Automotive Adaptive Lighting System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Automotive Adaptive Lighting System Market was valued at USD 34.34 billion in 2021 and is expected to reach USD 49.53 billion by 2027 registering a CAGR of above 6% during the Forecasts period (2022 - 2027).

The COVID-19 pandemic had negative impact on the market owing to shutdown of manufacturing facilties and decreased vehicle production. However, post-pandemic demand started restoring back as the market growth is supported by growing automotive and its associated components industry.

One of the major factors driving the growth of the Automotive Adaptive Headlights market is the increasing adoption of various vehicles such as autonomous vehicles, commercial vehicles, and others, combined with the electrification of the automotive industry around the world. This is affecting the demand for this product, including adaptive front lighting systems. Furthermore, LED headlights improve safety, lowering the overall number of vehicle collisions. As a result, the industry's expansion is accelerated.

Furthermore, the government's rising measures in the form of rules and regulations to promote the use of adaptive headlights, as well as the high adoption rate of driver assistance systems, propel the Automotive Adaptive Headlights business forward. In addiiton, technological advancement in automotive adapative lighting expected to stimulate demand in the market during the Forecasts period.

Europe and North America followed by Asia-Pacific expected to capture significant market shares during the Forecasts period owing to growth rate of automotive industry in this region. The key factors that are driving the growth of the market in these regions are an increasing need for technologically advanced features for passenger safety and productivity coupled with the incentive to increase manufacturing activities.The emergence of developing countries such as China, India, Japan and other; increase in purchasing power, high investment in electric vehicle production and increasing government initiatives for the adoption adaptive headlights drives the growth of this market.

Key Market Trends

Front Lighting Segment of Market Likely to Grow Significantly During the Forecasts period

Adaptive front lights are a part of the active safety systems designed to make driving at night or low-light conditions safer by increasing visibility around curves and over hills. Advanced Front-lighting (AFL) system optimizes light distribution from the headlights according to the changing driving and road circumstances. The adoption of the automotive AFLS is increasing due to the growing number of road accidents at night resulting in severe injuries and fatalities. For instance, European legislation is trying to reduce fatalities by encouraging the inclusion of an increased number of safety systems in vehicles.

Depending on vehicle speed and steering input, the system projects the low-beam headlights in the direction the driver intends to travel. Thereby, it saves time and effort for the driver helping him to concentrate on driving. The system provides an optimized vision to the driver during the night and other poor-sight conditions of the road by adapting the headlight angle and light intensity. For instance:

• Bosch intelligent headlight control utilizes a video camera to automatically adjust the low beam or high beam lights range. The adaptive lighting system not only controls the range or segmentation of the light, but it can also manipulate the width of the beam according to traffic conditions.
• Whereas BMW Adaptive Headlights comes with optional glare-free High Beam Assist, which controls the headlights' main beam for proper illumination. In this system, an image sensor inside the front mirror looks after the lighting conditions and the traffic ahead of 400 meters.

Apart from all these factors, demand for heavy commercial vehicles with advanced safety features, such as adaptive headlights and traffic sensors, in the logistics and transportation industries is also increasing. Moreover, rising road safety concerns among truck drivers and fleet owners are resulting in the demand for adaptive front-lighting technology solutions, which, in turn, is driving the market growth.

Europe is Expected to Hold Major Market Share During the Forecasts Period

Government norms and regulations drive the automotive market in Europe. These regulations have prompted OEMs to develop advanced automotive lighting systems. There has been a significant advancement in the safety and driver assistance systems, driving the adoption of automotive adaptive lighting significantly in the region.

Luxury car manufacturers and premium brands offer high-end cars, but now many automakers implement ADAS and adaptive lighting technology in entry-level cars. A consistent increase in the demand for compact and mid-sized cars equipped with advanced safety features will ultimately propel the growth of the region's adaptive lighting market. Vehicle manufacturers in Europe are designing, prototyping, and testing the possibilities for external lighting. For example,

• Polestar has introduced advanced lighting technology to the compact premium electric vehicle segment on its Polestar 2 fastback. Developed in Scandinavia, the car is well adapted to even the darkest of nights and days
• Volkswagen is working on a technology that projects a pair of red warning lines on the road when a car is turning around, thereby letting pedestrians know where the danger zone is and presumably eliminating the problem of backing out of a high-fenced driveway into the path of a cyclist on the footpath.
• Similarly, in Hella adaptive headlight systems, the company’s VarioX® module is combined with a swiveling module. There is a cylinder that can be rotated in its longitudinal axis in the combination of the light source and the lens. The cylinder's outer surface generates different light distributions on the road, and the stepper motor turns the cylinder to the required position within milliseconds.

on basis of aforementioned factors, Europe expected to hold dominant share in Automotive Adaptive Lighting System Market during the Forecasts period.

Competitive Landscape

The Automotive Adaptive Lighting System Market is dominated by various international and regional players such as Osram Licht AG, Valeo Group, HELLA KGaAHueck& Co., and Stanley Electric Co. Ltd. These companies are focusing on strategic collaborative initiatives to expand their market shares and profitability. In contrast, major automakers are offering adaptive headlights in their upcoming models. For instance,

• In April 2021, Engineers at Ford research and advanced engineering Europe are testing predictive smart light system technology that uses real-time location data to effectively show the car the way to go. The prototype advanced lighting system uses GPS location data, advanced technologies and highly accurate street geometry information to accurately identify turns in the road ahead.
• In 2019, HELLA GmbH & Co. KGaA, and the Fraunhofer Application Center for Inorganic Phosphors in Soest, has completed a prototype lighting system based on laser technology. The prototype for a high-resolution headlamp module consists of a laser light source in the headlamp.
• Renault announced that the 2020 Renault Talisman would be offered with adaptive headlights with LED MATRIX technology and dynamic LED indicators. Renault also updated its minivan Espace for the 2020 model year. The model of the French brand is the first car, which included adaptive matrix beam headlamps.

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