Impact of COVID-19 on the Adaptive Headlights Market
The COVID-19 virus has extensively spread worldwide. In March 2020, the announcement of coronavirus as a pandemic has resulted in lockdowns being inflicted in the majority of the countries. The limitations imposed by governments of several countries have compelled the industry players to permit their employees to work remotely. Moreover, the implementation of automated technologies to lower human interaction in manufacturing facilities is expected to support the growth of adaptive headlights market. The use of advanced technologies, including computerized machinery during the pandemic, has not only ensured the businesses continuity but has also allowed for enhanced work productivity in manufacturing of adaptive headlights products.
Numerous developed and emerging economies have enforced countrywide partial or complete lockdowns to retain social distancing. Most of the selling outlets and e-commerce services were shut down to reduce the spread of the Covid-19. The production of automotive components and the provision of related services was restricted to permissible limits under the lockdown. The manufacture of adaptive headlights products was also influenced, resulting in a substantial demand and supply gap. The pandemic has affected the supply chains, limiting the growth of the global adaptive headlights market. These factors have severely impacted the global economy and the revenue generation of the automotive industry.
The production of automotive vehicles plays a vital role in generating demand for the automotive components including adaptive headlights, owing to its ever-increasing installation in new vehicles. The figure below shows the total vehicle production in the US from January 2020 to May 2020, which is expected to have an effect on the automotive industry including adaptive headlights market over the projected timeframe.
Car Production in the US (Units in Million)
According to the MRF analysis, the market is expected to witness a considerable decline in the coming year, which will hamper the global demand for adaptive headlights products. The market is expected to recover in the Q4 of 2020. Additionally, the European Automobile Manufacturers Association (ACEA), the Canadian Automobile Association (CAA), and other international associations, including the Japan Automobile Manufacturers Association (JAMA), have suggested numerous measures for controlling the spread of COVID-19. This will positively influence the Global Adaptive Headlights Market share.
Source: Trade Economics