EV Lighting Market

The EV lighting market is poised to experience remarkable growth compared to other automotive lighting systems, with a projected Compound Annual Growth Rate (CAGR) of 21.7% during the forecast period. According to the EV lighting market analysis report, it is expected to grow from US$ 2,932.8 million in 2023 to US$ 20,902 million by 2030.

Recently, the EV lighting market has gained prominence, especially with the adoption of specific types of lighting in the production of high-end or luxury electric vehicles. Prominent EV manufacturers like BYTON, NIO, and WEY have incorporated all-LED lighting in their SUV category electric vehicles. As the introduction of such electric vehicles continues to rise, the demand for EV lighting is expected to strengthen further.

The sales of electric two-wheelers have seen significant growth in the emerging economies of the Asia Pacific region, contributing to the increased demand for EV lighting. Energy efficiency is a critical aspect in the E2W (Electric Two-Wheeler) category, and LEDs provide excellent value in this regard. Additionally, the use of more appealing and attractive lighting options to target the younger generation is likely to drive the trends in EV lighting.

However, due to financial constraints, low-priced Battery Electric Vehicles (BEVs) in China's A00 small segment, which represent 35% of EV sales, still use halogen headlights instead of LED. Similarly, the popular mass-market Plug-in Hybrid Electric Vehicle (PHEV), Mitsubishi Outlander PHEV, predominantly offers all-LED lighting in its higher-end version.

The market's expansion is hindered by the high cost of electric diodes and fluctuating raw material costs. Despite these challenges, the increasing demand for sophisticated technologies in EVs and the growing popularity of EVs in developing countries present significant growth opportunities for market participants.

Factors Driving the Growth of the Global EV Lighting Market

Modern commercial electric vehicles frequently incorporate advanced inventions like High-Intensity Discharge (HID) lights to enhance visibility on the road and address safety concerns. However, traditional xenon lights have limited penetration in electric commercial trucks, necessitating the use of efficient EV lighting systems.

The international demand for EV lighting is expected to rise with the introduction of high-end commercial EV truck models equipped with cutting-edge lighting systems. For example, Volvo launched the FH line of heavy trucks in 2020, featuring adjustable LED headlights. Moreover, large commercial trucks are now equipped with an 'intelligent lighting system,' showcasing the increasing adoption of advanced headlights in commercial EVs.

The desire for aesthetically pleasing lights in cars and two-wheelers among EV owners will be a significant driver for EV lighting sales. Additionally, the trend towards modern vehicle lighting systems is further propelled by the introduction of high-performance Xenon lights for EVs. Furthermore, the increasing sales of EVs integrated with self-drive technology offer promising opportunities for EV lighting suppliers.

Growth Trends for Different Types of EV Lights

While most electric vehicles available in the market are battery-operated, there is a growing prominence of hybrid EVs in recent times. Historically, halogen lights have been widely used due to their low cost and accessibility, while xenon and LED lights have been considered more expensive options.

Comparatively, an LED headlamp system requires 16 to 18 Watts to produce an output equivalent to or even higher than halogen headlights. In contrast, halogen lights consume 55 watts to generate 350 to 400 Lumens of light, making them less preferred for EVs.

One of the primary reasons for the increasing adoption of LEDs in EVs is their durability and efficiency. Additionally, the prevalence of rear and higher mount stop lights, which are typically equipped with LEDs, has further contributed to the dominance of the LED light segment in the market.

Country-wise Insights

The Demand for EV Lighting in the United States to reach US$ 2 billion by 2030

In the United States, leading electric vehicle manufacturers hold a significant share of 11.8% in the EV lighting market. Globally, Tesla, with a market share of 19% in total electric vehicle sales, has been a trailblazer in using LED lights. Since their initial release, all Tesla EVs have been equipped with LED lighting, including front lights, tail lights, inside lights, and side signal lights.

The increasing integration of digital technology in electric vehicles has led to a growing demand for smart EV lighting systems worldwide. Considering this trend, the United States EV lighting market is expected to maintain its dominant position and reach a valuation of US$ 2,027 by the year 2030.

Europe's EV Lighting Market is to be Led by Germany and Expanded by the United Kingdom

BMW, a prominent European electric vehicle original equipment manufacturer (OEM), has embraced all-LED lamps in almost all of its electric vehicle models. With a 7% share of the global electric vehicle market in previous years, BMW has significantly influenced emerging trends in EV lighting.

Germany remains a key player in the value chain, housing extensive production centers for semiconductors and printed circuit boards (PCBs). As a result, both OEMs and EV manufacturers in Germany are increasingly adopting LED lighting in their models, leading to a strong domestic demand for EV lighting.

During the forecast period, Germany is expected to contribute a significant share of 8.5% to the annual revenue generated by the EV lighting market. By the end of the forecast period in 2033, the German EV lighting market is projected to be valued at US$ 1,776 million. Conversely, the United Kingdom is experiencing higher demand for EV lighting as it seeks to boost its EV sales. Over the next ten years, the sales of EV lighting in the United Kingdom are anticipated to achieve an impressive Compound Annual Growth Rate (CAGR) of 19.8%.

EV Lighting Companies in China and Japan Soon to Compete at a Global Level

In the Asia Pacific region, the EV automobile market is predominantly dominated by China and Japan, with other industrial countries following closely behind. China alone accounts for over 60% of the world's total output of EV lighting, making it a significant market for sales of EV lighting, driven by the increasing sales of electric passenger cars.

Looking ahead, EV lighting companies in China are expected to experience further expansion, with an average growth rate of 22.7% through 2033. Among them, HellaKGaAHueck& Co. stands out as a global leader in EV lighting manufacturing, having expanded its business in anticipation of the growing EV market.

Similarly, EV lighting companies in Japan are poised to follow a similar trend, benefitting from the rising popularity of electric vehicles worldwide. Based on current figures, the total net worth of EV lighting to be manufactured in Japan is projected to reach US$ 272 million by 2030. China and Japan are anticipated to emerge as leading competitors, exporting a higher volume of EV lighting.

EV Lighting Manufacturers in India to Emerge Successful with Rapid Adoption of Electric Two and Three Wheelers

In India, the economy EV category, which prioritizes cost-effectiveness, currently presents a limited market for players in terms of value. However, the recent surge in sales of electric two-wheelers and e-rickshaws is expected to create a lucrative market in terms of volume. As a result, the EV lighting market analysis report forecasts an annual growth rate of 25.4% for the region over the next ten years.

Many businesses in India currently rely on foreign firms for advanced equipment and technology, limiting their success primarily to the local market. Nevertheless, the establishment of new industries to boost EV manufacturing is expected to drive the market for EV lighting in the country.

Many Market Players are Adopting Advanced Technologies for the Production of Better Featured Lights

Frontal illumination constitutes a significant portion of EV lighting suppliers' income, demanding extensive testing and technical expertise. Consequently, the overall EV lighting market is concentrated in a few regions, notably the United States, Germany, and China.

Despite lacking a strong base for EV manufacturing, some regions have gained prominence in the production and supply of EV lighting. For instance, Varroc Lighting Systems, established in India, provides complete EV lighting systems to Tesla for the Model S and X.

The increasing demand for various types of lighting systems exclusively designed for electric vehicles has led to the emergence of several start-ups contributing to the market. However, these small entities may face challenges due to limited infrastructure and technology compared to market leaders. Collaborations between emerging companies and top players in the EV lighting industry can facilitate knowledge transfer and adoption of market best practices, benefiting both parties.

Key Players Profiled in the Report

• Denso Corporation
• HellaKGaAHueck& Co.
• Hyundai Mobis
• Koito Manufacturing Co. Ltd.
• Koninklijke Philips N.V.
• Osram GmbH
• Robert Bosch GmbH
• Stanley Electric Co, Ltd
• Valeo Lighting Systems
• ZKW Group

Key Segments

By Light Type:

• Halogen
• Xenon or HID
• Light Emitting Diode (LED)
• Others

By Vehicle Type:

• Electric Passenger Cars
• Electric Commercial Vehicles
• Electric Two Wheelers (E2W)
• Others

By Sales Channel:

• Original Equipment Manufacturers (OEM)
• Aftermarket
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia and Pacific
• The Middle East and Africa (MEA)