Market Trends of Off Highway Vehicle Lighting Industry
Urbanization and Government Spending Boosting Front Light Demand in Off-Road Machinery
- Government initiatives aimed at encouraging infrastructure activities and the rising adoption of technologically advanced construction equipment, both electrified and autonomous, tend to offer new opportunities for the players operating in the market.
- For instance, in January 2023, the Government of Morocco invested USD 38 billion for the development of rail projects in the county. In October 2022, Nigeria's Lagos state government announced to start of construction of a new airport in the Lekki-Epe region. The new airport facility will cover an area of 3,500 hectares, and construction work is expected to begin next year.
- One of the major factors driving the growth of the market is the growing construction industry, especially in developing countries, owing to numerous growth opportunities in infrastructure, residential, and non-residential sectors.
- For instance, in 2022, the Government of Japan invested USD 1,100 million for the development of logistics facilities with a floor area of 355,109.45 square meters on a 15.7 ha area in Nagoya, Aichi.
- The construction industry is the target destination for most large economies because of accruing benefits, such as the availability of natural resources, huge investment opportunities in energy and infrastructure, cheap labor, and a fast-growing consumer market.
- To cater to the rising demand, the major players in the market are introducing innovative products to maintain their leading position in the market. For instance, Hella GmbH introduced a new range of lighting solutions, especially for mining vehicles. The range includes warning light 'RokLUME S700 Red' along with 'VISIOTECH' projection technology used basically for clear identification of danger zones and RokLUME 380, RokLUME 280, and DuraRAY 4.0 beacon, used for low-fatigue work and underground mining operations.
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Asia Pacific Remains the Largest Market
- The Asia-Pacific region is expected to be the largest market for off-highway vehicle lighting market owing to the high investment in infrastructure and mining activities in the region, followed by Europe and North America.
- The demand is driven by the high rate of urbanization and government spending on construction and mining activities, as the region has two major developing economies in the world, China and India. The governments in these countries are spending heavily on the construction of highways, bridges, and other infrastructures like airports and sports complexes.
- In June 2022, Offshore wind company Corio Generation signed a joint development agreement with Vietnamese construction firm FECON for a 500MW offshore wind project in Vietnam's Ba Ria-Vung Tau province. Located around 23-35km from the coast, the proposed fixed-bottom facility would be among the country's first large-scale offshore wind projects.
- New initiatives from the governments to encourage foreign direct investment (FDI) inflow and favorable policies encouraging long-term investments into the respective countries are expected to further augment the growth of the market, which simultaneously tend to increase demand for construction machinery in the region.
- With the above developments, the region is likely to witness major growth in the market during the forecast period.
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