What is the Potential Demand for Automotive LED Lighting?

As per several research studies, light-emitting diode (LED) automotive lights are up to 85% more energy efficient than incandescent and halogen lights. For vehicles powered by gasoline (petrol) and diesel, they could lead to substantial savings in fuel expenses, while for electric vehicles (EVs), they could add up to 6 miles (9.5 km) of driving range. Thus, with the increasing focus on making automobiles fuel efficient, in the face of the rising greenhouse gas (GHG) emissions from the transport sector, the demand for LED lights could rise manifold.

Therefore, P&S Intelligence expects the automotive LED lighting market value to grow significantly during 2021–2030. The key reason here would be the rising vehicle sales as a result of the economic prosperity in developing and developed countries. The improving financial health is also driving the interest, especially of the youth, in fancy car interiors, such as those made popular by the depictions of the drag racing culture in movies and TV shows. As the sleek design of LED lights and their high illumination make them perfect for setting the ambiance, their usage in vehicle interiors is surging.

Such energy-efficient lighting not only helps in reducing the vehicle’s environmental impact, but also improving their affordability in the long run, by decreasing the consumption of fuel. Around the world, due to the rising demand, the prices of gasoline and diesel are surging; for instance, in Delhi, a liter of petrol currently costs more than INR 100, while diesel costs almost INR 90 a liter. In this situation, replacing the traditional lights of vehicles with LEDs could lead to substantial fuel savings, thereby making vehicles a little lighter on the pocket to run.

Presently, the automotive LED lighting market is dominated by Asia-Pacific (APAC), which accounts for the highest production and sale of vehicles. China, India, Japan, and South Korea are the largest auto markets in the world, with Vietnam and other developing countries also becoming significant. As owning a car is considered a status symbol, youths are retrofitting theirs with innovative and dazzling LED lights, especially those inspired by the Fast and the Furious series. Moreover, with the growing shared mobility culture, even fleet operators are installing such lights in their luxury cars.

Thus, with the rising automotive sales, coupled with the strong focus on energy efficiency and GHG emission reduction, the usage of LED lights in vehicles will increase.