On-highway Vehicle Lighting Market Analysis Report By Vehicle Type (Passenger Cars, Buses), By Application (Headlights, Interior Lights), By Product Type (LED, Laser), By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global on-highway vehicle lighting market size was valued at USD 27.38 billion in 2017 and is expected to grow at a CAGR of 5.4% over the forecast period. The market is driven by growing automobile production across various developed and developing regions, specifically in emerging economies such as China, India, and Mexico. Moreover, advancements in automotive lighting technology, ensuring improved energy efficiency and enhanced road safety, would also spur the market growth.

Increasing concerns and strict regulations regarding road safety has forced vehicle manufacturers to include efficient lighting systems for enhanced visibility in harsh environments. This is also anticipated to play a vital role in driving market growth. Ongoing R&D activities and increasing investments in LED technology are estimated to gradually decrease the prices of LED lamps over the coming years, which is also likely to contribute toward market expansion.

Apart from vehicle interiors, LEDs find applications as headlamps and rear lights. LED lights have emerged as eco-friendly, energy-efficient lighting solutions. LED technologies save nearly 90% electricity as compared to halogen lamps. This is expected to result in an increased adoption of LED lights in low- and mid-range vehicles, which occupy the largest share of the overall vehicles produced across the globe. Moreover, its increasing application in ambient lighting systems in passenger cars is also one of the key reasons behind the exponential growth of the market.

Automakers are focusing on installing energy efficient lights in vehicles due to government regulations regarding increasing the fuel efficiency. Several countries across the globe are establishing regulations for energy-efficient vehicles to reduce CO2 emissions. As per the European Commission’s regulation, the auto manufacturers are compelled to take effective measures to reduce CO2 emissions from the vehicles. Thus, auto manufacturers are turning towards eco-friendly LED technologies due to its high energy-efficiency and reduced CO2 emissions.

Companies such as Koito Manufacturing Co. Ltd., Stanley Electric, Hella KGaA Heuck & Co., Ltd, and Magneti Marelli S.p.A. provide LED lights for various automotive applications such as headlights, tail lights, side lamps, and indicator lights. Longer lifespan of LEDs lends it a first-rate benefit over halogen and xenon lights.

Product Insights

The LED segment is expected to dominate the market. The segment is anticipated to reach USD 20.19 billion by 2025, growing at a CAGR of 7.1% over the forecast period. LED lamps have longer lifespan (more than 50,000 operational hours) than halogen, HID, incandescent, and LASER lamps. With the advances in technology and R&D investment of OEMs, as well as lighting manufacturers, the prices of LED lamps are expected to decrease. This also likely to have a major impact on the segment development.

The laser technology is expected to register a CAGR of 13.2% over the forecast period. Laser lights illuminate the road at a significant distance due to its smaller size and long range. In general, these lights emit around 160-170 lumens per watt, which is much higher than LEDs (100-120 lumens per watt).

Application Insights

The on-highway vehicle lighting applications include headlights, other external lights, and internal lights. The market for headlights is driven by increasing production of motor vehicles and changing prices of light sources, such as halogen, HID, LED, and laser, used in vehicles. Also, continuous advancements in technology, focusing on headlamp design so as to offer long range visibility in low-light conditions, is also fueling the segment growth.

Internal lights segment is also anticipated to have a significant growth over the next few years. Increasing need for energy-efficient lights and declining prices of LEDs have attracted a large consumer base towards ambient lighting, which is a major factor behind segment’s growth.

Vehicle Type Insights

Passenger car occupied the majority share (over 75%) of the total motor vehicle production in 2017. Thus, growing automotive manufacturing industry across the globe is expected to fuel the on-highway vehicle lighting market in coming years.

Also, the emerging economies such as China and India are expected to further escalate the market growth over the forecast period.

Regional Insights

Asia Pacific was the largest regional market in 2017 owing to emerging economies, such as such as China, India, and South Korea, investing heavily in automotive manufacturing. The Europe region is expected to register the second-highest CAGR of 5.6% due to stringent government regulations and law enforcements pertaining to the use of energy-efficient light sources in automobiles. The North America region is also likely to have a considerable growth due to growing focus on increasing road safety is prompting the automotive OEMs to use cutting-edge lighting technologies.

On-Highway Vehicle Lighting Market Share Insights

Prominent industry participants include Koito Manufacturing, Ltd., Magneti Marelli S.p.A., Valeo S.A., ZKW Group, Koninklijke Philips N.V., and TYC Genera. Most of these companies focus on technological advancements to offer innovative solutions at competitive prices without compromising on the quality.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2016 to 2025. For this study, Grand View Research has segmented the global on-highway vehicle lighting market report on the basis of product type, application, vehicle type, and region:

• Product Type (Revenue, USD Million, 2014 - 2025)

  • Halogen

  • High Intensity Discharge (HID)

  • LED

  • Incandescent

  • LASER

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Headlights

  • Other External Lights

  • Interior Lights

• Vehicle Type Outlook (Revenue, USD Million, 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 Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • MEA