Headlights Market Overview:
Headlights Market Overview:
Increasing demand for durable and low-cost headlights, rising demand for commercial vehicles due to an increase in trades and also demand for passenger vehicles are propelling the Headlights Market growth.
Additionally, the significant investments by the government and private manufacturers to introduce vehicles with new technology, loaded with full specs are creating substantial growth opportunities for the Headlight Market. According to Statistics, China's automobile registrations climbed to approximately 23 million units in 2022. Simultaneously, the changing lifestyle of the consumers for luxury and the strict rules and standards in night driving are some of the major Headlight Market opportunities. These factors positively influence the Headlights industry outlook during the forecast period.
COVID-19 / Ukraine Crisis - Impact Analysis:
● The pandemic resulted in an overall decrease in consumer spending on automobiles and a decline in vehicle sales globally. Many automobile component suppliers had to reduce production due to lockdown and supply chain disruptions caused by the pandemic. As the pandemic progressed, people began to rely more on personal vehicles for transportation, leading to a gradual recovery in the aftermarket demand for automotive parts. The post-pandemic outlook for the headlights market appears to be driven by factors such as the recovery of the automotive industry, technological advancements, safety regulations during the forecast period.
● Russia is a major supplier of key metals and minerals, and export sanctions have severely impacted commodity demand and prices. Several OEMs in Eastern Europe had paused and slowed their production due to a lack of parts from Ukraine-based suppliers, which had impacted the market a lot. OEMs including Toyota, Ford, Volvo, Jaguar-Land Rover, General Motors, and BMW had ceased export operations to Russia, with many of them suspending Russian joint ventures in response to the invasion.
Key Takeaways:
● Fastest Growth of Asia Pacific Region
Geographically, in the global Headlights Market share, Asia Pacific is analyzed to grow with the highest CAGR of 7.4% during the forecast period 2023-2030. The Asia-Pacific region accounts for 60 percent of the world’s population and is home to some of the fastest-growing nations, including China and India. There is a strong presence of major manufacturers who continuously invest in new and innovative product launches and technologies, which are the major factors propelling market growth in this region. For instance, in April 2022, Tata Motors announced plans to invest Rs. 24,000 crore ($3.08 billion) in its passenger vehicle business over the next five years.
● Passenger Vehicles to Register the Fastest Growth
The passenger vehicle headlight market is projected to grow at a 6.5% CAGR during the forecast period of 2023–2030.As the global population grows and disposable incomes rise, more individuals are able to afford and purchase passenger vehicles. This leads to an overall increase in demand for passenger vehicles. In 2022, global new car registrations reached 66.2 million units, as sales recovered in the last quarter of the year. However, demand is still trending well below pre-pandemic levels.
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● Automotive industry growth is driving the market
The automotive industry is experiencing growth globally, driven by factors such as increasing population, urbanization, and improving economic conditions. This expansion, especially in emerging economies, leads to an increased demand for headlights as vehicles require proper lighting for safe operation. The Government of India expects the automobile sector to attract US$ 8-10 billion in local and foreign investments by 2023. In January 2023, MG Motor India announced plans to invest $100 million to expand capacity, eyeing 70 percent growth in 2023.
● Rising demand for energy-efficient and eco-friendly headlights
The growing awareness regarding environmental conservation is driving the demand for energy-efficient and eco-friendly headlights. This has led to the development of new technologies such as LED that are more energy-efficient and eco-friendly than traditional xenon and halogen bulbs. In May 2022, the University of Oxford stated that LED lights are 75–80% more energy-efficient in comparison with traditional lighting like incandescent and fluorescent lights. Around 95% of the energy in LED luminaries gets converted into light, and just 5% is wasted as heat. This has increasingly led to LED headlight demand rising rapidly.
● High Replacement Cost hinders the market growth
Modern headlights use complex electrical and mechanical systems that can increase the production cost of the component. Headlights need to be compatible with the make and model of the vehicle. Finding the right fit can be challenging, leading to higher costs for the component, and replacing headlights can be a complicated and time-consuming process, leading to higher labour costs.
Key Market Players:
Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Headlights Market. The top 10 companies in this industry are listed below:
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