Automotive Ambient Lighting Market Size Analysis by Product Type (Dashboard Lights, Dome Lights, Door Lights, Footwell), Technology (LED, Xenon, Halogen), Vehicle Type (Passenger Vehicles, Commercial Vehicles, Heavy Commercial Vehicles) – Forecast to 2030

Market Overview

The global automotive ambient lighting market revenue was $3,203.8 million in 2021, and it is expected to reach $7,087.5 million by 2030, at a CAGR of around 9.2% during 2021–2030. The APAC market is largely driven by the increasing demand for economy vehicles, which are the largest users of reading lights, roof console lights, and car body lights.

The automotive sector is growing massively in China, South Korea, India, and Japan, which accounted for more than 80% of the total vehicle production in the region and 50% of the worldwide vehicle production in 2021. The APAC market is also expanding as a result of the region's growing economies and the establishment of new production units by global OEMs.

Furthermore, the surge in the sale of ultra-luxurious automobiles, especially those equipped with infotainment and navigation systems, as a result of the increasing disposable income, will emerge as the key driver for the market. Moreover, the wide availability of automotive aftermarket solutions and the ever-expanding market for LED lights in automobiles, as well as the shifting preference toward safety and comfort, will bolster the market value over the forecast period of 2022 to 2030.

Rising Focus on Energy-Efficient Lighting and Rapid Decline in LED Prices

The LED technology held the largest revenue share in 2021, of around 71.9%. The increasing demand for LED lighting solutions has become a prominent market trend, since an LED light consumes 50% less energy to create the same amount of light as compact fluorescent lamps (CFLs) and cold cathode fluorescent lamps (CCFLs). The reduced electricity use can directly reduce yearly CO2 emissions by around 700 million metric tonnes. Furthermore, LEDs do not emit UV rays and are much environment-friendly. Owing to these properties, LEDs have become increasingly feasible for ambient lighting, thus boosting the expansion of the market.

The halogen technology is also expected to show substantial automotive ambient lighting market demand growth in the coming years. This will be due to the low cost and ready access to this technology, which also adds an aesthetic appeal to the vehicle's interior. Furthermore, owing to their standard design, halogen lamps are simpler to use and install, and they also have a distinct feature, namely the "plug-and-play" function.

Due to Want for Luxury and Comfort, Dashboard Ambient Lighting Market To Witness Fastest Growth

Dashboard lights are expected to dominate the industry throughout the forecast period, with the category witnessing the fastest CAGR, of 9.6%, between 2021 and 2030. With the rise in the installation of ambient lighting owing to the increasing emphasis on comfort and luxury, dashboard ambient lighting demand is expected to grow at a high pace, which will further assist the automotive ambient lighting market in booming.

For instance, in North America, the rise in the passenger car penetration and progress toward autonomous vehicles have expanded the adoption of advanced lights in dashboards, such as the augmented reality system, which is available in the VW ID3 with ambient lighting. This will further enhance the entertainment experience and the way the information is presented in the cockpit, as well as ensuring optimal comfort and driver concentration.

The heads-up display category, in the product type segment, will also show substantial growth during the forecast period. The increasing need for displaying vehicle information to drivers without creating a distraction is associated with the market’s growth.

Moreover, several key automotive ambient lighting market players are concentrating on creating improved and advanced display solutions to meet the aforementioned needs and gain new market prospects. For instance, in May 2021, Panasonic Corporation announced that Mitsubishi Outlander had cooperated with the former’s automotive division to integrate a large-screen windshield HUD into the latter’s upcoming SUV. Panasonic's HUD uses lens design and molding techniques originally created for digital cameras, as well as a high-precision mirror.

Continuous Efforts to Optimize Indoor Lighting

Initially, the functional uses of automobile interior illumination were prioritized, such as good orientation and visibility. With the growing need for interior lighting, mood, wellbeing, and character are all being considered. This is credited to the rising demand for personalized illumination that adjusts to the preferences of individuals. It is expected that there would be a higher accumulation of functional and emotional features in vehicles in the future. Almost no part of the car's interior will be overlooked, with the major aim to generate added worth in the lighting segment through emotional, functional, and aesthetic aspects.

For instance, luxury brands, such as Mercedes-Benz, Lexus, and BMW, have bright and appealing ambient lighting options for current automobiles. Ambient lighting is also common among other high-end vehicle brands, such as Bentley and Rolls-Royce. They elevate grandeur by utilizing ambient lighting to produce stunning visual effects. Rolls-Royce, for example, uses fiber-optic strands implanted in the headliner to transform it into the night sky. Similarly, the door speakers of the high-end sound systems in Bentleys are lit to showcase precise features.

Tremendous Growth Potential in North American Market

The North American region is the third-highest revenue generator in the market. The automotive ambient lighting market in North America was valued at $633.9 million in 2021, and it is expected to reach $1,343.4 million by 2030, growing with a CAGR of 8.7% during the forecast period. The government measures to encourage the adoption of connected and autonomous cars are likely to improve the adoption rate of ambient lighting systems in the region.

For instance, in September 2021, the Canadian Vehicle Lighting Regulation adopted new lighting regulations for tail lights with daytime running lights (DRLs), black dashboards that warn the driver to turn on the lights, and side marker lights that automatically switch on in the dark.

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To Increase Market Share, Companies Involved in Several Strategic Developments

The market has the presence of several key players, who, in recent years, have been involved in various strategic developments in order to stay ahead of their competitors. For instance:

• In June 2021, Hyundai Mobis launched its 'lighting grille' technology, which comes in the form of an LED lighting function integrated into a car's front grill, illuminating in its entirety. It can execute a variety of situations, such as autonomous driving mode, EV charging mode, sound beat display, welcome light function, and emergency warning light display.
• In December 2020, Osram Opto Semiconductors introduced the first products in its new Ostune LED family, which includes two white LEDs with a wide color temperature range. For ambient lighting in automobiles, the new LEDs provide light variations ranging from blue cold white to reddish warm white.

Top Manufacturers in Automotive Ambient Lighting Market Are:

• Tenneco Inc.
• Koito Manufacturing Co. Ltd.
• OSRAM GmbH
• General Electric
• Dräxlmaier Group
• Robert Bosch GmbH
• Parker Hannifin Corp.
• Dymax

Market Size Breakdown by Segment

The study offers comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Product Type

• Dashboard Lights
• Dome Lights
• Door Lights
• Footwell

Based on Technology

• LED
• Xenon
• Halogen

Based on Vehicle Type

• Passenger Vehicles
• Commercial Vehicles
• Heavy Commercial Vehicles

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • U.K.
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • South Korea
• Latin America (LATAM)
  •  Mexico
  • Brazil
  • Argentina
  • Columbia
• Middle East and Africa (MEA)
  •  South Africa
  • Saudi Arabia