According to Precedence Research, the global on-highway vehicle lighting market was valued at USD 31.35 billion in 2024 and predicted to increase from USD 32.96 billion in 2025 to approximately USD 51.75 billion by 2034, expanding at a CAGR of 5.14%.
The on-highway vehicle lighting market is growing rapidly, driven by rising demand for energy-efficient solutions, government safety regulations, and increased adoption of passenger and commercial vehicles. Urbanization and stricter global safety standards are accelerating the need for advanced lighting technologies.
LED technology advancements are a key growth driver, as governments emphasize energy efficiency and high-visibility features. Manufacturers are innovating LED systems to enhance safety and reduce environmental impact.
On-Highway Vehicle Lighting Market Key Takeaways
- Asia Pacific led the on-highway vehicle lighting market in 2024, accounting for the largest share at 54%.
- Europe is anticipated to experience the fastest market growth in the coming years.
- North America is expected to register a notable CAGR over the forecast period.
- The LED segment dominated the market by product category in 2024.
- The LASER segment is projected to grow at the highest CAGR among product types during the forecast period.
- In terms of vehicle type, the passenger car segment was the market leader in 2024.
- The heavy trucks segment is forecasted to grow rapidly in the coming years.
- Among applications, the headlight segment held the largest market share in 2024.
- The interior lights segment is expected to post the fastest CAGR in the upcoming years.
On-Highway Vehicle Lighting Market Regional Outlook
According to Precedence Research, the global on-highway vehicle lighting market was valued at USD 31.35 billion in 2024 and is projected to grow from USD 32.96 billion in 2025 to around USD 51.75 billion by 2034, at a CAGR of 5.14%.
Asia Pacific led the on-highway vehicle lighting market with market share of 54% in 2024, driven by rapid urbanization, demand for energy-efficient lighting, strict regulations, and rising interest in ambient light systems.
China leads the regional market with its strong automotive industry, supported by government initiatives and rapid urbanization. In June 2025, China will host the 13th International Forum of Automotive Lighting (IFAL), aiming to become a key platform for academic and industry exchange in automotive lighting.
Europe is set to be the fastest-growing on-highway vehicle lighting market, driven by rising electric vehicle adoption and strict EU safety and emissions regulations, boosting demand for energy-efficient lighting.
Germany leads the region with its strong automotive industry, top manufacturers, and innovation in LED, OLED, and adaptive lighting systems, supported by rigorous safety standards. The UK is also poised for strong growth, fueled by high EV adoption, innovation in lighting systems, and regulatory pressure driving demand for energy-efficient LED solutions.
In North America, the market is expected to grow notably, supported by a robust automotive sector, rising EV sales, and government-backed initiatives, while U.S. leads the region due to its large manufacturing base and strong focus on LED and OLED lighting for energy efficiency, contributing to market expansion.
What is Asia Pacific On-Highway Vehicle Lighting Market Size?
The Asia Pacific on-highway vehicle lighting market was valued at USD 16.93 billion in 2024 and is expected to reach approximately USD 28.20 billion by 2034, growing at a CAGR of 5.23% from 2025 to 2034.
On-Highway Vehicle Lighting Market Trends
The on-highway vehicle lighting market is experiencing significant growth, driven by several emerging trends that reflect advancements in technology, safety, and environmental consciousness. One of the primary trends is the increasing adoption of energy-efficient lighting solutions, particularly LED lighting systems, which offer longer lifespan, lower energy consumption, and improved visibility. As governments worldwide implement stricter safety and environmental regulations, manufacturers are focusing on developing lighting solutions that not only meet these standards but also reduce carbon footprints. LEDs are becoming the standard due to their energy efficiency, durability, and the growing demand for sustainable automotive technologies.
Another key trend is the rising demand for advanced lighting systems that enhance vehicle safety and driving experience. Adaptive lighting systems, including automatic high beams, cornering lights, and matrix LED lights, are gaining popularity as they improve visibility under various driving conditions. These systems adjust the light distribution based on factors such as vehicle speed, road conditions, and steering angle, enhancing safety for both drivers and pedestrians. Additionally, the integration of smart lighting features, such as ambient lighting, is becoming a sought-after feature in premium vehicles, offering aesthetic appeal along with functional benefits.
The shift toward electric vehicles (EVs) is also influencing the on-highway vehicle lighting market. As more consumers and manufacturers turn to EVs, there is a growing need for energy-efficient and visually striking lighting solutions to complement the design and technology of these vehicles. Furthermore, as EVs often require distinctive design features, lighting solutions such as LED strips, dynamic lights, and laser lighting are being integrated into the design to make these vehicles stand out in the market.
Urbanization is another significant trend influencing the growth of the market, particularly in developing regions like Asia Pacific. As urban populations grow and infrastructure improves, there is an increased demand for vehicles equipped with advanced lighting systems to improve road safety. Additionally, as cities become more congested, there is a greater emphasis on visibility and lighting systems that improve nighttime driving, contributing to the rise in demand for high-performance lighting solutions.
Finally, innovations in lighting technology, including laser lights and OLEDs (Organic Light Emitting Diodes), are pushing the boundaries of what vehicle lighting can offer. Laser headlights, for instance, provide a longer range and more precise lighting, making them ideal for high-end vehicles and future automotive designs. OLEDs, with their flexible and customizable nature, allow for more creative lighting designs and are expected to play a role in the future of automotive lighting.
Product Outlook
In 2024, the LED segment dominated the on-highway vehicle lighting market, driven by the growing demand for energy-efficient, durable, and flexible lighting solutions. LEDs reduce energy consumption, lower carbon emissions, and have a longer lifespan, minimizing maintenance and replacement costs. Their superior lighting quality makes them ideal for various vehicle lighting applications.
In March 2025, Valeo received the “Infrastructure and Vehicle Improvement” award from Sécurité Routière, France’s national road safety authority, for its innovative EvenLED technology used in front and rear signaling systems.
The LASER segment is expected to experience the fastest growth from 2025 to 2034, fueled by increasing demand for luxury vehicles and advanced lighting features like adaptive lighting and automatic high-beams. LASER lighting offers superior energy efficiency, durability, and lighting quality, with rising safety concerns driving innovation in this segment.
Vehicle Type Outlook
In 2024, the passenger car segment led the global on-highway vehicle lighting market, driven by rising demand for vehicles and growing consumer preference for smart lighting features such as ambient lighting, LED headlights, adaptive lighting, and mood lighting.
The heavy trucks segment is expected to expand rapidly in the coming years, fueled by increased demand for logistics and transportation. Enhanced safety regulations are prompting manufacturers to prioritize visibility and safety with features like adaptive lighting and automatic high beams. Additionally, the adoption of electric commercial vehicles, such as electric trucks and buses, is driving innovation in lighting systems.
Application Outlook
In 2024, the headlight segment dominated the global on-highway vehicle lighting market, driven by increased vehicle production and the need for enhanced safety and visibility, particularly in low-light conditions. Strict safety regulations are pushing advancements in headlight technology, with innovations like LED and laser headlights improving performance, efficiency, and flexibility. The growing adoption of LED headlights is a key driver of this segment’s expansion.
The interior lights segment is expected to grow at the fastest rate in the coming years, fueled by rising demand for ambient lighting, customizable color schemes, and premium lighting options. Manufacturers are focusing on creating sophisticated, personalized interior lighting experiences, offering comfort and convenience, especially at night. The rise in electric vehicle adoption and advancements in smart lighting, along with the growing trend of aesthetic design, are expected to drive significant growth in this segment.
Recent Developments
- In June 2024, Melexis, a prominent player in automotive LED drivers for ambient lighting, expanded its LIN RGB family with the MLX81123, offering cost-effective performance and reliability in a compact design.
- In June 2024, LITEON Technology participated in the 2024 Shanghai International Auto Lamp Exhibition (2024 ALE), with the theme “ILLUMINATION CONNECTS THE FUTURE,” focusing on core module solutions for intelligent vehicle lighting.
On-Highway Vehicle Lighting Market Companies
- Marelli Automotive Lighting
- KOITO MANUFACTURING CO., LTD.
- Koninklijke Philips N.V.
- Valeo
- Spyder Auto
- Maxxima
- Zizala Lichtsysteme GmbH (LG Electronics)
- TYC Genera
- Optronics International LLC
- Stanley Electric
