Automotive Interior Ambient Lighting Market Size, Share & Trends Analysis Report By Application (Dashboard, Footwell, Doors), By Vehicle Type (Conventional Cars, Green Cars), And Segment Forecasts, 2018 - 2025

Report Overview

The global automotive interior ambient lighting market size to be valued at USD 4.59 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 7.2% during the forecast period. Market growth can be attributed to rising sales of luxury vehicles, improving advancements in the automotive industry, and increasing demand for LEDs in cars.

Ambient lighting increases the attractiveness of a vehicle and helps create a stylish interior at affordable prices. Other benefits offered by automotive ambient lighting include increased driver safety, comfort, and convenience. It also offers enhanced visual comfort for a driver to identify the dashboard and instrument panel while driving at night. It also illuminates the passenger compartment to help individuals read at night.

Concerns related to the safety of drivers and passengers against accidents while driving at night is one of the key factors fueling the market growth. Furthermore, interior ambient lighting helps build a mood-, behavior-, and brand-oriented atmosphere in an otherwise dark car interior.

Increasing awareness about energy-efficient lighting systems, inclination toward comfort and safety features, increasing sales of ultra-luxurious vehicles, and advancements in automotive interior lighting technology are further driving demand for ambient lighting in the automotive industry. Increasing sales of high-end and middle-segment cars are also expected to boost the market.

High costs of OE integration will restrain the market growth during the forecast period. Other factors such as uncertain prices of raw materials and component availability will further increase associated costs and hence make it more applicable to luxury cars. The requirement for additional space and increased power consumption are two challenges manufacturers face.

The adoption of LED technology offers benefits such as compactness, longer lifespan, and reduced power consumption. At the same time, LED technology has some drawbacks such as low light intensity (individual LED) and emittance of light at narrow angles. These factors push manufacturers to arrange LEDs in a series to provide an ambient lighting system as per requirement. This leads to an increase in costs and higher space occupancy.

Automotive Interior Ambient Lighting Market Trends

The application of automotive ambient lighting is found majorly in luxury cars, as it positively influences the internal ambiance of the vehicle, space perception, and comfort of the customers. With changing lifestyles and income levels, the demand for advanced technologies based on luxury cars has increased, leading to market growth. The rise in adoption of LED lighting in the C&D segment cars owing to the huge shift in preferences towards customization with distinct features, has driven the demand for automotive interior ambient lighting.

Additionally, the growing awareness and trend to use energy-efficient lighting systems have also led to greater market prominence. This also facilitated the adoption of green cars by individuals in the economy, which is a key driver for boosting the industry growth. It also provides benefits in terms of reduced traffic accident rates, and safety for the driver and passengers, especially at night. This is another vital factor which is expected to fuel the growth of the market during the forecast period.

The adoption of advanced technologies in the automobile sector within developing regions such as India, China, and Japan provides growth opportunities for the market. The increased investments by the customers and R&D innovation is creating ample opportunities for this segment to grow during the forecast period.

The growth of automotive interior ambient lighting is impacted by certain factors which include the cost of the LED lights embedded in the cars, and the use of advanced technologies. In addition, the high cost of integration of the interior lighting system is also anticipated to cause hindrance to the market growth during the forecast period.

Higher occupancy for the space, and increased consumption of power or energy create a challenge for the manufacturers in the market. Also, increased prices of the raw materials and lack of availability of essential components or parts are other significant challenges reported by the manufacturing firms in this industry.

Application Insights

The dashboard segment is expected to exhibit the highest CAGR over the forecast period in the automotive interior lighting market, owing to an increase in sales of ultra-luxury cars. Automotive interior ambient lighting helps illuminate and improve recognition of controls and switches on a dashboard and instrument panel. This eliminates the need for manually feeding controls during night drives. It also helps improve alertness and reduces stress, dizziness, and strain on the eyes.

The use of such lighting on the footwell improves overall ambiance, enhances the visibility of objects on a footwell, and illuminates brakes during night drives and emergency situations. The footwell application type segment in the automotive ambient lighting market is expected to expand at a CAGR of 6.8% over the forecast period.

Ambient lighting in automobiles highlights door latches and thus enables passengers to exit quickly. It also provides sufficient lighting for stationary and moving vehicles for identifying an open door or a passenger alighting from a car. Other application areas of ambient lighting in vehicles include overhead consoles, glove boxes, headliners, and rear seats or trunks.

Vehicle Type Insights

Based on vehicle type, the automotive interior ambient lighting market is segmented into conventional cars and green cars. Conventional cars include passenger cars or road vehicles such as vans, luxury cars, SUVs, and sedans, which are manufactured for transporting passengers and are designed to seat more than five individuals. The conventional cars segment is expected to expand at a CAGR of nearly 7.0% over the forecast period and accounted for the majority revenue share in 2016.

Green cars encompass Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). BEVs use chemical energy harnessed from rechargeable battery packs and have no internal energy combustion engines. They are easy to maintain and eco-friendly. PHEVs combine a gasoline or diesel engine with an electric motor and a large rechargeable battery. They use electricity for operation, cover longer distances, and help save fuel costs. Demand for and sales of green cars are increasing due to the above-mentioned benefits and the introduction of stringent laws and standards for protecting the environment against greenhouse gasses. The green cars segment is expected to exhibit a higher CAGR than conventional cars over the forecast period.

Regional Insights

North America held the largest market share in 2016 and is expected to witness moderate growth over the forecast period. This growth can be attributed to increasing luxury vehicle sales in the region, as well as the incorporation of ambient lighting in all mid-segment and premium vehicles. Countries in the region are focusing more on introducing safety features in vehicles. For instance, Mexico passed a vehicle safety standard known as Mexican Official–Safety Devices in New Vehicles–Safety Specifications in January 2016, and section 4 of these specifications mandates lighting incorporation in vehicle interiors. The presence of major luxury vehicle manufacturers such as BMW, Audi, Mercedes Benz, and Volkswagen Group will fuel industry growth in the region.

A significant increase in vehicle production and sale in China and India will drive the market in Asia Pacific. The region will witness the highest CAGR during the forecast period, driven by the increasing presence of prominent luxury vehicle manufacturers as well as demand for such vehicles. In South America, automotive manufacturers in Brazil are leading exporters of automobiles. Although the region lacks vehicle safety systems and features, growing emphasis on vehicle safety standards is expected to witness boosted market growth over the forecast period.

Key Companies & Market Share Insights

Prominent players operating in the market include OSRAM GmBH, Hella KGaA Hueck & Co., SCHOTT AG, DRÄXLMAIER Group, and Grupo Antolin. Players primarily focus on providing upgraded and advanced solutions and have increased their research and development spending to develop innovative solutions for gaining a strategic advantage over competitors.

Market participants also rely on mergers, acquisitions, expansions, and partnerships as their key strategies to gain traction in the market. For instance, OSRAM GmbH launched a new range of wireless ambient lighting kits known as LEDambient. These LEDambient kits are rechargeable, using a USB cable. Every element in these kits highlights different contours of a car’s interior and door edges.

Recent Developments

• In December 2021, AMS OSRAM, maker of the multi sensor application, launched the Oslon Black Flat X family of LEDs which is amongst the brightest LEDs in the market. This is designed for automotive front lights where the components are made from the frame of lead offering a high level of brightness. This breakthrough is expected to boost the efficiency of technologies used for ambient lighting in automobiles 

• In December 2021, Toyoda Gosei Co., Ltd. designed full color LED lamps, which determine the infusion of the vehicle interior with different color lights. This has improved the aesthetic appearance of the vehicle

• In June 2021, Scottish LED lighting technology developer, Design LED has been acquired by Faurecia, which is a huge growth step in LED lighting. The company has taken a significant position in HMI (human machine interface) innovation and automotive lighting and is anticipated to lead development in the automotive interior ambiance lighting, providing an excellent customer experience

Some of the key players operating in this market include:

• OSRAM GmBH

• Hella KGaA Hueck & Co.

• SCHOTT AG,

• DRÄXLMAIER Group

• Philips Lighting

• Grupo Antolin

• Texas Instruments Incorporated 

Automotive Interior Ambient Lighting Market Report Scope

Global Automotive Interior Ambient Lighting Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global automotive interior ambient lighting market report based on application, vehicle type, and region.

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Dashboard

  • Footwell

  • Doors

  • Others

• Vehicle Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Conventional cars

  • Green cars

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Mexico

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • India

    • China

    • Japan

  • South America

    • Brazil