Vehicle Daytime Running Lamps Market – Making Mobility Smarter and Safer
There has been a continuous advancement is vehicle features to make it safer and better for passengers while avoiding road crashes and fatalities. Although improvements in passive safety features such as seat belts, lighting, and air bags have resulted in reduced rate of road crashes, fatalities, and injuries, still there are rising cases of road accidents due to driver’s lack of attention and other reasons. According to the World Health Organization (WHO), approximately 1.35 million people die in road accidents annually. This costs, most countries, 3 per cent of their gross domestic product (GDP), causing loss of human life as well as public property.
As such, automotive manufacturers are constantly adding innovative features in various auto models to make them safe and secure. Vehicle daytime running lamps are one such feature which is coming in-built in various models. These are generally low-wattage headlights that turn on automatically when a vehicle’s ignition is started. It is a type of safety feature which is aimed to reduce multiple-vehicle crashes during daylight hours by making vehicles more visible to other drivers. Daytime running lights ensure that the car is visible even in the extreme climatic conditions such as dense rain and foggiest weather. By increasing the visibility of vehicles, daytime running lamps reduce the chances of vehicle collision and fatalities. Numerous studies have shown that with daytime running light equipped in the vehicle, the chances of having an accident during blurred vision weather conditions reduce to a significant rate. For example, in Denmark, there was a decline in left turn-related incidents of over 37 per cent. Around 20 per cent of traffic accidents in the EU region were prevented, thanks to daylight running light.
Furthermore, governments in various countries across the globe have implemented regulations that require the mandatory use of vehicle daytime running lights. This is significantly bolstering the market growth of vehicle daytime running lamps. According to the Motor Vehicle Safety Act in Canada, all vehicles sold or imported into the country after December 1, 1989, must have automatic daytime running lights. Transport Canada advises that all road users in Nova Scotia, including visitors, must have either daytime running lights (DRLs) or low beam headlamps on during daytime hours with full lights must be on both in case of dark (night) or in poor visibility. The government in Japan has implemented the regulation which requires automatic headlights on all new cars sold from April 2020 onward. Drivers in Thailand and Malaysia also fully support the use of vehicle daytime running lights because they can see other drivers from far away, thus reducing the chances of vehicle collisions.
Global Vehicle Daytime Running Lamps Market Size, Us$ Billion, 2019 and 2025
Source: Knowledge Sourcing Intelligence Analysis
Global auto manufacturers are also supporting the use of vehicle daytime running lamps as an important safety feature in vehicles by manufacturing models with in-built daytime running lights even when many countries, including the United States, have still not mandated their use. In the world’s most powerful country, there is no national regulation which requires automotive companies to manufacture vehicles with daytime running lights and drivers are also not required to use vehicle headlights unless it is dark, or during bad weather conditions. Only some U.S. states have laws which require turning on the headlights in conditions that call for wipers.
However, the current restraining factor for the growth of global vehicle daytime running lamps is the declining production of automotive industry. The production in this sector has been witnessing some disruption over some time, with production declined from 96,869,020 units in 2018 to 91,786,861 units in 2019, witnessing a fall of 5.2 per cent during the period, according to the statistics provided by the International Organization of Motor Vehicle Manufacturers (OICA).
Global Automotive Production, 2011 to 2019
Source: International Organization of Motor Vehicle Manufacturers (OICA)
This fall in the production of vehicles was primarily attributed to shrinking automotive sales worldwide which is expected to continue over the medium term. This decline in sales is attributed to factors such as heavy traffic congestion, poor quality roads, lack of parking slot availability, declining resale value of cars, and expensive vehicle ownership. However, the major reason for this stagnating sales of cars is the emergence of ride-hailing services, with companies like Uber and Ola taking up the market share. People are increasingly opting for these services in order to avoid stress while driving in congested roads and traffic. With people in heavily congested urban areas preferring taking taxis or ride hailing services to commute rather than owning and driving themselves, the sales of automobiles, especially passenger cars, have declined drastically which has ultimately affected the production level as well. Moreover, the recent COVID-19 global pandemic outbreak has further negatively impacted 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 in order to curb the spread of the coronavirus has also resulted in a further weakening of the global automotive industry. Nationwide lockdowns and social distancing measures has restricted the production in factories which has severely impacted the global automotive sector. Since a major share of the global automobile manufacturing heavily or solely relies on China for auto parts and components, global supply chain disruption caused by this pandemic has further forced automakers to halt their production. Global auto giants including General Motors, Volkswagen, Ford, and Fiat Chrysler temporarily closed down their facilities across different regions as part of their effort to prevent the spread of the novel coronavirus.
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.
