Asia Pacific captured over 50 per cent of the market share in 2020. The region is expected to retain dominance over the forecast period owing to increasing passenger car sales in emerging economies such as China and India
The global on-highway vehicle lighting market size is expected to reach USD 37.74 billion by 2028. It, as per a report by Research and Markets, is projected to register a CAGR of 4.9 per cent from 2021 to 2028.
“Asia Pacific captured over 50 per cent of the market share in 2020. The region is expected to retain dominance over the forecast period owing to increasing passenger car sales in emerging economies such as China and India,” read the report.
The growing adoption of the latest technologies in automotive lighting and increasing penetration of LED lighting in the automotive industry are anticipated to drive the demand for on-highway vehicle lighting. Automotive lighting has continuously been evolving as manufacturers seek innovative ways to strengthen safety, improve performance, and enhance aesthetics. Headlamps are particularly expected to witness developments in line with advancements in LED and laser technologies.
Highest CAGR from 2021 to 2028
In terms of product, the LASER segment is estimated to register the highest CAGR of 12.5 per cent from 2021 to 2028 owing to the increasing demand for luxury vehicles across the developed and emerging economies. In terms of application, the headlight segment emerged as the largest segment in 2020 and is anticipated to retain its dominance over the forecast period.
In terms of vehicle type, the passenger car segment accounted for a dominant share of over 44 per cent in 2020. The segment is projected to record the highest CAGR from 2021 to 2028.
Asia Pacific captured around 50 per cent of the on-highway vehicle lighting demand in 2020 and is estimated to register the highest CAGR of 5.3% over the forecast period. The growing investments in lighting technology and evolving automotive industry in emerging economies such as China and India are expected to drive the growth of the LED and LASER markets.
The Make In India campaign is expected to draw substantial investments in the automotive sector owing to several benefits in the country such as low-cost labor and cheaper raw materials.
Prominent market players are coming up with laser headlights featuring advanced lighting technology. For instance, Osram provides its laser headlights to automotive manufacturers such as BMW and Audi. Models such as Audi R8 and R8 LMX, BMW i8, and BMW 7 series feature Osram’s laser headlights. Laser headlights provide luminance of up to five times higher than other light sources. They also provide a better high beam range of 300-600 meters as compared to conventional headlights.
The global automotive production witnessed an approximate 16 per cent decline in 2020 as compared to 91.8 million units in 2019. However, with the revival of economies and the gradual relaxation of restrictions, the market is likely to witness significant growth over the forecast period.
