The market is poised to register a CAGR of over 8% during the forecast period (2020 - 2025).
- Trends such as autonomous vehicles and electric vehicles are evolving vehicle lighting systems. Industry participants are working intensively on various new technology for vehicle lights with a variety of new functionalities and which can be adapted to the continuously changing requirements of future vehicles.
- There have been growing concerns about vehicular safety, around the world. Exterior lighting forms an important part of vehicular safety. Several countries have come up with stringent lighting regulations, which require a specific brightness or temperature of the headlamps. Automobiles in the developed regions have already come up with a higher standard of lighting; but to save costs, they often do not meet the regulations. This will cause the developing markets to grow at a higher rate.
- Vehicle manufacturers are designing, prototyping, and testing the possibilities for external lighting. For example, Volkswagen is working on a technology that projects a pair of red warning lines on the road, when a car is turning around, thereby, letting pedestrians know where the danger zone is and presumably eliminating the problem of backing out of a high-fenced driveway, into the path of a cyclist on the footpath.
- The recent technology such as automatic on/off and high beam assist in the passenger vehicles is more applicable while adopting LED headlights. Also, LEDs are six times more efficient than other incandescent bulbs. They consume less power and provide greater illumination intensity. Now almost all the new passenger vehicles are equipped with an LED lighting system.
- OLEDs are previously being adopted in the luxury vehicles only to give the premium touch to the vehicles, these light does not require any reflectors, which makes it efficient and lightweight. Although the cost of OLEDs is higher as compared to LEDs but it can offer more flexibility than LEDs.
Key Market Trends
Exterior lightening will lead the automotive smart lighting market.
Leading automotive OEMs and lighting system manufacturers are spending of huge amount on research and development of exterior lights for future vehicles. OLEDs are now been used in external panels by carmakers to alert the pedestrians and other vehicles about the driver's move.
HELLA is developing a new automotive headlamp technology Digital Light SSL, which will go into production by 2022. With over 30,000 light points, it provides a wide variety of new safety- and comfort-relevant function, such as optical lane assistants, and projected protection zones for pedestrians and cyclists.
Similarly, it is developing a new lighting system for commercial vehicles in which work light and individual LED can be controlled independently even without their wiring harness. It becomes practical due to a new gateway that communicates with the machine's existing user interface using CAN- or LIN- BUS and transfers command to the work lights.
Asia-Pacific is Anticipated to Lead the Automotive Smart Lighting Market
Exterior lighting norms are different when we move from one region to another, for instance, in the United States low beam of any vehicle can be used for illuminating both lanes, while in Europe the focus is more on illuminating own lane. When it comes to legislation, in the United States there is permitted for the main light functions of low beam, fog light, and high beam, while in the Europe dynamic distribution of light up to digital glare-free high beam is permitted.
The Asia-Pacific is among the leading automobile producer and market in the world in 2019 China sold around 25.78 million vehicles. China, India, and Japan are the major economies in the regional market that are anticipated to grow at a faster rate in the global market.
The local automotive lightning manufacturers are doing a partnership with other market participants to develop next-generation smart lights for their future vehicles. For instance, in January 2020, HELLA BHAP Electronics a joint venture of HELLA and BHAP started production in their new plant in China. The new plant will produce sunroofs, lighting electronics, products related to energy management, and driver assistance.
The automotive smart lighting market is moderately consolidated and majorly dominated by a few players, such as Hella, Osram. The market is highly driven by factors like advanced technology, more use of sensors, growing investment in R&D projects, and growing market of electric and autonomous vehicles. To provide more luxurious experience to the car owner, major automotive smart lighting manufacturers are developing new technology for the future and acquiring small players to expand their market reach. For instance,
- In 2018, OSRAM launched eXchangeable LED Signal, standardized LED light sources for signal light applications. It is the combination of standardized light sources and LED technology.
- In 2019, Minda Industries announced in a statement that they are planning to acquire Delvis Group, a German company engaged in automotive lighting design and engineering.
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Table of Contents
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
- 4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Vehicle Type
- 5.1.1 Passenger Cars
- 5.1.2 Commercial Vehicles
- 5.2 By Application Type
- 5.2.1 Interior Lighting
- 5.2.2 Exterior Lighting
- 5.3 By Technology Type
- 5.3.1 Halogen
- 5.3.2 Xenon
- 5.3.3 LED
- 5.3.4 Other Technologies
- 5.4 By Geography
- 5.4.1 North America
- 188.8.131.52 United States
- 184.108.40.206 Canada
- 220.127.116.11 Rest of North America
- 5.4.2 Europe
- 18.104.22.168 Germany
- 22.214.171.124 United Kingdom
- 126.96.36.199 France
- 188.8.131.52 Rest of Europe
- 5.4.3 Asia-Pacific
- 184.108.40.206 India
- 220.127.116.11 China
- 18.104.22.168 Japan
- 22.214.171.124 South Korea
- 126.96.36.199 Rest of Asia-Pacific
- 5.4.4 Rest of the World
- 188.8.131.52 Brazil
- 184.108.40.206 Mexico
- 220.127.116.11 United Arab Emirates
- 18.104.22.168 Other Countries
6 COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
- 6.2 Company Profiles
- 6.2.1 Koito Manufacturing Co. Ltd
- 6.2.2 Stanley Electric Co. Ltd
- 6.2.3 Valeo Group
- 6.2.4 OsRam Licht AG
- 6.2.5 Magneti Marelli SpA
- 6.2.6 HELLA KGaA Hueck & Co.
- 6.2.7 Hyundai Mobis
- 6.2.8 Mitsuba Corporation
- 6.2.9 Lumax Industries
- 6.2.10 Koninklijke Philips N.V.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS