Off-highway Vehicle Lighting Market – Industry Insights by Product and Application
The global Off-Highway Vehicle Lighting Market size is expected to reach USD 1,565.3 million by 2028, according to a new report by Grand View Research, Inc. It is projected to register a CAGR of 7.0% from 2021 to 2028. The growing emphasis on public infrastructure development is expected to drive the demand for off-highway vehicles, which bodes well for the market growth over the forecast period. Moreover, continued advancements in product technologies, coupled with stringent government regulations, are also anticipated to support market growth over the forecast period.
The growing population in Asian countries, such as China and India, is driving the need for better public infrastructure. Governments of these economies are aggressively investing in infrastructure development projects. For instance, in India, the government is expected to invest USD 670.5 billion (INR 50 trillion) to improve the country’s public infrastructure. The country’s government has also announced several plans for infrastructure development to be undertaken in the next few years. For example, the “Bharatmala Yojana” includes provisions for improving the road networks throughout the country. The Indonesian government has more than 20 projects lined up for the development of more than 52,000 of its rural villages by building better roads, houses, hospitals, and other necessary infrastructure. These ongoing and proposed investments in infrastructure development projects are expected to drive the demand for off-highway vehicles, which is expected to bode well for the growth of the market for off-highway vehicle lighting.
The off-highway vehicle lighting landscape is evolving continuously as manufacturers offer products based on the latest technologies to ensure more safety, improved performance, and better aesthetics. At present, companies, such as Grote Industries, HELLA GmbH & Co. KGaA, Truck-Lite, and ABL Lights Group, are providing off-highway vehicle LED lights for various off-highway vehicle applications such as headlights, taillights, side lamps, and indicator lights. Simultaneously, construction equipment makers are also introducing equipment with enhanced work lights to provide adequate illumination and visibility at worksites. For instance, Caterpillar, a manufacturer of heavy construction, mining, and material handling equipment, provides multiple types of work lights, including LED, halogen, high-intensity discharge (HID), and LED floodlights, on its construction equipment. These lights are also provided as an optional fitment for aftermarket installation.
The COVID-19 pandemic has severely impacted the demand for off-highway vehicle lighting in 2020. Efforts to contain the pandemic have resulted in the implementation of lockdowns and social distancing norms globally, subsequently leading to losses for industries such as manufacturing, automobile, entertainment, construction, restaurant, and hospitality. The pandemic has also negatively impacted construction equipment sales as the production was either completely stopped or slowed down by various manufacturers. European countries such as Germany, Italy, France, and the U.K., which are the leading equipment producing countries, witnessed the most significant impact of the closures. However, governments have begun to gradually relax lockdown norms and allow businesses to operate with mandates of social distancing. As a result, the market can expect a period of respite for the short term due to the reopening of multi-million-dollar infrastructure projects across developed and emerging economies.
The Asia Pacific regional market contributed to around 35% of the off-highway vehicle lighting demand in 2020 and is estimated to register at a CAGR of 5.3% over the forecast period. This growth can be attributed to the increasing adoption of off-highway equipment used in infrastructure development activities in countries such as China, India, Japan, and Taiwan. The market in Middle East and Africa (MEA) is projected to expand at the highest CAGR over the forecast period. GCC countries, including Saudi Arabia, the UAE, Oman, and Qatar, particularly, have several multi-million-dollar infrastructure projects lined up, which is anticipated to increase the demand for construction equipment in the forthcoming years.
Related Press Release@ Off-highway Vehicle Lighting Market Report
Off-highway Vehicle Lighting Market Report Highlights
- In terms of product, the LED segment is estimated to expand at the highest CAGR of around 9% over the forecast period. This can be attributed to the increasing demand for energy-efficient lighting in off-highway vehicles
- In terms of application, headlamp emerged as the largest segment in 2020. It is anticipated to rise to a valuation of over USD 900 million by the end of the forecast period
- In terms of end use, the construction segment accounted for the largest revenue share of around 55% in 2020. The notable rise in sales of construction equipment post the COVID-19 lockdown in various countries is expected to propel the demand for construction equipment
- The Asia Pacific regional market held the largest revenue share in 2020, attributed to the presence of key manufacturers in Asian countries, including China, Japan, and Taiwan