The global automobile function light market is expected to witness a robust growth in 2023, according to a new report by Argyle Report. The report analyzes the key factors driving the market, such as the increasing demand for advanced lighting technologies, the rising adoption of LED and OLED lights, and the growing awareness about road safety and energy efficiency.
Automobile function lights are the lights that perform various functions in a vehicle, such as headlamps, tail lamps, fog lamps, turn signals, brake lights, and interior lights. These lights not only enhance the visibility and aesthetics of the vehicle, but also provide safety and comfort to the drivers and passengers.
The global automobile function light market was valued at USD 25.6 billion in 2022 and is projected to reach USD 32.4 billion by 2026, registering a compound annual growth rate (CAGR) of 6.1% during the forecast period. The market is segmented by type, application, and region.
Key Drivers of the Market
One of the key drivers of the market is the increasing demand for advanced lighting technologies, such as adaptive front lighting systems (AFS), adaptive driving beam (ADB), and matrix beam. These technologies enable the lights to adjust their intensity and direction according to the driving conditions, such as speed, weather, traffic, and road curvature. These technologies also reduce the glare for the oncoming vehicles and pedestrians, thereby improving the road safety and visibility.
Another key driver of the market is the rising adoption of LED and OLED lights, which offer several advantages over the conventional halogen and xenon lights, such as higher brightness, lower power consumption, longer lifespan, and better design flexibility. LED and OLED lights also enable the integration of various functions, such as daytime running lights, turn signals, and ambient lighting, in a single unit, thereby reducing the weight and cost of the vehicle.
A third key driver of the market is the growing awareness about the road safety and energy efficiency, which is supported by the stringent regulations and standards imposed by various governments and organizations, such as the European Union, the United States, and the United Nations. These regulations and standards mandate the use of certain types of lights and functions, such as high beam assist, automatic headlight leveling, and rear fog lamps, in the vehicles, to ensure the safety of the drivers and other road users. These regulations and standards also encourage the use of energy-efficient lights, such as LED and OLED, to reduce the carbon emissions and fuel consumption of the vehicles.
Key Players in the Market
The global automobile function light market is highly competitive and fragmented, with the presence of several players, both global and regional. Some of the key players in the market are Hella, Marelli, Valeo, Osram, Koito, Stanley Electric, Magneti Marelli, ZKW, Varroc, and Lumax. These players are focusing on product innovation, expansion, mergers and acquisitions, and partnerships, to gain a competitive edge and increase their market share.
For instance, in March 2023, Hella announced the launch of its new LED headlamp system, which features a matrix beam technology and a dynamic bend lighting function. The system can automatically adjust the light distribution and intensity according to the driving situation, and also provide a cornering light function, which illuminates the road ahead more effectively. The system is expected to be available for various models of Audi, BMW, and Mercedes-Benz.
In February 2023, Marelli acquired Olsa, an Italian company specialized in the design and production of rear lamps and interior lighting for the automotive industry. The acquisition aimed to strengthen Marelli’s position in the global lighting market, and to expand its product portfolio and customer base. Olsa’s products include LED and OLED rear lamps, ambient lighting, and illuminated logos.
In January 2023, Valeo introduced its new range of smart LED lighting solutions, which combine the functions of headlamps, tail lamps, and interior lighting in a single module. The solutions use a digital micromirror device (DMD) technology, which enables the projection of various images and animations on the road and inside the vehicle, such as navigation instructions, warning signals, and entertainment content. The solutions also use a LiDAR sensor, which detects the distance and speed of the objects around the vehicle, and adjusts the light accordingly.
The global automobile function light market is expected to witness a robust growth in 2023, owing to the increasing demand for advanced lighting technologies, the rising adoption of LED and OLED lights, and the growing awareness about road safety and energy efficiency. The market is also expected to benefit from the emerging trends, such as the development of smart and connected lighting systems, the integration of lighting and communication functions, and the adoption of autonomous and electric vehicles. The market, however, may face some challenges, such as the high cost and complexity of the lighting systems, the lack of standardization and compatibility, and the regulatory and environmental issues.