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The automotive halogen headlights market size is estimated to decline at a CAGR of -5.32% between 2023 and 2028. The market size is forecast to decrease by USD -1,724.97 million. The growth of the market depends on several factors such as the lower cost benefits of halogen headlights over the headlight types, the growing demand for automobiles in emerging countries, and the safety regulations on automotive headlights.
This automotive halogen headlights market report extensively covers market segmentation by channel (OEM and aftermarket), application (passenger cars and commercial vehicles), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Lower cost benefits of halogen headlights over the headlight types is the key factor driving market growth. Halogen bulbs are the most economical choice for headlights in vehicles. They are not only cost-effective but are also long-lasting sufficiently to justify their pricing. For example, a halogen headlight bulb has an over 100-hour work life, and its replacement cost is just USD 15-USD 30, which is significantly lower than LEDs, which cost around USD 100. The significant cost savings by the adoption of halogen headlights is a key reason for the dominance of halogen headlights in the automotive industry.
In addition, to significantly lower the cost of production of halogen headlights, halogen reflectors are adopted. These headlights inhabit less space than other headlights. This makes them ideal as fitment in entry-level cars. In recent times, automotive OEMs have adopted halogen projector headlights for the top models in the compact vehicle segment to create differentiation in their vehicles. This, in turn, will boost the growth of the market during the forecast period.
The growing popularity of double-barrel headlights is the primary trend shaping market growth. Automotive headlights have become an important part of the exterior design of modern vehicles. Many automotive original equipment manufacturers (OEMs) in compact segment cars prefer double barrel headlights to increase the visual appeal. Double barrel headlights have separate barrels for each light in the headlight.
Moreover, the growing competition in the compact passenger vehicles segment is leading automotive original equipment manufacturers (OEMs) to differentiate their products, in which double barrel headlights are becoming an important differentiating factor. Therefore, the growing popularity of double-barrel headlights will fuel the growth of the market during the forecast period.
The negative impact of the phase-out of incandescent bulbs on halogen headlights is a challenge that affects the growth of the market. Currently, halogen lamps occupy the biggest share of the automotive headlights market because of their smooth availability and low cost. The phasing out of halogen lamps will restrict the market growth, especially in developing regions. Substitutes of halogen lamps in headlights, such as xenon and LED headlights, are gaining traction because of government initiatives to phase out incandescent light bulbs.
Besides, these initiatives are also being introduced in major economies, including emerging markets such as India, which are high-volume adopters of halogen headlights. Thus, the rising focus on phasing out incandescent light bulbs will be a significant challenge that may impede the growth of the global automotive halogen headlights market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Halogen Headlights Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The OEM segment is estimated to witness significant growth during the forecast period. Laser headlight technology is growing steadily, permitting for brighter and more energy-efficient brightness. OEMs are keen to incorporate such advancements into their vehicles to deliver enhanced visibility and safety for drivers. OEMs are looking for ways to differentiate their vehicles from competitors. Laser headlights offered a unique feature that could set their vehicles apart and attract buyers.
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The OEM segment was the largest segment and was valued at USD 6,932.51 million in 2018. OEMs closely monitor improvements in laser headlight technology. As technology enhances and becomes more cost-effective, it becomes more attractive for integration into new vehicle models. The demand for laser headlights among OEMs has continued to grow with the changing technology, which is expected to boost the growth of the OEM segment of the market during the forecast period.
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Middle East and Africa is estimated to contribute 2% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to market players is APAC. The growing population in China, along with the strong economic growth, will drive the automotive halogen headlights market in APAC. Apart from a strong domestic market, China is also an export hub for international OEMs and tire suppliers as they have off-shore manufacturing facilities in the country.
Furthermore, the automotive halogen headlights market in APAC dominates compared to all the other regions due to the growing demand for halogen headlights from emerging markets such as India, Thailand, and Indonesia. Besides, the improvements in economic growth in countries such as China and India have led to a rise in the disposable incomes of consumers, leading to an increase in the ownership of cars. Hence, such factors are expected to drive market growth in this region during the forecast period.
The outbreak of COVID-19 in 2020 had a negative impact on the automotive halogen headlights market in the APAC region. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. The demand for automotive halogen headlights will grow with raised production and demand for vehicles, which will drive the growth of the automotive halogen headlights market in the APAC region during the forecast period.
The automotive halogen headlights market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Automotive Halogen Headlights Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Decelerate at a CAGR of -5.32% |
Market Growth 2024-2028 |
USD -1724.97 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
-4.7 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
Middle East and Africa at 2% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ams OSRAM AG, Autolite (India) Ltd., HELLA GmbH and Co. KGaA, Hyundai Motor Co., Koito Manufacturing Co. Ltd., Koninklijke Philips N.V., LG Electronics Inc., Lumax Industries Ltd., Lumileds Holding BV, Minda Industries Ltd., RAJ ENTERPRISES, Robert Bosch GmbH, Sunway Autoparts, Suprajit Engineering Ltd., Tungsram Operations Kft, Valeo SA, Varroc Engineering Ltd., J.B.INDUSTRIES, TA YIH INDUSTRIAL Co. Ltd., and Uravi T and Wedge Lamps Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Channel
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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