On Highway Vehicle Lighting Market Overview
As per MRFR analysis, the On Highway Vehicle Lighting Market Size was estimated at 30.27 (USD Billion) in 2022. The On Highway Vehicle Lighting Market Industry is expected to grow from 31.3(USD Billion) in 2023 to 42.31 (USD Billion) by 2032. The On Highway Vehicle Lighting Market CAGR (growth rate) is expected to be around 3.41% during the forecast period (2023 - 2032).
Key On Highway Vehicle Lighting Market Trends Highlighted
The on-highway vehicle lighting market is embracing advanced technologies such as LED and OLED that enhance visibility, consume less energy and last longer. Moreover, the market is growing due to strict government regulations and people’s increasing demand for safety features.
Autonomous cars present a huge opportunity for the on-highway vehicle lighting market. These cars will need advanced lighting systems which can communicate with other vehicles and infrastructure hence promoting better security and efficiency. Additionally, connected cars are becoming more popular, which is also driving innovation in automobile lights through advanced driver-assistance systems (ADAS).
Key drivers of this market include increased car production, tougher safety laws and heightened consumer demands for enhanced driving experiences. Advanced lighting technologies like adaptive headlights as well as matrix LED systems are also on the rise to meet these requirements. Similarly, there has been an upsurge in the adoption of connected lighting systems that allow vehicles to communicate with each other and infrastructure thus enhancing safety as well as traffic control.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
On Highway Vehicle Lighting Market Drivers
Rising Demand for Enhanced Vehicle Safety and Efficiency
The increasing focus on highway safety as well as fuel efficiency has made advanced lighting systems a common feature in on-highway vehicles. Advanced lighting technologies such as LED and laser headlamps offer better visibility and illumination that enhance the safety of drivers as well as pedestrians. Moreover, these lightings optimize energy utilization thereby reducing drag thus minimizing fuel consumption. The global on-highway vehicle lighting market industry is expanding because of greater demand for autos with improved safety features and good fuel mileage.
Technological Advancements and Innovation
Rapid technological advancements in lighting technologies are driving growth in the global on-highway vehicle lighting market industry. Innovations like organic light emitting diodes (OLEDs) and micro-LEDs have enabled integration of state-of-the-art lighting systems into vehicles. These new forms of technology have better illumination while consuming lesser power besides having increased designing freedom. Market growth is expected to be driven by constant innovation coupled with the introduction of cutting edge solutions for illuminations.
Growing Adoption of Electric and Autonomous Vehicles
The rise in popularity of electric and autonomous cars provides new opportunities for the global on-highway vehicle lighting market industry. For example, electric vehicles necessitate the use of specialized lights designed to address their unique power needs as well as performance specifications. Similarly, self-driving cars will require sophisticated illumination that supports attributes such as adaptive headlights or vehicle-to-vehicle communication purposes. Innovative, intelligent lighting is likely to be demanded due to the wider use of next-generation cars like these.
On-Highway Vehicle Lighting Market Segment Insights
On Highway Vehicle Lighting Market Light Source Insights
Light Source Segment Overview The On Highway Vehicle Lighting Market segmentation by Light Source is categorized into Halogen, Xenon, LED, and Laser. Among these segments, the LED segment is projected to dominate the market in the coming years. The rising demand for LED lights can be attributed to their superior energy efficiency, longer lifespan, and enhanced visibility. In 2023, the LED segment held a significant market share of 45%, and it is estimated to register a CAGR of 6.2% from 2023 to 2032, reaching an estimated market valuation of 23.14 Billion USD by the end of the forecast period.Halogen lights, once the industry standard, are gradually losing market share due to the growing adoption of more advanced lighting technologies. However, they still hold a considerable market presence, particularly in entry-level vehicles and budget-conscious markets. The Halogen segment is anticipated to witness a steady decline in its market share, with a projected CAGR of -2.1% over the forecast period. Xenon lights offer improved visibility and brightness compared to halogen lights. They have a higher intensity and wider beam pattern, making them preferable for high-performance and luxury vehicles.The Xenon segment is expected to grow at a moderate pace, with a CAGR of 2.5% from 2023 to 2032. Laser lights represent the latest and most advanced lighting technology in the automotive industry. They are highly efficient and compact and offer exceptional visibility with a very precise and focused beam pattern. The Laser segment is still in its early stages of adoption but is expected to gain traction in the coming years. It is projected to grow at a robust CAGR of 12.3% over the forecast period. Overall, the Global On-Highway Vehicle Lighting Market is experiencing a shift towards more advanced and energy-efficient lighting technologies.LED lights are leading this transformation with their superior performance and growing adoption across various vehicle segments.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
On Highway Vehicle Lighting Market Application Insights
The Global On-Highway Vehicle Lighting Market is segmented based on application into headlamps, tail lamps, fog lamps, and daytime running lights. Headlamps accounted for the largest share of the market in 2023 and are expected to continue to dominate the market through 2032. The growth of the headlamps segment can be attributed to the increasing demand for advanced lighting systems that provide better visibility and safety for drivers. Tail lamps are the second largest segment of the On-Highway Vehicle Lighting Market and are expected to grow at a steady pace over the forecast period.The growth of the tail lamps segment can be attributed to the increasing adoption of LED taillamps, which offer improved visibility and aesthetics. Fog lamps and daytime running lights are expected to experience moderate growth over the forecast period. Fog lamps are essential for providing visibility in low-visibility conditions, while daytime running lights help to improve the visibility of vehicles during the day.
On-Highway Vehicle Lighting Market Vehicle Type Insights
The Global On-Highway Vehicle Lighting Market is segmented by Vehicle Type into Passenger Cars, Commercial Vehicles, and Two-Wheelers. Passenger Cars held the largest market share in 2023, accounting for around 60% of the Global On-Highway Vehicle Lighting Market revenue. The growth of the Passenger Cars segment is attributed to the increasing production and sales of passenger cars globally. Commercial Vehicles are expected to witness a significant growth rate during the forecast period, owing to the rising demand for commercial vehicles in emerging economies.Two-wheelers are also expected to grow at a steady pace, driven by the increasing popularity of two-wheelers in developing countries.
On-Highway Vehicle Lighting Market End User Insights
The Global On-Highway Vehicle Lighting Market is segmented based on End User into OEMs and Replacement Market. The OEMs segment held a larger market share in 2023 and is expected to continue its dominance throughout the forecast period. This is primarily attributed to the increasing demand for new vehicles, especially in emerging economies. The Replacement Market segment is expected to witness a steady growth rate over the forecast period, driven by the rising number of vehicles on the road and the need for regular maintenance and replacement of lighting components.In 2023, the Global On-Highway Vehicle Lighting Market for OEMs was valued at 18.79 (USD Billion) and is projected to reach 24.91 (USD Billion) by 2032, exhibiting a CAGR of 3.21% during the forecast period. The Replacement Market segment is expected to grow from 12.51 (USD Billion) in 2023 to 17.4 (USD Billion) by 2032, registering a CAGR of 3.61% over the forecast period.
On Highway Vehicle Lighting Market Technology Insights
The Global On-Highway Vehicle Lighting Market is segmented by Technology into Adaptive Lighting, Matrix Lighting, and Automatic High Beam. The Adaptive Lighting segment is expected to dominate the market in 2023, with a revenue of 16.2 billion USD. This segment is expected to grow at a CAGR of 5.1% during the forecast period, reaching a value of 20.1 billion USD by 2032. The Matrix Lighting segment is expected to grow at a CAGR of 4.8% during the forecast period, reaching a value of 12.4 billion USD by 2032. The Automatic High Beam segment is expected to grow at a CAGR of 4.2% during the forecast period, reaching a value of 8.3 billion USD by 2032.The growth of the Global On-Highway Vehicle Lighting Market is attributed to the increasing demand for advanced lighting systems, such as Adaptive Lighting and Matrix Lighting, which provide better visibility and safety for drivers.
On Highway Vehicle Lighting Market Regional Insights
The regional segmentation of the Global On-Highway Vehicle Lighting Market provides insights into the market's geographic distribution and growth potential. North America held the largest market share in 2023, accounting for approximately 35% of the global revenue. The region's mature automotive industry, stringent safety regulations, and high consumer spending on vehicles contribute to its dominance. Europe is another significant region, with a market share of around 28% in 2023. The presence of major automotive manufacturers, advanced infrastructure, and government initiatives promoting vehicle safety drive growth in this region.The APAC region is expected to witness the fastest growth during the forecast period, owing to the increasing production and sales of vehicles coupled with rising disposable income. South America and MEA are expected to contribute a smaller share to the global market, but they offer growth opportunities due to the expanding automotive sector and improving economic conditions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
On-Highway Vehicle Lighting Market Key Players And Competitive Insights
Major players in the On-Highway Vehicle Lighting Market are adopting various strategies to expand their market share and gain a competitive advantage. These strategies include acquisitions, collaborations, partnerships, and new product development. For instance, in 2023, Hella, a leading automotive lighting supplier, acquired the lighting business of Ichikoh Industries, a Japanese automotive parts manufacturer. This acquisition allowed Hella to strengthen its position in the Japanese market and expand its product portfolio. Similarly, in 2023, Koito Manufacturing, another major player in the On-Highway Vehicle Lighting Market industry, formed a partnership with Waymo, a self-driving technology company, to develop lighting systems for autonomous vehicles.In addition to acquisitions and partnerships, Leading On-Highway Vehicle Lighting Market players are also investing in research and development to drive On-Highway Vehicle Lighting Market development and innovation. For instance, in 2023, Osram, a German automotive lighting company, announced plans to invest EUR 1 billion in research and development over the next five years. This investment will focus on developing new technologies such as OLED and laser-based lighting systems. Similarly, in 2023, ZKW, an Austrian automotive lighting supplier, announced plans to invest EUR 100 million in a new research and development center. This center will focus on developing new lighting systems for electric and autonomous vehicles.The On Highway Vehicle Lighting Market Competitive Landscape is expected to remain competitive in the coming years. Major players in the industry are likely to continue investing in research and development, acquisitions, and partnerships to gain a competitive advantage.
This competition is likely to drive innovation and new product development, which will benefit end-users.Valeo, a French multinational automotive supplier, is a major player in the On-Highway Vehicle Lighting Market. The company has a strong presence in Europe, Asia, and the Americas. Valeo offers a wide range of lighting products for on-highway vehicles, including headlamps, taillamps, and fog lamps. The company's lighting products are known for their high quality and performance. Valeo is also a leading supplier of lighting systems for autonomous vehicles.Koito Manufacturing, a Japanese multinational automotive lighting supplier, is another major player in the On-Highway Vehicle Lighting Market. The company has a strong presence in Asia and Europe. Koito Manufacturing offers a wide range of lighting products for on-highway vehicles, including headlamps, taillamps, and fog lamps. The company's lighting products are known for their innovation and design. Koito Manufacturing is also a major supplier of lighting systems for electric vehicles.
Key Companies in the On-Highway Vehicle Lighting Market Include
- Ichikoh Industries
- Calsonic Kansei
- Koito Manufacturing Co
- Varroc Lighting Systems
- Stanley Electric
- Marelli
- Magneti Marelli
- Aptiv
- Hyundai Mobis
- ZKW Group
- Philips
- HELLA
- SL Corporation
- Valeo
- OSRAM
On-Highway Vehicle Lighting Market Industry Developments
The global Highway Vehicle Lighting Market is poised to grow from a valuation of 31.3 billion USD in 2023 to 42.31 billion USD by 2032, exhibiting a CAGR of 3.41% during the forecast period. Increasing demand for vehicles with advanced lighting systems, government regulations, and technological advancements are key factors driving market growth.Recent developments include the rise of adaptive driving beams, which automatically adjust to optimize visibility based on surrounding conditions. The integration of sensors and cameras allows for enhanced safety features, such as pedestrian detection and lane departure warnings. Additionally, the adoption of Light Emitting Diodes (LEDs) and Organic Light Emitting Diodes (OLEDs) is gaining traction due to their energy efficiency and design flexibility.
On-Highway Vehicle Lighting Market Segmentation Insights
On-Highway Vehicle Lighting Market Light Source Outlook
On-Highway Vehicle Lighting Market Application Outlook
- Headlamps
- Tail Lamps
- Fog Lamps
- Daytime Running Lights
On-Highway Vehicle Lighting Market Vehicle Type Outlook
- Passenger Cars
- Commercial Vehicles
- Two-Wheelers
On-Highway Vehicle Lighting Market End User Outlook
On-Highway Vehicle Lighting Market Technology Outlook
- Adaptive Lighting
- Matrix Lighting
- Automatic High Beam
On-Highway Vehicle Lighting Market Regional Outlook
- North America
- Europe
- South America
- Asia-Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
30.27(USD Billion) |
| Market Size 2023 |
31.3(USD Billion) |
| Market Size 2032 |
42.31(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
3.41% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2022 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Ichikoh Industries, Calsonic Kansei, Koito Manufacturing Co, Varroc Lighting Systems, Stanley Electric, Marelli, Magneti Marell, Aptiv, Hyundai Mobis, ZKW Group, Philips, HELLA, SL Corporation, Valeo, OSRAM |
| Segments Covered |
Light Source, Application, Vehicle Type, End User, Technology, Regional |
| Key Market Opportunities |
1 Increased demand for autonomous vehicles2 Growing adoption of LED and OLED technologies3 Rising focus on energy efficiency and sustainability4 Growing popularity of connected vehicles5 Technological advancements and innovation |
| Key Market Dynamics |
Increasing adoption of LED technology Growing demand for vehicles with enhanced safety features Stringent government regulations on vehicle safety Technological advancements in automotive lighting systems Rising popularity of autonomous vehicles |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global On-Highway Vehicle Lighting Market was valued at 31.3 USD Billion in 2023 and is projected to reach 42.31 USD Billion by 2032, exhibiting a CAGR of 3.41% during the forecast period.
Asia-Pacific is expected to dominate the Global On-Highway Vehicle Lighting Market throughout the forecast period. This dominance can be attributed to the presence of major automotive manufacturing hubs in the region, such as China, Japan, and India.
The growing demand for vehicles with advanced lighting systems, increasing government regulations regarding vehicle safety, and the rising adoption of electric vehicles are some of the key growth drivers of the Global On-Highway Vehicle Lighting Market.
On Highway Vehicle Lighting finds applications in various vehicle types, including passenger cars, commercial vehicles, and two-wheelers. These lighting systems are used for various purposes, such as headlamps, taillamps, fog lamps, and turn signals.
Some of the key competitors in the Global On-Highway Vehicle Lighting Market include HELLA, OSRAM, Valeo, Automotive Lighting, and Magneti Marelli Automotive Lighting.
The COVID-19 pandemic had a significant impact on the Global On-Highway Vehicle Lighting Market, leading to a decline in vehicle production and sales. However, the market is expected to recover in the coming years as the automotive industry rebounds.
Some of the key trends in the Global On-Highway Vehicle Lighting Market include the increasing adoption of LED and OLED technologies, the integration of advanced driver assistance systems (ADAS), and the growing demand for customized lighting solutions.
The future of the Global On-Highway Vehicle Lighting Market looks promising, driven by the increasing demand for vehicles with advanced lighting systems, the growing adoption of electric vehicles, and the increasing focus on vehicle safety.
The Global On-Highway Vehicle Lighting Market faces several challenges, including the high cost of advanced lighting technologies, the stringent regulatory requirements, and the intense competition in the market.
The Global On-Highway Vehicle Lighting Market is expected to Register a CAGR of 3.41% during the forecast period from 2024 to 2032.
