Headlight Market: Global Industry Analysis and Forecast (2024-2030)

Headlight Market was valued at US$ 7.67 Bn. in 2023 and the total revenue is expected to grow at 6.3% of CAGR through 2024 to 2030, reaching nearly US$ 11.77 Bn.
Headlight Market Overview:
The primary purpose of vehicle headlights is to light the road and allow fatigue-free and safe driving. Thus, headlights and their light sources are important vehicle components for safety. They must be authorized by a formal authority and cannot be changed. The law regulates the type and position of vehicle light functions, as well as their design, light sources, colors, and photometric values, all of which are driving elements in the headlight market.

Traditionally, headlights with H3, HB3, H7, and H9 bulbs have been utilized in vehicle lighting. They are still very popular today. Halogen headlights as original equipment now have a very good price/performance ratio thanks to advances in halogen technology. Modern automobile lighting is a new trend. Factors such as rising technical improvements in headlights, the continuous increase in vehicle manufacturing, and tight regulations and standards environment are some of the factors that contribute significantly to market growth.

The headlight also increases driver and passenger performance and security while delivering a complicated design to match the appearance of a luxury automobile. OSRAM, Valeo, and Philips are some of the major companies in this market, offering a wide range of automotive lighting solutions. Automotive manufacturers now have the opportunity to differentiate their products through unique characteristics and creative lighting concepts thanks to LED technology. As the price, package size, and brightness of LEDs decrease, their popularity is rapidly increasing.To know about the Research Methodology :- Request Free Sample Report
Headlight Market Dynamics:
OLED penetrates the headlight market and creates new opportunities for new headlight market players.

The primary drivers of this growth include increased attention to road safety, rising demand for improved car technology, and advancements in interior lighting solutions. The latest and most popular trend in the automotive headlight market is the use of OLED for both interior and external headlights. Interior ambient lighting is quite important in the interior of a vehicle. Automobile manufacturers provide multi-color environment lighting, and car owners may choose the lamplight color and brightness to enhance their driving experience, which drive the headlight market.

Thanks to Apple, OLED has gained popularity over the last few years. After the introduction of OLED in the iPhone X as a full-screen dynamic light with low afterglow and low power consumption, automotive manufacturers recognized OLED as a potential. OLED is unlike any other light source. It makes advantage of organic matter's self-luminous property, which consumes less energy and generates soft, low-blue light that is extremely comparable to natural light.

Furthermore, OLED lighting has a low heat value, which is beneficial to environmental conservation. The thin and light characteristics of OLED grabbed the interest of vehicle manufacturers since it helps deliver convenience and freedom to design while also enabling patterned lighting.

As a result, OLED technology is emerging as the most demanding and actively penetrating technology in automotive headlights, healthcare, and a variety of other sectors. Furthermore, automakers such as Audi and BMW have already used OLED in their vehicles and have progressed to OLED-based interior illumination for cars. For example, Audi's A8 and S8 models will come standard with digital OLED rear lights in 2023. On the A8, customers may select between two light signatures (the S8 offers three possible signatures). Audi claims the first vehicles will be delivered in the second quarter of 2023. OLEDWorks manufactures OLED panels.

The taillights of the 2020 H9 Hongqi (a Chinese manufacturer owned by FAW Car company) sedan are illuminated with OLED lighting panels. Each module of the H9 contains four red OLED displays. The panels are 131x32 mm and include 5 segments each. The color code is CIY (0.69, 0.31). Yeolight manufactures the panels.

Increasing demand for leaser lights for better visualization and making cars smarter

Laser light is an absolute innovation in vehicle lighting and the next big step forward after the introduction of halogen, xenon, and LED headlight technology. This lighting trend brings up entirely new possibilities for the design and performance of headlights.

Laser headlights are one of the market's most modern headlight technologies. They initially appeared in Germany, where drivers need lights on expressways for more than 600m due to their fast speeds. Laser is currently the only technology that allows for such long-distance lighting. Laser headlights operate differently from LED headlights. A laser diode (typically blue) impacts a sequence of micromirrors, following which a phosphor element helps in the creation of white light, and finally a number of lenses. The width of the light beam may be controlled by adjusting the location of the micromirrors. The headlight can emit a small, brilliant beam or a broad, long-range beam, which drives the headlight market.

One of the most important driving factors of laser headlights is the addition of a second infrared laser to the lighting system. This second light source might also function as a Lidar to measure the distance to various obstacles or as a night vision camera. This second light source might possibly be used as a communication transmitter to other automobiles or road features. For example, The BMW i8 and Audi R8 LMX were released almost immediately with the first series production automobiles featuring laser headlights. The new BMW 7 Series with new features launched in 2020.

As a system partner, OSRAM was significantly involved: the laser full beam is based on OSRAM Specialty Lighting innovations. The whole beam of these cars has a range of up to 600 meters as a consequence of this laser technology, which is double the distance of the current standard LED headlights.

The high cost of headlights and repair costs hamper the market growth

The growing requirement for operational efficiency improved overall safety, and increased visibility is likely to drive demand for headlights. Intelligent headlights, on the other hand, are linked to car sensors, allowing them to automatically change based on the driving environment. This gradually raises the price of headlights used in automobiles.

Certain automotive parts are growing more expensive as cars become more complex and technologically advanced, which is hampering the headlight market during the forecast period. While this method may still be viable for some models, for the majority of automobiles, this simple repair has become more complicated and time-consuming. On some vehicles, the entire headlamp must be removed, which may require the removal of the entire bumper.

If customers only need to replace the headlight bulb, a package of halogen replacement bulbs can cost as little as $15. Customers may have to spend more for HID replacement bulbs depending on the type of bulb they want. The cost of replacing a whole headlight assembly varies greatly based on the brand and model of the vehicle, as well as whether it is a sedan, pickup truck, or SUV. The cost of a high-quality headlight assembly can be anywhere in the range of $250-$700.
Headlight Market Segment Analysis:
Based on Type, the Headlight Market is segmented into Xenon, LED, and Halogen. LED is expected to dominate the market during the forecast period. Global Automotive LED Product Trend and Regional Market Analysis,' the global penetration rate of LED headlights will exceed 60% in 2023, with penetration in new energy vehicles (NEV) exceeding 90%. The automotive LED light sector has grown significantly in the previous half-decade as global demand for premium automobile cars has increased. The rising human population may drive the demand for LED headlights during the forecast period.

The demand for energy-efficient lighting solutions is driving the growth of the automotive LED headlights market. The EV industry is largely driven by growing environmental concerns and government efforts. The effectiveness of lighting systems is important to automotive safety. As a result, automotive headlamp OEMs and suppliers are increasingly focused on offering an efficient lighting system in automobiles. When it comes to light output, LED headlights can illuminate a longer distance than halogen headlamps. During the forecast period, these factors will drive the global automotive LED headlights market.

Automotive LED manufacturer Revenue ranking 2020-2021 (Units: USD Million)




Revenue
Revenue


Company
2020
2021
2020
2021


ams-OSRAM
926
1304
38.40%
37.20%


Nichia
647
809
23.30%
23.10%


Lumileds
315
401
11.80%
11.40%


Stanley
212
231
8.00%
6.60%


Dominant
136
199
5.10%
5.70%


Seoul Semiconductor
130
155
4.90%
4.40%


Samsung LED
71
121
2.70%
3.40%


Everlight
67
69
2.50%
2.00%


CREE LED
38
40
1.40%
1.10%


Lextar
8
35
0.30%
1.00%


Other
110
141
4.10%
4.00%


Total
2660
3506
100%
100%



Based on the Application, the Headlight Market is segmented into passenger cars and commercial vehicles. Passenger cars are expected to dominate the headlight market during the forecast period. Passenger vehicles include two-wheelers, three-wheelers, and passenger cars. The development of this market sector is due to rising purchasing power, growing automotive demand among the population, as well as the rapid expansion of such cars' manufacturing and sales.

In comparison to the Q1 and Q2 sales of 2020, the OICA reported that the global sale of passenger cars climbed by 26% in 2023. Similar to this, an IBEF study states that India sold 27.11 lakh units of passenger automobiles in FY21. The need for adaptive headlights is fueled by these advances. The popularity of e-bikes, e-scooters, and other eco-friendly vehicles is increasing as a result of rising public awareness of environmental concerns and government attempts to encourage the use of such vehicles. As a result, demand for passenger cars with headlights has increased.
Headlight Market Regional Insights:
The Asia Pacific is expected to dominate the market with a 43 % share in 2023. Due to the region's industrialization and urbanization, growing economies like China and India are expected to drive the growth of the automotive headlight market in APAC.

The automotive headlight market is now dominated by China in terms of installation, which in turn increases the need for the market in the region. In 2018, China, which is the world's largest car manufacturing country, manufactured 27,809,196 automobiles. Several significant automakers are based in the country, including SAIC Motor, Dongfeng, FAW, and Chang'an. A few western auto manufacturers are also concentrating on growing in China to provide a wider range of customers.

For instance, to improve its capacity for growth, French supplier Valeo developed its tech center in central China. Additionally, regional players are concentrating on creating an effective lighting solution in order to gain a dominant market position. Therefore, it is expected that the growth of the automotive headlight market in the country would be primarily driven by the country's robust automotive sector and the growing focus of western automakers on expansion into the country.
Competitive Landscape
Japanese market players are expected to dominate the Asian market, with Koito and Stanley accounting for 44% of the headlight market. Local players dominate the automotive headlight market in Europe, such as the automotive headlight market players of Marelli, Hella, Valeo, and ZKW. The Japanese company Koito dominates the North American market, which is expected to be worth over $6 billion in 2022 and is closely followed by the French company Valeo.
To target the automotive lighting industry, players adopt several techniques. For example, Marelli and Hella focus largely on technology. Both companies concentrate on high-end applications, whereas Koito, Valeo, and Stanley concentrate on the middle-end segment.

Numerous mergers and acquisitions show how rapidly the automotive lighting sector is changing. The acquisitions of ams OSRAM Automotive Lighting Systems GmbH (AMLS) by Plastic Omnium and Hella by Faurecia prove that headlight is not just used in the front and back of vehicles. Now, the headlight is incorporated with other components of the car. New parts, such as the grille or the logo, are now illuminated as lighting becomes more horizontal. ADAS, communication, and customization features are increasingly being added to the headlight, which traditionally served as a very basic functional purpose. Lighting has developed from a strictly functional application with no additional value to a more intelligent application that offers customization, communication, and driving assistance.
Headlight Market Scope: Inquiry Before Buying



Headlight Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 7.67 Bn.


Forecast Period 2024 to 2030 CAGR:
6.3%
Market Size in 2030:
US $ 11.77 Bn.


 Segments Covered:
by Technology
1. Xenon
2. LED
3. Halogen


by Vehicle Type
1. Passenger Cars
2. Commercial Vehicles


by Sales Channel
1. OMEs
2. Aftermarket



Headlight Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Headlight Market, Key Players are
1. continental AG
2. DE amertek corporation
3. Hella GmbH & Co
4. KGaA
5. Hyundai mobis Co.LTD
6. Robert Bosh GMBH
7. Stanley electric Co.LTD
8. Valeo SA
9. Koito manufacturing Co.LTD
10. Koninklijke Philips N.V
11. J.W. Speaker Corporation
12. Osram GmbH
13. ZKW Grow

Frequently Asked Questions:

1] What segments are covered in the Global Headlight Market report?
Ans. The segments covered in the Headlight Market report are based on Product Type and End User.

2] Which region is expected to hold the highest share in the Global Headlight Market?
Ans. The Asia Pasific region is expected to hold the highest share in the Headlight Market.

3] What is the market size of the Global Headlight Market by 2030?
Ans. The market size of the Headlight Market by 2030 is expected to reach US$ 11.77 Bn.

4] What is the forecast period for the Global Headlight Market?
Ans. The forecast period for the Headlight Market is 2024-2030

5] What was the market size of the Global Headlight Market in 2023?
Ans. The market size of the Headlight Market in 2023 was valued at US$ 7.67 Bn.