Automotive LED Lighting Market Report 2025

The automotive LED lighting market size has grown strongly in recent years. It will grow from $19.9 billion in 2024 to $21.22 billion in 2025 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to consumer demand, environmental concerns, improved performance, cost reduction, safety, and visibility.

The automotive LED lighting market size is expected to see strong growth in the next few years. It will grow to $27.75 billion in 2029 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to advancements in autonomous vehicles, innovations in adaptive lighting, electric vehicle (EV) expansion, demand for connected cars, rising focus on energy efficiency. Major trends in the forecast period include adoption of OLED technology, rise of electric and hybrid vehicles, innovations in design and form factors, sustainability and efficiency, enhanced safety features.

The anticipated increase in global traffic accidents is poised to drive the growth of the automotive LED lighting market. Traffic accidents, a leading cause of fatalities globally, prompt the need for enhanced safety measures. Automotive LED lighting plays a crucial role in accident prevention by improving a vehicle's visibility on the road, reducing the risk of head-on collisions resulting from poor visibility. As reported by the Centers for Disease Control and Prevention (CDC) in January 2023, approximately 1.35 million people lose their lives annually in road accidents worldwide. Moreover, nearly 3,700 people succumb daily to crashes involving vehicles without LED lighting. Consequently, the rise in global traffic accidents is a driving force behind the growth of the automotive LED lighting market.

The increasing demand for electric vehicles (EVs) is expected to contribute significantly to the expansion of the automotive LED lighting market. EVs, powered by electric motors and relying on batteries for energy storage, employ automotive LED lighting to optimize headlight direction and range based on factors such as speed and steering input. Additionally, LED lighting consumes less power compared to traditional lighting technologies. According to the International Energy Agency in July 2023, global electric vehicle sales reached 10 million in 2022, with projections indicating a further increase to 14 million sales in 2023. The growing demand for electric vehicles is a key driver propelling the automotive LED lighting market's growth.

Technological advancements emerge as a prominent trend in the automotive LED lighting market, with major companies introducing cutting-edge products to maintain their market position. Hyundai Mobis, a South Korean automotive supplier, exemplifies this trend with the launch of the 'Lighting Grille' technology in October 2022. This innovative technology utilizes LED lighting, providing a moving grille with active flaps for improved aerodynamics or engine cooling. It includes unique features such as auto-driving mode and the display of various scenarios, such as autonomous driving, EV charging, welcome light, and emergency warning light. This commitment to technological innovation showcases the efforts of major players to stay at the forefront of the automotive LED lighting market.

Major players in the automotive LED lighting market are actively engaged in product innovation, particularly in the development of intelligent automotive LED lights, as a strategic move to maintain their market position. Intelligent automotive LED lights encompass advanced lighting systems equipped with smart technology, including features such as adaptive brightness, automated beam adjustments, and connectivity functions, thereby enhancing safety and efficiency in vehicles. An example of this innovative trend is the introduction of the h-Digi microLED by Marelli Holdings Co., Ltd., a Japan-based provider of automotive components, in July 2023. The h-Digi microLED stands out as a module and digital lighting solution for automotive front lighting, featuring a compact design, high energy efficiency, and affordability. This intelligent multipixel LED module facilitates fully adaptive, dynamic headlight operation and image projection, utilizing matrix illumination to provide driver assistance images on the road.

In September 2023, Advanced Lighting Technologies LLC (ADLT), a US-based innovator and manufacturer of energy-efficient lighting materials and finished products, acquired Cree Lighting Inc. for an undisclosed sum. This acquisition allows ADLT to strengthen its position in the LED lighting market by integrating the well-regarded Cree Lighting brand. This strategic move follows ADLT's prior acquisition of Cree Italy in 2022, signaling intentions for continued growth in the future. Cree Lighting Inc. is a US-based manufacturer specializing in energy-efficient lighting products, with a significant focus on automotive LED lighting in its product lineup.

Major companies operating in the automotive LED lighting market include Hella KGaA Hueck & Co., Koito Manufacturing Co. Ltd., Marelli Holdings Co. Ltd., Osram Licht AG, Stanley Electric Co. Ltd., Valeo, ZKW Group, Magneti Marelli S.p.A, Mercedes-Benz, Samsung Electronics Co. Ltd., Toyota Motor Corporation, Changzhou Xingyu Automotive Lighting System Co. Ltd., Everlight Electronics Co. Ltd., LG Electronics Inc, Nichia Corporation, Seoul Semiconductor Co. Ltd., SL Corporation, General Electric Company, Koninklijke Philips N V, Hyundai Mobis Co. Ltd., Denso Corporation, Grupo Antolin, Continental AG, Varroc Lighting Systems, DEPO Auto Parts Ind Co. Ltd., Flex-N-Gate Corporation, Lumax, Guangzhou Loyo Electronic Factory, TYC Brother Industrial.

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

Automotive LED lighting refers to specialized lighting systems in vehicles utilizing LED technology, providing enhanced visibility during night travel, energy-efficient illumination, and a long-lasting lighting solution.

The main propulsion types associated with automotive LED lighting are internal combustion engine (ICE), electric propulsion, and other propulsion methods. Electric propulsion involves the use of electrical power to accelerate propellant through electrical and magnetic means, commonly used in certain vehicle technologies. These lighting systems cater to various vehicle types, including passenger cars, light commercial vehicles (LCVs), buses, and other vehicle categories. Sales channels for these products encompass both original equipment manufacturers (OEMs) and the aftermarket. Automotive LED lighting finds application in various areas within vehicles, including both exterior and interior lighting functions.

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

The automotive LED lighting market consists of sales of lighting and signaling devices mounted on the front, rear, sides and in some cases on the top of a motor vehicle. 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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