The global headlight market, valued at $6.7 billion in 2021, is projected to soar to $12.0 billion by 2031, according to a new report from Allied Market Research. The industry is expected to grow at a compound annual growth rate (CAGR) of 6.1% from 2022 to 2031, driven by surging demand for LED technology and the rapid rise of electric vehicles (EVs).
LED headlights led the market in 2021, accounting for nearly half of sales, and are forecast to grow at the fastest pace (7.3% CAGR). Passenger cars dominate vehicle-based demand, representing about 60% of the market, while EV headlights are projected to expand at a remarkable 12.5% CAGR.
Original equipment manufacturers (OEMs) remain the largest sales channel, but aftermarket sales are set to grow the quickest, at 8.7% annually. Regionally, Asia-Pacific holds the largest share, while Latin America, the Middle East, and Africa (LAMEA) are expected to post the strongest growth at 7.7% CAGR.
Key market players include Continental AG, Hella GmbH, Hyundai Mobis, Robert Bosch GmbH, Valeo, Koito Manufacturing, and Osram GmbH, who are leveraging product innovations, partnerships, and expansions to strengthen market positions.
