Automotive Composite Liftgate Market Size, Share & Industry Analysis, By Type (Conventional Liftgate and Power Liftgate), By Manufacturing Process (Compression Molding, Injection Molding, and Resin Transfer Molding (RTM)), By Vehicle Type (Hatchbacks/Sedans and SUVs), and Regional Forecast, 2024-2032

The global automotive composite liftgate market size was valued at USD 1.69 billion in 2023. The market is projected to grow from USD 1.82 billion in 2024 to USD 2.89 billion by 2032 at a CAGR of 6.0% during the forecast period.

An automotive composite liftgate is a rear door system of a vehicle, typically found on hatchbacks, SUVs, and some sedans, that is made using composite materials instead of traditional metals such as steel or aluminum. Composite materials, such as glass fiber-reinforced plastics (GFRP) or carbon fiber-reinforced plastics (CFRP), offer several advantages, including reduced weight, improved fuel efficiency, enhanced durability, and greater design flexibility. Overall, composite liftgates are advanced automotive components that combine performance, efficiency, and modern design, playing a crucial role in the evolution of vehicle manufacturing and design.

The global market growth is robust, driven by increasing demand for lightweight and fuel-efficient vehicles. Automakers are adopting composite materials to reduce vehicle weight, enhance performance, and comply with stringent emission regulations. The market is projected to continue its upward trajectory, supported by advancements in material science and manufacturing technologies.

The COVID-19 pandemic significantly impacted the market. Supply chain disruptions, production halts, and decreased vehicle sales led to a temporary slowdown. However, the market showed resilience, with recovery driven by pent-up demand and increased focus on sustainability and fuel efficiency. The pandemic accelerated the adoption of lightweight materials as automakers aimed to enhance vehicle performance and reduce emissions. Despite initial setbacks, the market is poised for growth as the industry adapts to new consumer preferences and regulatory standards post-pandemic.

Automotive Composite Liftgate Market Trends

Increasing Adoption of Lightweight Materials to Improve Fuel Efficiency and Reduce Emissions is Trending in the Market

The automotive industry’s relentless pursuit of improved fuel efficiency, enhanced performance, and reduced emissions have initiated this trend. Light weighting involves the use of advanced composite materials, such as carbon fiber-reinforced plastics (CFRP) and glass fiber-reinforced plastics (GFRP), to replace traditional steel and aluminum components in vehicle liftgates.

Governments and regulatory bodies across the world are enforcing stringent fuel economy standards and emission targets, compelling automakers to adopt lightweight materials. According to a 2023 report by the International Energy Agency (IEA), reducing vehicle weight by 10% can improve fuel efficiency by 6-8%, highlighting the significant impact of light weighting on meeting regulatory requirements.

OEMs are at the forefront of this trend, investing heavily in research and development to integrate composite materials into their vehicle designs. A notable example is General Motors (GM), which has utilized a composite liftgate in its Chevrolet Tahoe and GMC Yukon SUVs. These liftgates, made from a combination of CFRP and GFRP, result in a 20% weight reduction compared to traditional steel liftgates. This reduction enhances fuel efficiency and also improves vehicle handling and performance.

Another exemplary case is Ford’s application of composite liftgates in the 2021 Ford Escape. Partnering with Magna International, Ford leveraged resin transfer molding (RTM) technology to produce a composite liftgate that is 30% lighter than its steel counterpart. This collaboration underscores the industry’s shift toward advanced manufacturing processes that enable the production of complex, lightweight components with superior strength and durability.

Light weighting is a pivotal trend in the global automotive composite liftgate market growth, driven by regulatory pressures and technological advancements. OEMs such as General Motors and Ford are leading the way, demonstrating the tangible benefits of composite materials through significant weight reductions and performance improvements in their vehicles. This trend is expected to continue as the industry strives to meet the dual goals of sustainability and efficiency.

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Automotive Composite Liftgate Market Growth Factors 

Imposition of Stringent Emission Regulations by Governments and Regulatory Bodies is Driving Market Growth

Emission regulations are designed to combat climate change and reduce the environmental impact of vehicles by mandating lower CO2 emissions and improved fuel efficiency. As a result, automakers are increasingly turning to lightweight composite materials, such as carbon fiber-reinforced plastics (CFRP) and glass fiber-reinforced plastics (GFRP), to reduce vehicle weight and enhance fuel economy.

The European Union (EU) is at the forefront of enforcing rigorous emission standards. The EU’s target to reduce average CO2 emissions for new cars to 95 grams per kilometer by 2025 has put immense pressure on automakers to innovate and adopt lightweight materials. This regulation is a significant driver for the adoption of automotive composite liftgates, as reducing vehicle weight is a proven method to achieve lower emissions.

OEMs are responding to these regulatory pressures by incorporating automotive composite liftgates into their vehicle designs. A prominent example is BMW, which has implemented CFRP liftgates in models such as the BMW i3 and i8. These liftgates contribute to significant weight savings, enhancing the overall efficiency and performance of the vehicles. BMW’s use of composites aligns with its broader sustainability strategy, which is aimed at reducing the carbon footprint of its vehicles.

In the U.S., the Corporate Average Fuel Economy (CAFE) standards have also driven the adoption of lightweight materials. Automakers are required to achieve an average fuel economy of 54.5 miles per gallon by 2025, necessitating significant weight reductions across their vehicle fleets. General Motors (GM) has addressed this challenge by incorporating composite liftgates in its Chevrolet Tahoe and GMC Yukon SUVs, achieving a 20% weight reduction and improved fuel efficiency.

RESTRAINING FACTORS

High Production Costs Associated with Composite Materials May Restrain the Market Growth

One crucial restraining factor in the global market is the high production costs associated with composite materials. Despite their benefits in terms of weight reduction and improved performance, composites such as carbon fiber-reinforced plastics (CFRP) and glass fiber-reinforced plastics (GFRP) are significantly more expensive to produce than traditional materials such as steel and aluminum. This cost barrier affects the broader adoption of composite liftgates, especially in cost-sensitive segments of the automotive market.

The production of composite materials involves complex manufacturing processes that are more labor-intensive and require specialized equipment. For instance, the resin transfer molding (RTM) and compression molding techniques used to create automotive composite liftgates demand precise control and skilled labor, leading to higher operational costs. In addition, the raw materials for composites, such as carbon fibers, are costly. According to a 2022 report by the National Institute for Standards and Technology (NIST), the cost of carbon fiber can be up to ten times higher than that of steel.

OEMs have faced challenges in balancing the benefits of automotive composite liftgates with their high production costs. Another example is General Motors (GM), which has incorporated composite liftgates in its Chevrolet Tahoe and GMC Yukon SUVs. While these vehicles benefit from a 20% weight reduction due to the use of composites, the high cost of production has restricted the broader application of this technology across GM’s vehicle lineup. The premium pricing of composite liftgates impacts the company’s ability to integrate them into more cost-sensitive models, where price competitiveness is crucial.

The automotive industry’s push toward cost reduction and efficiency has created additional pressure on manufacturers to find ways to reduce the cost of composite materials. Efforts are ongoing to develop more cost-effective production methods and alternative materials. However, these advancements are still in their early stages and are yet to achieve the scale needed to make a significant impact on overall costs.

Automotive Composite Liftgate Market Segmentation Analysis

By Type Analysis

Conventional Liftgate Segment Leads Driven by Continuous Demand for Reliable and Affordable Vehicle Components

By type, the market is classified into conventional liftgate and power liftgate. 

The conventional liftgate, typically manually operated, dominates the market due to its widespread use in various vehicle types, particularly in budget and mid-range segments. They are cost-effective and simple to manufacture, making them a popular choice among automakers aiming to keep production costs low. Companies such as Ford and General Motors utilize conventional power liftgates in models including the Chevrolet Tahoe and GMC Yukon, where durability and weight reduction are crucial.

Power liftgates, equipped with automatic opening and closing mechanisms, are the fastest-growing segment. They offer enhanced convenience and luxury, appealing to the premium vehicle market. The integration of smart technologies, such as hands-free operation and sensor-based controls, drives their popularity. For instance, BMW’s use of power composite liftgates in models such as the BMW X5 demonstrates the demand for advanced features that enhance user experience. The growing consumer preference for high-end functionalities is propelling the rapid adoption of hands-free power liftgates.

By Manufacturing Process Analysis

Cost-Efficiency with Larger Volume Production of Components Makes Compression Molding a Dominant Segment

By manufacturing process, the market is divided into resin transfer molding (RTM), compression molding, and injection molding. 

Compression molding is a dominant manufacturing process due to its cost-effectiveness and efficiency in producing large volumes of components. It is widely used for making sturdy and lightweight automotive composite liftgates. OEMs such as Toyota employ compression molding to achieve consistent quality and high production rates for their composite liftgates, balancing performance with cost.

The resin transfer molding (RTM) is the fastest-growing segment due to its superior strength-to-weight ratio and high-quality output. It allows for the integration of advanced materials, such as carbon fiber, enhancing the overall performance of automotive composite liftgates. Ford’s partnership with Magna International for the Ford Escape liftgate showcases RTM’s potential to achieve significant weight reduction and performance improvements. 

Injection molding is recognized for its precision and ability to produce complex shapes, making it ideal for intricate liftgate designs. While not as prevalent as compression molding, it is gaining traction due to advancements in material science and molding techniques.

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By Vehicle Type Analysis

Rising Popularity of SUVs with Consumers’ Preference for Advanced and Durable Components to Spur Segment Expansion

In terms of vehicle type, the market is classified into SUVs and hatchbacks/sedans.

The SUVs is the dominant and fastest-growing segment. The demand for durability, weight reduction, and advanced features drives their extensive use. Automotive composite liftgates in SUVs such as the Chevrolet Tahoe and Ford Escape significantly reduce the vehicle weight, improving fuel efficiency and handling. The rising popularity of SUVs, coupled with consumer preference for advanced and durable components, fuels the growth of this segment.

Hatchbacks and sedans utilize composite liftgates to enhance fuel efficiency and performance. While these vehicle types are prevalent, the adoption of composite liftgates in this segment is moderate compared to SUVs. Manufacturers focus on balancing cost and performance, making composite liftgates a valuable addition. For example, Honda integrates composite liftgates in certain sedan models to achieve better fuel economy and weight distribution.

REGIONAL INSIGHTS

By region, the market is classified into North America, Asia Pacific, Europe, and the rest of the world.

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Asia Pacific dominates the automotive composite liftgate market share, driven by high demand for SUVs and advanced vehicle technologies. Countries such as China and Japan invest in lightweight materials to enhance vehicle performance and fuel efficiency. Toyota and Nissan exemplify regional leaders incorporating composite liftgates to meet evolving market needs and regulatory standards.

Europe is the fastest-growing region due to stringent emission regulations and a strong focus on sustainability. The European Union’s aggressive CO2 reduction targets push automakers to adopt lightweight composite materials. OEMs such as BMW and Volkswagen lead the way with advanced composite liftgate integration, promoting eco-friendly and efficient vehicle designs.

North America, with the presence of major OEMs such as General Motors and Ford, who actively integrate composite liftgates into their models, bolsters this region’s growth. Innovations and investments in lightweight materials further supports the market growth.

The rest of the world region experiences moderate growth, driven by the adoption of new automotive technologies in emerging economies.

KEY INDUSTRY PLAYERS

Extensive Expertise, Advanced Manufacturing Capabilities, and Strategic Partnerships Make Magna One of the Leading Market Players

Magna International stands out as the dominant player in the global automotive composite liftgate market. The company is at the forefront of technological innovation in the composite liftgate market. It employs advanced manufacturing processes such as resin transfer molding (RTM) and compression molding to produce high-quality, lightweight liftgates. The company’s strategic collaborations with major OEMs bolster its market dominance. For example, its partnership with Ford for the 2021 Ford Escape’s composite liftgate showcases its ability to deliver innovative solutions that meet the high standards of leading automakers. Such collaborations enhance Magna’s reputation and expand its market reach, ensuring a steady demand for its composite liftgates.

Magna offers a comprehensive range of composite liftgates catering to various vehicle types, including hatchbacks, sedans, and SUVs. This versatility allows it to serve a wide customer base, from economy vehicles to luxury models. The company’s ability to tailor its products to meet the specific needs of different vehicle segments is a significant competitive advantage.

Plastic Omnium excels in manufacturing lightweight, high-performance composite liftgates using advanced materials such as carbon fiber and glass fiber-reinforced plastics, which makes it a key player. Its product range includes both conventional and power liftgates, catering to various vehicle types, including SUVs and sedans.

List of Top Automotive Composite Liftgate Companies:

• Magna International Inc. (Canada)


• Plastic Omnium (France)


• Continental Structural Plastics (CSP) (U.S.)


• Trinseo (U.S.)


• Gordon Auto Body Parts Co., Ltd. (Taiwan)


• SABIC (Saudi Arabia)


• The Woodbridge Group (Canada)


• IDI Composites International (U.S.)


• Aisin Seiki Co., Ltd. (Japan)


• Mitsubishi Chemical Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS:

• In April 2024, Magna introduced advanced body structure solutions, including light weighting thermoplastic rear access solutions called liftgates.  These are 20% to 30% lighter than traditional steel solutions, helping reduce the overall weight of the vehicle. They are also perfect for different vehicle architectures such as ICE, electric, or hybrid and optimize range.


• In March 2024, Rivian, an electric vehicle manufacturer, unveiled its SUV, the R2, representing the next evolution in their lineup. Constructed on a fresh platform boasting single, dual, and tri-motor electric drive configurations. The vehicle is equipped with power liftgates with more cargo space.


• In August 2023, RLE International developed innovative thermoplastic sandwich panel technology initially for interior components. The company has now revised its technology to produce exterior panels such as hoods, liftgates, and roof panels.


• In July 2023, The Volkswagen research team, along with the University of Tennessee (UT) and Oakridge National Lab (ORNL), created the lift gate of a MY2020 Volkswagen Atlas using sheet molding compound (SMC). It is a type of fiberglass-reinforced plastic and proved to be 13 lb lighter than the conventional metal-based version. It reduced by more than 35% in weight, which helped increase the range of electric vehicles and those powered by a combustion engine.


• In November 2022, Continental AG initiated a significant collaboration with Ford, marking the beginning of a partnership focused on the comprehensive design, development, and manufacturing of a composite power liftgate module. This module was specifically tailored to meet the unique requirements of Ford's Mustang Mach-E vehicle model.

REPORT COVERAGE

The automotive composite liftgate market report provides a detailed market analysis focusing on crucial aspects such as leading companies, service types, and product applications. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market’s growth over recent years.

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