Lighting for Automotive 2022

A market expected to reach $42B in 2027

With the integration of light-emitting diode (LED) technology, lighting has evolved from a basic, functional feature to a distinctive feature with high-value potential in automotive.
Indeed, LED technology has given manufacturers the opportunity for strong differentiation via lighting design and additional functionalities. This is particularly true for both exterior and interior lighting, where the integration of solid-state lighting (SSL) technologies offers more design flexibility, increased efficacy, and intelligent functionalities. From the rear to the front, lighting has evolved from a purely functional application with no real added value to more intelligent applications, offering personalization, communication, and driver assistance. While the main applications continue their evolution with more complex technologies embedded, new applications are emerging, especially around the car, such as logo and grille illumination and also near-field projections. These new applications will be used for personalization and communication. In this context, the automotive lighting market totaled $31.5B in 2021 and is expected to reach $42.2B in 2027 at a compound annual growth rate (CAGR) for 2021-2027 of 4.9%. The share of SSL technologies represented 93% of automotive lighting value in 2021 and is likely to reach more than 99% in 2027.

 A market dominated by five main players

The automotive lighting market is dominated by five big players, representing 66% of the market: Koito, Marelli, Valeo, Hella (now Forvia), and Stanley These players address different markets: Marelli and Hella are mostly technology-oriented and address the high-end market, while Koito, Valeo, and Stanley mainly address the middle-end market. There were significant mergers and acquisitions recently in the industry: Faurecia acquiring Hella and Plastic Omnium acquiring AMLS Osram, showing that lighting is not limited to the front and rear but is now integrated into other parts of the vehicle. With lighting becoming more horizontal, new parts such as the grille or the logo are now illuminated. Lighting is evolving from a basic functional application in the past to include personalization, communication, and ADAS functionalities now.

The pixelization of front lighting

Digitalization of front lighting is progressing rapidly with the use of matrix LED headlamps to provide adaptive driving beam (ADB) functionality. At first, these types of headlamps were only implemented in luxury cars, but now these headlamps can be found in the B and C car segments. It is estimated that about 5 million cars had ADB systems in 2021, and about 30 million cars are forecast to have ADB systems in 2027. This growth is rapid, and the NHTSA in the United States has recently published a rule to permit the use of previously forbidden ADB systems. LED technology has given the manufacturer the possibility to increase the front and rear lighting functionalities. Interior lighting has also benefited from this technology, increasing the well-being and personalization possibilities for the driver and passengers.

3M, Abarth, Acura, Alfa Romeo, AMG, Apple, Aston Martin, Audi, Autoliv, Automotive Lighting, Avago, Avis, Basf, Bentley, BMW, Bosch, Brightek Optoelectronic, Bugatti, Buick, BYD, Cadillac, Chevrolet, Chrysler, Cisco, Citizen Electronic, Citroen, Clean Technology Leader, CML Innovative Technologies, CnLight, Continental, Covestro, Cree, Dacia, Daihatsu, Daimler, Datsun, Delphi, Denso, Depo Auto Parts, Dodge, Dominant, Dupont, Edison, EFI Lighting, Elmos Semiconductor, Everlight, FCA, Ferrari, Fiat, Ford, Fraunhofer, Freescale, Fujitsu, Geely, General Motors, GMC, Grupo Antolin, Hamamatsu, Harman, Hella, Hokuyo, Holden, Honda, Hyundai, Ibeo, IBM, Ichikoh, Infineon, Infiniti, Inova Semiconductor, Itswell, Jaguar, Jeep, Kandi, Kia, Kodenshi, Koito, Konica Minolta, Lada, Lamborghini, Lancia, Land Rover, LeddarTech, Lextar, Lexus, LG Innotek, Lincoln, Lumileds, Lumimicro, Luxpia, Magna, Magneti Marelli, Maserati, Mazda, McLaren, Mercedes-Benz, Merck, Mini, Mitsubishi, Morpho, Nichia, Nissan, Odelo, Olsa, Opel, Osram, Peugeot, Pioneer, Porsche, PSA, Quanergy, RAM, Renault, Rohm, Rolls Royce, Samsung; San’an, Sandia National Laboratory, Schweizer, Scion, Seat, Seoul Semiconductor, Shenzhen Refond, ShinEtsu, Sick, Skoda, SL Corporation, Smart, Stanley, STMicroelectronic, Subaru, Suzuki, Ta Yih, Tata, Tesla, Texas Instrument, Toyoda Gosei, Toyota, Troller, TRW, TYC, Uber, Valeo, Varroc, Vauxhall, Velodyne LIDAR, Visteon, Volkswagen, Volvo, Xingyu, ZKW, and more.

Glossaries

Definitions

Table of contents

Report objectives

Scope of the report

Report methodology

About the authors

Companies cited in this report

What we got right, What we got wrong

Yole Group of Companies related reports

Executive summary

Context

• 2020 automotive landscape
• 2021 vehicles production
• Inside/Outside forces that will have a durable effect on the automotive industry
• Impact of megatrends on automotive lighting
• Adoption of ADB headlamps

Market forecasts

• 2021 revenue – Breakdown by application
• Automotive lighting market drivers
• Market revenue forecast
• 2021 vs. 2027 Comparison – Breakdown by application and technology
• 2021-2027 total headlamp market forecast
• Global penetration rates by technology
• 2021-2027 LED headlamp market forecast – Split by technology type
• Automotive lighting market revenue – Long term forecast

Market trends

• Electrification – 2025 CO2 emission targets for OEMs
• The evolution of light vehicle sales by level of autonomy
• Levels of autonomy
• Evolution of functionalities towards full autonomy
• Lighting as a strategic element for ADAS and automated driving

Market shares and supply chain

• 2021 automotive lighting market – Split by Tier-1
• 2021 supplier ranking per region
• 2021 automotive lighting market – Focus on interior lighting
• Critical issues in a complex opto-electronic value chain
• Supply chain in Japan, Europe and US
• Activity of lighting Tier-1 in ADAS
• Recent mergers & acquisition (M&A) and future trends

Technology trends

• Interior lighting
  • Introduction to ambient lighting
  • Interior lighting evolution – Technology drivers
  • Development of LED technology in car interiors
  • Modern ambient lighting – Evolution of the RGB LED control platform
  • Personalization of interior lighting
  • The convergence of lighting and display

Technology trends

• Body lighting
  • Overview of body lighting applications
  • Grille illumination
  • Logo illumination
  • Near-field projections – A variety of use cases
  • Near-field projection – Micro Lens Arrays (MLA)
  • Automated driving mode
• Rear Lighting
  • Evolution of rear lighting
  • From technology to aesthetics
  • Recent developments with LEDs
  • LEDs to mimic OLEDs: Surface LEDs
  • The added value of OLED technology
  • Lighting and communication
  • Towards extended lighting and advanced communication
• Front Lighting
  • Front lighting systems evolution
  • Adaptive driving beam (ADB) – From vertical segments to pixel lighting
  • Adaptive driving beam (ADB) – The road to high definition lighting
  • Classification of ADB headlamps
  • Evolution of ADB functionalities
  • LED headlamps and associated technologies
  • Possible evolution of headlamp architecture
  • Evolution of ADB headlamps – Positioning of Tier-1s (non exhaustive)
  • ADB in the US
  • High resolution headlamp – Road projections regulation
  • Classification of high resolution technologies
  • High resolution headlamp with DMD
  • High resolution headlamp with LCD
  • High resolution headlamp with laser scanner
  • High resolution headlamp with mini / micro LEDs
  • Comparison of lighting technologies for road projection
  • Micro Lens Arrays (MLA) – Micro projection array concept
  • Sensing devices for automated driving
  • Positioning of LiDAR in headlamps
  • Possible synergies between LiDAR and lighting for ADAS vehicles
  • Existing partnerships for sensor integration in headlamps
  • Why LiDAR could be implemented into headlamps?
• Light Sources
  • LED
  • Laser
  • OLED
  • Silicone optic technology
  • Lighting requirement overview for a smart signature

Reverse Costing® – Structure, Process and Cost analyses

• Teardown of the DLP 5531-Q 1 from TI
• Cost breakdown of headlamps

Outlook

About Yole Développement

Key features

• Market data and forecasts for 2018-2027 in units, US$ by application
• Automotive lighting main trends and market drivers for body, interior, rear, and front lighting applications
• Competitive landscape with player market shares, supply chain analysis, and market dynamics
• Technology descriptions and comparisons, main trends, and focus on front lighting systems

Product objectives

• Analyze the automotive lighting market and applications' current status and future trends
• Review the automotive lighting industry's structure and future trends
• Discuss the main technologies used for automotive lighting and associated roadmaps
• Examine the main lighting systems used for automotive applications and associated roadmaps
• Provide market insights for 2018-2027 for automotive lighting applications

Available on our Yole Group All-Inclusive Automotive Package