Projected to expand at a sluggish CAGR of just-under 4% over 2017-2022, the global automotive tail light market will possibly surpass the revenue of US$ 12 Bn by the end of 2022. According to a recent publication by Fact.MR, the global market for automotive tail light will continue to witness the miniscule rate of growth owing to limited scope of applicability of automotive tail light, which is expected to remain responsible for undermining the growth prospects of the global market for automotive tail light.
“Adoption of the latest lighting technologies by automotive industry leaders will possibly open multiple doors of growth opportunities for automotive tail light manufacturers, forestalling the visible decline of the global automotive tail light market over 2017-2022.” – Consulting Research Analyst, Automotive Domain, Fact.MR.
Halogen Reigns Supreme; LED Slated for a Higher CAGR in Automotive Tail Light
Despite being a relatively lesser lucrative area of interest for automotive manufacturers and consumers, automotive lighting has been witnessing decent technological innovation over the years. Leading automakers and automotive component suppliers recently revealed the most sophisticatedly functional and aesthetically pleasing innovations in automotive tail lights and headlamps – at the North American International Auto Show (NAIAS), Detroit and CES 2018 technology show, Las Vegas.
LEDs last 20X longer than conventionally used incandescent bulbs, making an excellent attribute for adoption for the former. Moreover, while conventional lamps achieve an electrical conversion of up to 10%, LEDs have been proven to convert nearly 90% of the energy into light.
A number of manufacturers are also focusing on providing LED tailgate light bars for an additional safety and functionality element in heavy transport and commercial vehicles. Despite holding the largest value share of over 50% in the global automotive tail light market, the performance of halogen is presumed to face rigorous competition by LED, which is anticipated to exhibit a higher CAGR through 2022.
Plastics Foreseen to Maintain a Larger Share in Automotive Tail Light Market, over Metals
Research points at the fact that road traffic contributes to approximately one-fifth of the global CO? emissions. While the figure is consistently on the rise, the adoption of lightweight vehicle technology can potentially help reduce it, according to industry experts. A vehicle just-10% lighter in weight tends to consume almost 5% less fuel compared to conventional vehicles, thereby contributing to reduction of CO? emissions.
With increasing concerns among consumers as well as automakers about greenhouse gases emission, the automotive components section is witnessing a drastic surge in the adoption of lightweight vehicular component materials – including plastic. Plastics will continue to gain higher traction than metals used in the manufacturing of automotive tail light – accounting for over two-thirds share of the total automotive tail light market value by the end of the projection period.
Besides the critical need for excellent performance and uncompromised safety, the manufacturers of automotive tail lights have been recently making efforts to meet the drastically ascending demand for lightweight vehicles for greater fuel efficiency. FMR’s study on the global automotive tail light market expects this as a long-term enduring trend, which will strongly trigger the consolidation of manufacturing processes and componentry.
Additionally, FMR’s report on the global market for automotive tail light offers insights on the adoption of the automotive tail lamps by multiple vehicle type manufacturers. The report findings indicate that passenger car manufacturers will continue to account for maximum revenue in the automotive tail light market. On the other side, the aftermarket is likely to remain the dominant sales channel operating in the value chain of the automotive tail light market over 2017-2022. Regional analysis of the automotive tail light market forecasts APEJ as the leading regional market for automotive tail light through 2022.