Increasing Production of Automobiles to Spur the Demand for Automotive Rear Lights Worldwide
The global automotive rear lights market is poised to reach US$ 7.79 Bn by 2027, expanding at a CAGR of 4.7% during the forecast period from 2019 to 2027. Digitalization in the automotive industry has taken production into the fast lane. Increasing automotive production worldwide has therefore created a huge demand for related components, including rear lights. Most automobile manufacturing companies are implementing innovative and advanced technologies in vehicle lighting systems in a bid to develop energy-efficient solutions. In the wake of this, several automobile manufacturers worldwide have formed partnerships with lighting product manufacturers. For instance, in May 2019, OLEDWorks announced its pre-development collaboration with Audi to develop advanced OLED lighting solutions for rear lighting in automobiles.
Market Synopsis
High demand for advanced rear lights in passenger cars is driving the growth prospects.
Passenger cars accounted for the largest market share in the automotive rear light market in 2018. Passenger cars contribute nearly 70% of the total vehicle production, which in turn drives demand for related components, including rear lights in passenger cars. The increasing adoption of L.E.D. and OLED technology for rear lights in automotive is one of the key trends shaping market demand in this segment. For instance, in November 2018, Lextar Electronics announced its plan to introduce the I-Mini Square module for automotive tail light applications. The new mini L.E.D. technology has transformed taillights into smart devices by enabling some of the advanced features that include high reliability, durability, a thin design, and high resolution, among others.
Asia Pacific to Dominate the Global Automotive Rear Lights Market Throughout the Forecast Period
Asia Pacific dominated the global automotive rear lights market in 2018 owing to the highest production and sale of passenger cars. Furthermore, an increase in the purchasing power of consumers, along with growing economies, is projected to fuel demand for automotive products and, consequently, rear lights in the coming years. Asia Pacific held approximately 40% of the value share in the global automotive rear light market in 2018. India, China, Japan, and Taiwan are the major manufacturing hubs and automotive markets in Asia-Pacific. Europe is projected to have steady growth during the forecast period because of stringent government regulations for road safety. As per the law, the European Commission has mandated the use of running lights for the rear end to increase the visibility of the vehicle.
O.E.M. Channel Expected to Register Strong Growth During the Forecast Period
In terms of value contribution, O.E.M. held the largest share, nearly accounting for 80% of the market share in 2018 and registering strong growth over the forecast period. The anticipated growth will be driven by growing automotive production and the consequent demand for rear lights among car manufacturers. The ongoing trend in the automotive industry depicts a shift in consumer preference from halogen lights to L.E.D. lights. With L.E.D. lights becoming the preferred variants in the coming years, aftermarket demand is expected to remain sluggish in light of the longer lifespan offered by L.E.D. lights.
L.E.D. rear lights are poised to dominate the overall market in the near future.
L.E.D. is the most promising technology as compared to halogen and xenon owing to the superior benefits offered in terms of efficiency, life span, aesthetics, and design flexibility, among others. Several lighting product manufacturers have incorporated L.E.D. technology into mass production after seeking a significant increase in demand from automobile manufacturers. A spike in demand for L.E.D. lighting in automobiles is also due to the integration of smart technologies into vehicles. Additionally, L.E.D. lights can be programmed to adjust the luminosity as per the requirement, thereby inducing automotive manufacturers to use them in backlight units.
Key Players and Competitive Landscape:
Some of the leading manufacturers profiled in the study include O.S.R.A.M. Automotive, Infineon Technologies, General Electric, Valeo S.A.S.A., Koninklijke Philips N.V., Morey Corp., Phoenix Lamps Limited, Robert Bosch Limited, Sammoon Lighting & Electrical Co. Ltd., Stanley Electric, HELLA KGaA Hueck & Co., Lextar Electronics, Koito Manufacturing Co. Ltd., and J.W.J.W. Speaker, among others.
Historical and Forecast Period
This research study provides qualitative as well as quantitative insights for each segment and sub-segment from 2017 to 2027considering 2018 as the base year for the research. The CAGR (compound annual growth rate) for each segment and sub-segment is calculated for the forecast period from 2019 to 2027
Report Scope by Segments
The research study on the automotive rear light market offers market size and forecasts based on market dynamics and predominant trends shaping the industry. The report provides an all-around view of the global automotive rear light market based on product type, vehicle type, source, sales channel, and geography. Key segments covered in the report are as follows:
Key questions are answered in this report.
What was the global market size for automotive rear lights in 2017 and 2018?
What are the estimated forecast and market projections up to 2027?
Which is the largest regional market for automotive rear lights?
Which vehicle type has the largest penetration of automotive rear lights?
Which is the most preferred technology used for automotive rear lights?
Which are the predominant trends shaping the global automotive rear light market?
Which is the most promising, attractive, and least-explored vehicle type segment in the global automotive rear lights market?
Who are the leading vendors in the global automotive rear lights market?
What are the premiere strategies adopted by the leading manufacturers in the global automotive rear-light market?
Frequently Asked Questions:
The market for Automotive Rear Lights Market is expected to reach US$ 7.79 Bn in 2027
The Automotive Rear Lights Market is expected to see significant CAGR growth over the coming years, at 4.7%
The report is forecasted to 2019-2027.
The base year of this report is 2018.
Competitive Dashboard,Infineon Technologies,General Electric, Valeo S.A.,Koninklijke Philips N.V. are some of the major players in the global market.
