South America Automotive LED Lighting Market Size

The South America Automotive LED Lighting Market is projected to experience significant growth over the forecast period, driven by the increasing adoption of energy-efficient lighting solutions such as headlights and directional signal lights. Despite their higher cost, these LED lighting options are gaining market share due to their ability to reduce energy consumption and enhance road safety, particularly in regions with high accident rates. The demand for LED lighting is further bolstered by the growing emphasis on electric vehicles in South American countries, as government policies promote the transition to zero-emission vehicles. This trend is expected to contribute to the expansion of the market size in the coming years.

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Market Size of south america automotive led lighting Industry

South America Automotive LED Lighting Market Summary
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svg icon Study Period 2017 - 2030
svg icon Base Year For Estimation 2023
svg icon Market Size (2024) USD 147.87 Million
svg icon Market Size (2030) USD 304.86 Million
svg icon Largest Share by Automotive Utility Lighting Headlights
svg icon CAGR (2024 - 2030) 12.82 %

Major Players

South America Automotive LED Lighting Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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South America Automotive LED Lighting Market Analysis

The South America Automotive LED Lighting Market size is estimated at 147.87 million USD in 2024, and is expected to reach 304.86 million USD by 2030, growing at a CAGR of 12.82% during the forecast period (2024-2030).

147.87 Million

Market Size in 2024 (USD)

304.86 Million

Market Size in 2030 (USD)

52.34 %

CAGR (2017-2023)

12.82 %

CAGR (2024-2030)

Largest Segment by Automotive Utility Lighting

41.30 %

value share, Headlights, 2023

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In South America, currently passenger cars has majority of share due to its high rate of accident and number of buyers.

Largest Segment by Automotive Vehicle Lighting

51.55 %

value share, Passenger Cars, 2023

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Growing trend of Evs drives this category demand. EV sales in Brazil reached almost 35,000 in 2021, a 77% increase year over year. EV sales in Colombia increased by 60% in 2021.

Fastest-growing Segment by Automotive Utility Lighting

13 %

Projected CAGR, Directional Signal Lights, 2024-2030

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By 2025, HEV and EV sales in Latin America’s nine emerging electric mobility markets expected to rise to more than 158,300 units, an increase of more than 30% from 2018.

Fastest-growing Segment by Automotive Vehicle Lighting

14.23 %

Projected CAGR, 2 Wheelers, 2024-2030

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The total sales of LEDs in this category is expected to reach USD 35.6 million by 2023. In 2022, the number of new motorcycle registrations increased to 1.4 million, compared to 1.2 million in 2021.

Leading Market Player

48.31 %

market share, OSRAM GmbH., 2022

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Osram GmbH has the highest market share in South America. Their latest LED light sources for DRL require 33% less power compared to six years ago models, while providing more brightness at the same time.

Headlights are expected to hold the highest market share

  • In terms of value, in 2023, headlights accounted for the majority share, followed by fog lights and directional signal lights. The market share for headlights and directional signal lights is expected to increase during the forecast period. The major reason for their adoption is the energy efficiency and accident prevention. Irrespective of its high price, the market share will increase as LED lighting used as headlights provides a 60% decrease in energy consumption. Potholes in city streets, such as Rio, are the cause of 90% of traffic accidents, and LED headlights are adopted to prevent them.
  • In terms of volume share, in 2023, directional signal lights (DSL) accounted for a majority share, followed by headlights and fog lights. In South America, passenger cars currently have the majority share due to the high accident rate and number of buyers in the region. The lack of road safety in Latin America and the Caribbean (LAC) results in nearly 130,000 deaths and six million injuries per year, which also includes a lack of proper DSL. Such a factor indicates major volume demand for such lighting and is expected to increase in the coming years.
  • EV policy in South American countries is the major trend adoption for EV sales, which is indirectly increasing the demand for LED lighting. In Costa Rica, 100% of new light vehicle sales and 100% of buses and taxis will be ZEVs (Zero Emission Vehicles) by 2050. In Chile, 100% of new sales of light-duty vehicles, urban buses, and taxis will be EVs by 2035. Such factors are expected to boost the market.
South America Automotive LED Lighting Market

South 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.

  • In terms of value, in 2023, headlights accounted for the majority share, followed by fog lights and directional signal lights. The market share for headlights and directional signal lights is expected to increase during the forecast period. The major reason for their adoption is the energy efficiency and accident prevention. Irrespective of its high price, the market share will increase as LED lighting used as headlights provides a 60% decrease in energy consumption. Potholes in city streets, such as Rio, are the cause of 90% of traffic accidents, and LED headlights are adopted to prevent them.
  • In terms of volume share, in 2023, directional signal lights (DSL) accounted for a majority share, followed by headlights and fog lights. In South America, passenger cars currently have the majority share due to the high accident rate and number of buyers in the region. The lack of road safety in Latin America and the Caribbean (LAC) results in nearly 130,000 deaths and six million injuries per year, which also includes a lack of proper DSL. Such a factor indicates major volume demand for such lighting and is expected to increase in the coming years.
  • EV policy in South American countries is the major trend adoption for EV sales, which is indirectly increasing the demand for LED lighting. In Costa Rica, 100% of new light vehicle sales and 100% of buses and taxis will be ZEVs (Zero Emission Vehicles) by 2050. In Chile, 100% of new sales of light-duty vehicles, urban buses, and taxis will be EVs by 2035. Such factors are expected to boost 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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South America Automotive LED Lighting Market Size Summary

The South America Automotive LED Lighting Market is poised for significant growth, driven by the increasing adoption of energy-efficient lighting solutions in vehicles. The market is characterized by a strong demand for headlights, fog lights, and directional signal lights, with headlights expected to dominate due to their energy-saving benefits and role in accident prevention. The region's high accident rates, particularly in urban areas like Rio, underscore the necessity for advanced lighting solutions. The market is further bolstered by the rising production of passenger cars and the growing trend towards electric vehicles (EVs), spurred by government policies promoting zero-emission vehicles in countries like Costa Rica and Chile. Despite challenges such as the COVID-19 pandemic and supply chain disruptions, the market is set to expand as more consumers and manufacturers embrace LED technology.

The South American automotive sector is witnessing a shift towards EVs, which is indirectly fueling the demand for LED lighting. The region's commitment to increasing EV sales, supported by government incentives and infrastructure developments, is expected to drive market growth. Countries like Brazil and Chile are leading the charge, with initiatives to boost EV adoption and establish manufacturing plants for electric vehicles. The market is fairly consolidated, with major players like KOITO MANUFACTURING CO., LTD., Marelli Holdings Co., Ltd., OSRAM GmbH., Stanley Electric Co., Ltd., and Valeo dominating the landscape. Recent advancements in lighting technology, such as HELLA's expansion of its Black Magic auxiliary headlamp series and the introduction of FlatLight technology, further indicate the dynamic nature of the market, poised for continued innovation and expansion.

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South 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

South America Automotive LED Lighting Market Size FAQs

The South America Automotive LED Lighting Market size is expected to reach USD 147.87 million in 2024 and grow at a CAGR of 12.82% to reach USD 304.86 million by 2030.

In 2024, the South America Automotive LED Lighting Market size is expected to reach USD 147.87 million.

South America Automotive LED Lighting Market Report Snapshots