Automotive Headlight Coatings Aftermarket Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Automotive Headlight Coatings Aftermarket Data

Automotive Headlight Coatings Aftermarket Trends & Drivers

Increasing Focus on Safety while Driving

• The need for these products is increasing due to the safety worries among vehicle owners. As the need for clear and functional headlights increases for safety reasons, drivers are looking for aftermarket solutions to address visibility issues during night driving and difficult weather conditions.
• Vehicle owners are choosing upgraded headlight coatings to comply with the safety regulations of governments. They protect the frontal lamps from scratches, damage, marks, pitting, and small particles or airborne objects that can potentially collide with the headlights while driving.
• They also protect these components from UV degradation.

Increasing Sale of Vehicles Is Biggest Driver for Market

• The increasing number of vehicles on the road directly increases the demand for headlight coatings because they improve the visibility for safe driving at night, mainly in older vehicles.
• Such films provide safety to headlights from scratches, chips, small holes, and UV degradation.
• The increasing awareness of consumers on the role of proper illumination on the road essentially propels this market rapidly. This not only helps save lives but also enhances the experience for the one driving the automobile.
• As more people buy vehicles, the overall need to protect their headlights rises. This leads to a high demand for headlight coating products, which, in turn, fuels the growth of the aftermarket.
• As vehicles become older, their headlights gradually damage, which creates the need for replacement. With the use of these protective films, headlight replacement period can be prolonged, thus offering cost-effectiveness over the vehicle’s life

Volatile Raw Material Prices Are Key Challenge

• The manufacturing costs of the product depend on the price of the raw materials. Thus, if there is a fluctuation in the cost of the raw material, then it is difficult to predict the final cost of the product. This is why setting competitive prices is the main challenge for automobile headlight coating aftermarket companies.
• Polycarbonate and polypropylene are the main kinds of headlight coatings used, and both these plastics are made from ethylene and propylene. These hydrocarbons are, in turn, derived from simpler hydrocarbons, namely ethane and propane, respectively.
• Ultimately, ethane and propane are derived from natural gas and crude oil, the prices of which continuously fluctuate based on demand and stock.
• Further, any interruption in the supply chain of the raw materials can delay the production schedules and lead to stock shortages. Due to this, companies could lose their sales opportunities and damage relationships with customers, if the orders are not fulfilled on time.

Automotive Headlight Coatings Aftermarket Industry Outlook

Light Analysis

• LED is the fastest-growing category, with an expected CAGR of 4.8% during 2024–2030. The LED technology consumes less energy as compared to halogen and xenon/HID. It also produces less heat than other technologies, especially halogen, because LED uses a diode to produce light, whereas halogen uses a heated filament.
• The lifetime of LEDs is also longer than that of halogen and xenon/HID lights. Further, they are small and can be arranged in various patterns, giving more freedom to designers to create more-advanced and attractive headlight designs.
• Halogen is the largest category, and it held a market share of around 35% in 2023. This is mainly due to the lower cost of halogen bulbs and their long-established presence in people’s lives.

Below are the types of light that were studied in this report

• Halogen (Largest Category)
• LED (Fastest-Growing Category)
• Xenon/HID
• Laser
• OLED
• Others

Coating Insights

• Hydrophobic Coatings are the largest category, holding a market share of around 40% in 2023. They repel water and dirt, thus offering greater visibility in difficult weather conditions. This, in turn, makes driving easy and reduces the chances of an accident.
• Hydrophobic protective films offer a shiny and smooth finish, which increases the attractiveness of the vehicle.
• Hydrophobic coatings are also expected to witness the highest CAGR, of 4.7%, during 2024–2030. This would be due to the increasing demand for better aesthetics of vehicles, as well as the need to reduce the risk of accidents and enhance the driving experience.

Below are the types of coating that were studied in this report

• UV-Resistant
• Scratch-Resistant
• Anti-Fog
• Hydrophobic (Largest and Fastest-Growing Category)
• Others

Coating Material Analysis

• Ceramic is the fastest-growing category, with an expected CAGR of 5.0% during 2024–2030. This is mainly due to the durability and strong protective quality of ceramic coatings.
• A hydrophobic surface is produced by ceramic coatings, protecting the light from dirt, water, and other impurities, which it easier to clean it. This also helps in keeping stains and water marks at bay, which makes the headlight clearer and gives an attractive look.
• Ceramic coatings keep headlights protected for a long time, without needing to be applied repeatedly. This allows vehicle owners to save money on regular repairs and recoating jobs.

Below are the coating material that were studied in this report

• Polycarbonate
• Polypropylene
• Glass
• Ceramic (Largest and Fastest-Growing Category)
• Others

Application Insights

• Passenger cars are the larger category, and they held a market share of 45% in 2023. This is due to the large user base and increasing demand for safety features.
• Headlight coatings provide protection to these components from scratches and chips and also increase the look of their cars, due to which their consumption is growing.
• As the need for customization increases in the automobile industry, customers are looking for coatings that will protect their cars and also enhance their look.
• Suppliers and manufacturers in the market provide a wide range of coatings to fulfill the unique requirements and preferences of car owners.

Below are the applications that were studied in this report

• Two-/Three-Wheelers
• Passenger Cars (Largest and Fastest-Growing Category)
• Light Commercial Vehicles
• Heavy-Duty Trucks
• Buses and Coaches
• Off-Toad Vehicles

North America Holds Significant Share

• Geographically, North America held a significant share in the automotive headlight coatings aftermarket in 2023. This is because of the high demand for improvement in the appearance of the vehicle and for long-distance visibility while driving in the dark. A large number of customers in the U.S. are interested in customizing their cars.
• Asia-Pacific is expected to be the fastest-growing market, with a CAGR of 5.2%, during 2024–2030. In China, India, and Southeast Asia, vehicle sales are growing rapidly due to the increasing disposable income. Since, more people can afford new cars now, there is a high demand for auto parts and services, such as headlight coatings.

The regions and countries analyzed for this report include:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest and Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil
  • Mexico (Largest Country Market)
  • Rest of LATAM (Fastest-Growing Country Market)
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa
  • U.A.E. (Largest Country Market)
  • Rest of MEA

Competitive Analysis

• Companies such as Covestro AG, Momentive, and Plas­matreat GmbH have a significant presence in the automotive headlight coating aftermarket. They offer innovative and good-quality products to fulfill the consumer demand.
• 3M, Covestro AG, and Momentive also have well-established research and development (R&D) departments, on which they invest heavily, to make new coatings for car headlights that are advanced and more useful.

Recent Developments

• In May 2023, the SEM Products division of PPG released a new coating, called GLADIATOR XC Matte Extreme. This high-quality, low-shine protective coating is suitable for different industries, such as automotive, industrial, marine, and recreational equipment.
• In December 2022, a line of biomass balance automotive coatings was launched by BASF in China. The ColorBrite Airspace Blue ReSource basecoat is made from renewable raw materials.