Check Engine Light Market- Passenger Cars Segment Dominated the Application Market

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The global check engine light market is set to grow with a CAGR of 5.5% during the forecast period.

Market Insights

Globally, the demand for vehicles is growing at a rapid pace, mainly due to changing consumer dynamics towards lifestyle. Based on the regulation of the automotive industry in various developed regions, it is mandatory to install a check engine light in every vehicle being developed. This is primarily driving the adoption and installation of check engine lights in various personal and commercial vehicles. Furthermore, these lights being considered a diagnostic tool increasingly help in maintaining the performance of the vehicle, thus plays an important role in manufacturing of the vehicle.

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Factors such as increasing safety concerns of the vehicles, technological advancements, developments in the automotive industry are some other factors driving the growth of this market. Also, technological advancements, development of automated computerized systems, and digitization are also fueling the growth of this market. The modern check engine lights are also automated in a way to notify the issues with the vehicle. However, factors such as reliability on the lights, and technical issues are likely to affect the growth of the market during the forecast period.

Based on type, the check engine light market is segmented into intermittent and continuous check engine light. The intermittent check engine light is expected to dominate the market with more than 60% of the total revenue generated, however continuous check engine lights are now being highly used and are gaining pace in the market. Furthermore, based on application passenger cars dominated the market based on increasing sales of personal vehicles, and stringent regulations for manufacturing purposes.

Based on geography, North America held a dominant position in the check engine light market with a market share of over 40% in 2018. Growing adoption of personal as well as commercial vehicles, advancements in the automotive industry, and regulatory changes regarding good manufacturing practices and safety of the vehicles are the major factors contributing to the growth of this market. However, Asia-Pacific is projected to grow at a significant rate during the forecast period, based on increasing awareness and changing regulatory policies in the automotive industry.

Some of the prominent players operating in the check engine light market include OSRAM, Yeolight Technology, Hella, Konica Minolta Pioneer, ZKW, Stanley, Astron FIAMM, Magneti Marelli, and Koito.

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Passenger Cars Segment Dominated the Application Market

Based on application, the check engine light market was led by passenger cars, which held around 55% of the overall revenue generated. As the number of passengers cars are increasing across the globe, the demand for check engine lights is gradually increasing. Furthermore, growing importance of safety of commercial vehicles is expected to enhance the market for check engine lights in the commercial vehicles.

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