Headlight Market Forecasts to 2028 – Global Analysis By Vehicle Type (Commercial Vehicles, Passenger Cars and Other Vehicle Types), By Vehicle Propulsion (Electric Vehicle, ICE Vehicle and Other Vehicle Propulsions), By Sales Channel, By Technology and By

Headlight Market Forecasts to 2028 – Global Analysis By Vehicle Type (Commercial Vehicles, Passenger Cars and Other Vehicle Types), By Vehicle Propulsion (Electric Vehicle, ICE Vehicle and Other Vehicle Propulsions), By Sales Channel, By Technology and By Geography

According to Stratistics MRC, the Global Headlight Market is accounted for $7.25 billion in 2022 and is expected to reach $11.70 billion by 2028 growing at a CAGR of 8.3% during the forecast period. In order to illuminate the driver, lighting is crucial in automobiles. It enhances the aesthetic appeal of the vehicle's interior and external components while also making them more apparent. Both lighting and signaling devices are part of the lighting system. These lighting fixtures are positioned throughout the vehicle, including the front, back, top, and interiors.

Market Dynamics:

Driver:

Increasing traffic safety and government regulations

The demand for lighting equipment is primarily driven by rising concerns about traffic safety and government lighting regulations. The need for headlights is being fueled by factors such as rising disposable incomes, an enhancement of lifestyles, and increased transportation needs, which are all factors in the rise in vehicle production. Automotive headlights provide better reliability, visibility, and operating efficiency.

Restraint:

High cost of headlights and repair costs

However, intelligent headlights are connected to the car's sensors and can adjust automatically based on the road's conditions. As a result, the cost of car headlights gradually increases. The cost of some automotive components is rising as vehicles become more complicated and technologically sophisticated. For the majority of cars, this simple repair has become more difficult and time-consuming, even though it may still be practical for some models. The headlight market will confront challenges throughout the forecast period as a result of some vehicles' entire headlamp removal requirements, which may require removing the entire bumper.

Opportunity:

Adoption of advanced driver assistance system

In order to account for the road's curvature and improve night vision, an essential component of advanced driver assistance systems is the automotive headlamp, which changes the lighting pattern of the car when driving on a curving road. Furthermore, the intelligent lighting of ADAS is extremely important in bad weather because it improves visibility while driving. The adoption of autonomous and semi-autonomous vehicles, the high demand for safety features, and the growing need for comfort all contribute to the rise of sophisticated driver assistance systems, which in turn directly support the expansion of the headlight market.

Threat:

Expensive and challenging light output for drivers

As laser headlights are so expensive, only premium car manufacturers like BMW include them as standard equipment. These lights require additional cooling since they generate more heat than LED lights. In applications like turn signals and brake lights, laser lights cannot take the place of LED lights. Additionally, projector headlights provide a substantially different light output than reflector headlights, making them challenging for drivers who use them. They take up more space inside a car than reflector headlights do.

Covid-19 Impact:

Due to travel restrictions, the COVID-19 pandemic's spread has had a negative impact on the headlight market and is predicted to have a significant influence on market participants' financial performance. Because of this, contributors to the economy as well as market participants are creating strategic cost-cutting plans. Due to commuter limitations, a lack of workers, and a shortage of raw materials as a result of supply chain disruption, the majority of manufacturing facilities had to shut down during the epidemic. Headlight sales are closely related to global automotive manufacturing and sales movement. If the lockdown in the countries is prolonged, production loss is expected to rise. Compared to automobile production in 2019, the world's automotive output has decreased by 16% in 2020.

The passenger cars segment is expected to be the largest during the forecast period

Because of the population's growing need for automobiles, increasing purchasing power, and the rapid expansion of their production and sales, passenger cars segment is predicted to hold the largest share of the global headlight market during the projection period. The OICA announced that the global sale of passenger automobiles increased by 26% in 2021 when compared to the Q1 and Q2 sales of 2020. However, research by IBEF claims that India sold 27.11 lakh passenger cars in FY21. These developments have increased the demand for adaptable headlights. As a result, there is a higher demand for passenger vehicles with headlights.

The LED segment is expected to have the highest CAGR during the forecast period

According to Automotive LED Product Trend and Regional Market Analysis, the global penetration rate of LED headlights will approach 60% in 2021, with penetration in new energy vehicles (NEV) leading at 90%. As a result, the LED segment is anticipated to have the highest CAGR during the projected period. Additionally, automotive LED lights has expanded substantially over the past decade as demand for luxury vehicles has grown on a global scale. However, the growing human population might increase demand for LED headlights. The market for vehicle LED headlights is expanding due to the need for energy-efficient lighting options. These variables will fuel the headlight market segment's expansion over the forecast period.

Region with largest share:

Growing economies like China and India are anticipated to propel the growth of the headlight market in APAC due to the region's industrialization and urbanization. In terms of installation, China dominates the headlight market, which in turn drives up demand in the region. The largest car manufacturing nation in the world, China, produced 27,809,196 vehicles. The nation is connected to a number of prominent automakers, including SAIC Motor, Dongfeng, FAW, and Chang'an. A few western automakers are focusing on expanding in China as well to provide a wider spectrum of customers.

Region with highest CAGR:

With Koito and Stanley accounting for the major portion of the market, Asia Pacific is expected to have highest CAGR of the global headlight market during the extrapolated period, and Japanese market players are anticipated to dominate the Asian market. Additionally, regional businesses are focusing on developing an efficient lighting solution in order to take control of the industry. As a result, it is anticipated that the country's robust automotive industry and the increased emphasis of western automakers on development in the country will serve as the primary drivers of the automotive headlight market's growth.

Key players in the market

Some of the key players in Headlight market include Continental AG, DE amertek corporation, Hella KGaA Hueck & Co, Hyundai mobis Co.LTD, J.W. Speaker Corporation, Koito Manufacturing Co., Ltd, Magna International Inc., Marelli Holdings Co., Ltd., Osram GmbH, Robert Bosh GMBH, SL America Corporation, Stanley Electric Co., Ltd., Valeo SA, Varroc Group and ZKW Group.

Key Developments:

In April 2023, Continental Continues to Upgrade Charging Infrastructure for Electric Vehicles on Its Test Tracks. Contidrom proving ground increases total charging capacity to more than 2,000 kW. Nine of the world’s ten highest-volume manufacturers of electric vehicles use Continental as their original equipment manufacturer for tires

Vehicle Types Covered:
• Commercial Vehicles
• Passenger Cars
• Other Vehicle Types

Vehicle Propulsions Covered:
• Electric Vehicle
• ICE Vehicle
• Other Vehicle Propulsions

Sales Channels Covered:
• Aftermarket
• OEM

Technologies Covered:
• LED
• Xenon
• Halogen
• Other Technologies

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements