Historically, from 2016 to 2020, the sales of automotive lighting exceeded the sales of USD 20 billion by the end of the aforementioned period.
The sales for automotive lighting are expected to surpass USD 45 billion by registering a positive CAGR of 6% through the forecast period 2021-2031. Increasing demand for LED lights along with halogen lights is propelling the demand for automotive lighting.
As the COVID-19 pandemic took hold, sales of vehicles observed a decline in the initial quarters, attributed to substantial shortfalls in automotive output amid mandatory lockdowns. However, since Q4 2020, restrictions have been lifted. This, in turn, is expected to upsurge the sales of automotive lighting.
Manufacturers of automotive lighting are focusing on improving the efficiency of lights. In addition, these lights consume lesser energy. Due to the factors mentioned above, the demand for automotive lighting has increased over time. As of 2021, the expected valuation for the market is USD 25 billion.
Key takeaways:
- By vehicle type, passenger vehicles are expected to hold 50% of the market share for automotive lighting.
- By light source, halogen and xenon are expected to possess 40% of the market share for automotive lighting.
- China is expected to be the most lucrative market, expected to capture 60% of global market demand
- 2/5th of the global market demand for automotive lighting to be fuelled by the U.S
- India to be an opportunistic market, expected to account for nearly 3 out of 5 sales
“As governments look to promote automotive performance efficiency, attributed to elevated concerns regarding increasing carbon emissions is prompting automotive manufacturers to install efficient lighting systems, widening growth prospects,” opines a senior analyst.