Global Automotive Ambient Lighting Market Size, Analytical Overview, Growth Factors, Demand, Trends and Forecast to 2025

Global Automotive Ambient Lighting Market Size, Analytical Overview, Growth Factors, Demand, Trends and Forecast to 2025

Automotive Ambient Lighting Market
Automotive Ambient Lighting Market by Electric & Hybrid (BEV, HEV, PHEV), Application (Footwell, Door, Dashboard, Center Console), Passenger Car (C, D, E, and F), Aftermarket (Country and Application (Interior and Exterior)) – Global Forecast to 2025

The Ambient Lighting Market for automotive is estimated to grow at a CAGR of 9.9% from 2020 to 2025. It is projected to reach USD 4.9 billion by 2025 from an estimated USD 3.0 billion in 2020.

The ambient lighting market for automotive is driven by the increasing vehicle production, rising installation rate of ambient lighting, and growing demand for luxury vehicles.

The ambient lighting for automotive has evolved from basic interior lighting (Reading lamp, glove box lighting) to dashboard lighting, doors, footwell, center console, and other applications.  Earlier, ambient lighting was available for luxury and premium cars only. However, constant development of technology and increasing demand from lower vehicle segment users have resulted in increasing installation of ambient lighting in low and mid-segment cars. Thus, the next phase of growth in the market will be seen in low to mid-segment cars in developing countries such as India and China.

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“CENTER console lighting to drive the ambient lighting market for automotive”

By application, the ambient lighting market for automotive is dominated by footwell and doors as these are the most common ambient lighting applications. However, center console is expected to be the fastest growing market during the forecast period. Automotive center console lighting is mostly available in luxury and premium vehicles. However, increasing demand has compelled OEMs to install center console lighting in low-mid segment cars. The increasing inclination toward luxury and comfort has created new opportunities for tier 1 suppliers. 

“Asia oceania set to be the fastest growing market in the near future”

Asia Oceania is considered as a production hub for the automotive industry, particularly for low-mid segment cars. However, in a country like the US, there is a high demand for luxury cars that are equipped with ambient lighting. In addition, the increase in purchasing power of the population has driven the demand for ambient lighting market for automotive.

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North America is estimated to be the second largest consumer of ambient lighting, followed by Europe. The dominance of luxury and premium vehicles in these regions has resulted in a high penetration of ambient lighting. The fast growth of the Asia Oceania ambient lighting market can be attributed to the increased vehicle production and availability of cheap labor and raw materials. The increasing vehicle production leads to a higher vehicle parc and creates market opportunities for Tier 1 players and other supply chain members.

Key Market Players:

The automotive ambient lighting market is dominated by a few globally-established players such as Hella (Germany), OSRAM Licht AG (Germany), Valeo (France), Grupo Antonin(Spain), Federal Mogul (US).

COVID-19 impact on ambient lighting market:

Major ambient lighting providers such as Bosch and OSRAM have announced the suspension of production due to the lowered demand, supply chain bottlenecks, and to protect the safety of their employees in France, Germany, Italy, US, and Spain during the COVID-19 pandemic. As a result, the demand for automotive ambient lighting is expected to decline in 2020. Manufacturers are expected to adjust production to prevent bottlenecks and plan production according to demand from OEMs and their franchised service centers. Major automotive ambient lighting providers lost revenue in Q1 2020. As the resumption of vehicle production plants, associated R&D centers, and vehicle service centers are not expected in the immediate future due to the severity of the pandemic, especially in the US and major European countries. The decline in sales is majorly due to the stagnation of corporate activities affected by the spread of COVID-19, sales of luxury vehicle and declined in the demand from Americas and Europe. Also, automotive ambient lighting providers are facing disruptions in supply chains as countries are in states of lockdowns to prevent the spread of the disease. Thus, the market for automotive ambient lighting is estimated to undergo a declining phase in 2020.

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