On-Highway Vehicle Lighting Market Forecasts to 2028 – Global Analysis By Product (Halogen, LED, HID, LASER, Incandescent and Other Products), Application (Exterior Lights, Internal Lights, Headlight and Other Applications), Vehicle Type and By Geography
According to Stratistics MRC, the Global On-Highway Vehicle Lighting Market is accounted for $28.84 billion in 2022 and is expected to reach $43.04 billion by 2028 growing at a CAGR of 6.9% during the forecast period. On-highway vehicle lighting refers to the lighting used in passenger and commercial vehicles. All vehicles manufactured to be run on tar roads are termed as on-highway vehicles. It excludes off-road vehicles. Different forms of lighting are installed in all vehicles. It improves the aesthetic appearance of the vehicle interior. It provides visibility, memorable design, improved security and enhanced performance. This lighting helps the drivers to see the objects clearly at night. Vehicle Lighting helps to decrease road accidents particularly during night time. A strong emphasis is being put on the vehicle headlight’s performance as research continues to expose safety concerns.
According to SYLVANIA Automotive Lighting Survey, more than two thirds of drivers increasingly concerned about driving at night. 83% of drivers agree that headlights are definitely connected to increased vehicle safety, and 63% admit changing out their headlights is a very important precautionary measure.
Market Dynamics:
Driver:
Growing road accidents
Rapid increase in night driving owing to long work hours are anticipated to terrible accidents. To prevent such scenarios, On-highway vehicle lighting is used. Ambient lighting is used to improve the visual appearance of the vehicle. Furthermore, changing climate in numerous countries generates smog, which limits the visibility while driving, thereby leading to major accidents. To curb such accidents from occurring, vehicle lighting is made compulsory which is propelling the market growth.
Restraint:
Stringent regulations to ensure optimum road illumination
Due to the raising accidents, the government made the regulations stricter. The vehicle lighting system should contain proper luminarie aesthetics, high lamp efficiency and should render good colour. Every vehicle should have proper application of modern lighting techniques for the reduction of fatal and non fatal accidents and illegal actions. All these aspects are hindering the growth of the market.
Opportunity:
Advanced technology
The surge in the adoption of the latest technologies in automotive lighting has raised the penetration of LED lighting in the automotive industry. It benefits the light’s compact size and ability to illuminate a significant stretch of the road. Emerging economies are growing investments for latest expertise in lighting technology. The growing use of cutting-edge automotive lighting technologies, advancements in laser and LED technologies are fuelling the market growth.
Threat:
Huge costs
The price rates of the vehicle lighting systems are high as they are manufactured to function for a very long period. HID lights are also designed to last much longer than halogen headlights. The technological advancements are made to provide better visibility and illumination. The interior and exterior ambient lights are added for appearance. All these additional features are making manufacturers to raise the price rates and therefore hindering the growth of the market.
Covid-19 Impact
The COVID-19 pandemic has negatively impacted the demand for on-highway vehicle lighting. The overall automotive production volumes have witnessed a significant decline globally due to the decreased production volumes. The market faced issues in raw material supplies and production delays due to looming delays in international export and import shipments. However, the post pandemic regained strength by the growing demand for cars from the middle-class population.
The Light-Emitting Diode (LED) segment is expected to be the largest during the forecast period
The Light-Emitting Diode (LED) segment is estimated to have a lucrative growth, due to its cool daylight colour and instant brightness. LED lamps improve the visibility and reduce the light glare ratio compared to the adaptive high beam lights. They can be used in Center High-mounted Stop Lamps (CHMSL) and Daytime Running Lights (DRLs). It can flank the headlight in long vertical lines and can be used as integrated turn-signal indicators which are driving the market growth.
The LASER segment is expected to have the highest CAGR during the forecast period
The LASER segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the growing demand for luxury vehicles across the emerging and developed economies. A LASER produces powerful bright light by stimulating gas with a laser beam. Incorporating LASER technology into vehicle headlamps benefits its compact size and ability to illuminate a significant stretch of the road compared to other light sources.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period owing to higher vehicle production. Substantial investments in the automotive sector are owing to several benefits in the country such as low-cost labor and cheaper raw materials. The growing investments in lighting technology and evolving automotive industry in emerging economies are fuelling the market growth in this region.
Region with highest CAGR:
Europe is projected to have the highest CAGR over the forecast period, owing to higher rate of adoption of technology. This region is also having huge automobile production. Audi, BMW, Ford, Mercedes-Benz, Porsche, and Volkswagen are among the region’s leading automobile manufacturers. This region is having higher demand for passenger vehicles. The market growth is largely expanding due to increased mining and building activities.
Key players in the market
Some of the key players profiled in the On-Highway Vehicle Lighting Market include Hyundai Mobis Co Ltd, Johnson Electric Holdings Limited, Koninklijke Philips N.V., De Amertek Corp Inc, LG Display Co Ltd, Optronics International LLC, HELLA GmbH & Co KGaA, Koito Manufacturing, Ltd., Magneti Marelli S.p.A., Spyder Auto, Maxxima, TYC Genera, Neolite ZKW Lightings Pvt Ltd, Zizala Lichtsysteme GmbH (LG Electronics), Valeo S.A., ZKW Group, SG Automotive, Continental AG, Ichikoh Industries Ltd, Robert Bosch GMBH
Key Developments:
In October 2022, Bosch launched cost-effective motion sensor BMI323. The BMI323’s combination of simplicity with an excellent price-performance ratio will open up new applications for IMUs that combines precise acceleration and angular rate (gyroscopic) measurement with intelligent integrated features that are triggered by motion.
In September 2021, SG Automotive Group announced that it intends to acquire the advanced technologies of Chery S18 (Ruiqi M1) and S18D (Ruiqi X1) models held by Tianjin Meiya New Energy Automobile Co., Ltd. in an effort to develop and produce pure electric sedans and SUVs. The deal between the two parties is worth 132 million yuan ($20.409 million).
Products Covered:
• Halogen
• Light-Emitting Diode (LED)
• High Intensity Discharge (HID)
• LASER
• Incandescent
• Other Products
Applications Covered:
• Exterior Lights
• Internal Lights
• Headlight
• Other Applications
Vehicle Types Covered:
• Passenger Cars
• Buses
• Motorcycle
• Light Trucks
• Medium Trucks
• Heavy Trucks
• Other Vehicle Types
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
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
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
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