Off-highway Vehicle Lighting Industry Overview
The global off-highway vehicle lighting market size is projected to reach USD 1.83 billion by 2030, exhibiting a CAGR of 7.5% according to a new report by Grand View Research, Inc. The growing emphasis on public infrastructure development is expected to drive the demand for off-highway vehicles, which bodes well for the industry growth over the forecast period. Moreover, continued advancements in product technologies, coupled with stringent government regulations, are also anticipated to support market growth over the forecast period.
The growing population in Asian countries, such as China and India, is driving the need for better public infrastructure. Governments in these economies are aggressively investing in infrastructure development projects. For instance, in India, the government is expected to invest USD 670.5 billion (INR 50 trillion) to improve the country's public infrastructure. The country’s government has also announced several plans for infrastructure development to be undertaken in the next few years. For example, the "Bharatmala Yojana" includes provisions for improving the road networks throughout the country. The Indonesian government has more than 20 projects lined up for the development of more than 52,000 of its rural villages by building better roads, houses, hospitals, and other necessary infrastructure. These ongoing and proposed investments in infrastructure development projects are expected to drive the demand for off-highway vehicles, which is expected to bode well for the growth of the market.
The off-highway vehicle lighting landscape is evolving continuously as manufacturers offer products based on the latest technologies to ensure enhanced safety, improved performance, and better aesthetics. At present, companies, such as Grote Industries, Truck-Lite, HELLA GmbH Co. KGaA, and ABL Lights Group, are providing off-highway vehicle LED lights for various off-highway vehicle applications such as headlights, indicator lights, side lamps, and taillights. Simultaneously, construction equipment makers are also introducing equipments with advanced work lights to provide adequate illumination and visibility at worksites. For instance, Caterpillar, a manufacturer of heavy construction, mining, and material handling equipment, provides multiple types of work lights, including LED, halogen, high-intensity discharge (HID), and LED floodlights, on its construction equipment. These lights are also provided as an optional fitment for aftermarket installation.
The Asia Pacific regional market contributed to around 34.1% of the off-highway vehicle lighting demand in 2021 and is estimated to register at a CAGR of 6.1% over the forecast period. This growth can be attributed to the increasing adoption of off-highway equipment used in infrastructure development activities in countries such as China, India, Japan, and Taiwan. The market in the Middle East and Africa (MEA) is projected to expand at the highest CAGR over the forecast period. GCC countries, including Saudi Arabia, the UAE, Oman, and Qatar, particularly, have several multi-million-dollar infrastructure projects lined up, which is anticipated to increase the demand for construction equipment in the forthcoming years.
Off-highway Vehicle Lighting Market Segmentation
Grand View Research has segmented the global off-highway vehicle lighting market based on the product, application, end use, vehicle type, and region:
Based on the Product, the market is segmented into LED, Halogen, HID, and Incandescent.
- The halogen segment accounted for the largest revenue share of around 57.9% in 2021. This can be attributed to the low initial cost linked with these lights as compared to LEDs. However, vehicle manufacturers have started shifting to LED lights due to their declining prices over the years.
- The LED segment is projected to register a CAGR of around 11.3% from 2022 to 2030. The segment is majorly driven by the increasing demand for energy-efficient lighting sources used in off-highway vehicles. A significant decline in the production cost of LEDs is expected to increase the market share of these products.
Based on the Application, the market is segmented into Head Lamp, Tail Lamp, Work Light, and Others.
- The headlamp segment accounted for the largest share of over 61.3% of the market in 2021. This can be ascribed to the introduction of advanced technologies, such as adaptive front lighting, night vision, and laser lights. The work lights segment is also projected to witness considerable growth in the future.
- The others segment is estimated to register a CAGR exceeding 10.1% from 2022 to 2030. The segment includes light bars, interior lighting, and other various lights. The growth can be attributed to the growing importance of aesthetic interiors in off-highway vehicles, such as concrete mixers and dump and excavators.
Based on the End-use, the market is segmented into Construction, and Agriculture/Farming/Forestry.
- The construction segment accounted for the largest share of around 58.5% of the market in 2021. After a steep decline in sales of construction equipment due to the COVID-19 pandemic in the first half of 2021, the sales have recovered significantly in 2021 and are projected to continue to rise until 2030.
- The agriculture/farming/forestry segment is estimated to register a CAGR exceeding 9.6% from 2022 to 2030. Demand for advanced agriculture and farming machinery is increasing in developing countries, including India, where traditional agriculture techniques are still highly used.
Based on the Vehicle Type, the market is segmented into Excavator, Loader, Crane, Dump Truck, Tractor, and Other.
- Considering the type of vehicle, the tractor segment accounted for the largest share of around 27% of the overall market in 2021. The growth can be attributed to the increasing demand for these types of equipment in the agriculture and farming sector.
- The dump truck segment is projected to register a CAGR of over 9.5% over the forecast period. Dump trucks generate considerable demand for lighting products due to the introduction of the Advanced Driver Assistance System (ADAS) with features such as adaptive front lighting and night vision.
Key Companies Market Share Insights
Key players in the industry are focusing on providing technologically driven and advanced products to enhance their product offerings in the market. The companies are also undertaking strategic initiatives such as regional expansions, acquisitions, mergers, partnerships, and collaborations to strengthen their hold in the market.
Organic growth remains the key strategy for the overall industry, with leading players focusing on the development of new and innovative products and the expansion of product offerings. For example, in February 2021, Truck-Lite announced the launch of high-output LED work lamps and a full line of heated turn/stop/tail lamps. Truck Lite is engaged in the manufacturing of off-highway vehicle lighting. The new heated lamps are available in both 4-inch round (Super 44®) and 2x6-inch oval (60® Series) variants.
In similar context, in May 2020, Grote Industries, an off-highway vehicle lighting manufacturer, announced the launch of new tri-color LED directional warning lights, an addition to its warning hazard product lineup. The new tri-color LED directional warning lights to offer SAE Class I performance Some prominent players in the global off-highway vehicle lighting market include:
- Truck-Lite
- APS Lighting and Safety
- Grote Industries
- ECCO Safety Group
- Hamsar Diversco Inc.
- W. Speaker Corporation
- WESEM
- HELLA GmbH Co. KGaA
- ABL Lights Group
- Peterson Manufacturing Co.
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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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