In the European lighting components aftermarket, halogen lamps are gradually being replaced as LED components yield growth, finds Frost & Sullivan
SANTA CLARA, California, July 1, 2020 /PRNewswire/ -- Frost & Sullivan's recent analysis, Growth Opportunity Evaluation in the European Lighting Components Aftermarket, 2020–2026, finds that the market is in a slow transition phase, shifting from traditional halogen lamps to Xenon and light-emitting diode (LED) components, as Xenon/LED lights have better visibility and product life. The market is primarily driven by an increase in vehicles in operation (VIO), which is expected to rise from 306 million in 2020 to 335.9 million in 2026, growing at a compound annual growth rate (CAGR) of 1.6% by 2026 across the region. However, amid post-COVID-19 industry recovery, the lighting components aftermarket is expected to witness minimal short-term growth.
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"The European Union's directive requires all passenger cars to be equipped with automated headlights/daytime running light. This is boosting the replacement rates in the aftermarket," said Guruswamy Veligandla, Mobility Research Analyst at Frost & Sullivan. "Additionally, poor battery performance and shortage in the electric wiring system in the car lead to the damage of lighting components, driving the upgrade of lighting components.
"Going forward, European lighting components will be equipped with connected and artificial intelligence (AI)-based technologies for the premium and luxurious vehicle segments. Further, LASER/LED high-beam technology will be the future of automotive headlights in the European region as high-beam technology has a better light range than LED."
The European lighting components aftermarket will present growth opportunities for market participants, including:
- Lighting components suppliers need to ensure comprehensive product coverage and availability with major wholesalers and retailers across the region, as well as provide quick and on-time service to customers to help customer retention.
- Focus is on interior lighting, as new-generation vehicles come equipped with additional interior lighting components, such as LED ambient lighting, LED cabin lighting, and improved dashboard lighting in both original equipment and retro fitments.
- Approximately 4% of the lighting components were sold through the eCommerce channel in 2019, which is forecast to substantially grow. Suppliers should focus on eRetail platforms to expand.
- VIO is forecast to grow at a CAGR of 2.4% in the United Kingdom and 1.5% in Germany until 2026—higher than other countries. This will trigger high growth for the lighting components aftermarket in these two countries.
Growth Opportunity Evaluation in the European Lighting Components Aftermarket, 2020–2026 is the latest addition to Frost & Sullivan's Mobility research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Growth Opportunity Evaluation in the European Lighting Components Aftermarket, 2020–2026
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SOURCE Frost & Sullivan