expected to reach USD 2.19 billion.

North America Automotive LED Lighting Market Report Snapshots