Automotive Adaptive Headlights Market to Grow at CAGR 7.29% From 2021 to 2026

Automotive Adaptive Headlights Market to Grow at CAGR 7.29% From 2021 to 2026

“Automotive Adaptive Headlights Market”

Adaptive Headlight Enhances the Safety Level of the Vehicles, Which Is One of the Major Growth Drivers of Automotive Adaptive Headlights Market.

Automotive Adaptive Headlights Market Overview

The global Automotive Adaptive Headlights market size is forecast to reach $2.7 billion by 2026, growing at CAGR 7.29% from 2021 to 2026. Automotive Adaptive Headlights is a system, which helps in enhancing the safety of the vehicles, driver and pedestrian, during the night drive as well as under critical weather conditions including fog, heavy rain and others. Increasing adoption of various vehicles including autonomous vehicles, commercial vehicles, and others; coupled with electrification of automotive industry across the world is affecting the demand for this product including adaptive front lighting systems, which is one of major factors driving the growth of Automotive Adaptive Headlights market. Furthermore, these headlights enhance the safety level, which reduces the overall numbers of vehicle accidents. This in turn accelerates the growth of this industry. In addition, the increasing initiatives taken by the Government in the form of laws and regulations, to promote the usage of adaptive headlights and the high adoption rate of driver assistance systems trigger the growth of the Automotive Adaptive Headlights industry during the forecast period 2021-2026.

Automotive Adaptive Headlights Market Segment Analysis – By Function

By function, the Automotive Adaptive Headlights market is segmented into Halogen Headlight, Xenon Headlight, LED Headlight and Others. LED Headlight is analysed to grow at a fastest CAGR of 8.12%, during the forecast period 2021-2026. LED headlights consumes lower amount of energy from the vehicle, which makes LED headlights are more energy efficient than any other automotive headlights. This in turn increases the efficiency of fuel and saves significant amount of money. Furthermore, it offers clearer and effective view of the road at night or during bad weather conditions, as it emits two times more visible light. Moreover, this technology is more durable, efficient and sustainable, which also affects the demand of this product positively. To meet such high demand players of this market are taking various strategic steps. For instance, in October 2020, Audi launched its first digital matrix LED headlights, which can project images on the road like a movie projector as well as around the vehicle in its new electric SUVs, e-tron and e-tron Sportback. Hence, the above-mentioned factors are set to boost the market growth for Automotive Adaptive Headlights market by driving the adoption rate of LED Headlights during the forecast period 2021-2026.

Automotive Adaptive Headlights Market Segment Analysis – By Vehicle Type

Based on vehicle-type, Automotive Adaptive Headlights Market is segmented into Passenger Vehicles and Commercial Vehicles. According to Automotive Adaptive Headlights Market report of IndustryARC, passenger vehicles segment is anticipated to witness a significant amount of growth with a CAGR of 7.32% in the forecast period 2021-2026. Passenger vehicle segment includes Two wheelers, Three Wheelers and Passenger Cars. The growth of this segment is attributed to the increasing purchasing power and growing demand for vehicles among the people along with the high production and sales growth rate of such vehicles. According to a report of OICA, the global sale of passenger vehicles increased by 26% during the 1st and 2nd quarter of 2021, compared to 2020’s Q1 and Q2 sales. Similarly, according to a report of IBEF, in FY21, passenger vehicles sales reached 27.11 lakhs units in India. Such developments drive the demand for adaptative headlights. Growing awareness among the people regarding the environmental issues and Government’s initiatives to promote the usage of eco-friendly vehicles is driving the growth of E-bikes, e-scooters, electric cars and other eco-friendly vehicles. This in turn drives the demand for passenger vehicles along with the adaptive headlights. According to IEA report, the global sales of electric vehicles was more than 2 million in 2019, which is 6% higher than its previous year. Apart from that, people are becoming more health conscious, which is also playing a major role in the growing demand for bi-cycles, as it helps people to stay fit. This will affect the demand for passenger vehicles positively, which will create a prominent upsurge of demand for automotive adaptive headlights across the world during the forecast period 2021-2026.

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Automotive Adaptive Headlights Market Segment Analysis – By Geography

North America held significant amount of the Automotive Adaptive Headlights market share in 2020 and is estimated to grow at a CAGR 5.89% during the forecast period 2021-2026, due to growth rate of automotive industry in this region. The emergence of developing countries such as China, India, Japan and other; increase in purchasing power, high investment in electric vehicle production and increasing government initiatives for the adoption adaptive headlights drives the growth of this market. According to a report of Invest India, Indian Government is planning to make 30% of vehicles in India, electric vehicle by 2030. In June 2019, the coordinating Ministry for Maritime affairs of Indonesia announced about the $2 billion investment plan of a Japanese automotive manufacturer company, Toyota Motors for the development of electric vehicles in Indonesia. Such investments will drive the growth of this market. Apart from that, growing investment in automotive industry in India, China, Japan and other countries of this region propel the growth of Asian automotive adaptive headlights market. According to a report of Invest India, India is estimated to become world’s third largest manufacturer of passenger vehicles by 2021. According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), Indian Automotive industry has attracted Foreign Direct Investment (FDI) worth $25.85 billion between April 2000 and March 2020. Such high investments in automotive industry will drive the growth of automotive adaptive headlights market during 2021-2026.

Automotive Adaptive Headlights Market Drivers

Growth of Automotive vehicle sales is set to boost the Market:With the economic development and rise in purchasing power, the demand for automotive vehicles is growing across the world, which drives the growth of the automotive adaptive headlights market. In December 2020, Society of Indian Automobile Manufacturers (SIAM) published a report, which states that the sales of passenger vehicles increased 4.65% to 264,898 units in November. Furthermore, the demand for electric vehicles is also growing rapidly, due to its environmental benefits and governments initiatives to promote the adoption of EVs. Such high demand of vehicles also affects the demand of adaptive headlights, which gives incentives to the market players of this market to launch more advanced products. In December 2020, Polestar announced the launch of its new technologically advanced lighting system, Pixel LED headlights, to the compact premium electric vehicle segment on its Polestar 2 fastback. Such high growth rate of automotive industry along with advance product launches will create growth opportunity for this market during the forecast period 2021-2026.

Regulations and laws to increase the adoption rate of Adaptive Headlight for enhancing the safety level drives the adoption rate of this productThe adaptive headlight enhances the safety level of the vehicles, which is one of the major growth drivers of this market. These headlights not only help the consumers in driving at the night but also during critical weather conditions, such as fog, heavy rain, dust, snow or others. Inadequate headlight system can cause serious fatal or non-fatal accidents, which can be avoided by adopting adaptive headlights. Moreover, to avoid such incidents and to decrease the accident rate, government imposes many laws related to the headlights. For instance, there is a traffic law in Tennessee, Tenn. Code Ann. § 55-9-406, which states that, headlights must be on continuously during the night driving, or when there is smoke, fog or raining. Such laws related to promote the usage of headlights for safety enhancements drives the growth of this market.

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Automotive Adaptive Headlights Market Challenges

High Cost of this product is harming the growth of Automotive Adaptive Headlights industry:Even though the Automotive Adaptive Headlights market is growing rapidly, but the high cost of this product is one of the major issues faced by this market. Automotive adaptive headlight is not a cheap component of an automotive vehicle. There are many benefits of LED headlights but the high manufacturing cost and the final price of LED headlights is very high, which makes the adoption rate of this product limited to high-end or luxury automobiles. Hence, these challenges are poised to impede the growth of Automotive Adaptive Headlights market during the forecast period 2021-2026.

Automotive Adaptive Headlights Industry Outlook

Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the Automotive Adaptive Headlights Market. As of 2020, the market for Automotive Adaptive Headlights industry outlook is consolidated with the top market players. Automotive Adaptive Headlights top 10 companies include:

Hella KGaA Hueck & Co.

Valeo S.A

Osram GmbH

Continental AG

Ichikoh Industries

Magneti Marelli

Koito Manufacturing Co.

Stanley Electric Co. Ltd

Robert Bosch GmbH

NXP Semiconductors

Acquisitions/Technology Launches/Partnerships

In July 2021, Hero Motorcorp introduced Hero Glamour Xtec, equipped with various advance features such as, LED headlights, Bluetooth connectivity, navigation, XPulse-derived digital instrument console as well as an integrated USB charger.In May 2021, Ford announced the launch of its new technologically advance headlight, which can use GPS to intelligently illuminate the road. It enhances the safety level and improves the night-time driving experience.In April 2021, Samsung launched its new automotive LED module optimized for intelligent headlight systems, PixCell LED, in order to enhance the road safety at night and during poor weather conditions.

Key Takeaways

LED headlight is anticipated to witness the fastest market growth during the forecast period, due to its various advantages over the other segments.

APAC is estimated to witness fastest growth during 2021-2026, owning to the growing demand for vehicles and increasing governments’ initiatives for increasing the usage of adaptive headlights.

The market of Automotive Adaptive Headlights is estimated to witness significant upsurge during the forecast period, owing to the growth of automotive industry.

This industry is consolidated with top market players including Hella KGaA Hueck & Co., Valeo S.A, Osram GmbH, Continental AG, Ichikoh Industries among others.

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