Automotive Lighting Market

The global automotive lighting market is expected to see continued growth in consumption over the next eight years, with a forecasted increase in both volume and value terms. Despite a decrease in consumption in 2022, the market is anticipated to expand with a compound annual growth rate of +1.3% in volume and +3.7% in value from 2022 to 2030. China dominates both consumption and production, with notable growth rates recorded in India, Turkey, and Poland. The United States is the largest importer, while China is the key exporter. Overall, the market is projected to see growth in the near future.

Market Forecast

Driven by increasing demand for automotive lighting worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +1.3% for the period from 2022 to 2030, which is projected to bring the market volume to 5.6B units by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.7% for the period from 2022 to 2030, which is projected to bring the market value to $73.4B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Automotive Lighting

After four years of growth, consumption of automotive lighting decreased by -6.6% to 5.1B units in 2022. Over the period under review, the total consumption indicated a measured increase from 2012 to 2022: its volume increased at an average annual rate of +4.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +44.2% against 2017 indices. Over the period under review, global consumption attained the maximum volume at 5.4B units in 2021, and then contracted in the following year.

The global automotive lighting market size declined to $55B in 2022, reducing by -8.8% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, the total consumption indicated prominent growth from 2012 to 2022: its value increased at an average annual rate of +5.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +41.7% against 2017 indices. Global consumption peaked at $60.4B in 2021, and then dropped in the following year.

Consumption By Country

The country with the largest volume of automotive lighting consumption was China (1.4B units), comprising approx. 29% of total volume. Moreover, automotive lighting consumption in China exceeded the figures recorded by the second-largest consumer, India (540M units), threefold. The United States (537M units) ranked third in terms of total consumption with an 11% share.

In China, automotive lighting consumption expanded at an average annual rate of +3.4% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of consumption growth: India (+7.5% per year) and the United States (+4.2% per year).

In value terms, the largest automotive lighting markets worldwide were China ($7.4B), the United States ($6.9B) and Brazil ($4.3B), together comprising 34% of the global market. Germany, Japan, South Korea, Turkey, Mexico, India, Thailand, Spain, Italy and Poland lagged somewhat behind, together accounting for a further 31%.

Among the main consuming countries, Turkey, with a CAGR of +12.3%, saw the highest rates of growth with regard to market size over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of automotive lighting per capita consumption in 2022 were South Korea (3.1 units per person), Poland (2.5 units per person) and Spain (2.1 units per person).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the key consuming countries, was attained by Poland (with a CAGR of +12.9%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Automotive Lighting

In 2022, production of automotive lighting decreased by -5.6% to 5.4B units for the first time since 2019, thus ending a two-year rising trend. The total output volume increased at an average annual rate of +3.1% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2014 when the production volume increased by 20%. Over the period under review, global production hit record highs at 5.7B units in 2021, and then contracted in the following year.

In value terms, automotive lighting production fell to $58.1B in 2022 estimated in export price. In general, the total production indicated a prominent expansion from 2012 to 2022: its value increased at an average annual rate of +6.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +41.0% against 2017 indices. The most prominent rate of growth was recorded in 2021 when the production volume increased by 22%. As a result, production reached the peak level of $63.8B, and then reduced in the following year.

Production By Country

China (2B units) remains the largest automotive lighting producing country worldwide, accounting for 38% of total volume. Moreover, automotive lighting production in China exceeded the figures recorded by the second-largest producer, India (439M units), fivefold. The third position in this ranking was taken by Mexico (310M units), with a 5.7% share.

From 2012 to 2022, the average annual rate of growth in terms of volume in China stood at +4.1%. In the other countries, the average annual rates were as follows: India (+5.1% per year) and Mexico (+8.7% per year).

Imports

World Imports of Automotive Lighting

After six years of growth, purchases abroad of automotive lighting decreased by -7.3% to 1.5B units in 2022. Overall, total imports indicated a resilient increase from 2012 to 2022: its volume increased at an average annual rate of +5.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +69.2% against 2015 indices. The most prominent rate of growth was recorded in 2021 with an increase of 24% against the previous year. As a result, imports reached the peak of 1.6B units, and then declined in the following year.

In value terms, automotive lighting imports amounted to $22.7B in 2022. Over the period under review, total imports indicated strong growth from 2012 to 2022: its value increased at an average annual rate of +6.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +19.0% against 2020 indices. The pace of growth appeared the most rapid in 2021 with an increase of 18%. Global imports peaked in 2022 and are expected to retain growth in the near future.

Imports By Country

In 2022, the United States (419M units) was the largest importer of automotive lighting, committing 29% of total imports. India (135M units) held a 9.3% share (based on physical terms) of total imports, which put it in second place, followed by Germany (8.6%) and China (4.9%). Brazil (43M units), Spain (41M units), France (35M units), Italy (32M units), Indonesia (30M units) and Japan (25M units) followed a long way behind the leaders.

From 2012 to 2022, average annual rates of growth with regard to automotive lighting imports into the United States stood at +13.1%. At the same time, India (+26.5%), Italy (+12.3%), Spain (+11.1%), Indonesia (+6.6%), China (+3.4%), France (+2.5%) and Brazil (+1.7%) displayed positive paces of growth. Moreover, India emerged as the fastest-growing importer imported in the world, with a CAGR of +26.5% from 2012-2022. Germany experienced a relatively flat trend pattern. By contrast, Japan (-2.9%) illustrated a downward trend over the same period. The United States (+14 p.p.) and India (+7.7 p.p.) significantly strengthened its position in terms of the global imports, while Japan and Germany saw its share reduced by -2.3% and -5.1% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United States ($4.8B), Germany ($3.4B) and China ($1.9B) constituted the countries with the highest levels of imports in 2022, together accounting for 45% of global imports. Spain, France, Italy, Brazil, Japan, India and Indonesia lagged somewhat behind, together comprising a further 14%.

India, with a CAGR of +14.7%, recorded the highest growth rate of the value of imports, in terms of the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average automotive lighting import price stood at $16 per unit in 2022, growing by 9% against the previous year. Over the period under review, the import price recorded a relatively flat trend pattern. The pace of growth appeared the most rapid in 2015 when the average import price increased by 13%. Global import price peaked at $21 per unit in 2017; however, from 2018 to 2022, import prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Germany ($27 per unit), while India ($2 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+8.3%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Automotive Lighting

In 2022, the amount of automotive lighting exported worldwide reduced to 1.8B units, shrinking by -4.3% on 2021 figures. The total export volume increased at an average annual rate of +1.4% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2021 when exports increased by 29%. Over the period under review, the global exports hit record highs at 2.2B units in 2014; however, from 2015 to 2022, the exports remained at a lower figure.

In value terms, automotive lighting exports amounted to $23.6B in 2022. Over the period under review, total exports indicated a prominent increase from 2012 to 2022: its value increased at an average annual rate of +5.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +18.3% against 2020 indices. The most prominent rate of growth was recorded in 2021 with an increase of 18% against the previous year. Over the period under review, the global exports attained the peak figure in 2022 and are expected to retain growth in the near future.

Exports By Country

China represented the key exporter of automotive lighting in the world, with the volume of exports finishing at 671M units, which was near 37% of total exports in 2022. Mexico (172M units) held a 9.6% share (based on physical terms) of total exports, which put it in second place, followed by Taiwan (Chinese) (5%). The Czech Republic (75M units), the United States (69M units), the UK (58M units), South Korea (57M units), Germany (56M units), Japan (51M units), Slovakia (50M units), Morocco (45M units), Thailand (38M units) and Poland (36M units) followed a long way behind the leaders.

Exports from China increased at an average annual rate of +5.4% from 2012 to 2022. At the same time, Morocco (+59.4%), the UK (+17.5%), Mexico (+10.6%), South Korea (+9.0%), Slovakia (+4.4%) and Thailand (+3.0%) displayed positive paces of growth. Moreover, Morocco emerged as the fastest-growing exporter exported in the world, with a CAGR of +59.4% from 2012-2022. Poland, Taiwan (Chinese) and Japan experienced a relatively flat trend pattern. By contrast, the United States (-3.3%), the Czech Republic (-6.4%) and Germany (-11.7%) illustrated a downward trend over the same period. China (+12 p.p.), Mexico (+5.6 p.p.), Morocco (+2.5 p.p.), the UK (+2.5 p.p.) and South Korea (+1.7 p.p.) significantly strengthened its position in terms of the global exports, while the United States, the Czech Republic and Germany saw its share reduced by -2.4%, -5.2% and -9.3% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($3.7B), Germany ($3B) and Mexico ($2.6B) constituted the countries with the highest levels of exports in 2022, with a combined 39% share of global exports. The United States, Taiwan (Chinese), the Czech Republic, Slovakia, South Korea, Japan, Poland, Thailand, the UK and Morocco lagged somewhat behind, together comprising a further 37%.

Among the main exporting countries, Morocco, with a CAGR of +48.2%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

The average automotive lighting export price stood at $13 per unit in 2022, picking up by 4.7% against the previous year. In general, export price indicated a measured expansion from 2012 to 2022: its price increased at an average annual rate of +4.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, automotive lighting export price decreased by -4.5% against 2020 indices. The pace of growth was the most pronounced in 2015 when the average export price increased by 32% against the previous year. Over the period under review, the average export prices attained the maximum at $14 per unit in 2020; however, from 2021 to 2022, the export prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Germany ($54 per unit), while the UK ($5.1 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+19.7%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform