On-highway Vehicle Lighting Industry Overview
The global on-highway vehicle lighting market size is projected to reach USD 41.3 billion by 2030, according to a new report by Grand View Research, Inc. It is anticipated to register a CAGR of 4.9% from 2022 to 2030. The surge in the adoption of the latest technologies in automotive lighting and rising penetration of LED lighting in the automotive industry are expected to drive the demand for on-highway vehicle lighting in the coming years. Automotive lighting has continuously evolved over the years as manufacturers seek innovative ways to improve performance, enhance aesthetics and strengthen safety. Headlamps are particularly anticipated to witness developments in line with advancements in laser and LED technologies.
Rapid increase in night driving owing to long work hours is anticipated to propel the demand for on-highway vehicle lighting. Ambient lighting is used to improve the visual appearance of the vehicle. Furthermore, changing climate in numerous countries owing to global warming generates smog, which limits the visibility while driving, thereby leading to major accidents. External vehicle lighting is used in order to curb such accidents from occurring. This, in turn, will positively influence the industry growth.
Asia Pacific captured around 50% of the on-highway vehicle lighting demand in 2021 and is estimated to register the highest CAGR of 5.2% over the forecast period. The growing investments in lighting technology and evolving automotive industry in emerging economies such as China and India are expected to drive the growth of the LED and LASER markets. The Make In India campaign is expected to draw substantial investments in the automotive sector owing to several benefits in the country such as low-cost labor and cheaper raw materials.
On-highway Vehicle Lighting Market Segmentation
Grand View Research has segmented the global on-highway vehicle lighting market based on the product, application, vehicle type, and region:
Based on the Product, the market is segmented into Halogen, HID, LED, Incandescent, and LASER.
- The LED segment dominated the market and captured around 40% of the on-highway vehicle lighting demand in 2021. The segment is projected to register a CAGR exceeding 4% over the forecasted period owing to the growing demand for LEDs for passenger cars, especially in countries such as Germany, China, India, and the U.K. LED lamps can deliver cool daylight color and instant brightness, thereby improving visibility and reducing the light glare ratio compared to the adaptive high beam lights.
- The LASER segment is anticipated to record the highest CAGR of over 6.8% over 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.
Based on the Application, the market is segmented into Headlight, Exterior Lights, and Interior Lights.
- The headlight application segment captured over 60% of the on-highway vehicle lighting market share in 2021 and is projected to retain its dominance in the forthcoming years. Headlights form an essential part of an automotive lighting They comprise front headlamps, DRLs and side lamps, and fog lamps.
- The interior lights segment is projected to record the highest CAGR of around 5.3% over the forecast period due to the increasing use of LEDs in internal lights. The declining prices of LEDs and increasing awareness about energy efficiency have attracted more consumers toward ambient lighting.
Based on the Vehicle Type, the market is segmented into Motorcycle, Passenger Cars, Buses, Light Trucks (Class 1-3), Medium Trucks (Class 4-6), and Heavy Trucks (Class 7 8).
- Passenger cars occupied the majority share of over 70% of total vehicle production in 2020. In Europe, according to ACEA, vehicles per capita were recorded at 569 vehicles per 1,000 inhabitants in 2019. Besides, emerging economies such as China and India are expected to further escalate the market in the future.
- The heavy trucks segment is projected to expand at the second-highest CAGR around 4.8% from 2022 to 2030. The segment growth can be attributed to the growing demand for heavy trucks across the transportation and logistics sectors. According to OICA, global heavy truck production witnessed a rapid increase of over 5% in 2020, reaching 4.4 million units.
Key Companies Market Share Insights
Organic growth remains the key strategy for the overall industry, with a focus on mergers and acquisitions to expand presence and product offerings. For instance, in February 2020, KOITO MANUFACTURING CO., LTD. announced the acquisition of the shares of Cepton Technologies, Inc., a manufacturer of LiDAR for autonomous driving vehicles and advanced driver assistance systems. The acquisition is likely to allow the company accelerate the commercialization of high-performance LiDAR.
Market players are also focusing on product launches aimed to expand product offerings and to meet consumer demands. For instance, in November 2020, Optronics International LLC announced the launch of eight LED utility and work lights. The LED lamps are available in different sizes and shapes and come in retail packages and bulk. Some prominent players in the on-highway vehicle lighting market include:
- KOITO MANUFACTURING CO., LTD.
- Koninklijke Philips N.V.
- Marelli Automotive Lighting
- Valeo
- Zizala Lichtsysteme GmbH (LG Electronics)
- TYC Genera
- Spyder Auto
- Maxxima
- Optronics International LLC
Order a free sample PDF of the On-highway Vehicle Lighting Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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