Global automotive smart lighting market is expected to experience growth due to increasing trend of equipping luxury automotives with LEDs, and OLEDs, lighting norms for road safety, and change in consumer preferences.
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Global automotive smart lighting market is anticipated to experience a CAGR of 7.78% in the forecast period 2025-2032, growing from USD 4.68 billion in 2024 to USD 8.52 billion in 2032. Global market for automotive smart lighting has witnessed growth due to an increase in the number of road accidents, rising awareness concerning road safety, and growing need for automobiles.
Report Attribute |
Details |
Base Year of the Analysis |
2024 |
Historical Period |
2018-2023 |
Forecast Period |
2025-2032F |
Projected Growth Rate |
CAGR of 7.78% between 2025 and 2032 |
Revenue Forecast in 2032 |
USD 8.52 billion |
In developing countries, there is an increase in disposable income, which leads to a rise in demand for automobiles, which further increases the production and sales of automotive smart lighting in the forecast period. Change in lifestyle and rise in demand for transportation services are the key drivers that propel the introduction of automotives, hence fostering the growth of the automotive smart lighting market. In addition, the government is initiating different initiatives concerning road safety that are driving the global automotive lighting market growth. In the automotive industry, the increasing significance of road safety and energy efficiency is specifically propelling the prevalence of smart lighting systems in automotives, which can efficiently decrease the number of accidents, energy consumption, and enhance visibility. Furthermore, an increase in adoption of OLEDs, LEDs, and laser lighting, integration of machine learning and artificial intelligence, and a growing demand for developed safety features are projected to drive the demand for automotive smart lighting systems across the globe in the forecast period.
For instance, in July 2023, Hella GmbH & Co. KGaA and Porsche AG launched the world’s first high-resolution headlamp reliant on the technology of matrix LED.
Technological Advancement of Laser Light and LED Headlights in the Automotive Industry
Manufacturers in the automotive smart lighting industry are significantly investing in different research and development activities to deliver high-performance products. For instance, in October 2024, NEOLITE ZKW Lightings Pvt. Ltd. opened a new manufacturing plant in Pune, Maharashtra. The facility incorporates environment-friendly practices such as energy-efficient production processes and adherence to green building norms. These activities include innovations such as advanced illumination, which can make vehicles safer during the night. In addition, newly introduced multi-chip LEDs can turn on or off based on the road, are autonomously controlled, and can be adjusted based on the driver’s demand. Furthermore, the prime benefit of laser lighting for the driver is that it improves the probability of safe driving because it provides better clarity for the driver. These factors are propelling the growth of the global automotive smart lighting market.
For instance, in April 2023, Continental AG announced the launch of the automotive lighting product NightViu specifically for off-road and construction vehicles. NightViu product line are highly flexible, premium working lights which enhance effectiveness and safety in the agricultural sector as well.
The growing number of road accidents globally has led to an increased demand for safety features, specifically adaptive lighting systems. Vehicles equipped with smart lighting systems, including headlamps, LED headlights, OLEDs, and adaptable OLEDs can detect objects on the road, empowering drivers to take necessary actions when needed. Manufacturers are actively updating these technologies to be competitive in the market and hold the largest revenue share in the global automotive smart lighting market.
For instance, in November 2023, Hella GmbH & Co. KGaA announced the launch of its innovative series of HELLA Value Fit BLADE auxiliary headlamp specifically for off-road automotives and trucks to address the growing demand.
Growth of E-Commerce Platform Globally
Presently, there is a rise in e-commerce platforms due to the growing number of smartphone users, consistent shift towards online shopping, and increasing prevalence of digital marketing. The ease of buying smart lighting systems for automotives drives the demand for automotive smart lighting products. They also enable consumers to conveniently purchase and browse automotive lighting products from anywhere across the globe. Users can explore different options from international and domestic sellers because they are no longer restricted to domestic suppliers and retailers. Furthermore, the e-commerce platform allows customized recommendations and helps companies to promote their goods and services.
For instance, in November 2023, Hyundai Motor Company and Amazon.com, Inc announced a partnership to transform the customer experience of buying automotives and other components.
Governments are prioritizing the promotion and development of safe driving technologies, specifically for passenger vehicles. Many of these technologies are projected to become standard requirements. For instance, the Canadian government has initiated the safe testing and deployment of automated and connected vehicles, while also raising awareness about driver-assistance technologies. In addition, automobile manufacturers globally are directing their efforts towards producing vehicles equipped with improved technologies, including smart lighting systems, advanced driving systems, and many more safety features, focused on developing safety and driving comfort. This trend is anticipated to propel the demand for smart lighting systems. This rising demand for automobiles in emerging nations has spurred the growth of the automotive lighting market. Thereby, manufacturers globally are implementing new strategies to introduce innovative LED lighting products focused on improving passenger safety. In addition, government regulations concerning safety and security across the globe are projected to further propel the growth of the automobile lighting market.
For instance, in September 2023, the introduction of the Production Linked Incentive Scheme for products such as air conditioners and LED lights aims primarily to develop the global competitiveness of manufacturing in India by addressing sectoral challenges, driving economies of scale, and confirming operational effectiveness. Whereas the Indian LED lights sector include diverse range of market such as generating lighting, automotive lighting, and backlighting in industrial, residential, and commercial applications.
Passenger vehicles segments dominate market growth due to an increase in sales of hi-tech passenger cars, significant innovations in lighting technology, and a rise in demand for EVs. In addition, increase in the disposable income of consumers and rapid investment in research and development activities are further fostering the global automotive smart lighting market growth. The manufacturers of passenger cars are adopting different strategies to hold the highest market revenue share. The increasing adoption and sales of EVs are a significant driver for smart lighting, as EVs often feature cutting-edge lighting systems as standard due to their need for energy-efficient solutions and distinctive design features.
For example, in January 2024, Tata Passenger Electric Mobility Ltd (TPEM), a Tata Motors group company introduced its first all-pure EV the Punch.ev in India.
Asia-Pacific Holds the High CAGR in the Global Automotive Smart Lighting Market
Asia-Pacific region dominates the market size due to significant increase in introduction of electric vehicles with great interior and exterior features. APAC region has the high automotive sales because of an increase in number of populations, increase in per capita income, and production of economy and mid-range automotives. Moreover, the market growth is propelling due to different factors including change in living standards of consumers, rapid technological innovations, stringent safety norms and others. The automotive smart lighting manufacturers in the industry are actively investing in different research and development activities to introduce and develop new products and prevailing equipment respectively.
Impact of the United States Tariffs on the Global Automotive Smart Lighting Market
The imposition of the United States tariffs, particularly on Chinese-made components, has disrupted the global automotive smart lighting market by increasing production costs and supply chain complexities. Many smart lighting systems rely on semiconductors, LEDs, and sensors imported from China, and higher tariffs have forced manufacturers to either absorb added expenses or pass them onto consumers, dampening demand. Some companies are shifting production to alternative regions like Southeast Asia or Mexico to avoid tariffs, but this requires significant investment and time. Meanwhile, the United States based automakers face competitive disadvantages compared to foreign rivals unaffected by these tariffs. However, the tariffs have also spurred innovation in domestic smart lighting manufacturing, with increased R&D in energy-efficient and adaptive lighting technologies. In the long term, trade policies could reshape supply chains, favoring localized production and strategic partnerships to mitigate tariff-related risks.
Future Market Scenario (2025 – 2032F)
Report Scope
“Global Automotive Smart Lighting Market Assessment, Opportunities, and Forecast, 2018-2032F” is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the global automotive smart lighting market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2025 and 2032. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
Report Attribute |
Details |
Segments Covered |
Vehicle Type, Application Type, Technology Type |
Regions Covered |
North America, Europe, South America, Asia-Pacific, Middle East and Africa |
Key Companies Profiled |
ams-OSRAM AG, Koito Manufacturing Co., Ltd., Hella GmbH & Co. KGaA, Marelli Holdings Co., Ltd, Hyundai Mobis Company Limited, Lumileds Holding B.V., Stanley Electric Co., Ltd., Lumax Industries Limited, Valeo SA, SL Corporation |
Customization Scope |
15% free report customization with purchase |
Pricing and Purchase Options |
Avail the customized purchase options to fulfill your precise research needs |
Delivery Format |
PDF and Excel through email (subject to the license purchased) |
In this report, the global automotive smart lighting market has been segmented into the following categories:
Key Players Landscape and Outlook
Popular automotive smart lighting companies are rolling out cutting-edge lighting solutions, focusing on developing high-performance and energy-efficient solutions. Their stress lies in crafting LED lighting systems, innovative designs, and adaptive lighting technologies to elevate visibility and safety, all while limiting energy usage. In addition, these firms are actively collaborating with automotive producers to integrate and design lighting solutions for forthcoming vehicle models. Leveraging robust partnerships and supply chain relationships, they secure contracts with the foremost automakers, propelling their competitive benefit with the market.
For instance, in October 2023, Denso Corporation and Koito Manufacturing Co., Ltd. announced a collaboration focused at improving the object recognition rate of vehicle image sensors. They intend to accomplish this by synchronizing image sensors, and lamps, with the ultimate objective of improving nighttime driving safety.
Key Players Operating in the Global Automotive Smart Lighting Market are:
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