Power Tailgate System Market Size, Share & Industry Analysis, By Propulsion (ICE and Electric), By Component (Electric Motors, Control Modules , Sensors, Wiring Harnesses, Struts/Shocks, Door Locks, and Others), By Vehicle Type (Sedans, SUVs, and Vans), and Regional Forecast, 2024-2032

The global power tailgate system market size was valued at USD 3.09 billion in 2023. The market is projected to grow from USD 3.29 billion in 2024 to USD 6.41 billion by 2032, exhibiting a CAGR of 8.7% during the forecast period.

A power tailgate system for automotive sector automates the opening and closing operation of vehicle tailgates in electric motors employing sensors, and control units for hands-free or remote operation, improving user convenience. These systems often feature obstacle detection, anti-pinch protection, and programmable height adjustment. They primarily aim to streamline access to the vehicle's cargo area, facilitating easier loading and unloading for drivers and passengers.

The growing adoption of electric vehicles, as these types of vehicles are equipped mostly with advanced features, including power tailgate or liftgate system. The growing demand for convenience features in vehicles by consumers fuels the demand for the market over the forecast period.

The automotive sector, including the power tailgate system market, felt the brunt of the COVID-19 pandemic. Interruptions in global supply chains resulted in delays in producing and delivering automotive components, notably power tailgate or liftgate systems. Factory closures, movement restrictions, and workforce shortages resulted in the decline in overall demand for the power tailgate system. Automotive manufacturers scaled back production or temporarily shuttered facilities had to comply with lockdown measures, directly affecting the power tailgate system market share.

Power Tailgate System Market Trends

Trend of Electric and Hybrid Vehicles is on the Rise

The rise of electric and hybrid vehicle adoption profoundly impacts the power tailgate system market growth in multiple ways. Primarily, these vehicles appeal to consumers’ valuing advanced features and technology, a trend of power tailgate opening and closing systems aligned with, offering enhanced convenience and functionality. Additionally, the innovative drivetrain technologies and spacious rear cargo areas common in electric and hybrid vehicles make them ideal candidates for power tailgate installations.

The quiet, smooth operation characteristic of electric and hybrid vehicles complements the seamless functionality of power liftgate systems, contributing to a premium user experience. Moreover, the environmental consciousness associated with these vehicles resonates with the sustainability aspects of power backdoor systems. Manufacturers incorporate lightweight materials, energy-efficient designs, and eco-friendly components into these systems to appeal to environmentally conscious consumers.

By providing environmentally sustainable solutions, manufacturers can capitalize on the increasing demand for hybrid and electric vehicles, further bolstering the adoption of the market. According to the IEA, electric car sales are projected to remain robust in 2024, with approximately 17 million units expected to be sold by year-end. The first-quarter sales surged by approximately 25% compared to the same period in 2023, indicating sustained growth.

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Power Tailgate System Market Growth Factors

Volvo Cars Provide Power Tailgate System as a Standard Feature

The power tailgate systems market is attributed to grow significantly, offering users convenience and comfort by automating tailgate operation. Particularly attractive to those frequently loading and unloading cargo, these systems simplify access to the vehicle's cargo area, especially with hand free or remote-control options. As consumers increasingly prioritize convenience features in vehicles, demand for the market rises.

Safety and security features, such as anti-pinch protection and obstacle detection, further fuels the market expansion. These features prevent accidents and enhance safety for pedestrians and objects. Remote control capabilities mitigate theft risks, aligning with consumer preferences for vehicle safety. For example, Honda's 2022 CR-V models feature remote-operated power tailgates for effortless loading, with safety features such as collision prevention and programmable height adjustment. These power tailgate system market trends are driving major automotive manufacturers to integrate power tailgate systems as standard features, as witnessed with Volvo cars.

RESTRAINING FACTORS

High Repair Cost and Complexity of Systems Deter Product Adoption

Complexity and reliability issues pose significant obstacles to the expansion of the market. The increased convolution of these systems, compared to manual alternatives, introduces more components such as sensors, motors, and control modules, heightening the risk of technical malfunctions. This undermines consumer confidence, as they may perceive this system as prone to breakdowns or costly repairs.

Furthermore, the reliability of these systems is essential for user safety. Failures can lead to accidents or injuries, creating liabilities for manufacturers and negative publicity. Consequently, consumers may hesitate to invest in vehicles equipped with power liftgate systems if they consider manual options more dependable. In May 2023, Jeep recalled over 132,000 Cherokee SUVs (2014-2016) due to water leaks in the rear liftgate, causing electrical shorts and potentially leading to fires.

Power Tailgate System Market Segmentation Analysis

By Propulsion Analysis

Rising Adoption of EVs Fuels the Electric Segment Demand

Categorized on the basis of propulsion, the market is segmented into ICE and electric.

The electric segment is attributed to develop at the fastest-growing CAGR during the forecast period. The rising global popularity and adoption of electric vehicles fuel the demand for accessories and enhancements tailored specifically to EVs. As more consumers switch to electric propulsion, there's a growing market for accessories, including power backdoor systems designed to cater to these vehicles' specific needs.

The ICE segment held the dominant share of the market in 2023. Despite the rise of EVs, a significant portion of the market still prefers conventional vehicles with internal combustion engines. These consumers are likely to seek enhancements and accessories for their vehicles, including power liftgate systems. The 2024 Honda Passport, classified as a midsize SUV, is equipped with a V-6 engine. This model features a power tailgate, offering convenient operation tailored to a diverse range of Passport buyers. Users can remotely activate it using the Smart Entry key from a distance of up to 50 feet or via buttons located in the driver's seat or on the tailgate.

By Component Analysis

Integration of Smart Features Enhances the Demand for the Sensors Segment

Segmented by component, the market includes electric motors, control modules, sensors, wiring harnesses, struts/shocks, door locks, and others.

The sensors segment is estimated to be the fastest-growing segment during the forecast period. Sensors enable the integration of smart features in the automatic opening and closing system of tailgates, such as hands-free operation, foot-activated sensors, and automatic closing functionality. These features enhance user convenience and differentiate vehicles in the market, leading to augmented adoption of sensor components. In October 2023, Audi unveiled its 2023 edition of the e-tron GT, showcasing a powered tailgate system that incorporates a kick sensor developed by Huf Huelsbeck & Fuerst GmbH & Co. KG.

The electric motors segment by component holds the largest market share of 27.1% in the market in 2023. Ongoing advancements in electric motor technology, including improvements in efficiency, power density, and cost-effectiveness, are making electric motors more attractive for use in power liftgate systems. These advancements contribute to the competitiveness of electric motor-equipped systems compared to traditional alternatives.

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By Vehicle Type Analysis

Luxury SUV Concept Fuels the SUVs Segment Growth

Categorized by vehicle type, the market encompasses sedans, SUVs, and vans.

The SUVs segment by vehicle type is attributed to hold the largest market share. The luxury SUV segment is particularly significant in many regions globally, where consumers often seek premium features and advanced technologies in their vehicles. Power tailgate systems are commonly found in luxury SUV models, contributing to the demand for such systems within this segment.

In June 2023, Honda released the 2024 Honda CRV with a power liftgate, offering convenient operation for diverse buyers. Its features include remote operation up to 50 feet away, stop-and-hold functionality, and programmable height adjustment. The electric motor raises and lowers the tailgate, aiding users carrying items. Closing is effortless, especially for small-statured or older individuals. Control options include buttons in the driver's seat or on the tailgate itself.

The vans segment is assessed to grow at the fastest CAGR during the forecast period. Power tailgate systems with features such as obstacle detection and anti-pinch technology enhance the safety and ergonomics of vans, both for commercial and passenger use. These features lessen the risk of accidents and injuries during loading and unloading operations, making vans equipped with power liftgate systems more attractive to consumers globally.

REGIONAL INSIGHTS

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

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Rapid Economic Growth in Asia Pacific Fuels Regional Market Growth

Asia Pacific is attributed to grow with the fastest CAGR of 10.1% during the forecast period. The region is undergoing swift economic expansion and advancement, resulting in a rise in disposable income levels and vehicle ownership rates. As consumers seek vehicles with advanced features and convenience options, the demand for the market rises. In September 2023, Volkswagen announced the introduction of the Volkswagen Tiguan in India, featuring an advanced power tailgate system equipped with power struts developed by Edscha Holding GmbH.

North America market was at USD 1.35 billion in 2023, dominating the market. SUVs and crossovers reign as prominent and widely favored vehicle categories within the North American automotive market, capturing a substantial share of total vehicle sales. Within these popular segments, power liftgate or tailgate systems emerge as prevalent offerings, often available as either standard amenities or optional upgrades across numerous models of SUVs and crossovers. This widespread availability and integration of power tailgate or liftgate systems significantly bolsters their adoption and usage within the region, reflecting the preferences and demands of buyers who seek convenience and enhanced functionality in their vehicles.

Europe held a substantial market share in 2023. European consumers exhibit a notable inclination towards premium vehicles renowned for their top-tier craftsmanship, cutting-edge features, and ground-breaking technologies. Within this discerning demographic, power tailgate systems emerge as prevalent offerings, frequently available as either standard or optional features across a spectrum of luxury vehicles and premium models. This prevalence significantly propels the uptake and integration of the system within the European automotive market.

The rest of the world, including Latin America and the Middle East & Africa, each witness notable economic expansion and industrial advancement. With the surge in disposable incomes and a concurrent rise in vehicle ownership rates across these regions, there is a commensurate uptick in the demand for automobiles outfitted with sophisticated features such as power liftgate systems. This growing consumer appetite for enhanced vehicular amenities underscores the increasing significance and adoption of the system within the automotive market across diverse geographical territories outside the traditional major markets.

List of Key Companies in Power Tailgate System Market

Collaborative Ventures by Key Market Players with OEMs to Fuel Market Competitiveness

Major companies are engaging in close collaboration with Original Equipment Manufacturers (OEMs) to meticulously design, develop, and furnish power tailgate systems customized to meet the precise specifications of individual vehicle models. The pursuit of innovation in both the design and technological aspects of automotive tailgate systems components is gaining momentum, driven by a concerted effort to align with prevailing market dynamics and heighten competitiveness within the industry.

Notably, Brose Fahrzeugteile SE & Co. made a notable impact on the global power tailgate system market in 2023, securing a significant market share through its innovative endeavors. Across the sector, key companies profiled are actively seeking to forge deeper partnerships with OEM automotive manufacturers as part of strategic initiatives aimed at expanding their market presence and business footprint.

List of Key Companies Profiled:

• Brose Fahrzeugteile SE & Co. (Germany)


• Aisin Corporation (Japan)


• Huf Huelsbeck & Fuerst GmbH & Co. KG (Germany)


• Inteva Products (U.S.)


• Stabilus Co., Ltd. (Germany)


• Continental AG (Germany)


• WINBO-Dongjian Automotive Technology Co., Ltd (China)


• Edscha Holding GmbH (Germany)


• Strattec Security Corporation (U.S.)


• Multimatic, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: AISIN Canada revealed plans for the expansion of its Stratford plant. The facility, known for producing sunroofs, doorframes, power back doors, moldings, and seating components, has undergone significant expansion, adding 135,000 square feet of new manufacturing and office space.


• December 2023: JAC Motors, a leading Chinese automaker, launched its flagship model JS6, an SUV developed on MIS structure in the UAE. It introduced premium functions, including drive mode selection (eco/comfort/sport), smart key with push-button start, and Auto Hold for added safety. The Flagship model enhances sophistication with wireless charging and an electric tailgate, operated seamlessly with a foot sensor, embodying JS6's commitment to a connected, convenient, and intelligent driving experience.


• January 2023: Stabilus reported a strong development in the Automotive Powerise and Industrial units in its first quarter of fiscal 2023, ending December 31, 2022 and recorded a significant growth in its revenue.


• November 2022: Huf launched the Huf Light Touch Emblem. The patented Huf Light Touch Emblem offers car manufacturers several advantages over conventional access solutions. Its low profile allows for versatile placement on vehicles, seamlessly integrating into modern design trends, especially for electric cars. Additionally, its shape, size, and surface can be customized to meet manufacturers' preferences. The emblem is particularly sought after for rear access and front trunk opening in electric vehicles. By eliminating mechanical components, the system ensures durability and reliability in various weather conditions.


• June 2022: Volkswagen commenced production of the all-electric van, the Volkswagen ID. Buzz. This vehicle features a power tailgate module crafted by Continental AG. Volkswagen intends to manufacture approximately 15,000 units this year, all earmarked for the European market, preceding its debut in the U.S. in 2024. Production of the European version of the VW ID. Buzz electric minivan begins in Hannover, Germany.

REPORT COVERAGE

The market report provides a detailed market analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market opportunities and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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