On-highway Vehicle Lighting Market Analysis Report By Vehicle Type, By Application, By Product Type, By Region And Segment Forecasts From 2018 To 2025

Industry Insights

The global on-highway vehicle lighting market size was accounted for USD 27.38 billion in 2017 and estimated to grow with a CAGR of 5.4% over the forecast period, from 2018 to 2025.  Increasing automobile production across both developed as well as developing regions, especially in emerging countries like Mexico, China and India is a major factor driving the market growth. Moreover, technological advancement in lighting technology, enhanced road safety, and strict government regulations for using energy-efficient lights in vehicles are other factors expected to fuel the market growth over the forecast period.

Rising concerns and stringent regulations related to road safety by governments across several countries are enforcing automotive manufacturers to design an efficient lighting system in vehicles for clear visibility in low light places or harsh environments. This factor is expected to play an important role in market growth. Moreover, rising investment in LED technology and R&D activities are expected to decrease LED prices gradually without compromising in quality, thereby expected to witness a positive impact on market growth.

LED lights are also used for rear lights and headlamps, apart from vehicle interiors. These lights are energy-efficient and eco-friendly that save around 90% of electricity over halogen lamps. This factor is anticipated to increase the application of LEDs in vehicles, thereby hold the largest market share in total vehicle production globally. In addition, the growing popularity of ambient lighting systems for passenger cars is another reason to drive on-highway vehicle lighting market growth.

Automotive manufacturers are focusing on fixing energy-efficient lights in vehicles owing to strict government regulations for increasing vehicle fuel efficiency. Many countries are mandating strict regulations for vehicles to curb carbon emissions. Therefore, automakers across the globe are striving to manufacture energy-efficient vehicles that are expected to drive the demand for LED as compared to xenon and halogen lights.

Companies like Stanley Electric, Koito Manufacturing Co. Ltd., MagnetiMarelliS.p.A., and HellaKGaAHeuck& Co., Ltd offers LED lights to numerous automotive application including side lamps, headlights, taillights and indicator lights.

Product Insights

Based on product, the market is classified into halogen, LED, incandescent, High-Intensity Discharge (HID), and LASER. The LED segment is projected to lead the market during the forecast period and is estimated to reach around USD 20.19 billion by the end of the projected year, 2025. Several benefits associated with LED lights such as a long life span compared to HID, incandescent, halogen, and LASER lamps, energy efficiency, and decreasing cost are expected to drive the usage of LED lights in vehicles, thereby driving segment growth in the market over the forecast period.

The laser product segment is estimated to grow with a CAGR of more than 13.0% during the forecast period. These lights emit nearly 160-170 lumens per watt that are higher than LED, as LEDs emit100-120 lumens per watt. In addition, laser light illuminates the road from a significant distance owing to its long range and smaller size.

Application Insights

By application, the on-highway vehicle lighting market is fragmented into headlights, internal lights, and other external lights. The headlight segment is expected to gain significant market share due to changing prices of light sources used in vehicles including halogen, LED, laser, and HID. In addition, constant development in headlamp design to offer a high range of visibility in low light vision is expected to drive the segment growth during the forecast period.

The internal lights segment is expected to grow with significant CAGR during the forecast period, from 2018 to 2025. Decreasing prices of LED lights and the growing need for energy-efficient lights are expected to drive the segment growth in the next few years.

Vehicle Type Insights

Based on vehicle type, the market is segmented into motorcycles, buses, light trucks, medium trucks, passenger cars, and heavy trucks. In 2017, passenger cars held the largest market share of more than 75% of the total vehicles produced. Thus, the growing production of passenger cars is anticipated to drive the segment growth of this market.

Developing economies like India and China are projected to drive market growth during the forecast period.

Regional Insights

In 2017, Asia Pacific dominated the market and held the largest market share, as several countries such as South Korea, China, and India are investing in the automotive industry.

Europe's on-highway vehicle lighting market is expected to grow with a CAGR of 5.6% during the forecast period.  This growth is attributed to strict government regulations and law enforcement regarding the usage of energy-efficient lights in vehicles. North America is expected to witness considerable growth over the forecast period.  This growth is attributed to increasing awareness about road safety is encouraging automotive manufactures to use cutting-edge lighting solutions.

Impact of COVID-19

The outbreak of COVID-19 has witnessed a negative impact on the market, as this pandemic has disrupted the supply chain of automotive parts. It has also decreased vehicle sales, thereby the demand for vehicle lighting sources by automotive manufacturers declined. It has also affected the company’s budget allocated for R&D activities, thereby expected to hamper the development of new products.

Despite the pandemic, several auto manufacturers are resuming their operations and restart vehicle production globally which is expected to boost the demand for lighting sources in the automotive industry.

On-highway Vehicle Lighting Market Share Insights

The major players included in this market are ZKW Group, Valeo S.A., Koninklijke Philips N.V., TYC Genera, MagnetiMarelliS.p.A., and Koito Manufacturing, Ltd. These companies are focusing on technological advancements to develop innovative solutions at affordable prices with better quality. For instance, in 2019Koito Manufacturing Co., LTDstarted to develop a headlamp system with the name ‘ADB’ that automatically controls high beams of lights to prevent accidents at night.

Report Scope

Segments Covered in the Report

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

• Product Type Outlook (Revenue, USD Billion, 2014 - 2025)
    • Halogen
    • High-Intensity Discharge (HID)
    • LED
    • Incandescent
    • LASER

• Application Outlook (Revenue, USD Billion, 2014 - 2025)
    • Headlights
    • Other External Lights
    • Interior Lights

• Vehicle Type Outlook (Revenue, USD Billion, 2014 - 2025)
    • Motorcycle
    • Passenger car
    • Buses
    • Light Trucks (Class 1-3)
    • Medium Truck (Class 4-6)
    • Heavy Truck (Class 7&8)

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