Global Automotive Ambient Lighting Market - 2022-2029
The global automotive ambient lighting market size was worth US$ XX Million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
Ambient lighting refers to LED lighting placed in different parts of a car's interior apart from the instrument panel and dashboard. Ambient lighting creates an advanced and luxurious feel for the vehicle interior. It helps to create a soothing atmosphere for the driver and the passengers. However, ambient lighting is used purely for cosmetic purposes and does not serve any safety function.
The demand for automotive ambient lighting is driven primarily by increasing demand for premium and ultra-luxury vehicles globally. Strong global economic growth and rising disposable incomes are the main driving trends for the automotive ambient lighting market. The high cost of integrating ambient lighting in vehicles is seen as a key challenge for the growth of this market.
Growing demand for the premium segment and ultra-luxury vehicles
In recent years, the strong global economic growth experienced in recent years, particularly in emerging markets has led to wealth creation, rising disposable incomes, and positive socio-economic outcomes. The emergence of a wealthy upper-middle-class has fueled rising demand for premium and ultra-luxury passenger cars. Ambient lighting is a key feature in ultra-luxury vehicles and their increasing production is expected to drive the global automotive ambient lighting market.
High cost of integrating ambient lighting in luxury vehicles
Ambient lighting is a purely cosmetic accessory and does not impart any safety benefits to the vehicle. Integrating ambient lighting with original equipment incurs a high cost for automobile manufacturers. Many luxury carmakers offer ambient lighting as standard, only in the high-end variants of their models. In contrast, it is offered as an extra accessory in the lower-end variants. The high price premium for getting ambient lighting in a luxury vehicle is unattractive to many consumers. The high cost of integrating ambient lighting in luxury vehicles is a key challenge for the growth of this market.
COVID-19 impact analysis
The automotive industry experienced sharp declines in production and sales in 2020 due to the COVID-19 pandemic. Governments globally imposed lockdowns to curb the pandemic's spread and many manufacturers had to suspend operations temporarily. Industrial manufacturing is a highly capital-intensive business and thus, many component manufacturers were facing bankruptcy. Vehicle production resumed in a limited capacity after lifting the lockdowns.
The COVID-19 pandemics' knock-on effects on the global supply chains have caused shortages of essential components for the automotive industry. It has led to long lead times and reduced production rates, even after the complete lifting of pandemic-related restrictions. The pandemic will have a negligible impact on the medium to long-term growth of the automotive ambient lighting market since the demand for luxury vehicles, especially in emerging markets, remains strong and will continue to grow significantly in the coming years.
The automotive ambient lighting market is segmented on technology, application, propulsion, vehicle type and region. The global automotive ambient lighting market is segmented into hatchback, executive sedan, SUV, cabriolet, limousine and sports car based on vehicle type. Executive sedan dominates this segment since it is the largest selling type of luxury vehicle globally, outpacing all other luxury vehicles.
Asia-Pacific is leading the global automotive ambient lighting market. The region accounts for the largest market share, primarily due to major emerging markets such as China, India, Indonesia, Malaysia, Thailand, and Vietnam and developed automotive markets like Japan and South Korea.
China is the largest luxury vehicle market globally, with more than 2.53 million luxury vehicles sold in 2020. The unprecedented economic growth experienced by China over the past couple of decades has transformed the country into the world's second-largest economy. It has led to the emergence of a large upper-middle-class fueling the demand for luxury vehicles.
The global automotive ambient lighting market is highly competitive due to the wide variety of lighting options available from different manufacturers. Some of the major players contributing to the growth in the segment are Osram GmBH, HELLA GmbH & Co. KGaA, Valeo, Tenneco Inc., Koito Manufacturing Co. Ltd., Grupo Antolin, Marelli Holdings Co. Ltd, Stanley Electric Co. Ltd, Koninklijke Philips N.V., LSI Industries Inc. The significant players adopt several growth strategies such as new product launches, acquisitions, joint ventures and collaborations, contributing to global growth in the industry.
Overview: Osram GmBH is a global semiconductors and photonics company operating in over 120 countries. The company was established in 1919 and is headquartered in Munich, Germany.
OSIRE E3323 is a compact LED system designed for automotive ambient lighting applications. It has a color range of red, true green and blue with a current operating range of 10 to 50 mA.
Key Developments: In 2021, Osram GmBH launched TSL2585, a new generation ambient light sensor for automotive applications.
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