Asia Pacific Automotive LED Lighting Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Asia Pacific Automotive LED Lighting Market Analysis

The Asia Pacific Automotive LED Lighting Market size is estimated at 4.32 billion USD in 2025, and is expected to reach 7.51 billion USD by 2030, growing at a CAGR of 11.68% during the forecast period (2025-2030).

The Asia Pacific automotive LED lighting industry is undergoing a significant transformation driven by technological advancements and changing consumer preferences. The integration of smart lighting technologies has become increasingly sophisticated, with manufacturers developing innovative solutions that combine safety with aesthetic appeal. This evolution is particularly evident in the electric vehicle segment, where in South Korea alone, there were 1.59 million green vehicles on the road in 2022, mostly comprising electric, hybrid, and hydrogen fuel cell vehicles. The trend toward advanced lighting systems is further exemplified by developments such as Hyundai Mobis's creation of the HD Lighting System in May 2023, which projects clear LED light onto the road ahead and displays real-time driving data.

Safety considerations and regulatory compliance continue to shape the industry landscape, with automotive lighting playing a crucial role in accident prevention and vehicle visibility. The implementation of advanced lighting technologies has contributed to improved road safety across the region. Manufacturers are increasingly focusing on developing adaptive lighting systems that enhance visibility while meeting stringent safety standards. This emphasis on safety has led to innovations such as the communicative headlamp technology, demonstrated by various manufacturers at Auto Shanghai 2023, which can project warning signs and safety information directly onto the road surface.

The manufacturing landscape is evolving with increased localization of production and strategic partnerships between global and regional players. The industry has witnessed significant investments in manufacturing capabilities, particularly in emerging markets. By 2025, Indonesia aims to have 2.5 million electric vehicles on the road, of which 2 million will be motorbikes, creating substantial opportunities for automotive exterior LED lighting manufacturers. This manufacturing shift is accompanied by the development of specialized production facilities and the adoption of advanced manufacturing technologies to meet the growing demand for sophisticated lighting solutions.

Strategic collaborations and technological innovations are reshaping the competitive landscape of the automotive LED lighting market. Companies are forming partnerships to develop next-generation lighting solutions and expand their market presence. For instance, in March 2023, BYD launched its breakthrough new energy passenger car in Uzbekistan, featuring innovative LED crystal headlights and daytime running lights incorporating triple-seven beams. These collaborations are driving the development of more efficient, durable, and aesthetically appealing lighting solutions while also addressing the growing demand for energy-efficient automotive lighting components in the region.

Asia Pacific Automotive LED Lighting Market Trends

Increasing EV incentives to sell more electric vehicles to drive the growth of the LED market

• The total automobile vehicle production in Asia-Pacific was 104.29 million units in 2022, and it was expected to reach 109.65 million units in 2023. The COVID-19 pandemic had a significant effect on the Asia-Pacific automotive market. For instance, compared to March 2019, automotive and commercial vehicle sales in New Zealand were down by 37%. On March 23, 2020, automakers like Honda and Indus Motor stopped producing in Pakistan. The remainder of the Asia-Pacific nations experienced a similar situation. As a result, during the COVID-19 pandemic, the overall demand for LEDs in the automobile industry decreased.
• TATA Motors, Mahindra & Mahindra, SAIC Motor, Geely, Great Wall Motor, Chery, Toyota, and others are major automotive manufacturers in the region. All these companies are increasing their focus on the production of EVs. In Asia-Pacific, automotive innovations are growing rapidly, with China alone expected to account for around 65% of global EV sales in 2022. Due to their efficiency, LEDs are projected to be used more in EVs. For example, when LEDs are fitted on an EV, the decrease in battery current consumption can enhance range by as much as six miles on a single charge.
• Electric vehicles (EVs), automobiles with electric motors instead of internal combustion engines, are compatible with LED car lighting. Due to advantages for the environment, lower running costs, and technological advancements, EVs are growing in the region. Since LED car lights can last up to 10,000 hours, they can reduce environmental impact. The demand for and growth of LEDs will increase in the anticipated term due to the numerous advantages of LED lights in the automobile industry.

Rapid growth of battery swapping station, battery recycling service outlets, and EV subsidies are driving the LED market

• China, the region's largest automobile market, is also the region's largest market for high-performance EVs, followed by Japan. The Asia-Pacific region's emission regulations and subsidies for hybrid and electric vehicles aided it in capturing a sizable share of the overall electric and hybrid vehicle market. China had around 1.6 million EV charging stations and 5.21 million charging points at the end of 2022, including over 2.59 million that were built in 2022. China has been promoting its EV industry for more than a decade with generous incentives to consumers and subsidies to automakers. For instance, buyers received discounts of around CNY 60,000 at one point for purchasing EVs, but those ended in 2022.
• As of 2022, there were 28,546 charging stations in Japan. The number of imported electric vehicles sold in Japan during FY 2022 rose 65% from a year earlier to a record 16,464 units. There were 3.61 million passenger cars newly sold in Japan, and about 77,000 were EVs during FY 2022. By March 2023, there were 6586 public charging stations (PCS) operational in India. Furthermore, the government is promoting the installation of EV charging stations by providing capital subsidies, including FAME-II, PLI SCHEME, Battery Switching Policy, and Tax Reduction on EVs. In April 2019, the FAME II plan was introduced with an INR 10,000 crore (USD 1.2 billion) budget to support 500,000 e-three-wheelers, 7,000 e-buses, 55,000 e-passenger vehicles, and a million e-two-wheelers. The purpose was to encourage electric vehicle adoption in India. The plan was supposed to end in 2022. Thus, the above instances lead to the development and production of new power stations due to the growing demand for EVs across developing nations, which boosts the demand for automotive LEDs.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

• Increase in construction and sales of residential houses to drive the growth of the LED market
• Increasing investment in commercial buildings and adoption of EVs to increase the growth of the LED market
• Increasing car loans, growing market for luxury cars, and EV adoption drive the growth of the market
• Rising SUV demand, increasing population, and EV adoption are driving the growth of the LED market
• Government initiatives to promote energy-efficient LED lights in the region to increase LED light sales
• The market is driven by increasing population, increasing per capita income, and government subsidy to promote the use of LED lights
• The market is driven by growing highway network connectivity and projects to replace traditional bulbs with LED lights
• LED light upgrade project, government offering subsidies, and tax benefits to raise LED localization and reduction of GHG emission to drive the growth of LED lighting market

Segment Analysis: Automotive Utility Lighting

Headlights Segment in Asia Pacific Automotive LED Lighting Market

Headlights represent the dominant segment in the Asia Pacific automotive LED lighting market, accounting for approximately 53% of the market value in 2024. The segment's leadership position is driven by the increasing adoption of advanced automotive LED headlight technologies across vehicle categories, particularly in China and Japan. Major automotive manufacturers in the region are incorporating innovative LED headlight solutions, such as Hyundai Mobis's HD Lighting System, which uses microLED pixels to project clear LED light and display real-time driving data. The segment's growth is further supported by stringent safety regulations requiring improved visibility and the rising production of premium vehicles equipped with advanced lighting systems. Additionally, the expansion of electric vehicle production in countries like China, Japan, and South Korea is creating new opportunities for LED headlight integration, as these vehicles typically feature sophisticated lighting technologies.

Headlights Segment Growth in Asia Pacific Automotive LED Lighting Market

The headlights segment is demonstrating remarkable growth potential, driven by continuous technological advancements and increasing safety requirements. The segment is experiencing strong momentum due to innovations like adaptive driving beam systems and matrix LED technologies. Manufacturers are focusing on developing more energy-efficient and compact automotive LED headlight solutions, particularly for electric vehicles where energy optimization is crucial. The integration of smart lighting features, such as automatic adjustment capabilities and connected vehicle technologies, is further accelerating segment growth. Additionally, the rising consumer preference for vehicles with advanced safety features and the growing adoption of premium lighting solutions in mid-segment vehicles are contributing to the segment's expansion across the Asia Pacific region.

Remaining Segments in Automotive Utility Lighting

The other segments in the automotive utility lighting market, including directional signal lights, daytime running lights (DRL), stop lights, reverse lights, and tail lights, each serve specific functional and safety purposes. Directional signal lights are experiencing growth due to the integration of dynamic signaling features, while DRLs are becoming standard equipment across vehicle categories. Stop lights and tail lights are evolving with new LED technologies that offer enhanced visibility and aesthetic appeal. Reverse lights, though smaller in market share, are seeing innovations in terms of brightness and energy efficiency. These segments are collectively benefiting from the overall trend toward LED adoption in automotive lighting systems, with manufacturers focusing on developing integrated lighting solutions that combine multiple functions while maintaining high performance and energy efficiency.

Segment Analysis: Automotive Vehicle Lighting

Passenger Cars Segment in Asia Pacific Automotive LED Lighting Market

The passenger cars segment dominates the Asia Pacific automotive LED lighting market, commanding approximately 48% of the market share in 2024. This significant market position is primarily driven by the rapid adoption of LED adaptive lighting in passenger vehicles across the region. China leads the regional market with over 23.6 million passenger automobiles sold, while countries like India are experiencing growing SUV demand that further boosts LED implementation. The segment's growth is also supported by increasing electric vehicle (EV) penetration, with markets like Thailand recording the largest EV sales volume in Southeast Asia, followed by Singapore and Indonesia. Government support through subsidies, ranging from USD 2,000 to USD 4,350 in countries like Thailand, along with tariff and sales tax discounts for eligible EVs, has been instrumental in driving adoption. Additionally, technological innovations in passenger vehicles are rising in the region, with manufacturers like BYD introducing cutting-edge EV and hybrid technologies featuring sophisticated LED lighting systems.

Commercial Vehicles Segment in Asia Pacific Automotive LED Lighting Market

The commercial vehicles segment is emerging as the fastest-growing segment in the Asia Pacific automotive LED lighting market, with a projected growth rate of approximately 16% from 2024 to 2029. This remarkable growth is driven by significant expansion in the manufacturing and logistics sectors, particularly in Vietnam, Thailand, and Malaysia. The segment's growth is further accelerated by the increasing adoption of electric commercial vehicles, with fleet operators in Asia rapidly embracing EVs due to cost savings, emissions reductions, and enhanced performance benefits. Major industry participants are actively collaborating and innovating in the region's commercial vehicle market, with companies like Tata Motors introducing new commercial vehicle lines in Malaysia. The formation of new commercial vehicle alliances between major manufacturers like Isuzu Motors Limited, Hino Motors, Ltd, and Toyota Motor Corporation is also contributing to segment growth. Additionally, UK-based electric vehicle startup Helixx's entry into Southeast Asian markets with its modular platform-based approach is expected to further drive LED adoption in commercial vehicles.

Remaining Segments in Automotive Vehicle Lighting

The two-wheeler segment represents a significant portion of the Asia Pacific automotive LED lighting market, particularly in countries with high two-wheeler penetration rates like Vietnam, India, and China. The segment is experiencing substantial transformation with the increasing adoption of electric two-wheelers, supported by successful fundraising initiatives for E2W start-ups and government incentives. The segment's growth is further enhanced by technological advancements in two-wheeler lighting systems, with manufacturers focusing on developing innovative LED solutions specifically designed for motorcycles and scooters. Local governments across the region are providing various incentives to encourage scooter manufacturers to switch to electric motors, which is driving the adoption of advanced LED lighting systems in this segment.

Asia Pacific Automotive LED Lighting Market Geography Segment Analysis

Asia Pacific Automotive LED Lighting Market in China

China dominates the Asia Pacific automotive LED lighting landscape, commanding approximately 46% of the market share in 2024, while demonstrating remarkable growth potential with an expected growth rate of nearly 13% from 2024 to 2029. The country's automotive lighting sector is driven by its robust electric vehicle ecosystem, with the government actively promoting EV adoption through various incentives and policies. Major Chinese automakers like SAIC Motor, Geely, and Great Wall Motor are increasingly incorporating advanced automotive LED headlight technologies in their vehicles, particularly in their expanding electric vehicle lineups. The country's focus on technological advancement is evident in the continuous development of smart lighting solutions, including matrix beam LED headlamps and adaptive driving beam systems. Chinese manufacturers are also investing heavily in research and development of innovative lighting solutions, particularly for autonomous vehicles and advanced driver assistance systems. The integration of LED lighting with artificial intelligence and sensor technologies is becoming more prevalent, especially in premium vehicle segments.

Asia Pacific Automotive LED Lighting Market in Japan

Japan's automotive LED lighting industry showcases the country's technological prowess and commitment to innovation. The nation's automotive sector benefits from the presence of major lighting manufacturers who continuously develop cutting-edge LED technologies. Japanese automakers, including Toyota, Mitsubishi, and Nissan, are increasingly adopting advanced LED lighting systems in their vehicle lineups, particularly focusing on energy-efficient solutions for their hybrid and electric vehicles. The country's strong emphasis on vehicle safety has led to the development of sophisticated adaptive LED lighting systems that enhance visibility and reduce accident risks. Japanese manufacturers are also pioneering new applications of LED technology, such as communication-enabled lighting systems that can interact with other vehicles and infrastructure. The integration of LED lighting with autonomous driving technologies is becoming more prevalent, with Japanese companies developing smart lighting solutions that support various autonomous driving features. The country's robust automotive supply chain and advanced manufacturing capabilities continue to support the growth of the LED lighting sector.

Asia Pacific Automotive LED Lighting Market in India

India's automotive LED lighting market is experiencing significant transformation driven by the country's rapidly evolving automotive sector. The nation's push towards electric mobility has created new opportunities for LED lighting manufacturers, with many domestic and international players expanding their production capabilities. Leading automakers like TATA Motors and Mahindra & Mahindra are increasingly incorporating advanced LED lighting systems in their vehicle lineups, particularly in their SUV segments. The country's growing focus on vehicle safety and energy efficiency has led to increased adoption of LED lighting solutions across various vehicle categories. Indian manufacturers are developing cost-effective LED lighting solutions that meet international quality standards while catering to local market requirements. The government's initiatives to promote domestic manufacturing through programs like 'Make in India' have encouraged several LED lighting manufacturers to establish production facilities in the country. The aftermarket segment for LED lighting is also witnessing substantial growth, driven by increasing consumer preference for vehicle customization and upgrades.

Asia Pacific Automotive LED Lighting Market in South Korea

South Korea's automotive LED lighting market reflects the country's strong technological capabilities and innovative approach to automotive components. The nation's automotive sector benefits from the presence of major players like Hyundai Mobis, who are developing advanced LED lighting solutions, including communicative headlamp systems and innovative lighting grille technology. Korean manufacturers are particularly focused on developing high-resolution LED matrix systems and adaptive driving beam technologies. The country's strong electronics manufacturing base provides a solid foundation for LED lighting innovation, with companies investing in research and development of next-generation lighting solutions. South Korean automakers are increasingly incorporating sophisticated LED lighting systems in their electric and autonomous vehicle programs, driving demand for advanced lighting solutions. The integration of LED lighting with vehicle-to-everything (V2X) communication systems is becoming more prevalent, showcasing the country's leadership in automotive technology innovation.

Asia Pacific Automotive LED Lighting Market in Other Countries

The automotive LED lighting market in other Asia Pacific countries, including Thailand, Indonesia, Vietnam, Malaysia, and Singapore, demonstrates diverse growth patterns influenced by their respective automotive manufacturing capabilities and market demands. These markets are characterized by increasing adoption of LED lighting technologies, particularly in the commercial vehicle segment. Countries like Thailand and Indonesia are emerging as significant manufacturing hubs for automotive components, including LED lighting systems. The growing presence of global automotive manufacturers in these regions is driving the adoption of advanced lighting technologies. Local manufacturers are developing market-specific LED lighting solutions that balance cost-effectiveness with performance requirements. The aftermarket segment in these countries is particularly dynamic, with increasing consumer preference for LED lighting upgrades. The expansion of electric vehicle production in these markets is creating new opportunities for LED lighting manufacturers, while government regulations promoting vehicle safety and energy efficiency are further driving market growth.