Off-Highway Vehicle Lighting Market Analysis Report By Vehicle Type, By Product, By Application, By End-use, By Region And Segment Forecasts From 2018 To 2025

Industry Insights

The global off-highway vehicle lighting market size was accounted for USD 763.1 million in 2017. It is anticipated to grow at the CAGR of 7.0% from 2018 to 2025. The increasing demand from the mining and construction industry is expected to be a key factor responsible for the market growth. Moreover, the growing trend of LED’s for lighting with higher efficiency is also anticipated to boost the product demand. 

According to U.S. federal government, over 50.0% of accidents at construction sites are due to heavy equipment. Furthermore, the growing requirement for heavy equipment in the construction sector such as loaders, excavators are boosting the market growth. This equipment has high demand in countries such as India, and China, owing to the growing infrastructure development.  All these factors are expected to boost the demand for off-highway vehicle lighting.

For example, in 2015, the market of construction equipment was accounted for USD 3.0 billion and is projected to get double by2020. In addition, the supportive government initiatives for LEDs application are anticipated to foster the demand for the lighting industry. LEDs consume less energy when compared to other lighting solutions.

The government in Canada is planning to cut down the emission of greenhouse gases and promote the utility of vehicles with zero emissions. This initiative is expected to the demand for energy-efficient LED lights in off-highway vehicle lighting in the country.

In the U.S., Corporate Average Fuel Economy (CAFÉ) standards are set for increasing the acceptance of zero-emission vehicles to reduce the consumption of fossil fuels. These regulations are encouraging consumers to purchase off-highway vehicles. These vehicles are increasing the adoption of energy-efficient lightings with a focus on reducing fuel consumption.

Product Insights

The off-highway vehicle lighting market is divided into halogen, HID, LED, and incandescent depending on the product. In 2017, the halogen type segment dominated the market due to its availability at a low price. Further, the LED manufacturers are now focusing on integrating LE lights. Moreover, the lamps are placed on the rear, front, and side positions of the vehicle to prevent accidents.

The reduced LED production cost is projected to support the market growth. The LED light consumes less energy, provides higher brightness compared to its counterparts available in the market and is long-lasting with a lifespan of over five years. The LED segment is anticipated to exceed the highest CAGR of around 11.1% over the forecasted period.

Application Insights

The headlight segment is anticipated to hold the largest share over the forecast period, 2018 to 2025. The growth can be attributed to the development of advent technologies like laser lights and night vision. The work light segment is expected to propel at a significant rate in the coming few years. The LED lights are also growing in popularity owing to their energy-saving ability and better brightness.

The others segment is comprising of light bars, interior lighting, and other lights. It is projected to grow at a CAGR of around 10.0% from 2018 to 2025. Moreover, government rules regarding mandatory safety lights especially in heavy vehicles are expected to foster the product demand in the next few years.

End-use Insights

The market for off-highway vehicle lighting is divided into construction & mining and agriculture/forestry/farming. In 2017, the mining and construction segment led the market with the highest share. The sales of equipment for the construction segment are expected to get double their value by 2025.

The Agriculture/forestry/farming segment is projected to grow at a CAGR 0f 9.5% during the forecasted period. The increasing demand for new and advanced machinery especially in countries like India is expected to positively impact the market growth. Moreover, technological advancements are projected to surge the demand for LED lights in the next few years.

Vehicle Type Insights

In 2017, the excavators held the largest market share in the overall market. The growth in the mining industry is propelling the demand for excavation projects. Rising demand for commercial vehicles in the mining and construction industries is expected to bolster market growth.

In addition, the advanced driver assistance system (ADAS), is expected to increase the demand for dump trucks. Moreover, the growing trend of class 7 and8 type trucks is projected to foster market growth.

Regional Insights

In 2017, Asia Pacific accounted for USD 276.2 million in terms of global revenue in the overall market. It is projected to grow at a CAGR of over 5.1% from 2018 to 2025. The growing adoption of advanced machinery and skilled labor especially in countries such as Japan, Taiwan, and China is supporting the market growth. Additionally, the reduced production cost is also spurring the demand for vehicle lighting products.

The Middle East and Africa region are estimated to grow at the highest CAGR over the forecasted period,2018 to 2025. The increasing mining and construction activities are primarily contributing to market growth. Latin America region is also projected to propel at a significant rate in the coming few years. All these key factors are anticipated to surge the heavy machinery equipment demand.

Impact of COVID-19

COVID-19 outbreak has adversely affected the supply chain of the off-highway vehicle lighting market. Manufacturers are facing challenges in export & import activities in raw materials shipments of electronic& electrical equipment. However, some of the companies have resumed their manufacturing operation but are working with minimum capacity.

Several automotive companies outsource over 30.0% of auto parts from China. However, lockdown restriction and logistic concerns are imposing challenges to OEMs operating in vehicle lighting manufacturing. Increasing penetration of LED lights owing to their high energy efficiency and cost-effectiveness is expected to boost the market growth in the next few years. Thus, traditional fluorescent and HID lights are now rapidly replaced by LED projectors, reflectors.

Off-Highway Vehicle Lighting Market Share Insights

Leading players in the market include Truck-Lite Co.; Grote Industries; Oracle Lighting; APS Lighting and Safety Products; ECCO Safety Group Co.; HELLA GmbH; and WESEM.

Manufacturers engage in new product launches, innovations to expand their product offerings. For example, Grote Industries has introduced LED strips suitable for heavy equipment in 2017.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global off-highway vehicle lighting market report on the basis of product, application, end-use, vehicle type, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)
    • LED
    • Halogen
    • HID
    • Incandescent

• Application Outlook (Revenue, USD Million, 2014 - 2025)
    • Headlight
    • Tail Lamp
    • Work Light
    • Others

• End-use Outlook (Revenue, USD Million, 2014 - 2025)
    • Construction & Mining
    • Agriculture/Farming/Forestry

• Vehicle Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Excavators 
    • Loaders
    • Cranes
    • Tractors
    • Dump Trucks
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
    • The Asia Pacific
        • China
        • Japan
        • India
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa (MEA)