Europe Automotive Lighting Market

Europe Automotive Lighting Market Size (2022 - 2027):

The Europe Automotive Lighting Market is projected to grow from USD 18.14 billion in 2021 to reach a valuation of USD 22.63 billion by 2027 and is predicted to register a CAGR of 3.08% during the forecast period 2022-2027.

Increases in premium and SUV sales, and advancements in lighting technology are some of the major factors driving the growth of the automotive lighting market in Europe. Automakers are working hard to improve vehicle and passenger safety in night driving situations, as around 30% of all vehicle accidents happen at night. Car manufacturers are developing new lighting technologies and are focusing on the main lighting components, such as headlights. 

Lighting, which is an integral part of vehicles, plays a vital role in safety while driving. Car manufacturers offer a variety of lighting options to increase the visibility of the vehicle in adverse weather conditions like heavy rain, snowfall, storm, etc. 

Market Drivers:

Factors such as the growing focus on road safety, the implementation of strict government regulations, and the increase in automotive production are driving growth in the European automotive lighting market. The increasing demand for cars in developing countries should offer a remarkable growth opportunity for the players operating in this market.

Market Restraints:

The high cost of LEDs is expected to slow down the expansion of the automotive lighting market.

EUROPE AUTOMOTIVE LIGHTING MARKET REPORT COVERAGE:

Market Segmentation:

Europe Automotive Lighting Market - By Vehicle Type:

• Passenger Cars      
• Light Commercial Vehicles
• Heavy Commercial Vehicles

Passenger cars represent the largest market share, followed by light commercial vehicles and heavy commercial vehicles. The segment growth is mainly due to the growing demand for passenger cars among a large population, the increase in per capita income in emerging countries, and the expansion of global car manufacturers in new emerging markets.

Europe Automotive Lighting Market - By Technology:

• Halogen   
• LED            
• Xenon

The LED segment holds a prominent share, owing to the adoption of LED bulbs in the front and rear lights. 

Europe Automotive Lighting Market - By Application:

• Headlights              
• Sidelights 
• Taillights  
• Fog Lights
• Rear Lights             
• Interior Lights  

In 2018, the headlight segment dominated the local market and is expected to be dominant throughout the forecast period. The main factor that has stimulated the development in this segment is the higher demand for passenger vehicles and the technological advances in the automotive industries.

Europe Automotive Lighting Market - By End-User:

• OEMs        
• Aftersales

The OEM segment is expected to be dominant throughout the forecast period. Most car manufacturers buy car headlights directly from OEMs and then assemble them at car manufacturers. As a result, OEM represented the largest market share and will continue the same during the forecast period.

Market Regional Analysis:

Europe's automotive lighting market demand has been growing exponentially over the past few years. Growing disposable income in urban areas and rising prominence for electric vehicles are majorly influencing the market shares towards positive in Europe. UK automotive lighting market is leading with the largest shares of the market owing to the rising production rate of the automobile. Stringent rules and regulations by the government due to rising concern over road safety measures are also escalating the market growth rate in the UK. The rapid adoption of advanced technologies and growing demand for luxury cars with the latest technological features are prominently lavishing the market demand.

Germany's automotive lighting market is likely to hit the highest CAGR by the end of 2028. Growing demand for manufacturing driver assistance features with advanced technology is prompting the market growth rate in Germany. Penetration of new EV cars with the latest technological developments in automotive is escalating the market growth rate. Providing opportunities for the new players in Italy and France, the market shares are expected to grow rapidly.

Market Key Players:

1. Royal Philips NV, Ichikoh Industries Ltd.
2. Magneti Marelli SPA
3. General Electric Company
4. Osram Licht AG
5. Valeo SA
6. Stanley Electric Co. Ltd.
7. Zizala Lichtsysteme GMBH
8. Koito Manufacturing Co., Ltd
9. Hella KGaA, and Hueck & Co

Market Key Developments:

• Volkswagen has partnered with Hella to develop the IQ.LIGHT LED headlights. The new Touareg luxury SUV uses the IQ.LIGHT-LED Matrix and 256 LED Matrix. It is also working on technology that projects a few red warning lines onto the road when a car is turning, allowing pedestrians to know where the danger zone is and likely eliminating the problem of accidents.
• In June 2019, Hella proposed an integrated solution for complex lighting systems. The company's two business divisions, Lighting and Electronics, have worked closely to combine their product technologies into a flexible and modular product system. The headlight modules, the electrical control units, and the sensors can be assembled according to the modular principle.
• In April 2019, Hella signed a strategic cooperation agreement with Wuling Automotive Industry, which belongs to the Chinese group Guangxi Automobile. The two partners intended to work together on automotive lighting technologies for the Chinese market, focusing on the development of headlights for the volume segment.
• In January 2019, Hella launched Shapeline lamps, work lights, auxiliary lamps, indicator lights, and accessories. The company equipped an exhibition truck with lighting solutions developed for trucks and trailers.