Automotive Active Grille Shutter System Market Size, Share & COVID-19 Impact Analysis, By Vane Type (Horizontal Vane Type, Vertical Vane Type), By Vehicle Type (Passenger Car, Commercial Vehicle), and Regional Forecasts, 2021-2028

The global automotive active grille shutter system market size was USD 1.74 billion in 2020. The market is projected to grow from USD 1.77 billion in 2021 to USD 2.36 billion in 2028 at a CAGR of 4.16% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with the AGS system witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of -7.54% in 2020 compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Active grille shutter system or radiator shutter assembly system is an advanced mechatronics system designed to control the airflow in real-time through the automatic opening and closing technology. An AGS system is various technologies designed to improve vehicle aerodynamic drag while generating significant fuel savings. Radiator shutter assembly enhances the vehicle's aerodynamics to reduce air drag and load on the engine, resulting in higher fuel efficiency and lower emissions.

COVID-19 IMPACT

Halt in Automotive Production to Hamper Growth amid COVID-19

The global COVID-19 pandemic had a significant impact on the global automotive sector. COVID-19's rapid spread has severely disrupted both value and supply chain players. Starting in China, suppliers worldwide shut down production lines completely. Furthermore, restrictions on international trade and widening demand-supply gaps posed as a major roadblock. Due to this, there was a significant delay in completing previous orders. OEMs are halting their production due to a shortage of components and just-in-time manufacturing strategies that includes quarantine and reduced staff. This is increased by the need to secure liquidity and eliminate overproduction due to lower sales. Due to mandatory stay-at-home orders in various countries, consumers' inability to purchase vehicles, along with production halts and volume reductions by customers, significantly impacted this market, particularly in the first half of 2020. According to OICA, in 2020, global light vehicle production fell by 17%, with declines of 20% and 23% in the two major markets that is North America and Europe, respectively. Despite a small drop in sales at the onset of the global COVID-19 outbreak, EV demand remains high, and sales are rising. The market is projected to expand significantly in the future, owing to increased vehicle sales, enhanced features, and advanced technology development by car OEMs. A higher disposable income has a positive impact on the market's growth.

Magna International and Rochling Group saw a significant decline of around 15-17% in revenue during the pandemic period. Although the nature of the pandemic is highly uncertain, the arrival of vaccines in early 2021 benefited the automotive sector, creating new opportunities for the market.

LATEST TRENDS

Increase in Purchase of Electric and Hybrid Electric Vehicles to Boost Market

Through the move from conventional to electric transportation, intelligent mobility and electrification are reshaping the future of mobility. Several automobile manufacturers currently prefer AGS systems in their electric vehicle models. For instance, Daimler, Hyundai, General Motors, Tesla, and Toyota offer radiator shutter assembly in Optima, C-Class, Cruze, Model S, and Camry models. The AGS system is now primarily used in luxury vehicles and electric vehicles. As a result, as demand for electric cars and high-end cars increases, the market will grow.

DRIVING FACTORS

Market to Experience Upward Growth Trend Backed by Rising Automotive Production 

Automotive active grille shutter systems are standard fitting in luxury and mid-class passenger cars and sports vehicles. Moreover, with an increase in the number of models and new types of cars entering the market, the demand for the automotive active grille shutter system is expected to increase significantly. Furthermore, expanding middle-class population base, rise in household income levels, and increasing urbanization will cause a surge in vehicle sales, augmenting the market growth.

Increasing Demand for Fuel-Efficient Vehicle and Growing Trend for Modern Aesthetic in Vehicles to Drive Market Growth

The increasing need for fuel-efficient vehicles anticipates the automotive active grille shutter system market. AGS systems can reduce CO2 emissions by up to 3 grams per km. and cut down air drag by 9% on average, which equals 25 aerodynamic points, thereby increasing the aerodynamic co-efficient. Tightening emissions regulations by governments encourage automakers to adopt technologies that help lower the air drag and minimize emissions. For example, in the U.S. and several EU countries, the respective governments had aimed to bring down emission levels for passenger vehicles to 121 g/km and 95 g/km, respectively, by 2020. Such regulations could boost technology adoption in the forthcoming years.

RESTRAINING FACTORS

High Cost of Technology Associated With Production of Product May Hamper Market Growth

The key challenge faced by the market is the high cost of an automotive active grille shutter system. Consumers do not prefer a car integrated with an AGS system in underdeveloped economies. Furthermore, low segments vehicles opt for the diffuser, underbody panels, and spoilers which are a cost-effective solution to control air drag. Hence, low segment vehicle consumers don't prefer the AGS system due to high cost impacting the automotive active grille shutter system market growth.

SEGMENTATION

By Vane Type Analysis

Horizontal Vane Type Dominates the Market Owing to Easy Installation

The market share is split into horizontal vane type and vertical vane type based on vane type.

The horizontal vane type segment will dominate the market share globally through 2028. Horizontal AGS systems are easy to install as they are positioned immediately below the grille and are widely used.

The vertical vane type segment witnessed high growth and low penetration during 2020. The vertical vane segment accounted for 33.42% share of market in 2020. Due to improved performance/tunning capability and increased preference for high-end automobiles due to their high aesthetic value, the segment will grow during the forecast timeframe.

By Vehicle Type Analysis

Passenger Vehicle Segment to Dominate Led by Rising Passenger Vehicle Adoption

The market is separated into two types of vehicles: passenger cars and commercial vehicles.

The passenger car segment holds the largest share globally in this market and will continue to dominate during the forecast period. Due to rising individual disposable income, the rising production and sales of passenger cars in developing countries will push this segment's market growth. The passenger car segment accounted for a market share of more than 70.60% in 2020. AGS demand in the passenger car segment is likely to rise as AGS penetration increases in passenger car models.

On the other hand, the commercial vehicle segment will witness steady growth during 2021-2028. It is attributed to several governments' worldwide initiatives aimed to reduce Co2 emissions and commercial vehicle consumers looking for fuel-efficient vehicles.

REGIONAL INSIGHTS

North America Account for the Largest Market Share Due to Stringent Government Regulations for CO2 Emissions

The market size in North America reached USD 0.61 billion in 2020 and is expected to hit USD 0.71 billion by 2028, recording a 2.2% over 2021-2028. The rising stringent government regulations for CO2 emissions, the fast adoption rate of new technology, high expenditure on product innovation, and increased consumer spending are expected to propel the market in North America. The presence of major radiator shutter assembly manufacturers and their effort for designing aesthetic vehicle models contribute to the region's growth. Furthermore, increasing the production of light commercial vehicles in this region is expected to propel the growth of active grille shutter systems.

Europe holds the second-largest position in the automotive active grille shutter system market as the European Commission's stricter emission standards have accelerated radiator shutters in European vehicles. Active grille shutters are offered on some key European models, including the Ford Focus and Fusion, BMW 5 and 7 Series, Renault Twingo and Talisman, Citroen C4 Picasso, and Audi Q7. Furthermore, the presence of important players in this region aids market expansion. Moreover, Consumer adoption of electric vehicles, autonomous vehicles and shared mobility is driving the growth of this market. These factors are likely to fuel market expansion in this region.

APAC stood at USD 0.50 billion and is estimated to reach USD 0.77 billion by 2028 at a CAGR of 5.3% over the forecast period. The Asia Pacific, a major automotive hub, could dominate the market share over 2021-2028. The regional vehicle production is rising exponentially each year. This growth is accountable for increasing preference for personal mobility in the post-COVID-19 period that will boost automobiles and safety components such as active grille shutters. In addition, the introduction of supportive government initiatives and the rising adoption of EVs and autonomous vehicles will strengthen the regional outlook.

The rest of the world contributes very little to this market compared to other regions. It is due to the lack of automotive OEMs and active grille shutter suppliers, low technology adoption, and fewer typed vehicles. However, it is expected to grow in the future at a CAGR of 4.9%.

KEY INDUSTRY PLAYERS

Strong Portfolio and Vast Distribution Network Has Propelled Magna International Inc, Rochling Group, and Valeo to Lead Market

The market is highly fragmented, with established and emerging players across developed and developing countries. The leading players focus their efforts on developing technologically advanced AGS systems for vehicles.  

LIST OF KEY COMPANIES PROFILED:

• Magna International Inc. (Canada)


• Valeo (France)


• Rochling Group (Germany)


• Brose Fahrzeugteile GmbH & Co. KG (Germany)


• Techniplas (U.S.)


• SRG Global (U.S.)


• Tong Yang Group (Taiwan)


• S.Coop (U.S.)


• Aisin Seiki Co., Ltd (Japan)


• BATZ (Spain)

KEY INDUSTRY DEVELOPMENTS:

• August 2021 – Magna International Inc., a leader in automotive part supplier, will build a new liftgate module manufacturing plant for Nissan Qashqai in Sunderland, England. The new Qashqai thermoplastic liftgate is lighter than its steel predecessor, indicating a rising trend among manufacturers to reduce mass to improve fuel efficiency and emissions. It will help Magna for their AGS system to cater to new OEM.


• March 2021- Magna International Inc., a leader in automotive component suppliers, introduced two advanced electrified propulsion systems on ice and snow-filled test track.


• June 2021- Valeo equipped 250 employee commuter shuttles with antibacterial and antiviral technologies, including COVID-19. Over 25,000 of its employees in 12 countries will commute to and from work in optimal health and safety.


• June 2021- Valeo and Navya have agreed to expand their technological and industrial partnership. Navya will share the technical and functional information gathered during experiments with Valeo, which will offer the sensors and related algorithms to allow the vehicle to detect its surroundings more closely. This partnership will help Valeo provide other mobility solutions like AGS system/ Radiator shutter assembly.

REPORT COVERAGE

The active grille shutter system market report provides a detailed analysis and focuses on crucial aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the obvious variables, the report covers several others contributing to the market's recent expansion.

Report Scope & Segmentation