Global Automotive Daytime Running Lights (DRL) Market - 2024-2031

Overview

Global Automotive Daytime Running Lights (DRL) Market reached US$ 12.61 billion in 2023 and is expected to reach US$ 21.23 billion by 2031, growing with a CAGR of 6.8% during the forecast period 2024-2031.

The Automotive Daytime Running Lights (DRL) Market has been steadily growing due to higher road safety awareness and advancements in lighting technologies. DRLs increase the visibility of vehicles in daylight, thereby lowering the chances of accidents. Research conducted by Monash University Accident Research Centre in Melbourne found that DRLs can lower the likelihood of daytime crashes by 7.6%. Their impact is most noticeable in the moments before sunrise and after sunset, resulting in a 20.3% decrease in the risk of accidents.

The market's growth has been significantly influenced by the technological progress in LED lighting. LED-based DRLs are favored by automakers for their improved energy efficiency, extended lifespans and increased design options. A new study conducted by Monash University emphasizes the success of DRLs in hazardous conditions, indicating a decrease of 23.8% in the likelihood of accidents during sunrise or sunset on roads with speed limits exceeding 75 km/h.

Asia-Pacific is experiencing strong demand for automotive daytime running lights due to regulatory mandates, increased vehicle production and growing consumer awareness of road safety. Nations such as Japan have required daytime running lights in new cars since 2020 according to the Japanese Ministry of Transport. Leading car manufacturers such as China and India, which manufactured over 27 million and 5 million vehicles in 2023, are fueling market expansion.

Dynamics

Increasing Safety Concerns & Demand For Advanced Features

The increasing safety concerns and rising demand for technologically advanced features and systems are expected to propel the automotive daytime running lights market. Various countries across the globe have made it mandatory to install DRLs in vehicles to curb the rising fatalities and enhance the safety of passengers and drivers.

A study by the National Highway Traffic Safety Administration (NHTSA) in the United States reported that DRLs reduced the number of fatal accidents in the opposite direction during the daytime by 5 percent. Also, it reduced daytime opposite direction fatal crashes of a passenger vehicle with a motorcycle by 23 percent. These highlights underscore how the DRL mitigates road accidents significantly.

Integration with Smart Technologies

The development of smart automotive lighting systems, particularly those that adapt to varying driving conditions, is a significant trend in the automotive industry. This technology includes features such as automatic dimming and brightness adjustment based on ambient light conditions.

Audi has been a leader in implementing adaptive lighting systems, particularly with its Matrix LED technology, which allows for precise light distribution control. Similarly, BMW has integrated advanced adaptive lighting systems in its vehicles, enhancing safety and visibility. Their systems utilize sophisticated sensors to adjust the light beam according to driving conditions.

High Cost of Advanced DRLs

The adoption of advanced DRLs, particularly LED systems, is hindered by their higher costs compared to traditional lighting options. This makes them less accessible to price-sensitive consumers, potentially limiting market penetration. Regulations also play a significant role. The European Union and countries like Canada have mandated the use of DRLs on all new vehicles, which has accelerated the adoption of LED systems in these regions.

In contrast, in regions without such mandates, the adoption of LED DRLs remains lower due to their cost. Price sensitivity is a key factor in the automotive market, particularly in regions like Asia and Latin America, where vehicle affordability is a priority. According to a 2023 study, cost-sensitive consumers make up around 60% of the global automotive market, particularly in emerging economies where purchasing decisions are heavily influenced by price over premium features.

Segment Analysis

The global automotive daytime running lights market is segmented based on technology, vehicle type, application and region.

Growing Demand for LED DRLs Driven by Energy Efficiency, Cost-Effectiveness and Longevity

ED DRL (Daytime Running Light) technology is gaining traction in the automotive market. As LED DRLs are significantly more energy-efficient, using only 5-10 watts compared to the 40-80 watts consumed by traditional incandescent or halogen bulbs. This 80% energy savings makes LEDs a more sustainable choice, reducing fuel consumption and emissions.

Additionally, LEDs emit lighter and less heat than halogens, with over 90% of energy being converted into light, compared to only 10% for halogens. This efficiency not only improves vehicle visibility but also reduces wear and tear on the lighting system. Moreover, while LED headlights initially cost more, with prices ranging from US$ 100 to US$ 200 per pair, they are far more cost-effective over time.

Quality LED bulbs can last 5 to 10 times longer than halogens, which typically cost between US$ 35 to US$ 100 per pair. This extended lifespan reduces the frequency of replacements, lowering long-term costs for drivers. These advantages make LED DRLs a preferred choice for both automakers and consumers, driving their increasing demand in the market.

Geographical Penetration

Rising Focus on Safety, EV Growth and Luxury Vehicle Demand in Asia-Pacific

Asia-Pacific holds the largest market share in the global automotive daytime running lights market, driven by increasing consumer demand for safety features and the rapid growth of the electric vehicle industry. The EV market in China experienced a 40% growth in 2023, further driving the popularity of DRLs due to their widespread inclusion in electric vehicles. Moreover, there was a 16% growth in the luxury car industry in China in 2023, indicating an increasing demand for advanced DRL systems in the area.

Japan's dedication to promoting road safety reinforces the acceptance of DRLs. The goal of the Japanese government is to decrease traffic-related fatalities to less than 2,000 by 2025. In 2022, there was a decrease in traffic deaths to 2,610, representing a 1% reduction from the year before, partly ascribed to the higher adoption of safety features such as DRLs.

The emphasis on safety is increasing the sales of DRL in Japan. Due to the normalization of automotive semiconductor and parts supply, South Korea's automotive production volume increased by 13.0% in 2023 to reach 4,243,597 units, playing a significant role. Leading companies such as Hyundai and Kia are incorporating DRLs in their upcoming models, within their home countries and for international markets, solidifying Asia-Pacific's leadership in the worldwide DRL market.

Competitive Landscape

The major global players in the market include BASF SE, Celanese Corporation, HELM AG, LyondellBasell Industries Holdings B.V., Methanex Corporation, Mitsubishi Gas Chemical Company, Inc., Mitsui & Co., Ltd., PETRONAS Chemicals Group, SABIC and Zagros Petrochemical.

Sustainability Analysis

The automotive industry is witnessing a notable shift towards LED Daytime Running Lights (DRLs) due to their superior energy efficiency, longevity and lower environmental impact compared to traditional halogen bulbs. LED DRLs consume up to 50% less power, which enhances fuel efficiency and helps reduce carbon emissions. This transition is a significant step towards more sustainable automotive lighting solutions, reflecting a broader industry commitment to reducing environmental impact.

Manufacturers are also embracing eco-friendly materials for DRL housings and lenses. The adoption of recyclable and sustainable materials aims to minimize the environmental footprint associated with both production and disposal. This focus on material sustainability complements the shift to LED technology and underscores the industry's dedication to environmental stewardship throughout the product lifecycle.

Additionally, stricter energy efficiency standards imposed by governments and regulatory bodies are driving the automotive lighting sector towards more sustainable practices. The integration of DRLs with Advanced Driver Assistance Systems (ADAS) further enhances vehicle safety while contributing to overall vehicle efficiency. Leading companies such as Hella, Valeo and Osram are at the forefront of this transition, investing in research and development to innovate and deliver more sustainable and effective lighting solutions.

Russia-Ukraine War Impact

The Russia-Ukraine war has significantly impacted the automotive industry, particularly in the production and supply of Daytime Running Lights (DRLs). The conflict has exacerbated existing supply chain blockages and semiconductor shortages, further straining the automotive sector. LMC Automotive reported that disruptions resulted in a 400,000-unit reduction in global vehicle production in 2022, causing global auto sales to decrease to 85.8 million units from a potential 93 million units if demand had been fully met.

Russia is a crucial player in the manufacturing of cars, vans and trucks, with 34 automobile production plants located within the country. The facilities have been directly impacted by the war, leading to disruptions in the supply chain as a whole. The lack of ability to keep production and distribution channels running smoothly has led to a shortage of crucial automotive parts, such as DRLs, needed for vehicle safety and meeting lighting regulations.

By Technology

• LED DRLs
• Halogen DRLs
• Xenon DRLs

By Vehicles Type

• Passenger Vehicles
• Commercial Vehicles

By Application

• Front Lighting
• Rear Lighting
• Side Lighting
• Interior Lighting

Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In March 2023, HELLA expanded its Black Magic auxiliary headlamp series by adding 32 new lightbars, which include 14 with ECE approval for on-road use and 18 designed for off-road applications. This expansion enhances the range of lighting solutions available for various vehicle types, improving both safety and functionality. The introduction of these lightbars caters to diverse market needs, from regular road use to demanding off-road conditions.
• In January 2023, Nichia Corporation and Infineon Technologies AG announced a collaboration to develop a high-definition (HD) light engine featuring over 16,000 micro-LEDs for headlight applications. This development represents a significant advancement in automotive lighting technology, aiming to provide superior illumination and enhanced driving safety through higher resolution and precision in lighting.
• In July 2022, HELLA's introduction of the Slim Light System brings a new dimension to interior vehicle lighting. The system's slim and lightweight design, at just eight millimeters thick, allows for versatile and unobtrusive integration within vehicle interiors. This advancement enables more flexible and aesthetically pleasing ambient lighting solutions, enhancing the overall passenger experience.

Why Purchase the Report?

• To visualize the global automotive daytime running lights market segmentation based on technology, vehicle type, application and region.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel spreadsheet containing a comprehensive dataset of the automotive daytime running lights market, covering all levels of segmentation.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global automotive daytime running lights market report would provide approximately 62 tables, 53 figures and 210 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies