Passenger Cars Liftgate Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Manual, Automatic), By Material Type (Metal, Composite), By Region, By Competition, 2018-2028
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 1.6 billion |
| CAGR (2023-2028) | 6.38% |
| Fastest Growing Segment | Composite |
| Largest Market | Asia-Pacific |
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Market Overview
Global Passenger Cars Liftgate Market has been valued at USD 1.6 Billion in 2022 and is expected to project strong growth during the forecast period with a CAGR of 6.38% during 2028.
The market for automotive power liftgate is expected to be driven by the increasing demand for electronic and sensor-based automobile components. Also, it is estimated that the increased technological innovation and advancements in the automotive industry would generate a diverse array of opportunities for the manufacturers of power liftgates. With innovation and development, many automakers are also incorporating power liftgates into their vehicles, which is expected to fuel demand for the power liftgate. The electro-mechanical elements of numerous auto components are encountering technical challenges to withstand extreme temperatures, shocks, and vibrations throughout the entire vehicle's lifespan. Furthermore, they need to make their elements light in weight, energy conserving, and compact. Throughout the forecast period, the luxury car market is also expected to expand with increased spending among consumers. The growing customer demand for a comfortable and reliable driving experience is expected to raise the demand for a power liftgate. The positioning of the power liftgate in the vehicle is expensive, which can restrict market growth within the forecast period. Power liftgates are usually only installed in high-end luxury cars.
Key Market Drivers
Growing Demand for SUVs and Crossovers
One of the primary drivers propelling the Passenger Cars Liftgate Market is the surging demand for sports utility vehicles (SUVs) and crossovers. These vehicle segments have witnessed a remarkable uptick in popularity worldwide. Consumers are increasingly drawn to the spacious interiors, higher driving positions, and perceived safety advantages of SUVs and crossovers. As a direct consequence of this trend, automakers are equipping a significant portion of their SUV and crossover models with liftgate systems. Liftgates provide a practical solution for accessing the rear cargo area in these vehicles. They offer ease of use, convenience, and are particularly well-suited for families and outdoor enthusiasts who require ample storage space. Moreover, the shift towards electric SUVs and crossovers has also driven demand for liftgate systems. Electric vehicles (EVs) often prioritize aerodynamics and energy efficiency. Liftgates can be designed to enhance the aerodynamic profile of a vehicle, reducing drag and contributing to improved EV range. This synergy between SUVs, crossovers, and liftgates has created a substantial growth driver for the market.
Emphasis on Vehicle Aesthetics and Design
In today's highly competitive automotive landscape, aesthetics and design play a pivotal role in consumer decision-making. Vehicle manufacturers are keenly aware that a car's visual appeal is a critical factor influencing purchasing decisions. This has led to a growing emphasis on vehicle aesthetics, and liftgates are no exception. Liftgates are a prominent feature of a vehicle's rear end, making them a key element of the overall design. Automotive designers have recognized the opportunity to incorporate liftgates into the design language of a car, using them to create a sleek and modern appearance. This approach goes beyond mere functionality; it aims to transform liftgates into design elements that enhance the vehicle's visual appeal. For example, manufacturers often integrate liftgate handles and lighting elements seamlessly into the rear design, contributing to a cohesive and stylish look. LED lighting technology has been adopted to create signature lighting patterns in the liftgate, adding to the vehicle's distinctive identity. The synergy between design and liftgate systems is particularly evident in the premium and luxury vehicle segments. In these segments, liftgates are expected to offer not only convenience but also a touch of sophistication and elegance. Thus, the market driver of emphasizing vehicle aesthetics and design has propelled innovation in liftgate design and integration.
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Technological Advancements
Technological advancements in the automotive industry have revolutionized the design and functionality of liftgate systems. These innovations have significantly contributed to the growth and appeal of the Passenger Cars Liftgate Market. One of the key technological advancements is the integration of sensors into liftgate systems. Proximity sensors, ultrasonic sensors, and cameras are often used to detect obstacles in the path of the liftgate. This technology enhances safety by preventing accidents or injuries caused by the unintended closure of the liftgate when an object or person is in the way. Automation has played a pivotal role in improving liftgate functionality. Power liftgates that can be operated remotely using a key fob or a smartphone app have become increasingly popular. Moreover, hands-free and foot-activated liftgates have been launched, allowing users to open or close the liftgate without physical contact. Liftgate systems have also incorporated smart features such as programmable height settings, which allow users to adjust the liftgate's opening height to suit their preferences or to accommodate low ceilings or garage doors. Additionally, some liftgates are equipped with power cinching mechanisms that pull the liftgate tightly closed, ensuring a secure seal. Advancements in materials and engineering have led to the development of lightweight liftgate components. This not only reduces the overall weight of the vehicle but also contributes to improved fuel efficiency, especially in non-electric passenger cars. These technological enhancements have made liftgate systems more attractive to consumers, as they enhance convenience, safety, and overall user experience. As a result, technological advancements are a significant market driver in the Passenger Cars Liftgate Market.
Safety and Convenience
Safety and convenience are paramount considerations for consumers when choosing a vehicle. Liftgate systems offer both of these benefits, making them a compelling selling point for automakers. Liftgates equipped with safety features such as obstacle detection sensors and anti-pinch technology have made loading and unloading cargo safer. These systems prevent accidents and injuries by stopping the liftgate from closing if an obstruction is detected. This is particularly crucial in family vehicles where children may be near the liftgate. The convenience of a power liftgate cannot be overstated. Whether it's loading groceries, luggage, or sports equipment, the ease of opening and closing the liftgate with the push of a button or a simple gesture has made life easier for drivers. This is especially appreciated in situations where hands may be full, or when it's raining, making the liftgate a sought-after feature. Moreover, the ability to adjust the liftgate's height or set it to a preferred level further enhances convenience. This is beneficial in situations where the liftgate needs to clear a low ceiling or be positioned at a comfortable height for loading and unloading. As safety and convenience continue to be top priorities for consumers, automakers are keen to offer liftgate systems that cater to these needs. Consequently, the demand for such systems has steadily risen, driving the growth of the Passenger Cars Liftgate Market.
Regulatory and Environmental Considerations
Regulatory requirements and environmental concerns have had a profound impact on the automotive industry, including the Passenger Cars Liftgate Market. Governments around the world have imposed stricter fuel efficiency and emissions regulations to combat climate change and reduce environmental impact. In response, automakers are adopting various strategies to improve vehicle efficiency. Lightweight liftgate materials, aerodynamic design, and integration of power cinching mechanisms have all been employed to reduce fuel consumption and emissions, particularly in non-electric passenger cars. Regulations regarding pedestrian safety have prompted the development of liftgate systems with advanced sensing technology. These systems are designed to detect obstacles and prevent accidents involving pedestrians or cyclists. Compliance with such regulations is not only a legal requirement but also a selling point for manufacturers committed to safety. As electric vehicles (EVs) gain traction in the automotive market, liftgate systems have evolved to cater to the unique needs of EV owners. EV liftgates may feature additional sensors to ensure safety during charging, and they often incorporate aerodynamic design elements to maximize range.
Key Market Challenges
Cost Pressures and Pricing Strategies
Among the major issues confronting the Passenger Cars Liftgate Market is the expensive process of designing and incorporating liftgate systems into cars. Liftgate systems need to be engineered, manufactured, and designed with special materials and technology to satisfy safety, performance, and design requirements. With customers calling for more sophisticated features, producers are pushed to spend on research and development to develop new liftgate solutions. This, in turn, increases development expenses. Furthermore, the inclusion of sensors, automation, and smart features adds to the costs further. For instance, cameras and proximity sensors are necessary for safety but incur extra hardware and software investment. Moreover, hands-free or foot-activated liftgates require sophisticated sensor arrays and algorithms.
Even with the increasing development expenses, automakers usually experience stiff price competition in the passenger car segment. Price sensitivity is one of the most significant drivers of consumer purchasing behavior. Thus, companies need to carefully tread the balance between added liftgate features and price levels that their target consumers will find attractive. Within an industry characterized by extremely thin profit margins, automakers need to walk the thin rope between affordability for buyers and profitability for companies. This challenge is magnified by the fact that liftgate systems are often seen as an auxiliary feature rather than a primary selling point. To maintain profit margins, manufacturers must explore cost-saving measures without compromising quality or safety.
Weight and Fuel Efficiency Considerations
Another significant challenge faced by the industry pertains to vehicle weight. With manufacturers trying to achieve very low fuel efficiency and emissions standards, weight reduction of a vehicle is now the primary goal. Lighter materials and parts are being implemented throughout an entire vehicle in order to maximize efficiency, and liftgate systems are no exception. Yet liftgate systems inherently weigh a vehicle because they incorporate mechanical parts, power units, and safety equipment. This excess weight may reverse efforts at keeping overall vehicle weight in check, ultimately reducing fuel economy and generating higher emissions.
Safety and Compliance to Regulations
Technological Integration and Reliability
Integration of new technology in liftgate systems, although a driver for the market, also involves a considerable challenge. Sensors, automation, and intelligence should integrate harmoniously in order to achieve a user-friendly experience. Any malfunctions or glitches can cause frustration and possible safety risks. As liftgate systems are increasingly becoming more technologically advanced, they are dependent on advanced software and electrical components. Keeping these components reliable and long-lasting in diverse environmental conditions, including hot or cold temperatures or exposure to humidity, is a daunting task. The integration of technology into liftgate systems also creates some maintenance and repair-related issues. On failure, the diagnosis and fix of the problem may need specialized training and equipment, thereby complicating and costing vehicle maintenance. User experience must be the top priority in liftgate development, particularly with the development of features such as hands-free or foot-actuated opening mechanisms. Users anticipate such features to function perfectly every time. Providing repeatable user satisfaction and reliability is a continuous issue for car manufacturers. Additionally, the fast rate of technological progress implies that liftgate systems can become obsolete very fast. Car manufacturers have to spend money on continuous research and development to remain at the cutting edge of technology, further increasing their woes.
Key Market Trends
Electrification and Sustainable Mobility
One of the most influential trends in the Passenger Cars Liftgate Market is the growing focus on electrification and sustainable mobility. The automotive industry is undergoing a profound transformation as it moves towards electric vehicles (EVs) and sustainable transportation solutions. This shift is having a direct impact on liftgate systems and their integration into passenger cars. As EVs gain traction in the market, manufacturers are adapting liftgate systems to meet the specific needs and challenges of electric vehicles. EVs often have unique design considerations, including optimizing aerodynamics and maximizing energy efficiency. Consequently, liftgate systems are being engineered to complement the overall design and functionality of EVs. Lightweight materials, efficient power mechanisms, and aerodynamic shapes are increasingly common in liftgate designs for EVs.
Sustainability is a key consideration in the development of liftgate components. Manufacturers are exploring eco-friendly materials, such as recycled plastics and lightweight composites, to reduce the environmental footprint of liftgate production. Additionally, efforts to enhance recycling and reuse of liftgate components are gaining prominence. Electric vehicles place a premium on energy conservation, making liftgate systems more sophisticated in their energy management. Some EVs now feature power-saving modes for liftgate operation to ensure minimal impact on the vehicle's range. Furthermore, regenerative braking technology is being explored to recapture energy during liftgate closure.
Advanced Sensor Technology
Another major trend in the Passenger Cars Liftgate Market is the increasing integration of advanced sensor technology. Sensors have become integral to liftgate systems, enhancing safety, convenience, and user experience. Proximity sensors, ultrasonic sensors, and cameras are now commonplace in liftgate systems. These sensors play a crucial role in detecting obstacles, preventing accidents, and ensuring pedestrian safety. For example, if a sensor detects an obstruction in the liftgate's path, it can halt the closing process to avoid collisions. Hands-free liftgate operation has gained popularity among consumers. This trend allows users to open or close the liftgate without physical contact. Sensors, including infrared and capacitive sensors, enable gesture control or foot-activated liftgates. By simply waving a foot or making a specific hand gesture, users can operate the liftgate, making it more convenient when their hands are full. Liftgate systems are becoming smarter and more intuitive. They can be programmed to open to a specific height, which is especially useful in garages with low ceilings. Some liftgates also feature power cinching mechanisms that securely close the liftgate, ensuring a tight seal. These smart features are designed to enhance user convenience and satisfaction.
Enhanced User Experience
Consumer expectations for a seamless and enjoyable vehicle ownership experience have led to a trend of enhanced user experience in liftgate systems. Manufacturers are incorporating personalization options into liftgate systems, allowing users to customize settings such as the liftgate's opening height or liftgate cinching force. This level of personalization enhances user satisfaction and makes the vehicle feel more tailored to individual preferences. Liftgate systems are increasingly integrated into the vehicle's broader connectivity ecosystem. Users can control liftgate operations through smartphone apps or voice commands. This connectivity trend aligns with the broader automotive industry's push for connected vehicles. Liftgate systems are evolving to offer multi-functionality beyond cargo access. Some liftgates are equipped with built-in displays or cameras, providing users with additional information or entertainment while the liftgate is open. This trend transforms the liftgate into a versatile platform that can serve various purposes beyond its core function.
Innovative Designs
Design innovation has become a hallmark of the Passenger Cars Liftgate Market. Automakers are leveraging liftgates as a canvas for creativity, striving to differentiate their vehicles through distinctive and aesthetically pleasing designs. Liftgate handles and lighting elements are seamlessly integrated into the overall vehicle design. These elements enhance the vehicle's rear aesthetics, creating a cohesive and visually appealing appearance. LED lighting technology is often employed to create signature lighting patterns, adding to the vehicle's identity. Frameless or flush-fitting liftgates are gaining popularity. These designs create a sleek and modern look, eliminating the traditional visible frame around the liftgate. Frameless liftgates often feature hidden hinges and latches, contributing to a clean and elegant rear-end design. Some automakers are introducing liftgates with large glass panels or panoramic options. These designs enhance visibility from the rear seats, provide a sense of spaciousness, and offer a unique visual experience. Panoramic liftgates also contribute to an open and airy cabin ambiance.
Segmental Insights
Material Type Analysis
The market is divided into two categoriesmetal liftgate and composite liftgate. Throughout the projected period, the market's most dominant segment is anticipated to continue to be metal liftgates. Despite this, there is a continuing transition from metal to composite liftgates, with government laws playing the most significant role. Automakers are under pressure from strict restrictions established by many governments to reduce overall vehicle weight to improve fuel economy or lower pollutants. Composite liftgates assist industry participants in lowering the overall vehicle weight, which ultimately helps to meet the goals to some extent.
The market's highest account share belongs to the metal power liftgate sector. In the market, the composite power liftgate category is anticipated to experience strong expansion. Due to increasingly strict government pollution standards that are forcing automakers to reduce vehicle weight, it is projected that the market for metal power liftgates will transition to the composite power liftgate. The composite material is lighter and more enduring than metal.
Regional Insights
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The largest market for automobile liftgates is anticipated to continue in the Asia-Pacific region during the forecast period. Additionally, the region is anticipated to increase at the fastest rate during that time. The demand for liftgates in the region is being driven by rising car production together with an increase in the production share of SUVs. The region's two biggest markets are anticipated to continue to be China and Japan. In the ensuing five years, India is probably going to replace China as the region's new development engine for the market for automotive liftgates. Due to factors including increased personal disposable income and rising demand from developing nations for high-tech passenger automobiles, Asia Pacific is also anticipated to lead the market throughout the forecast period.
In the same time frame, Europe is predicted to continue to be the world's second-largest market for automotive liftgates, led by Germany, France, and Russia. In the ensuing five years, Germany is projected to continue to dominate the regional vehicle liftgate industry. Over the course of the forecast, Europe is anticipated to exhibit solid growth in the automotive power liftgate market. The OEMs' presence in this region is causing them to make significant investments in autonomous vehicles, which is causing the market in this area to grow.
Over the course of the forecast, North America is anticipated to exhibit solid growth in the automotive power liftgate market.The market for luxury cars is expected to develop in this area due to rising consumer demand for electric cars as well.
Recent Developments
- Magna wonthe 2020 Automotive News PACE Award in April of that year for its compositespace frame liftgate reinforcement technique used in the Toyota Supra. Comparedto a steel liftgate, this type of vehicle liftgate offers a 10% weight savings.
- Athermoplastic motorized liftgate from Magna International Inc. was revealed forthe 2019 Jeep Cherokee SUV from Fiat Chrysler Automobiles in 2019. The designis expected to minimize mass, capital, and tooling costs through improvementsin manufacturing efficiency, integration of key components, and uniquetethering attachments.
- StabilusNorth America made the announcement of the opening of a new distributionfacility in Michigan in 2019. The company's retail and wholesale power liftgateand OE lift support products will be supported by the new facility.
- InJanuary 2019, the sensor expert Vayyar began working with Brose FahrzeugteileGmbH & Co. KG.Through the provision of several new features, thispartnership is predicted to improve the driving experience for customers.Vayyar's 3D radar imaging sensors will be utilized to keep an eye on the arearight around the doors, car, and cabin.
Key Market Players
- Magna International
- StabilusGmbH
- ContinentalAG
- BroseFahrzeugteile SE & Co. KG
- HufHulsbeck & Furst GmbH & Co.
- StrattecSecurity Corporation
- JohnsonElectric Holdings Ltd.
- HI-LEXCorporation
- VOXxElectronics Corp
- Powder-PackerCorp
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