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.
Based on Application:
Here, the Rear application acquired the largest share in the GCC Automotive Lighting Market in previous years, and their dominance is likely even during 2021-26. It attributes principally to the growing number of road accidents and, in turn, an increasing need for enhanced lighting in the rear of vehicles to avoid such situations.
Besides, with the growing inclination of lighting system manufacturers toward bringing innovations & efficiency in their products, the burgeoning development & extensive availability of headlamps, DRLs, & LEDs are also playing a crucial role in driving the market. Since LEDs emit more noticeable & vibrant colors and illuminate instantly, automakers are making all of their vehicles fitted with these lighting systems, and thus positively influencing the overall market growth.
Geographically, the GCC Automotive Lighting Market expands across:
Of all countries in GCC, Saudi Arabia is expected to dominate the Automotive Lighting Market with the largest share during 2021-26. It owes principally to the rapidly increasing automotive sales, especially passenger vehicles, across the country due to the improving economic conditions, changing living standards, & growing inclination of people toward private vehicle ownerships.
It, in turn, is directly influencing the demand for automotive lighting and instigating manufacturers to increase their production capacities to meet the mounting consumer demand across Saudi Arabia. Besides, automobiles are more like a status symbol than a need for the Saudi people. Hence, they are playing a significant role in rapidly increasing vehicle sales and the mounting demand for lighting components across Saudi Arabia, which, in turn, is fueling the overall market growth.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The GCC Automotive Lighting Market is expecting around 6.50% CAGR during 2021-26.
A. The burgeoning vehicle sales in different countries across GCC due to improving economic conditions and mounting customer preference toward private vehicle ownerships are positively influencing the demand for vehicle lighting components and, in turn, driving the GCC Automotive Lighting Market.
A. The advent of sensors & technologically advanced features in automotive lighting systems is the key trend in the Automotive Lighting Market across GCC.
A. The Rear application of lighting systems is anticipated to emerge as an area of remunerative opportunities for the leading players in the GCC Automotive Lighting Market over the forecast years.