Study Period | 2017 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 2.02 Billion |
Market Size (2030) | USD 3.77 Billion |
CAGR (2025 - 2030) | 13.28 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
China Automotive LED Lighting Market Analysis
The China Automotive LED Lighting Market size is estimated at 2.02 billion USD in 2025, and is expected to reach 3.77 billion USD by 2030, growing at a CAGR of 13.28% during the forecast period (2025-2030).
The Chinese automotive LED lighting industry is experiencing significant transformation driven by the rapid evolution of electric vehicles and technological innovations. Electric vehicle adoption has reached unprecedented levels, with EVs accounting for 26% of total vehicle sales in 2022, demonstrating China's leadership in sustainable transportation. Major technology companies like Huawei are entering the automotive sector, as evidenced by their 2023 collaboration with established manufacturers Chery Automobile, BAIC Motor, and Anhui Jianghuai Automobile Group to develop AITO-branded vehicles. This convergence of technology and automotive sectors is accelerating the integration of advanced vehicle LED lighting solutions in vehicles.
The commercial vehicle segment is witnessing remarkable growth and innovation in automotive lighting applications. In 2022, China dominated the electric commercial vehicle market, with approximately 52,000 electric medium and heavy-duty trucks and 54,000 electric buses sold, representing 80% and 85% of global sales, respectively. Traditional commercial vehicle sales have maintained strong momentum, increasing by 8.8% year-over-year in the first four months of 2023, reaching approximately 1.29 million units. This growth is driving demand for specialized automotive lighting systems designed for commercial applications.
Domestic automotive manufacturers are increasingly focusing on LED lighting innovations as a key differentiator. In March 2023, domestic vehicle sales showed remarkable growth with over 1.05 million units sold, representing a 20.4% increase from the previous month and a 16.4% year-over-year growth. Manufacturers are introducing sophisticated LED lighting features, as demonstrated by Geely's 2023 launch of the Galaxy L7 electric vehicle featuring advanced thin LED headlamps and DRLs. Additionally, HELLA's expansion of its Black Magic auxiliary headlamp series with 32 new lightbars in 2023 reflects the industry's commitment to lighting innovation.
The market is characterized by increasing technological sophistication and customization in LED lighting solutions. Leading manufacturers are investing in advanced production capabilities, exemplified by Rogers' 2023 announcement to construct a new factory in China for producing power substrates used in electric and hybrid vehicles. This investment trend is complemented by rising domestic brand strength, as evidenced by the first quarter 2023 performance where domestic brand passenger vehicle sales grew by 5.3% year-over-year to exceed 2.68 million units, capturing 52.2% of nationwide passenger car sales. These developments are driving the evolution of more sophisticated automotive smart lighting systems with enhanced functionality and design features.
China Automotive LED Lighting Market Trends
Growing innovation in automotive LED light in the Asia-Pacific region will boost the overall LED market
- The total automobile vehicle production in China was 46.68 million units in 2022, and it is expected to reach 49.49 million units in 2023. The automotive supply industry in China was severely affected by COVID-19. Maritime transportation was negatively impacted, and critical automotive parts were no longer sent in large quantities of containers to Europe, mainly because of a substantial decline in demand brought on by the closure of plants and assembly lines. Thus, the fleets of container carriers and producers on trade routes decreased by 30%. This disruption in automotive parts negatively impacted LED lights used in automobiles.
- SAIC Motor, Geely, Great Wall Motor, Chery, FAW Group, and other companies are among the nation's top automakers. One prominent business, SAIC Motor, is making significant investments in artificial intelligence (AI) technology, smart fuel cells, and intelligent interconnection for use in automobiles. The use of LEDs as a connected technology in vehicles is anticipated to increase due to this progress.
- Due to LED lights' environmental friendliness and innate energy efficiency, they are currently seen as a natural choice in automotive applications. They help create innovative lighting concepts that enhance a vehicle's looks. Companies are working together to develop technological LED products for the automobile industry. For instance, ams OSRAM and TactoTek collaborated to create a demonstrator in September 2022 that featured an avant-garde RGB side-looker LED OSIRE E5515. It can be easily incorporated into the interior of a car to create a more compact design. Such innovations and future investments in automotive LED lights will drive the market during the forecast period.
Growing demand for EVs drives the market growth
- Despite the COVID-19 pandemic and the ensuing supply chain constraints, the electric vehicle (EV) market has grown significantly in China. EV sales are continuing to increase rapidly despite recent obstacles and rising production costs due to rising raw material prices. 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 built in 2022. Furthermore, by 2022, the country had 1,973 battery swapping stations, including 675 built in 2022, adding that China has over 10,000 power battery recycling service outlets. Thus, the rapid growth in charging facilities indicates the booming new energy vehicle (NEV) sector in the country.
- China is set to extend EV tax incentives as sales growth slows. The purchase tax break for EVs and plug-in hybrids costs less than CNY 300,000 (USD 42062.76) (CNY 195,000 (USD 27340.03)). Vehicles over that amount are broadly classed as luxury vehicles in China, making it easier for people to buy more affordable, clean cars. These factors would boost the nation’s EV adoption rate and further its goal of reaching net zero emissions by 2060.
- In May 2023, Rogers announced the construction of a new factory in China to produce its power substrates to serve both its local and international clients better and to meet the rising demand for power substrates used in electric and hybrid electric vehicles (EVs/HEVs) and renewable energy applications. The expansion's first phase is expected to be finished in 2025. Automobile manufacturers are racing to develop and produce new energy vehicles because of the growing demand for EVs, which boosts the demand for automotive LEDs. LED car lights can help EVs save energy and extend their driving range, as they consume less power than halogen bulbs.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- A steady birth rate is complementing the positive growth of homeowners, small and medium-sized businesses, and electric vehicles
- Rising GDP per capita is complementing the growth in households, commercial estate, and the adoption of EVs in China
- Easy finances by automotive companies and government incentives are promoting the sales of EVs
- China's energy conservation initiatives could propel the automotive LED lighting market
- The Chinese LED market will be boosted by the increased government support for local LED chip producers
- The rising per capita income complements the growth of households
- Installation of smart traffic management system (TMS) enabled smooth interaction between vehicles and the TMS
- The National Development and Reform Commission partners with the Ministry of Finance in China to promote LEDs in the country
Segment Analysis: Automotive Utility Lighting
Headlights Segment in Automotive Utility LED Lighting Market
The automotive LED headlight segment continues to dominate the automotive utility LED lighting market in China, commanding approximately 63% market share in 2024. This significant market position is driven by the increasing adoption of LED headlights across passenger vehicles and commercial vehicles due to their superior brightness and energy efficiency characteristics. LED headlights generate significantly higher lumen output compared to traditional halogen headlights, with capabilities ranging from 6,000 to 8,000 lumens versus 700-1,200 lumens for halogen alternatives. Companies are actively investing in technological advancements for automotive LED headlights, with innovations like Macroblock's new driver ICs specifically designed for exterior lighting applications. The Chinese government's support through subsidies to domestic LED manufacturers like Sanan Optoelectronics and HC Semitek has further strengthened the segment's market position.
Reverse Light Segment in Automotive Utility LED Lighting Market
The reverse light segment is emerging as the fastest-growing segment in China's automotive utility LED lighting market, projected to grow at approximately 13% CAGR from 2024 to 2029. This remarkable growth is primarily attributed to the expanding commercial vehicle sector and increasing safety regulations mandating better reverse lighting systems. The segment's growth is further supported by China's thriving logistics industry, which has demonstrated consistent expansion with industrial logistics growing by 3.6% year-over-year. The increasing production of commercial vehicles, with a 14.2% rise in the first five months of 2023, coupled with sales growth of 13.7%, indicates strong demand for reverse lighting systems. The adoption of LED technology in reverse lights is gaining momentum due to their enhanced visibility and longer lifespan compared to traditional lighting solutions.
Remaining Segments in Automotive Utility Lighting
The other segments in the automotive utility LED lighting market, including directional signal lights, daytime running lights (DRL), stop lights, and tail lights, each play crucial roles in vehicle safety and aesthetics. Directional signal lights are essential for indicating vehicle turning intentions, while DRLs enhance vehicle visibility during daytime driving conditions. Stop lights serve as critical safety features for indicating braking actions, and tail lights provide essential visibility during nighttime driving. These segments are experiencing steady growth driven by increasing vehicle production, stringent safety regulations, and the overall transition towards LED technology in automotive lighting. The market is also seeing innovations in these segments, with manufacturers developing new designs and improved functionalities to meet evolving consumer preferences and safety standards.
Segment Analysis: Automotive Vehicle Lighting
Passenger Cars Segment in Automotive Vehicle LED Lighting Market
The passenger cars segment continues to dominate China's automotive LED lighting market, commanding approximately 64% market share in 2024. This dominance is primarily driven by the rapid growth of electric vehicles in China's passenger car segment, with LED lights being a standard feature in most new electric vehicle models. The segment's strong performance is further supported by increasing consumer preference for vehicles with advanced lighting technologies, particularly in premium and luxury car segments. Chinese domestic brands like SAIC Motor, Geely, and BYD are increasingly incorporating sophisticated LED lighting systems in their passenger vehicles, while international manufacturers are also expanding their LED-equipped vehicle offerings in the Chinese market. The growth is additionally bolstered by stringent safety regulations and increasing consumer awareness about the benefits of LED lighting in terms of energy efficiency and visibility.
Commercial Vehicles Segment in Automotive Vehicle LED Lighting Market
The commercial vehicles segment is emerging as the fastest-growing segment in China's automotive LED lighting market, with projections indicating robust growth through 2024-2029. This accelerated growth is primarily driven by the rapid expansion of China's logistics and transportation sector, coupled with increasing adoption of electric commercial vehicles. The segment's growth is further supported by stringent safety regulations requiring advanced lighting systems in commercial vehicles, particularly for long-haul trucks and buses. Fleet operators are increasingly recognizing the long-term cost benefits of commercial vehicle LED lighting systems, including reduced maintenance requirements and lower energy consumption. The segment is also benefiting from government initiatives promoting the electrification of commercial vehicle fleets, where LED lighting systems are standard features.
Remaining Segments in Automotive Vehicle Lighting
The two-wheeler segment represents a significant portion of China's automotive LED lighting market, driven by the country's massive electric two-wheeler industry. This segment encompasses both traditional motorcycles and the rapidly growing electric scooter market, where LED lighting systems are increasingly becoming standard features. The segment's development is influenced by urbanization trends and the growing preference for personal mobility solutions in Chinese cities. Manufacturers are focusing on developing innovative LED lighting solutions specifically designed for two-wheelers, incorporating features like adaptive lighting systems and enhanced visibility options for improved safety.
China Automotive LED Lighting Industry Overview
Top Companies in China Automotive LED Lighting Market
The market features prominent players like OSRAM GmbH, Stanley Electric, KOITO Manufacturing, Valeo, HELLA, and other key manufacturers who are actively shaping the industry landscape through continuous innovation and strategic initiatives. Companies are increasingly focusing on developing advanced automotive LED lighting technologies such as matrix beam systems, adaptive driving beams, and digital light processing solutions to enhance safety and aesthetics. The competitive dynamics are characterized by substantial investments in research and development, particularly in areas like chip-based headlight technologies and energy-efficient lighting solutions. Market leaders are strengthening their positions through strategic partnerships with technology companies and establishing joint ventures to expand production capabilities and market reach. Manufacturing footprint optimization, especially in key industrial zones like Guzhen, and the development of specialized LED packaging facilities demonstrate the industry's commitment to operational excellence and market responsiveness.
Market Consolidation Drives Competitive Intensity Higher
The Chinese automotive lighting market exhibits a fairly consolidated structure, dominated by both global conglomerates and specialized domestic manufacturers who have established strong footholds through technological expertise and manufacturing capabilities. Global players leverage their international experience and advanced research capabilities, while local manufacturers capitalize on their understanding of regional preferences and established distribution networks. The competitive landscape is characterized by a mix of traditional automotive component manufacturers who have expanded into LED lighting and specialized lighting technology companies that focus exclusively on innovative lighting solutions.
The market is witnessing increased consolidation through strategic partnerships and joint ventures, particularly between international technology providers and local manufacturers. These collaborations are primarily aimed at combining technological expertise with local manufacturing capabilities and market access. Companies are establishing research and development centers in China to develop market-specific solutions and strengthen their competitive position. The industry structure is evolving with the entry of new players, particularly from the electric vehicle segment, who are bringing fresh perspectives to automotive lighting design and functionality.
Innovation and Localization Key to Success
Success in the Chinese automotive LED lighting market increasingly depends on companies' ability to balance technological innovation with cost-effective manufacturing capabilities. Market leaders are focusing on developing customized solutions for different vehicle segments while maintaining standardization in production processes to achieve economies of scale. Companies are investing in local research and development facilities to better understand and respond to market needs, while also establishing strong relationships with automotive manufacturers to secure long-term contracts. The ability to adapt to rapidly evolving vehicle design trends and integrate lighting solutions with advanced driver assistance systems is becoming crucial for maintaining market position.
Future success in the market will require companies to navigate regulatory requirements effectively while maintaining innovation momentum. Players need to focus on developing environmentally sustainable products that align with China's green initiatives and electric vehicle push. Building strong local supply chains and distribution networks while maintaining quality standards will be crucial for both established players and new entrants. Companies must also consider the growing influence of electric vehicle manufacturers in shaping lighting design preferences and ensure their products meet the specific requirements of this expanding segment. The ability to offer integrated automotive smart lighting solutions that combine functionality with aesthetic appeal will become increasingly important as consumer preferences evolve.
China Automotive LED Lighting Market Leaders
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HELLA GmbH & Co. KGaA (FORVIA)
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KOITO MANUFACTURING CO., LTD.
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OSRAM GmbH.
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Stanley Electric Co., Ltd.
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Valeo
- *Disclaimer: Major Players sorted in no particular order
China Automotive LED Lighting Market News
- March 2023: HELLA expands Black Magic auxiliary headlamp series with 32 new lightbars. Range expansion includes 14 lightbars with ECE approval for on-road use and 18 light-bars for off-road applications
- January 2023: HELLA brings FlatLight technology into series production as a daytime running light for the first time. The lighting concept is successfully transferred from the rear combination lamp to an application in the front area; series production starts in 2025.
- December 2022: HELLA further expands its leading market position in chip-based headlamp technologies(SSL | HD). World's first series production of an SSL | HD headlamp started at the Lippstadt site
China Automotive LED Lighting Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. KEY INDUSTRY TRENDS
- 4.1 Automotive Production
- 4.2 Population
- 4.3 Per Capita Income
- 4.4 Interest Rate For Auto Loans
- 4.5 Number Of Charging Stations
- 4.6 Number Of Automobile On-road
- 4.7 Total Import Of Leds
- 4.8 # Of Households
- 4.9 Road Networks
- 4.10 Led Penetration
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4.11 Regulatory Framework
- 4.11.1 China
- 4.12 Value Chain & Distribution Channel Analysis
5. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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5.1 Automotive Utility Lighting
- 5.1.1 Daytime Running Lights (DRL)
- 5.1.2 Directional Signal Lights
- 5.1.3 Headlights
- 5.1.4 Reverse Light
- 5.1.5 Stop Light
- 5.1.6 Tail Light
- 5.1.7 Others
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5.2 Automotive Vehicle Lighting
- 5.2.1 2 Wheelers
- 5.2.2 Commercial Vehicles
- 5.2.3 Passenger Cars
6. COMPETITIVE LANDSCAPE
- 6.1 Key Strategic Moves
- 6.2 Market Share Analysis
- 6.3 Company Landscape
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6.4 Company Profiles (includes Global level Overview, Market level overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and analysis of Recent Developments)
- 6.4.1 Changzhou Xingyu Automotive Lighting System Co, Ltd.
- 6.4.2 Hasco Vision Technology Co., Ltd.
- 6.4.3 HELLA GmbH & Co. KGaA (FORVIA)
- 6.4.4 HYUNDAI MOBIS
- 6.4.5 KOITO MANUFACTURING CO., LTD.
- 6.4.6 Nichia Corporation
- 6.4.7 OSRAM GmbH.
- 6.4.8 Stanley Electric Co., Ltd.
- 6.4.9 Sunway Autoparts
- 6.4.10 Valeo
7. KEY STRATEGIC QUESTIONS FOR LED CEOS
8. APPENDIX
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8.1 Global Overview
- 8.1.1 Overview
- 8.1.2 Porter’s Five Forces Framework
- 8.1.3 Global Value Chain Analysis
- 8.1.4 Market Dynamics (DROs)
- 8.2 Sources & References
- 8.3 List of Tables & Figures
- 8.4 Primary Insights
- 8.5 Data Pack
- 8.6 Glossary of Terms
China Automotive LED Lighting Industry Segmentation
Daytime Running Lights (DRL), Directional Signal Lights, Headlights, Reverse Light, Stop Light, Tail Light, Others are covered as segments by Automotive Utility Lighting. 2 Wheelers, Commercial Vehicles, Passenger Cars are covered as segments by Automotive Vehicle Lighting.Automotive Utility Lighting | Daytime Running Lights (DRL) |
Directional Signal Lights | |
Headlights | |
Reverse Light | |
Stop Light | |
Tail Light | |
Others | |
Automotive Vehicle Lighting | 2 Wheelers |
Commercial Vehicles | |
Passenger Cars |
China Automotive LED Lighting Market Research FAQs
How big is the China Automotive LED Lighting Market?
The China Automotive LED Lighting Market size is expected to reach USD 2.02 billion in 2025 and grow at a CAGR of 13.28% to reach USD 3.77 billion by 2030.
What is the current China Automotive LED Lighting Market size?
In 2025, the China Automotive LED Lighting Market size is expected to reach USD 2.02 billion.
Who are the key players in China Automotive LED Lighting Market?
HELLA GmbH & Co. KGaA (FORVIA), KOITO MANUFACTURING CO., LTD., OSRAM GmbH., Stanley Electric Co., Ltd. and Valeo are the major companies operating in the China Automotive LED Lighting Market.
Which segment has the biggest share in the China Automotive LED Lighting Market?
In the China Automotive LED Lighting Market, the Headlights segment accounts for the largest share by automotive utility lighting.
Which is the fastest growing segment in the China Automotive LED Lighting Market?
In 2025, the Reverse Light segment accounts for the fastest growing by automotive utility lighting in the China Automotive LED Lighting Market.
What years does this China Automotive LED Lighting Market cover, and what was the market size in 2025?
In 2025, the China Automotive LED Lighting Market size was estimated at 2.02 billion. The report covers the China Automotive LED Lighting Market historical market size for years: 2017, 2018, 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the China Automotive LED Lighting Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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China Automotive LED Lighting Market Research
Mordor Intelligence provides a comprehensive analysis of the automotive LED lighting industry, with a specialized focus on automotive lighting systems in China. Our extensive research covers a wide range of topics, from auto LED lighting technologies to automotive interior LED lighting solutions and automotive exterior LED lighting applications. The report offers detailed insights into the operations of LED automotive lighting system factory in China, including the manufacturing processes for automotive LED headlights and automotive LED lamps.
Stakeholders gain valuable insights through our detailed analysis of vehicle LED lighting trends. This includes innovations in automotive smart lighting and solutions for automotive LED retrofit. The report PDF, available for download, covers crucial developments in commercial vehicle LED lighting and automotive LED driver technologies. Our research encompasses various segments, including automotive tail lamps, automotive rear combination lamps, and automotive RGB LED driver applications. This provides a comprehensive understanding of both light vehicle lamp technologies and commercial vehicle daytime running lamps. The analysis also extends to emerging technologies such as automotive active ambient lighting and advanced automotive lighting system implementations across the Chinese market.