Market Trends of Automotive Perimeter Lighting Industry
This section covers the major market trends shaping the Automotive Perimeter Lighting Market according to our research experts:
Increasing Demand from End User is Likely to Drive the Market
Apart from the existing portfolio of perimeter lighting products, like license plate lights and side door mirror lights, automakers are offering puddle lamps, door handle lamps, etc., to provide an enhanced aesthetic appeal during night driving conditions.
Puddle lamps mounted on the side view mirror project the light onto the road surface with a brand logo. Initially, these lights were commonly equipped in luxury and sports cars by automakers. However, as technologically advanced products are easily accessible in aftermarket channels, the cost of puddle lamps declined significantly over the past five years.
Additionally, companies like Mahindra & Mahindra, Toyota, etc., have incorporated these puddle lights in their compact SUV segment cars, as a move to gain a competitive advantage and customer adoption rate.
The demand for such perimeter lighting products has gained traction in North American and Asian countries. Moreover, as the government regulations are not stringent regarding perimeter lights, the demand from the aftermarket has observed a significant traction in the emerging market.
The majority of the market share is captured by the aftermarket channel. Hence, it is easier for new entrants to manufacture these new products, as the capital requirement is low, thereby creating a highly fragmented market situation.
Under the roof lights, auxiliary tail lamps, etc., are some other categories where the online sales channel is more dominant, owing to the highly competitive pricing strategy of e-commerce players.
Asia-Pacific to Dominate the Automotive Perimeter Lighting Market
Asia-Pacific dominates the automobile perimeter lighting market. China is expected to occupy a significantly high market share in the region by 2025. Some of the parameters driving the growth of the market are the increasing disposable income of middle-class consumers, which is giving rise to sales of medium-segment cars and compact SUVs, and an increase in demand for commercial vehicles due to growing activities in the construction, logistics, and tourism sectors.
Electric vehicles offer significant potential for reducing pollution, improving the environment, and creating new industries. However, to support the adoption of EVs in the region, an extensive network of electric charging stations is required to cater to the growing demand for EVs and their drivers. China witnessed major demand for electric vehicles, and such an increase in demand for electric vehicles is likely to witness major growth for the market during the forecast period.
Side mirror lights, a key and common area of focus, must comply with technical standards. The standards stipulate minimum and maximum permissible intensity levels, minimum horizontal and vertical angles of visibility, and minimum illuminated surface area. This ensures that they are visible at all relevant angles, do not glare when someone looks at them, and are suitably conspicuous in conditions ranging from full darkness to full direct sunlight. Moreover, led lighting is proving accessible for this feature, as it can be molded to fit the door mirror.
Europe has been recognized as a significant region, focusing on passenger and pedestrian safety and implementing safety standards for vehicles. The regional automotive manufacturers, along with the automotive component suppliers, have been continually investing in the R&D of safety technologies and rapid technological advancements in the automotive industry.
