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Headlights Market Size Worth $12.5 Billion By 2030: IndustryARC

Oct 6, 2023 1:00 AM ET

Headlights Market Size Worth $12.5 Billion By 2030: IndustryARC

Headlights Market size is predicted to reach $12.5 billion by 2030, growing at a CAGR of 6.3% during the forecast period 2023-2030 according to the latest market research report published by IndustryARC. The surging demand for durable and low-cost headlights, rising demand for the commercial vehicles due to increase in trade and growing demand for passenger vehicles are poised to propel the market growth, finds IndustryARC in its recent report, titled “Headlights Market Size, Share & Trends Analysis Report By Type (LED, Halogen, Xenon), By Category (Conventional Headlights, Adaptable Headlights), By Drive Train (Internal Combustion Engine, Pure Electric, Hybrid Electric), By Vehicle Type (Passenger Vehicles, Light Commercial Vehicles, Heavy Commercial Vehicles, Specialty Vehicles, Others), By Sales Channel (OEMs, Aftermarket), By Region and Segment Forecasts, 2023–2030”.

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Asia Pacific to Register Highest Growth:

The headlight market in this region is expanding due to the rise in demand for advanced technologies like adaptive headlights and laser-focused headlights for better navigation at night. Additionally, the Asia-Pacific region, accounts for 60 percent of the world’s population and is home to some of the fastest-growing nations, including China and India. There is a strong presence of major manufacturers that continuously invest in new and innovative product launches and technologies that are the major factors propelling the market growth in this region.

For instance, In April 2022, Tata Motors announced plans to invest Rs. 24,000 crore (USD 3.08 billion) in its passenger vehicle business over the next five years to improve the technology, that provides optimal visibility while preventing drivers from blinding other road users.

Headlights Market 2023-2030: Scope of the Report

Report Metric 


Base Year Considered


Forecast Period




Market Size in 2030

$12.5 billion

Segments Covered

Type, Category, Drive Train, Vehicle Type, Sales Channel and Region

Geographies Covered

North America (U.S., Canada and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia, New Zealand and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), Rest of the World (Middle East and Africa).

Key Market Players

  • Koninklijke Philips N.V.
  • ams OSRAM AG 
  • NAO Electronic Technology Co., Ltd.
  • Faurecia SE 
  • marelli holdings co. ltd. 
  • Valeo
  • Fahren 
  • Stanley Electric

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Headlights Market Report – Key Takeaways:

Increasing technology advancements in headlights drives the Market growth

Matrix and adaptive headlights are advanced versions of LED headlights. Adaptive headlights adjust the beam pattern according to the speed of the car and the direction of the road. Matrix headlights use sensors, cameras, and algorithms to adjust the beam pattern according to the road condition and oncoming traffic. This technology prevents drivers from dazzling other drivers on the road while also providing maximum visibility. In February 2022, Opel and the Technical University of Darmstadt collaborated to perform joint research into an innovative self-adapting headlight and taillight system that adjusts to its surroundings.

LED headlights to Register Highest Growth

The LED headlights market size is predicted to reach $7.1 billion by 2030, growing at a CAGR of 6.8% during the forecast period of 2023–2030. LED headlights offer better durability & controllability and consume less energy. LED headlights can deliver cool daylight colour and instant brightness, thereby improving visibility and reducing the light glare ratio compared to adaptive high beam lights. Furthermore, LED headlights can also be used as Center High-Mounted Stop Lamps (CHMSL) and Daytime Running Lights (DRLs). 

Asia Pacific is Leading the Market

Asia Pacific region held a major market share of 44% in 2022. The Asia-Pacific region is witnessing rapid urbanization, with a growing number of people moving to cities and the adoption of advanced lighting technologies in the automotive industry. This trend is driving the need for improved transportation infrastructure, including road networks. As urbanization and infrastructure development take place, there is an increased demand for passenger vehicles, leading to a higher demand for headlights. 

Sleek designs and shapes of headlights propels the market growth

Headlights are a significant component of the car’s exterior design. With advancements in technology, manufacturers are now able to produce more innovative and streamlined designs that enhance the overall appearance of the car. LED headlights have become the preferred choice for many consumers due to their sleek and stylish designs. In Jan 2022, in the New York Times, it is stated that from $9 million Bugatti hypercars to nine-seat Hyundai minivans, everyone is jumping on the fashion for super-slim headlights.  

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Key Opportunity Analysis: 

Strict rules and standards in night driving

Headlights are an integral component of a vehicle, providing essential illumination for drivers to navigate the roads safely at night or in poor visibility conditions. So the strict rules and standards according to the government norms for night driving drives the headlight market’s growth. In 2022, the National Safety Council stated that, as we get older, a 50-year-old driver may need twice as much light to see as a 30-year-old. At age 60 and older, driving can become even more difficult. Thus, highly capable headlights are increasingly becoming the standard in the industry.

Adaptive headlights navigate better at night

Adaptive headlights are active safety measures for navigation in the dark. They allow the light beam to be turned in response to the steering direction, illuminating the vehicle’s actual route. They increase the visibility around the curves in the ghat roads and hills, making night driving safe. In May 2021, Ford released a technologically advanced headlight that can utilize GPS to intelligently illuminate the road, increasing safety and enhancing night time driving experiences.

Increasing sales of luxury vehicles

Luxury vehicles are quite expensive compared to standard vehicles. The growing demand for luxury vehicles is increasing the demand for advanced and high-quality headlights with advanced functionalities such as automatic beam adjustment, high beam assist, and glare-free lighting. This creates opportunities for market growth. In 2022, the top two automakers, Mercedes Benz and BMW India, are anticipated to record their highest-ever yearly sales.

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The Report also Covers the Following Areas:

Headlights Market Size and Forecast 

Headlights Market Trends

Headlights Market Analysis by Type

Headlights Market 2023-2030: Key Highlights

CAGR of the market during the forecast period 2023-2030

Value Chain Analysis of key stake holders

Detailed analysis of market drivers and opportunities during the forecast period

Headlights Market size estimation and forecast

Analysis and predictions on end users’ behavior and upcoming trends 

Competitive landscape and Vendor market analysis including offerings, developments, and financials

Comprehensive analysis of challenges and constraints in the Headlights Market

Covid and Ukrainian Crisis Impact:

The pandemic resulted in an overall decrease in consumer spending on automobiles and a decline in vehicle sales globally and many automobile component suppliers had to reduce production due to lockdown and supply chain disruptions caused by the pandemic. As the pandemic progressed, people began to rely more on personal vehicles for transportation, leading to a gradual recovery in the aftermarket demand for automotive parts. The post-pandemic outlook for the headlights market appears to be driven by factors such as the recovery of the automotive industry, technological advancements, safety regulations during the forecast period.

Russia is a major supplier of key metals and minerals, and export sanctions have severely impacted commodity demand and prices. Several OEMs in Eastern Europe had paused and slowed their production due to a lack of parts from Ukraine-based suppliers, which had impacted the market a lot. OEMs including Toyota, Ford, Volvo, Jaguar-Land Rover, General Motors, and BMW had ceased export operations to Russia, with many of them suspending Russian joint ventures in response to the invasion.

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List of Key Market Players in Headlights Market:

The Global Headlights Market is fragmented with several global and regional companies operating with expansive manufacturing capabilities and extensive distribution networks. The key companies profiled are listed below:

Koninklijke Philips N.V.


NAO Electronic Technology Co., Ltd.

Faurecia SE 


marelli holdings co. ltd. 




Stanley Electric

Related Reports:

Automotive Adaptive Headlights Market – The global Automotive Adaptive Headlights market size is growing at CAGR 7.29% during the forecast period. Increasing adoption of various vehicles including autonomous vehicles, commercial vehicles, and others; coupled with electrification of automotive industry across the world is affecting the demand for this product including adaptive front lighting systems, which is one of major factors driving the growth of Automotive Adaptive Headlights market.

Automotive Lighting MarketThe global Automotive Lighting Market is growing at an estimated CAGR of more than 4.2% during the forecast period. According to the Association for Safe International Road Travel, road accidents cause approximately 1.25 million death annually. Furthermore, 20-50 million people get injured and disabled every year due to accidents caused on the roads or by natural weather conditions such as rain, fog, dust, snow, and others.

About IndustryARC™:

IndustryARC primarily focuses on Market Research and Consulting Services specific to Cutting Edge Technologies and Newer Application segments of the market. The company’s Custom Research Services are designed to provide insights into the constant flux in the global demand-supply gap of markets.  

IndustryARC’s goal is to provide the right information required by the stakeholder at the right point in time, in a format which assists an intelligent and informed decision-making process.

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Mr. Venkat Reddy IndustryARC Email: [email protected] USA: (+1) 518-282-472


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