Headlight Market

The global headlight market was valued at $6.7 billion in 2021, and is projected to reach $12.0 billion by 2031, growing at a CAGR of 6.1% from 2022 to 2031.

Lighting plays an important role in automotive vehicles to provide illumination for the driver. It adds aesthetic looks to both, interior and exterior parts of the vehicle and at the same time increases the conspicuity of the vehicle. The lighting system comprises of lighting and signaling devices. These lighting equipment are placed at different locations in the vehicle such as front, rear, top and interiors.

Increasing concerns regarding road safety and government regulations for lighting are the major factors driving the demand for lighting equipment. Factors such as increasing disposable incomes, improving lifestyle, and transportation requirements are contributing in the increase in the production of vehicles, which in turn, is fueling the demand for headlights. Automotive headlights offer improved reliability & visibility, optimum energy-efficiency, and better operational efficiency. However, high cost of LEDs hinders the growth of the headlight market. Furthermore, increase in demand for advanced technology in vehicles is anticipated to provide a remarkable growth opportunity for the players operating in the market.

The headlight market is segmented into technology, vehicle type, vehicle propulsion, sales channel, and region. By technology, the global market is divided into halogen, LED, and Xenon. By vehicle type, it is bifurcated into passenger cars and commercial vehicle. By vehicle propulsion, it is categorized into ICE vehicle and electric vehicle. By sales channel, the market is segmented as OEM and aftermarket. By region, the market has been analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

Some leading companies profiled in the headlight market report comprises Continental AG, De Amertek Corporation, Hella GmbH & Co. KGAA, Hyundai Mobis Co., Ltd., Johnson Electric Holdings Limited, J.W. Speaker Corporation, Marelli Holdings Co., Ltd, Robert Bosch GmbH, Stanley Electric Co., Ltd., and Valeo.

Adoption of advanced driver assistance system

Automotive headlight is an essentaial part of advanced driver assistance system, which changes the vehicle lighting pattern during a drive on a turning road to compensate for the road curvature and enhance the night visibility. In addition, in bad weather conditions, the intelligent lighting of ADAS plays a vital role as it provides enhanced visibility while driving in bad visibility conditions. Moreover, factors such as adoption of autonomous and semi-autonomous vehicles, high demand for safety features, and increased requirement for comfort drive the growth of advanced driver assistance system, which directly compliments the growth of the headlight market.

Rise in concern toward road safety

The demand for safety features has increased due to surge in number of road accidents around the globe. Vehicles with efficient light enables the vehicle driver to take appropriate required actions. Rise in concern regarding road accidents globally, fuels the demand for better safety features in vehicles, eventually leading to incorporation of advanced lighting systems, which supports the growth of the market. Advanced lights are primarily installed to enhance the visibility on curve roads and improve the vehicles conspicuity in critical conditions. Further, as per the World Health Organization’s published data in June 2021, nearly 1.3 million people die in road traffic accidents each year that comprises a significant portion owing to improper lighting system in vehicle. These factors boost the demand for headlights in vehicles. Therefore, increase in concern toward road safety drives the growth of the headlight market.

High cost and configuration complexity

Increase in need for operational efficiency, enhancement in overall safety, and greater visibility are expected to fuel the demand for headlights. However, intelligent headlamps are connected with steering of vehicle that allows it to automatically adjust according to the driving situation. This eventually increases the cost of headlamps to be used in automobiles.

Increase in integration of advanced technology in vehicle

The demand for vehicles equipped with advanced technology has increased. This has led the vehicle manufacturers to develop and install latest components in the upcoming vehicle models. For instance, companies, such as Hyundai Mobis developed the driving beam linked to advanced driver assistance system. Moreover, automobile manufacturers across the globe are focusing toward manufacturing vehicles equipped with advanced technologies, such as adaptive lighting system, intelligent ambient lighting, and various other systems, which ensure safety and increase comfort while driving. This is expected to increase the demand for headlights. Thus, increase in demand for advanced technology in vehicle create opportunities for the headlight market.

The spread of the COVID-19 pandemic has negatively impacted the headlight market, owing to commute restrictions, and is expected to weaken the financial performance of the market players. It has impacted the overall economy, and contributors such as market participants are formulating strategic cost-saving plans. Majority of the manufacturing facilities headlights were shut down during the pandemic due to commute restrictions, workforce unavailability, and short supply of raw material due to supply chain disturbance. The sale of headlights is directly associated with automotive production and sales activities across the globe. Production loss is anticipated to increase if the lockdown in countries is extended. The global automotive production has witnessed decline by 16% in 2020 as compared to automotive production in 2019. Moreover, the global sales of automotive has witnessed drop by around 14% (Y-o-Y) from 90.42 million units in 2019 to 77.97 million units in 2020. Although the automotive market has struggled due to the pandemic, the automotive headlight market has high scope of growing opportunities in future due to factors, such as rise in demand for autonomous and semi-autonomous vehicles, and technological advancement in automotive lighting is expected to stimulates the headlight industry.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the headlight market analysis from 2021 to 2031 to identify the prevailing headlight market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the headlight market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global headlight market trends, key players, market segments, application areas, and market growth strategies.

 Headlight Market Report Highlights