Vehicle Daytime Running Lamps Market – Emerging Addition to Safety Features in Vehicles

Tremendous progress has been made since the 1960’s with regard to vehicle safety starting with improvements in passive safety features such as air bags, seat belts, crash zones, and lighting. Although this has resulted in a remarkable decline in the rate of road crashes, injuries, and fatalities, each year, approximately 1.35 million people die in road accidents. This cost many countries around the world 3 per cent of the GDP (gross domestic product) (source: World Health Organization). These road crashes cause huge financial losses to countries in terms of loss of human lives as well as public property. The available passive safety technologies alone cannot result in substantial gains in reducing crash costs.

Number and Rate of Road Traffic Death per 100,000 Population: 2000-2016

Source: Knowledge Sourcing Intelligence Analysis

Daytime running lights are low-wattage headlights that turn on automatically with the start of the vehicle’s ignition. These lights are considered as an important safety feature in a vehicle which is intended to reduce multiple-vehicle crashes during daytime by making vehicles more noticeable to other drivers. These lights ensure the visibility of vehicle during daylight hours when there is dense rain or foggy weather. The concept of daytime running lamps is to increase the vehicle’s visibility so as to avoid any mishap on the road. In case of a dark colored car, visibility often becomes a major factor during bad weather conditions. Numerous studies have shown that having a daytime running light reduces the chances of having an accident during blurred vision weather conditions. In Denmark, for instance, there was a fall in left turn-related vehicle incidents of over 37 per cent. Many governments have also set regulations for mandatory use of daytime running lamps in vehicles. For instance, according to the Motor Vehicle Safety Act in Canada, it is mandatory for all vehicles, either sold or imported into Canada, after December 1, 1989 to have automatic daytime running lights. According to the Transport Canada, it is advisable for all road users, including visitors, in Nova Scotia to have either DRLs (daytime running lights) or low beam headlamps on during daylight and full lights on at night and/or in poor visibility. Japan’s government implemented the regulation that will require automatic headlights on all new cars sold from April 2020 onward.

While numerous studies have shown that a practice as simple as turning on daytime running lamps during driving may reduce a person’s chances of being in an accident, car manufacturers have started adding daytime running lights in almost all of their models. However, this is not mandated by governments in most countries. In the United States, for instance, automakers are not required to manufacture vehicles with daytime running lights and drivers are also not required to use their headlights unless it is dark, or if they are driving during stormy or rough weather. Only some states in the United States have laws which require drivers to turn on the headlights in conditions which need wipers. However, declining automotive industry is currently restraining the market growth of vehicle daytime running lamps market. Global automotive production sector has been experiencing some disruption over some time. The figure given below shows the trends in global automotive production from 2010 to 2018:

Global Automotive Production, 2011 to 2019

Source: International Organization of Motor Vehicle Manufacturers

As shown in the above figure, 2018 and 2019 saw a continuous decline in the production of vehicles across the globe. This continuous decline in the production of vehicles worldwide has been primarily attributed to shrinking automotive sales around the globe which is expected to further continue over the medium term. Moreover, the recent COVID-19 global pandemic outbreak has further daunted the growth of the global automotive sector. Temporary halt in production due to shut down of production facilities and global supply chain disruption on account of closing of borders by countries by governments in order to curb the spread of the virus has also negatively impacted the market growth of vehicle daytime running lamps. With the implementation of mandatory lockdowns and social distancing measures across the globe, it has become difficult for auto manufacturers to continue production while aligning with these measures for curbing the transmission of the coronavirus. Moreover, global supply chain disruption has further worsen the situation with global automakers depending heavily on China for auto parts and components, thus forcing them to halt production temporarily. For example, global auto manufacturers- Fiat Chrysler, General Motors, and Ford- shut down their facilities in the United States in March 2020 on temporary basis so as to ensure the prevention of the spread of coronavirus. However, Daimler and Merced-Benz are some of the automakers which have resumed activity at some of their plants with limited number of workers.

ABOUT THE AUTHOR:

Anjali Joshi is a senior market research analyst at Knowledge Sourcing Intelligence. She oversees a team of analysts and is known for the quality of market intelligence she delivers to the clients which range from start-ups and Non-profit Organizations to Fortune 500 companies. Anjali’s keen understanding of international business and market dynamics, coupled with her years of experience working in this industry, allows her to analyse current and future trends across both global and clients’ target markets and help them in making informed decisions.