Automotive Ambient Lighting Market Report 2025

The automotive ambient lighting market size has grown strongly in recent years. It will grow from $4.24 billion in 2024 to $4.63 billion in 2025 at a compound annual growth rate (CAGR) of 9.2%. The growth in the historic period can be attributed to luxury car segment growth, increasing focus on interior aesthetics, rising disposable income, rising trend of night driving, consumer preference for customization.

The automotive ambient lighting market size is expected to see strong growth in the next few years. It will grow to $6.7 billion in 2029 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to electrification of vehicles, shift towards autonomous vehicles, rise of shared mobility, globalization of automotive markets, increased urbanization. Major trends in the forecast period include dynamic ambient lighting, health and well-being integration, AR/VR integration, ultra-thin lighting design, subscription-based lighting packages.

The rising sales of high-end luxury cars are expected to drive growth in the automotive lighting market. High-end luxury cars are characterized by their superior interiors and a range of features that are typically absent in standard vehicles. The increasing demand for these luxury cars has led to the incorporation of innovative and technologically advanced ambient lighting, enhancing their safety and security features. For example, in April 2023, a report from CarExpert Pty Ltd, an Australia-based automotive publisher, indicated that the Jaguar F-Pace SUV was the brand's best-selling vehicle in Australia with 48 sales recorded in 2023. Maserati sold 31 Grecale SUVs, while Volvo's XC40 luxury SUV experienced a sales increase of 18.7% in 2023, totaling 1,505 units. Consequently, the growing demand for luxury vehicles will drive the automotive ambient lighting market.

The rising demand for electric vehicles is anticipated to propel the automotive lighting market. An electric vehicle is defined as a vehicle that operates on electrical energy stored in batteries or other energy storage devices to power one or more electric motors. Automotive lighting is essential in electric vehicles, as advanced lighting technologies enhance safety and aesthetics while also boosting the overall appeal and acceptance of electric mobility. For instance, in March 2024, the International Energy Agency, a France-based intergovernmental organization, reported that approximately 14 million electric cars were registered globally in 2023, reflecting a 35% increase from the 10.5 million registered in 2022. Electric vehicles (EVs) represented 18% of total car sales in 2023, up from 14% in 2022. This growth indicates strong momentum in the EV market, with weekly registrations surpassing 250,000 in 2023. Battery electric vehicles comprised 70% of the total electric car stock in 2023. Therefore, the increasing demand for electric vehicles is driving the automotive ambient lighting market.

Technological advancements have become a prominent trend gaining traction in the automotive ambient lighting market. Leading automotive lighting companies are actively introducing cutting-edge lighting technologies to solidify their positions in the market. A case in point is Hella KGaA Hueck & Co., a Germany-based manufacturer of lighting, electronic components, and systems. In May 2022, the company launched an innovative combination of lighting solutions and sensor technology that adds intelligence to vehicles, enhancing comfort, well-being, and safety. The newly introduced smart HELLA Slim Light System not only supports communication between vehicle occupants but also sets the tone for the interior through wide-area lighting, showcasing the integration of advanced technologies in the automotive ambient lighting sector.

Major companies in the automotive lighting market are strategically focusing on product launches, particularly in the realm of microLED technology, catering to a broader range of vehicles. MicroLED in automotive lighting denotes a cutting-edge technology that utilizes miniature light-emitting diodes to deliver advanced functionalities, including dynamic adaptive lighting, high-resolution illumination, and enhanced safety features in vehicles. As an illustrative example, in July 2023, Marelli Holdings, a Japan-based company specializing in the design and manufacturing of automotive components, unveiled the h-Digi microLED - a groundbreaking innovation in automotive front lighting that introduces a digital lighting solution. The h-Digi microLED features intelligent multipixel LEDs, matrix illumination, affordability, and the EVIYOS 2 light source. This innovation marks a significant advancement in automotive lighting by providing fully adaptive and dynamic headlight operation, high-resolution options tailored for diverse driving conditions, and safety-focused features such as glare-free high-beam block-out zones. Marelli's h-Digi microLED contributes substantially to the evolution of the automotive lighting market, showcasing the industry's commitment to leveraging state-of-the-art technologies for enhanced performance and safety in vehicles.

In January 2022, Faurecia, a leading French-based automotive parts manufacturer, completed the acquisition of Hella GmbH & Co. KGaA for a total of $5.64 billion (EUR 5.3 billion). This strategic move is geared towards augmenting Faurecia's capabilities and expanding its portfolio within the automotive ambient lighting products and services sector. Hella GmbH & Co. KGaA, based in Germany, is a prominent manufacturer specializing in lighting and electronic components for the automotive industry.

Major companies operating in the automotive ambient lighting market include Robert Bosch GmbH, General Electric Company, Panasonic Corporation, Continental AG, Magna International Inc., Flex Ltd., Valeo SA, Lear Corporation, Texas Instruments Incorporated, Koninklijke Philips NV, Tenneco Inc., Dräxlmaier Group, Koito Manufacturing Company Limited, Osram Licht AG, Gentex Corporation, ZKW Group GmbH, Varroc Lighting Systems SP Z.o.o, Stanley Electric Company Limited, Innotec Group, Lumileds Holding B.V., Magneti Marelli SpA, Diode Dynamics LLC, Ambright GmbH, Oshino Lamps Limited, EFI Lighting SAS, Hella KGaA Hueck & Co., CML Innovative Technologies Ltd., Dominant Opto Technologies Sdn. Bhd., Grote Industries LLC, J.W. Speaker Corporation, Lite-On Technology Corporation, NXP Semiconductors N.V.

Asia-Pacific was the largest region in the automotive ambient lighting market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive ambient lighting market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive ambient lighting market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Automotive ambient lighting encompasses gentle illumination positioned around the vehicle's center console, door handles, cup holders, and sometimes extends to the dashboard and footwell. Typically viewed as a purely cosmetic attribute, interior ambient lighting doesn't inherently offer distinct safety features for vehicles. Presently, ambient lighting is primarily crafted to reflect internal light sources, detecting driver entry and exit, influencing driving controls, and contributing to mood, focus, and overall comfort levels.

The primary products within automotive ambient lighting comprise dashboard lights, ambient lighting, head-up displays, and reading lights. Dashboard lights serve the purpose of illuminating a vehicle's dashboard. These lights incorporate various technologies such as halogen, LED, and xenon, catering to passenger vehicles, commercial vehicles, and heavy commercial vehicles alike.

The automotive ambient lighting market research report is one of a series of new reports that provides automotive ambient lighting market statistics, including automotive ambient lighting industry global market size, regional shares, competitors with an automotive ambient lighting market share, detailed automotive ambient lighting market segments, market trends and opportunities, and any further data you may need to thrive in the automotive ambient lighting industry. This automotive ambient lighting market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The automotive ambient lighting market consists of sales of footwell lights, door lights, and center console lights. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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