GVR Report cover Off-highway Vehicle Lighting Market Size, Share & Trends Report

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, 2022 - 2030

  • Report ID: GVR-2-68038-692-9
  • Number of Pages: 120
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2021
  • Industry: Technology

Report Overview

The global off-highway vehicle lighting market size was estimated at USD 974.3 million in 2021. It is anticipated to expand at a compound annual growth rate (CAGR) of 7.5% from 2022 to 2030. This market growth can be accredited to the high demand for mining and construction equipment worldwide. Furthermore, the growing adoption of LED lighting due to its capability to deliver enhanced performance will also drive the industry growth by 2030. Government regulations toward vehicle lights and workspace safety are also projected to support the adoption of the product. Additionally, the growing demand for enhanced comfort, safety, and convenience in automobiles, particularly in developing and mature economies, is also expected to propel market growth over the forecasted period.

U.S. Off-Highway Vehicle Lighting Market size, by product, 2020 - 2030 (USD Million)

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 has 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. As per the U.S. federal government, nearly more than 50% of construction site accidents involve heavy equipments. 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 numerous countries are adopting standard rules and regulations regarding vehicle lighting. The growing demand for heavy construction equipment, including loaders and excavators, particularly in India and China, owing to heavy investments in public infrastructure development is also expected to support industry growth.

For instance, the Indian construction equipment market was valued at around USD 2.8 billion in 2019 and is expected to double by 2030. 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 decreasing energy consumption, coupled with the plummeting prices of LED products, are increasing the demand for LED lights.

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

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 2021. Additional fall is projected due to changing consumer demand, labor disruptions, and COVID-19 shutdowns impacting the industry and reducing demand for new machinery. Furthermore, new orders for construction machinery in the U.S. were down by around 12% in April 2021 compared to the previous year.

Product Insights

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. Moreover, regulations are mandating the adoption of the front, side, and rear 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 influence the demand for off-highway vehicle lighting in the forecasted period.

Additionally, 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. Furthermore, these lights offer better brightness, consume less power, and are highly durable with an average lifespan of more than five years.

End-use Insights

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. This, in turn, is estimated to augment the demand for mining and construction vehicle lighting.

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. Thus, continuous technological advancements in emerging economies are expected to result in high demand for LED-based lights.

Vehicle Type Insights

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 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 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. Additionally, the upward trend in the production of class 7 and 8 trucks is expected to boost the growth prospects of the segment.

Application Insights

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. 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.

Global Off-highway Vehicle Lighting Market Share, by application, 2021 (%)

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. Additionally, government regulations mandating additional safety lights in heavy vehicles are expected to boost the growth prospects of the segment over the forecast period.

Regional Insights

Geographically speaking, Asia Pacific off-highway vehicle lightning market accounted for the largest revenue share in 2021 and is anticipated to retain its dominance over the period of study, registering a CAGR exceeding 6.1%. This growth can be attributed to the presence of key manufacturers in Asian countries, including Taiwan, Japan, and China. Factors such as the availability of advanced machinery and skilled labor along with low production costs 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 owing 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 heavily investing heavily in the development of public infrastructure, which is expected to trigger the demand for construction machinery.

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.

  • J.W. Speaker Corporation

  • WESEM

  • HELLA GmbH & Co. KGaA

  • ABL Lights Group

  • Peterson Manufacturing Co.

Off-highway vehicle lighting Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 1.03 billion

Revenue forecast in 2030

USD 1.83 billion

Growth Rate

CAGR of 7.5% from 2022 to 2030

Base year for estimation

2021

Historical data

2018 - 2021

Forecast period

2022 - 2030

Quantitative units

Revenue in USD Million and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, end use, vehicle type, region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country scope

U.S.; Canada; Germany; U.K.; China; Japan; India; Brazil; Mexico

Key companies profiled

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.

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

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 2018 to 2030. For this study, Grand View Research has segmented the global off-highway vehicle lighting market report based on product, application, end use, vehicle type, and region:

  • Product Outlook (Revenue, USD Million, 2018 - 2030)

    • LED

    • Halogen

    • HID

    • Incandescent

  • Application Outlook (Revenue, USD Million, 2018 - 2030)

    • Head Lamp

    • Tail Lamp

    • Work Light

    • Others

  • End-use Outlook (Revenue, USD Million, 2018 - 2030)

    • Construction

    • Agriculture/Farming/Forestry

  • Vehicle Type Outlook (Revenue, USD Million, 2018 - 2030)

    • Excavator

    • Loader

    • Crane

    • Dump Truck

    • Tractor

    • Other

  • Regional Outlook (Revenue, USD Million, 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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