Automotive lighting market to reach $42.2B in 2027
Share of solid-state lighting technologies likely to reach more than 99 percent in 2027, says Yole
According to market research and strategy consulting company Yole Développement's new report Lighting for Automotive 2022, the automotive lighting market is expected to reach $42.2 billion in 2027, at a 4.9 percent CAGR between 2021 and 2027. Share of solid-state lighting technologies represented 93 percent of automotive lighting value in 2021 and is likely to reach more than 99 percent in 2027.
Pierrick Boulay, senior technology and market analyst, Lighting and Display at Yole, says: “With the integration of LED technology, lighting has evolved from a basic, functional feature to a distinctive feature with high-value potential in automotive. LED technology has given manufacturers the opportunity for strong differentiation via lighting design and additional functionalities. This is particularly true for both exterior and interior lighting, where the integration of solid-state lighting technologies offers more design flexibility, increased efficacy, and intelligent functionalities.”
Today, the automotive lighting market is dominated by five big players, Koito, Marelli, Valeo, Hella (now Forvia), and Stanley. These top 5 represented 66 percent of the market in 2021. The Asian market is dominated by Japanese companies, with Koito and Stanley having captured 44 percent of the market. In Europe, the automotive lighting industry is dominated by local players: the automotive lighting part of Marelli, Hella, Valeo, and ZKW.
The North American market, representing almost $6 billion in 2021, is led by the Japanese company, Koito, closely followed by the French company, Valeo. Players adopt different strategies to address the automotive lighting market. Marelli and Hella are, for example, primarily technology-oriented. Both companies focus on high-end applications, while Koito, Valeo, and Stanley mainly focus their development on the middle-end segment.
Faurecia's acquisition of Hella and Plastic Omnium's acquisition of Ams Osram Automotive Lighting Systems GmbH (AMLS) show that lighting is not limited to the front and rear. Lighting is now integrated into other parts of the vehicle. With lighting becoming more horizontal, new components such as the grille or the logo are now illuminated. Lighting is evolving from a basic functional application in the past to include personalisation, communication, and ADAS functionalities now.
From the rear to the front, lighting has evolved from a purely functional application with no real added value to more intelligent applications, offering personalisation, communication, and driver assistance. While the main applications continue their evolution with more complex technologies embedded, new applications are emerging, especially around the car, such as logo and grille illumination and also near-field projections. These new applications will be used for personalisation, safety and communication.