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Automotive Off-road Lighting Market share is expected to increase by USD 4.39 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 8.77%.
This market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by end user (aftermarket and OEMs) and geography (North America, Europe, APAC, South America, and MEA). The market report also offers information on several market vendors, including C.G. Motorsports Inc., Grote Industries LLC, Guangzhou Teehon Electronics Co. Ltd., HELLA GmbH and Co. KGaA, KC HiLiTES Inc., Lazer Lamps Ltd., Oracle Lighting, OSRAM GmbH, Truck-Lite Co. LLC, and Valeo SA among others.
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Based on our research output, there has been a impact on the market growth during and post COVID-19 era. The increasing demand for vehicles for recreational and adventurous sports activities is notably driving the market growth, although factors such as legal limitations associated with use of off-road vehicles may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the market industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Market Driver
Increasing demand for vehicles for recreational and adventurous sports activities.The global automotive off-road lighting market is highly dependent on the demand for off-road vehicles. Therefore, factors that positively impact the growth of off-road vehicles will boost the global automotive off-road lighting market during the forecast period. The rising number of recreational and adventure sports activities across several regions is accelerating the demand for off-road vehicles, which is driving the growth of the off-road vehicles or all-terrain vehicles (ATV) market. North America and Europe are the major regions that are experiencing growth in mountain racing and dirt racing activities and enthusiasts. Associations such as the Canada Council of Snowmobile and North America Snowmobile conduct sports events every year, which drives the sales of ATVs. Furthermore, the Canadian Off-highway Distributors Council provides training on safety while riding ATVs. Also, the growing number of off-road vehicles due to increasing recreational and adventure sports activities has made it imperative for users to seek regular maintenance with frequent replacement of worn-out vehicle parts and components. Therefore due to increasing recreational and adventure sports activities, the demand for off-road vehicles is expected to during the forecast period.
Key Market Trend
Growing demand for SUVs and pick-up trucks. Vehicles such as SUVs and pick-up trucks are used for off-roading because of their capabilities such as all-wheel drive, high ground clearance, and different driving modes. For instance, four-wheel-drive SUVs like Toyota Fortuner, Toyota Land Cruiser, and Mitsubishi Pajero are used for dune bashing. Therefore, the sales of SUVs and pick-up trucks, especially in North America and Europe, have been increasing. The growing demand for SUVs across the world is reducing the market share of hatchbacks and sedans. For instance, the continuous growth in demand for SUVs has contributed to a decline in the sales of sedans in the US, which has resulted in the discontinuation of the production of sedans by Ford Motor and General Motors Co. (General Motors). In 2018, the US vehicle sales decreased by about 2% in comparison to 2017 due to the rise in interest rates and increasing sales of used vehicles through dealer channels. However, the sales of SUVs and pick-up trucks have increased significantly over the years. Similarly, countries in Europe and APAC are also experiencing a rise in demand for SUVs as compared to other types of passenger cars.Thus, such factors will accelerate the growth of the auto parts and equipment market and, subsequently, drive the growth of the global automotive off-road lighting market during the forecast period.
Key Market Challenge
Rising preference for durable and energy-efficient, off-road lighting. Automotive lighting systems have evolved from halogen lights to laser lights. Advanced lighting technologies such as high-intensity discharge (HID) and light-emitting diode (LED) were first installed in on-road vehicles. Off-road lighting is subjected to high vibrations, which decrease its lifespan due to wear. This generates the need for advanced off-road lighting with high power and durability. A rise in the preference for durable and energy-efficient lighting for off-road vehicles is increasing the demand for LED lights and HID lights. Automotive off-road lighting manufacturers, such as Grote Industries, KC HiLiTES, and Valeo, offer various types of LED lights for off-road vehicles. Though LED lights are more expensive than halogen and xenon lights, their benefits in terms of efficiency and durability have made LEDs the fastest-growing lighting technology in the global automotive off-road lighting market. Hence, the increased adoption of LEDs in automotive off-road lighting systems will drive the revenues of vendors, thereby driving the market in focus during the forecast period.
This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes automotive off-road lighting market as a part of the global automotive components and accessories market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying growth strategies such as organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the automotive components and accessories market includes the following core components:
The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by End-user
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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