Lighting is of high importance in vehicles and can significantly reduce road accidents by illuminating the oncoming traffic and viewing objects & disruptions on the way. The increasing number of road accidents is one of the prominent concerns across GCC, owing to which governments of different countries in the region are imposing stringent safety standards. It is compelling the people to provide timely inspection, maintenance & replacement to their vehicles & components, including the lighting systems, which, as a result, is leading to the swiftly expanding automotive lighting industry in the GCC.
The GCC Automotive Lighting Market is projected to grow at a CAGR of around 6.50% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the burgeoning vehicle sales across different countries in GCC and the rapidly increasing road accidents & stringent government regulations to reduce them.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Region Covered||UAE, Saudi Arabia, Oman, Bahrain, Kuwait, Qatar|
|Key Companies Profiled||Hella Middle East, OSRAM Middle East, Valeo, etc|
|Unit Denominations||USD Million/Billion|
Besides, the region is witnessing a swift escalation in the car rental sector, i.e., displaying a growing inclination of consumers toward timely maintenance & replacement of different vehicle components and, in turn, mounting demand for automotive lighting. Moreover, the active participation of governments in imposing stringent safety standards on vehicles is another prominent aspect contributing to the market growth.
Furthermore, the leading players in the industry are conducting various research & development activities throughout the GCC on technologically advanced & intelligent lighting systems for vehicles in order to equip them with sensors for benefits like object detection, illuminating approaching traffic, driver assistance, & proximity, i.e., another prominent aspect that projects remunerative opportunities for the market during 2021-26.
Impact of Covid-19 on the GCC Automotive Lighting Market
The advent of Covid-19 in 2020 had a decelerating effect on most businesses across GCC, and the automotive lighting market was no exception. While governments of different member countries imposed stringent movement restrictions & lockdowns to curb the spread of this dreadful disease, the leading players in the market witnessed several unprecedented challenges associated with the development, production, & distribution of vehicle lighting components across the region.
The market witnessed severe disruptions in the supply chain of raw materials, unavailability of labor, and shut down of vehicle manufacturing units amidst the crisis, which caused massive financial losses for the leading market players. Besides, since the sales of vehicles dramatically reduced as people were spending only on essential needs owing to the uncertainty of restrictions, the manufacturing of automotive lighting was next to minimal.
However, since the construction projects were ongoing as they are a prominent income source for the regional economy, the demand for heavy vehicles like OTR, trucks, Buses, etc., was steadily growing. It, in turn, displayed a slight upswing in the production & sales of automotive lighting systems amidst the crisis.
Furthermore, with the declining number of Covid-19 cases, governments of different countries uplifted the restrictions and allowed the recommencement of business operations. Due to this, the leading players started expanding their production capacities to meet the burgeoning end-user requirements across the region and, as a result, enable the market to witness significant growth opportunities in the years to come.