Automotive Tailgate Market

Market Overview

The global automotive tailgate market size was valued at USD 13,866.3 million in 2022. It is estimated to reach USD 21,145.26 million by 2031, growing at a CAGR of 4.8% during the forecast period (2023–2031). The increase in demand for electronic-based components or devices in the vehicle and the need for effective automatic tailgates stimulates market growth.

The term "automotive tailgate" refers to the back door of a vehicle that may be opened and closed to gain access to the storage area or cargo space. There are different types of tailgates in the worldwide Automotive Tailgate market, including electronic, hydraulic, and manual tailgates found in vehicles such as cars, trucks, and SUVs. The primary function of a tailgate is to facilitate cargo loading and entry into the vehicle.

Furthermore, tailgates can enhance the vehicle's aerodynamics, enhancing fuel economy and lowering pollutants. Tailgates vary in size and shape depending on the application; for example, a truck or pick-up truck has a bigger and heavier tailgate built to haul heavy loads. Smart or electronic tailgates that open and close with a button or a gesture sensor are the most recent advancements in tailgate technology. Furthermore, manufacturers seek to implement features like changeable heights, cargo nets, and integrated cargo ramps to give consumers more flexibility and simplicity.

Market Dynamics

Market Drivers

Increase in Demand for Electronic-Based Components or Devices in the Vehicle

Electronic-based components and other components, such as sensors, are in high demand due to the increased requirement for automated, smart, and connected cars. Different applications, which include brake vacuum sensors for pressure measurement, clutch sensors to determine the position of the clutch, and others, drive the need for electronic components. The various components, such as the power hatch lift motor, hatch lift supports, and actuator, play a crucial role in the automotive tailgate system. Other electronic components are also used to operate the automotive tailgates, which fuel the demand for automotive tailgates in the market.

Need for Effective Automatic Tailgate in the Vehicle

The traditional or manual liftgate does not include a precise way of latch locking, nor does it indicate proper latching on the dashboard panel; therefore, the automatic-operated tailgate is introduced in the market. Liftgates are used with the help of a hydraulic power mechanism to reduce human efforts to lift heavy objects in trucks within less time.

Market Restraint

High Configuration Cost and Degradation of Sensing Mechanism

As many components and sensors are assembled in a single dielectric plate by compatibility, their installation incurs higher costs, increasing the application's overall manufacturing cost. Few sensors and nano products are built with a single plate of dielectric, which increases the complexity in product manufacturing and overall packaging and ultimately increases the cost of production. Periodic maintenance and poor handling can cause the degradation of the system. Thus, it restricts the adoption of hands-free power liftgates in the market.

Market Opportunities

Technological Advancements and Innovation in the Field of Automotive Industry

Innovation of advanced driving technology is used to detect objects and hazardous road conditions and automatically reduce the vehicle's speed. Also, the concept of handling vehicles through the Internet of Things (IoT) and other emerging technologies in the automotive sector drives the demand for automated or hands-free power liftgate systems in the market. Companies, such as Forbes and Mercedes, use iris recognition and face detection technology to open the liftgate. This fuels the demand for hands-free power liftgates in the market.

Regional Analysis

Based on region, the global automotive tailgate market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific's automotive tailgate industry share is estimated to grow at a CAGR of 4.8% over the forecast period. Various developments have been carried out in automotive tailgates, eventually leading to regional market growth. China and Japan collectively accounted for around 64.8% of the share in 2018, with the former constituting around 42.7%. During the forecast period, South Korea and India are expected to witness considerable CAGRs of 10.8% and 8.8%, respectively. The cumulative share of these two segments was 12.5% in 2018 and is anticipated to reach 15.6% by 2026.

Europe will likely exhibit a CAGR of 6.07% over the forecast period. Various companies, such as Huf Hülsbeck & Fürst GmbH & Co. KG, Plastic Omnium, and Robert Bosch GmbH, have developed and introduced various tailgate models for the vehicles, which led to the growth of the automotive tailgate market in the region. The increased trend toward implementing advanced components in vehicles has led to the growth of the automotive tailgate market in the region.

In North America, various developments have been carried out by top companies, such as Go Industries, Inc., Magna International Inc., and Woodbine Manufacturing Co. Inc., for the production and development of tailgates, which leads to the growth of the market in the region. In LAMEA, various developments have been carried out by top companies to develop the automotive tailgate market within the region. Latin America and the Middle East collectively accounted for around 77.1% of the share in 2018, with the former constituting around 41.6%. During the forecast period, Latin America and the Middle East are expected to witness considerable CAGRs of 3.9% and 3.5%, respectively.

Segmental Analysis

The global automotive tailgate market is bifurcated into type, vehicle type, and sales channel.

Based on type, the global automotive tailgate market is bifurcated into hydraulic/manual operated and power operated.

The hydraulic/manual operated segment dominates the global market and is projected to exhibit a CAGR of 4.6% over the forecast period. Hydraulic/manually operated tailgates include a hydraulic or a manual system installed in the gates to open or close them. A lever or a hydraulic system is attached to the vehicle's tailgate, which helps in the operations of the tailgate.

The global automotive tailgate market is bifurcated into passenger and commercial vehicles based on vehicle type.

The passenger vehicle segment owns the global market and is predicted to exhibit a CAGR of 4.9% over the forecast period. A passenger vehicle is designed for a seating capacity of not more than nine people (including the driver) and is used to carry passengers. A passenger vehicle is the largest segment among all the vehicle types. It contributes more than 75% of the revenue in the hydrogen fuel cell vehicle market owing to the high sales of passenger vehicles compared to other commercial vehicles.

Based on sales channels, the global automotive tailgate market is segmented into original equipment manufacturers (OEMs) and aftermarkets.

The original equipment manufacturers (OEM) segment dominates the global market and is predicted to exhibit a CAGR of 4.9% during the forecast period. Original equipment manufacturers are the manufacturers or producers that manufacture the tailgates for automobiles. These tailgates are installed in vehicles by the manufacturers, thereby decreasing their production costs for the vehicle manufacturers.

Recent Developments

• June 2023- Bosch revealed the development of a new tailgate system that a smartphone may control. Even when users' hands are full, this technique makes it easy to open and close their tailgates.
• April 2023- Johnson Controls announced the opening of a new automobile tailgate production factory in Mexico. This factory will assist Johnson Controls in meeting North America's expanding demand for tailgates.