Automotive Outside Rearview Mirrors (ORVM) Market - Growth, Trends, and Forecasts (2022 - 2027)

The Automotive Outside Rearview Mirrors (ORVM) market was valued at USD 5.21 billion by 2021 and is expected to reach USD 7.37 billion by 2027 registering a CAGR of around 7% during the forecast period.

The COVID-19 pandemic had a negative impact on the market as the shutdown of manufacturing facilities and supply chain disruptions in 2020 due to lockdowns and restrictions imposed worldwide resulted in a decline in the vehicle and associated components like rear view mirror production. However, post-2021 as vehicle production picked up and key automotive OEMs started focusing on expanding their offerings to gain a competitive edge the demand for rearview mirrors started gaining momentum.

Over the medium term, the expansion of the automotive industry and growing concerns of consumers over safety and comfort features in wake of rising accidents and government incentives are expected to act as primary driving factors in the market. In addition, several automakers have included smart automotive rear-view mirrors in their vehicles to improve vision while maintaining the intended benefits and functionalities, such trends in the market to enhance the overall market growth.

Moreover, factors like the increasing demand for premium vehicles and the introduction of stringent government programs regarding vehicle safety are expected to drive segmental growth over the forecast period. Additionally, increasing sales of ultra-luxurious, high-end, and mid-end cars are also expected to favor the global demand for rear-view mirrors.

Asia-Pacific region followed by Europe expected to hold significant shares in the market during the forecast period. These regions account for more than half of the total global production of vehicles over recent years. Furthermore, the increase in demand for luxury vehicles in India and the availability of new purchases and replacements of automotive parts are likely to fuel the market growth during the forecast period.

Key Market Trends

Increasing Developments of New technologies to Drive Market growth

The automotive industry is evolving every next day, new technologies are trying to replace the existing conventional option. The automotive outside rearview mirror market is facing tough competition from new camera technologies.

Leading automotive OEMs and exterior component manufacturers are spending of huge amount on research and development of future technologies such as surround-view mirror systems, digital mirrors, auto-dimming, etc. For instance, In May 2021, Gentex Corporation announced that it has recently begun shipping to Volkswagen its Bluetooth-enabled automatic-dimming mirror with HomeLink integrated buttons capable of operating a wide range of radio frequency (RF) and cloud-based smart home devices. Gentex's Bluetooth-enabled HomeLink mirror will launch with VW as an optional accessory on the 2022 Volkswagen Taos.

Surround-view mirror systems integrate sonar technologies to accurately identify the distance between adjacent vehicles or obstacles and alert the driver with audio signals regarding the distance between the vehicle and the obstacle. For instance, in February 2021, Magna International Inc. launched the 3D Surround View System with Next-Gen Cameras and Electronic Control Units. It consists of a multi-camera system providing a high-resolution, 360-degree field of view around the vehicle. The domain controller then creates a 3D surround-view image by processing the four camera images, rendering a seamlessly stitched 3D view of the surroundings of the vehicle.

On other hand, Smart automotive rear-view mirrors have an integrated camera and allow the driver to switch between the regular rear-view mirror and the LCD. Such digital mirrors and aforementioned technologies to drive demand in the market. For instance, In 2020 Automotive Company, Panasonic Corporation has developed jointly with Nissan Motor Corporation a high-performance electronic mirror for driver safety. It features significant image definition enhancement for better visibility at night and control of a flicker phenomenon caused by the LED lamps of vehicles behind.

Therefore, such trends and technologies in the market expected to create positive outlook for the market during the market.

Asia-Pacific Region Anticipated to Capture Major Market Share in the Market

Asia-Pacific region accounts for the largest share in the market, owing to the availability of low-cost raw materials, cheap labor, and increasing government initiatives towards local manufacturing. This region is also estimated to have prominent growth in the market due to the rush in the adoption of electric vehicles. For instance, as per FADA-sourced industry statistics, retail sales of EVs hit their highest at 429,217 units in FY2022, up 218% on FY2021's 134,821 units, and up 155% on FY2020's 168,300 units. Rapid urbanization in countries such as India, China, and ASEAN Countries, is providing good potential for the advance outside rearview mirrors, as the car buyers are willing to pay some extra money for advanced features in their vehicles.

Besides, China is one of the largest producers of electric vehicles and smart outside mirrors are to reduce the additional drag which is caused by mirrors and CO2 emissions, by 1.3 grams per kilometer, and also decrease the noise generated by the mirrors. In the future, electric vehicle manufacturers will adopt these camera-based mirror systems to increase their vehicle range and performance.

Owing to such trends key players operating in the market are adopting various initiatives such as expansion, collaborations, etc. to gain a competitive edge in the market. For instance, In October 2021, Ningbo SMR Huaxiang Automotive Mirrors Ltd. (SMR NBHX), a 50:50 joint venture in China under Samvardhana Motherson Reflectec, announced the acquisition of a majority stake in Nanchang JMCG Mekra Lang Vehicle Mirror Co., Ltd by Samvardhana Motherson Automotive Systems Group BV (SMRPBV) (SMR).

Market across Asia-Pacific region also accomodates some of the notable model launches, For instance in august 2022 Dongfeng Honda launched the 11th-generation Civic e:HEV compact car at the 2022 Chengdu Motor Show. It offers 3 versions, priced between CNY 159,900 and CNY 187,900. The vehicle sticks to the design of sporty aesthetics. It has an exclusive e:HEV sign, a blue Honda logo, and silver rear view mirrors. The above mentioned factors and instances likely to spur demand in the market during the forecast period.

Competitive Landscape

The automotive market is moderately consolidated due to the presence of many local and global players such as Magna International Inc., Gentex Corporation, and Valeo amongst others. The market is transforming but the new technologies are right now in the concept phase and in the near future, they will not replace conventional mirrors. Although companies are increasing investment in R&D projects to provide a more convenient and safer experience to the car owner. For instance,

• In May 2021, Gentex Corporation announced that it has recently begun shipping to Volkswagen its Bluetooth-enabled automatic-dimming mirror with HomeLink integrated buttons capable of operating a wide range of radio frequency (RF) and cloud-based smart home devices. Gentex's Bluetooth-enabled HomeLink mirror will launch with VW as an optional accessory on the 2022 Volkswagen Taos.

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