Off-highway Vehicle Lighting Market Size, Share & Trends Analysis Report By Product (LED, Halogen, HID, Incandescent), By Application, By End-use, By Vehicle Type, And Segment Forecasts, 2021 - 2028

Report Overview

The global off-highway vehicle lighting market size was estimated at USD 926.6 million in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 7.0% from 2021 to 2028. This growth can be attributed to the high demand for construction and mining equipment worldwide. Moreover, increasing the adoption of LED lighting owing to its capability to deliver enhanced performance is also likely to drive the market. Government regulations regarding vehicle lights and workspace safety are also expected to boost the market growth. Furthermore, the growing demand for enhanced safety, comfort, and convenience in automobiles, especially in developing and mature economies, is also anticipated to propel the market growth over the forecast period.

According to the U.S. federal government, more than 50% of construction site accidents involve heavy equipment. Between 2003 and 2010, more than 37% of the accidents were caused by dump trucks. In 2016, there was a 9% increase in crashes that involved dump trucks. To ensure labor safety, the governments of various countries are adopting standard rules and regulations regarding vehicle lighting. The increasing demand for heavy construction equipment, including excavators and loaders, particularly in China and India, due to heavy investments in public infrastructure development is also likely to support market growth.

For instance, the Indian construction equipment market was valued at around USD 2.8 billion in 2019 and is expected to double by 2028. Such a significant rise in the demand for construction equipment is likely to bolster the need for vehicle lighting. Government initiatives aimed at encouraging the adoption of LEDs for reducing energy consumption, coupled with the plummeting prices of LED products, are boosting the demand for LED lights in the market.

While the proposed ban on HID and incandescent bulbs in few countries, including the U.K., Japan, India, and Canada, has had a moderate effect on the market, both the lighting types remain significant for the automotive and off-highway vehicle lighting markets. Furthermore, the Canadian government is developing a strategy to reduce the country’s Greenhouse Gas (GHG) emissions and encourage the adoption of zero-emission vehicles.

The world economy has been hit hard by the rate at which the coronavirus pandemic has escalated. The market is most vulnerable to the current COVID-19 crisis owing to its reduced demand for heavy off-highway equipment. Efforts to contain the coronavirus pandemic resulted in supply chain disruptions, with several production facilities coming to a halt. The outbreak has also taken a toll on the sale of heavy off-highway equipment, subsequently impacting the demand for off-highway vehicle lighting.

Europe is one of the world’s most prominent manufacturers of off-highway vehicles and has also been observing a sharp decline in the sales of equipment. In the region, the production of forestry and agricultural machinery declined by around 10% in April 2020. Additional fall is anticipated due to labor disruptions, changing consumer demand, and COVID-19 shutdowns impacting the industry and the plummeting demand for new machinery. Moreover, new orders for construction machinery in the U.S. were down by around 12% in April 2020 compared to the previous year.

Product Insights

The halogen segment accounted for the largest revenue share of around 55% in 2020. This can be attributed to the low initial cost associated with these lights as compared to LEDs. However, vehicle manufacturers have now started shifting to LED lights owing to their declining prices over the years. Moreover, regulations are mandating the adoption of the rear, side, and front identification lamps so that the approaching vehicle driver can judge the vehicle's dimensions and prevent a crash. The regulations pertaining to vehicle lighting would leverage the demand for off-highway vehicle lighting in the forecasted period.

The LED segment is projected to register a CAGR of around 10% from 2021 to 2028. The segment is majorly driven by the increasing demand for energy-efficient lighting sources used in off-highway vehicles. A decline in the production cost of LEDs is expected to increase the market share of these products. Moreover, these lights offer better brightness, consume less power, and are highly durable with an average lifespan of more than five years.

Application Insights

The headlamp segment accounted for the largest share of over 60% of the market in 2020. 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. These lights are an integral part of the equipment used in construction and mining applications, as they improve visibility and augment safety in the workplace. The demand for LED-based work lamps has grown significantly in recent years owing to better brightness and quality of light.

The others segment is estimated to register a CAGR exceeding 8% from 2021 to 2028. The segment includes interior lighting, light bars, and other miscellaneous lights. The growth can be attributed to the growing importance of aesthetic interiors in off-highway vehicles, such as dump and concrete mixer trucks and excavators. Moreover, government regulations mandating additional safety lights in heavy vehicles are anticipated to boost the growth prospects of the segment over the forecast period.

End-use Insights

The construction segment accounted for the largest share of around 55% of the market in 2020. After a steep decline in sales of construction equipment due to the COVID-19 pandemic in the first half of 2020, the sales have recovered significantly in 2021 and are projected to continue to rise until 2028. This, in turn, is expected to augment the demand for construction and mining vehicle lighting.

The agriculture/farming/forestry segment is estimated to register a CAGR exceeding 8% from 2021 to 2028. Demand for advanced agriculture and farming machinery is increasing in developing countries, such as India, where traditional agriculture techniques are still highly used. Thus, continuous technological advancements in emerging economies are expected to result in high demand for LED-based lights.

Vehicle Type Insights

The tractor segment accounted for the largest share of around 25% of the overall market in 2020. The growth can be attributed to the increasing demand for these types of equipment in the agriculture and farming sector. The increasing number of medium-scale farmers and the rising demand for mechanization globally are expected to drive the adoption of tractors over the forecast period, which is expected to work well for the growth of the segment.

The dump truck segment is projected to register a CAGR of over 7.0% over the forecast period. Dump trucks generate considerable demand for lighting product demand due to the introduction of the Advanced Driver Assistance System (ADAS) with features such as adaptive front lighting and night vision. Furthermore, the upward trend in the production of class 7 and 8 trucks is expected to boost the growth prospects of the segment.

Regional Insights

The Asia Pacific market accounted for the largest revenue share in 2020 and is anticipated to retain its dominance over the forecast period, registering a CAGR exceeding 5%. This growth can be attributed to the presence of key manufacturers in Asian countries, including China, Japan, and Taiwan. Factors such as low production cost and availability of advanced machinery and skilled labor are also anticipated to spur the growth prospects of the regional market.

The Middle East and Africa market is expected to be the fastest-growing regional market, thanks to a notable increase in construction and mining activities in the region. Latin America is projected to register the second-highest growth rate due to a significant increase in construction and mining activities in Brazil and Mexico. The governments of these countries are investing heavily in the development of public infrastructure, which is expected to trigger the demand for construction machinery.

Key Companies & Market Share Insights

The key players that dominated the market in 2020 include Grote Industries; Truck-Lite Co., LLC; APS Lighting and Safety Products; Oracle Lighting; WESEM; ECCO Safety Group Co., Inc.; and HELLA GmbH & Co. KGaA. Most of these companies 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 on 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 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 operating in the off-highway vehicle lighting market are:

• Truck-Lite

• APS Lighting and Safety

• Grote Industries

• ECCO Safety Group

• Hamsar Diversco Inc.

• J.W. Speaker Corporation

• WESEM

• HELLA GmbH & Co. KGaA

• ABL Lights Group

• Peterson Manufacturing Co.

Off-highway Vehicle Lighting Market 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 in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global off-highway vehicle lighting market report by product, application, end-use, vehicle type, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2028)

  • LED

  • Halogen

  • HID

  • Incandescent

• Application Outlook (Revenue, USD Million, 2016 - 2028)

  • Head Lamp

  • Tail Lamp

  • Work Light

  • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2028)

  • Construction

  • Agriculture/Farming/Forestry

• Vehicle Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Excavator

  • Loader

  • Crane

  • Dump Truck

  • Tractor

  • Other

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa