The global Two-wheeler Lighting Market is witnessing strong growth as increasing road safety concerns, supportive government regulations, rising two-wheeler ownership, growing disposable incomes, and technological advancements encourage consumers and manufacturers to adopt advanced lighting systems. Demand for LED headlights, daytime running lights, adaptive lighting, connected lighting, and energy-efficient systems is increasing across developed and emerging economies. Manufacturers are focusing on improved visibility, innovative designs, energy efficiency, and advanced safety features to meet changing consumer and regulatory requirements.

According to Fortune Business Insights, the global Two-wheeler Lighting Market was valued at USD 3.98 billion in 2025 and is projected to grow from USD 4.13 billion in 2026 to USD 6.23 billion by 2034, exhibiting a CAGR of 5.27% during 2026–2034.

Two-wheeler Lighting Market Growth Drivers

Government regulations are also encouraging manufacturers to incorporate advanced lighting systems into two-wheelers. The European Union has mandated daytime running lights on new motorcycles sold in the region from 2026, increasing demand for compliant and advanced lighting technologies. Rising disposable incomes are further encouraging consumers to purchase premium two-wheelers equipped with advanced lighting systems.

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Front Lighting Holds a Leading Position

Based on location, the market is segmented into Front, Rear, and Others. The front lighting segment accounts for approximately 54.23% of the market share in 2026, making it the leading location segment. High-quality headlights play an important role in improving visibility and rider safety, particularly during nighttime and low-light conditions.

The rear lighting segment is expected to grow at a considerable CAGR during the forecast period. LED and OLED technologies are enabling manufacturers to develop brighter, durable, energy-efficient, and visually distinctive tail lights. These technologies also provide greater design flexibility, allowing manufacturers to create unique lighting patterns and shapes.

Halogen Lighting Leads the Market

Based on type, the market is segmented into Halogen, LED, and Others. Halogen lighting accounts for approximately 68.76% of the market share in 2026, making it the leading type segment. Its lower initial cost compared with LED and Xenon alternatives makes halogen particularly attractive in price-sensitive markets and entry-level and mid-range two-wheelers.

The LED segment is expected to grow at a rapid CAGR during the forecast period. LEDs provide higher energy efficiency, longer operating life, compact designs, and greater flexibility for innovative lighting configurations. Their ability to support distinctive lighting signatures and advanced designs is encouraging their adoption across premium and electric two-wheelers.

OEM Distribution Channel Leads the Market

Based on distribution channel, the market is segmented into OEM and Aftermarket. The OEM segment accounts for approximately 75.54% of the market share in 2026, making it the leading distribution channel. Increasingly stringent safety regulations are encouraging two-wheeler manufacturers to integrate compliant lighting systems during vehicle production.

Electric Two-wheelers and Advanced Lighting Shape the Market

The integration of advanced driver-assistance systems (ADAS) is also encouraging innovation in lighting design. Adaptive motorcycle headlights can adjust beam patterns according to speed and road conditions, improving visibility in different riding environments. Connected lighting systems, adaptive lighting, cornering lights, and lighting-based safety alerts are also emerging as important areas of innovation.

Expansion of Two-wheeler Ownership Creates New Opportunities

The growth of electric motorcycles and scooters is creating additional opportunities for LED lighting manufacturers. Manufacturers can develop energy-efficient headlamps, tail lights, turn signals, DRLs, adaptive lighting systems, and connected lighting technologies specifically designed for electric two-wheelers.

The aftermarket also provides opportunities for manufacturers because consumers increasingly seek personalized lighting solutions. Custom LED lighting, auxiliary lights, upgraded headlights, and innovative lighting designs are gaining popularity among two-wheeler owners.

Asia-Pacific Leads the Regional Market

Asia-Pacific accounted for approximately 70.96% of the global Two-wheeler Lighting Market in 2025, making it the leading regional market. The region generated approximately USD 2.82 billion in revenue in 2025 and is expected to maintain its dominant position throughout the forecast period. Rising disposable incomes, rapid urbanization, expanding two-wheeler ownership, and increasing demand for affordable personal transportation are supporting market growth.

China, India, Japan, Indonesia, Vietnam, and the Philippines are major contributors to regional demand. The India market is projected to reach USD 1.03 billion in 2026, while the China market is valued at USD 0.81 billion in 2026. The Japan market is projected to reach USD 0.03 billion in 2026. Growing two-wheeler sales and increasing adoption of electric vehicles are creating additional demand for advanced lighting systems.

Europe accounted for approximately 9.19% of the global market in 2025, with a market size of USD 0.37 billion. Stringent vehicle safety standards, increasing adoption of daytime running lights, and growing demand for advanced visibility technologies are supporting regional market development.

North America accounted for approximately 5.28% of the global market in 2025, representing a market size of USD 0.21 billion. The U.S. market is projected to reach USD 0.19 billion in 2026, supported by increasing two-wheeler sales, safety regulations, technological advancements, and growing demand for customized lighting solutions.

Japan is an important market within Asia-Pacific, supported by established two-wheeler manufacturers, advanced automotive technologies, strong safety standards, and increasing interest in energy-efficient and technologically advanced lighting systems.

Competitive Landscape

The Two-wheeler Lighting Market includes major lighting manufacturers focused on product innovation, advanced safety technologies, energy efficiency, design flexibility, and OEM partnerships. Major players include Lumax, FIEM Industries Ltd., Koito Manufacturing Co., Ltd., Varroc, Oracle Lighting, Osram GmbH, Koninklijke Philips N.V., Rizoma Srl, Uno Minda, and NEOLITE ZKW Lightings Pvt. Ltd.

Market participants are focusing on LED technology, adaptive lighting, connected lighting systems, advanced headlights, daytime running lights, energy-efficient lighting solutions, and customized aftermarket products to strengthen their market positions. Companies are also investing in production capacity and expanding partnerships with two-wheeler manufacturers, particularly in high-volume markets across Asia-Pacific.

Market Challenges

Despite positive growth prospects, the market faces challenges related to fluctuations in raw material prices. Lighting component manufacturing depends on materials such as rare earth elements, plastics, and metals, whose prices can be affected by global economic conditions, geopolitical developments, and supply chain disruptions. Rising production costs can pressure manufacturers' profit margins and increase product prices.

The aftermarket also presents challenges due to its fragmented nature, varying product quality, and lack of standardization. Increasing consumer demand for customized lighting solutions requires manufacturers to offer broader product portfolios and flexible designs. Competition between low-cost products and established brands can further create pricing pressure across the market.

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Future Outlook

The Two-wheeler Lighting Market is expected to maintain steady growth through 2034 as road safety requirements, two-wheeler ownership, electric vehicle adoption, and technological advancements continue to increase demand for advanced lighting solutions. Rising adoption of LED systems, adaptive headlights, connected lighting, daytime running lights, and energy-efficient technologies will create new opportunities for manufacturers.

What’s Driving Japan’s Market? Discover the Latest Two-wheeler Lighting Market Insights.