Automotive Closure Market

Market Overview

The global automotive closure market size was valued at USD 23.67 billion in 2022. It is forecasted to reach USD 45.04 billion by 2031, growing at a CAGR of 7.41% during the forecast period (2023-2031). The global market is driven by an increasing demand for comfort and luxury features in automotive vehicles.

Automotive closures are fundamental components of vehicles, as they facilitate all access and handling operations. These closures are important in automobile design, playing a crucial role in overall aerodynamics. Various parts, including bonnets, back doors, side doors, sunroofs, sliding doors, windows, and fuel doors, fall under the category of automotive closures. While these closures were traditionally operated mechanically, ongoing research and development efforts within the automotive industry have led to their electronic operation.

Car manufacturers actively pursue weight reduction strategies to enhance fuel efficiency and decrease carbon emissions. This drive toward lighter vehicles involves the use of aluminum for crafting automotive closures and integrating electronics, contributing to weight reduction. The growing consumer demand for luxury and comfort features in vehicles and the emergence of biometric vehicle access systems are expected to fuel the automotive closure market's growth for electric (EV) and internal combustion engine (ICE) vehicles

Market Dynamics

Global Automotive Closure Market Drivers

Growing Demand for Comfort and Luxury Features in Automotive Vehicles

The automotive closure market is experiencing growth due to the increasing demand for automobiles, resulting in a rise in production. Among the several segments within this market, passenger cars are projected to hold the greatest share. The rising disposable income of the customers and demand for advanced features in the automobile will drive the growth of the automotive closure market for EVs and ICE. For instance, in Europe and America, luxury vehicles with features such as power sunroofs, side door closure systems, and power convertible roofs have great demand.

Factors such as lower production costs, lenient emission, and safety norms, and others have transformed the region into a manufacturing hub. Therefore, many European and American automobile manufacturers have shifted their production plants to developing nations in Asia-Oceania since demand for automotive closure is directly linked to vehicle production. Moreover, it is projected that plug-in hybrid vehicles (PHEVS) will the market growth for automotive closure. These technological advancements are expected to drive EV and ICE's automotive closure market growth.

Global Automotive Closure Market Restraint

High Cost and Complexity Associated with Electronic System Components

The increasing complexity of electronic systems is expected to hinder market growth. Modern automotive closures have various electronic systems, such as sensors, actuators, and controllers. These systems are becoming increasingly complex, which drives up their cost. Many electronic components used in automotive closures are high-end components, such as semiconductors and sensors. These components are more expensive than traditional mechanical components.

Furthermore, electronic systems in automotive closures must meet stringent safety standards. This adds to their cost, as manufacturers must invest in testing and certification. The limited supply of electronic components also hinders the growth of the market. For instance, the global semiconductor shortage caused prices for electronic components to rise. This also contributes to the automotive closure market's high cost of electronic system components.

Global Automotive Closure Market Opportunities

Integration of Smart Technologies

The incorporation of advanced smart technologies into automotive closures is a growing trend fueled by the rising demand for enhanced connectivity, safety, and security in vehicles. These smart automotive closures utilize various sensors, actuators, and cutting-edge technologies to offer a range of features encompassing remote locking and unlocking, allowing drivers to conveniently secure or access their vehicles using a smartphone or another device. Furthermore, the passive entry and start systems enable drivers to effortlessly enter and start their vehicles without the need to retrieve their keys. Automatic tailgate opening simplifies the process of accessing the vehicle's cargo area when the driver approaches with the key fob.

Similarly, child safety locks can be activated from within the vehicle to prevent unintended door openings, while biometric access systems offer secure fingerprint or facial recognition authentication. These smart closures are also equipped with crash detection sensors to promptly notify emergency services in case of a casualty and theft protection sensors that can trigger alarms if tampering is detected.

In addition, the integration of these intelligent technologies into automotive closures brings about numerous advantages, such as enhancing convenience since vehicles can be locked, unlocked, and start without the inconvenience of retrieving physical keys. It contributes to improved safety by helping prevent accidents and theft. Moreover, it enhances security, particularly for children and valuable possessions within the vehicle. Lastly, the incorporation of smart closures fosters increased connectivity by facilitating the connection of vehicles to the Internet, thereby enabling a wide range of services, including navigation and real-time traffic updates.

Regional Analysis

Based on regions, the global automotive closure market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific Dominates the Global Market

Asia-Pacific is the most significant global automotive closure market shareholder and is expected to grow at a CAGR of 5.31% over the forecast period. This is due to the presence of major automotive manufacturers in the region. The growing automotive industry in the region is propelled by economic growth, rising income, and a growing need for safety and security features in automobiles, which drives the demand for automotive closures. In addition, the development of novel technologies such as lightweight materials and smart technologies to make automotive closures more efficient, reliable, and secure are propelling the market growth in the region. Countries such as Japan, China, South Korea, and India are the dominant manufacturers of automobiles in the region and contributors to the major share of the automotive closures market.

North America is anticipated to grow at a CAGR of 5.1% during the forecast period. The increasing demand for safety and convenience features in vehicles is a driving factor for the growth of the automotive closures market in the region. The automotive industry in North America stands as one of the largest and most established worldwide, a status attributed to several key factors. High disposable incomes, robust vehicle demand, and a substantial presence of automakers contribute to its maturity. Regions like the United States, Canada, and Mexico are home to some of the world's biggest automotive manufacturers and are witnessing rapid growth in the automotive aftermarket. In addition, consumers in North America are placing a growing emphasis on vehicle features that enhance convenience and luxury, such as power windows, sunroofs, and tailgates, all reliant on automotive closures.

Moreover, there's a heightened focus on vehicle safety and security, with automakers integrating technologies like child safety locks and biometric access systems, underlining the critical role of automotive closures. Consumer demand for personalized features is also rising, leading to the development of customized automotive closures tailored to individual needs. These trends underscore the dynamism and expansion of the North American automotive closure market, reflecting consumers' increasing requirements for comfort, convenience, safety, security, and personalization in their vehicles.

Segmental Analysis

The global automotive closure market is segmented into application, component, type, and vehicle type.

Based on the application, the global automotive closure market is bifurcated into power-window, sunroof, tailgate, convertible roof, and sliding door.

The power window segment is the highest contributor to the market and is expected to grow significantly over the forecast period. The growth is driven by the escalating demand for vehicle power windows, which offer various advantages compared to manual windows. These advantages include the sheer convenience of effortless one-button operation, the safety aspect of quick closure during emergencies like potential theft, the comfort factor by enabling precise airflow adjustments, and the perception of luxury they bring, ultimately enhancing a vehicle's perceived value. This segment's expansion is expected to persist in the coming years, propelled by factors like the increasing preference for premium and luxury vehicles, known for their extensive feature sets, including power windows.

A heightened focus on safety aspects, as power windows facilitate swift and efficient closure in critical situations. The power window market is marked by intense competition, with key players like Magna International, Johnson Controls, and Valeo constantly innovating to enhance power window systems. In addition, automakers increasingly turn to lightweight materials like aluminum and composites to reduce vehicle weight, thus improving fuel efficiency and emissions. Simultaneously, new actuator technologies, including brushless motors, linear actuators, and electromechanical actuators, are under development to enhance power window efficiency and reliability.

Based on component type, the global automotive closure market is bifurcated into switches, electronic control units (ECU), latches, motor/actuators, and relays.

The latches segment dominates the global market and is expected to grow significantly over the forecast period. Latches serve a crucial role in securing doors, hoods, and tailgates, playing a pivotal part in accident prevention and theft deterrence. The factors responsible for the growth of the latch segment include the heightened consumer demand for safety and security features, encompassing elements like child safety locks and biometric access systems, the surging popularity of electric vehicles, known for their expanded feature sets, including power windows and sunroofs. These rely on dependable latches, and the ongoing technological advancements, such as active inertia latches and LED latches, are elevating the efficiency and reliability of latches, further driving the growth of this segment.

Based on vehicle type, the global automotive closure market is bifurcated into passenger vehicles and commercial vehicles.

The passenger segment owns the highest market share and is predicted to expand substantially over the forecast period. The passenger vehicle sector is experiencing robust growth, with several key drivers fueling its expansion. The growing global demand for passenger vehicles is projected to maintain a steady growth rate of 3.5% in the forecast period. This surge can be ascribed to factors such as a rising global population, increasing disposable incomes, and rapid urbanization.

Furthermore, the demand for comfort and luxury features in their passenger vehicles, such as power windows, sunroofs, and tailgates, along with enhanced safety and security, have taken center stage in passenger vehicles, with automakers integrating features like child safety locks and biometric access systems, further emphasizing the importance of automotive closures.

Recent Developments

• September 2023- DENSO CORPORATION introduced "Everycool," an innovative cooling system designed to enhance driver comfort and energy efficiency in commercial vehicles when the engine is off. The newly developed "Everycool" system efficiently cools truck cabins during engine downtime, improving driver comfort and reducing environmental impact. Key features include a focus on comfort and energy efficiency, achieved through advanced air conditioning technology, reducing power consumption by around 57%.
• January 2022- Aptiv PLC entered into a definitive agreement to acquire Wind River Systems, Inc., a global leader in delivering software for the intelligent edge to harness the potential of connected intelligent systems, strengthen its capabilities in software-defined mobility, and enable advanced smart vehicle architecture changes. Earlier in 2021, the Company executed a strategic collaboration agreement with Wind River to develop a software toolchain for various automotive applications.