The Total Addressable Market (TAM) for Convertible Roof System was worth USD 1.51 billion in 2022, and it is expected to reach USD 2.66 billion by 2031, registering a CAGR of 6.50% during the forecast period (2023-2031).
Convertibles are often considered a latent feature in most countries. This trend has gradually changed now, and with increasing convertibles across all car categories, manufacturers are investing in R&D to increase technical expertise to bring the latest features to convertibles. The primary drivers of the market's growth include technological advancements in material technology, the creation of lightweight convertible tops, and the rise in demand for luxury automobiles. In addition, the market's development will be aided by the rising penetration of SUVs in emerging markets.
|Market Size||2.66 billion|
|Fastest Growing Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Technological Advancements in Convertible Roof Systems
Around the world, there has been a growth in the demand for comfort, safety, and convenience features, as well as an increased desire for the visual appeal of the car's surface. Furthermore, innovations in material technology and rising customer desire for convertible roof systems in emerging countries are driving the worldwide market.
Driven by these factors, automobile manufacturers are incorporating several enhanced features in their vehicles. With better electronics and sensor technologies, several companies are launching their recent product line-up, allowing passengers to purchase customizable vehicles and reducing users' efforts. For instance, at the Startup Autobahn exhibition in July 2021, Webasto unveiled several innovations created in partnership with various startups. In collaboration with designLED, a leader in thin and flexible LED lighting and smart surface solutions, the company displayed an integrated dynamic lighting concept for automotive roofs. The two businesses finished a prototype for a changeable roof element with light tiles. According to the company, the new BMW 4 Series has a Webasto convertible roof. At the touch of a button, the roof can be opened in 18 seconds while the vehicle is in motion. The four roof components are stacked on top of one another in a fluid motion. The roof components are kept underneath, and the top cover opens backward simultaneously. Such elements all contribute to market expansion.
Increasing Luxury Car Sales
Increasing luxury car sales is another factor driving the market growth for convertible roof systems. Asia-Pacific is expected to dominate luxury car sales during the forecast period owing to major automotive markets in the region, such as China, Japan, and India. Another element contributing to the rise in luxury car sales in the APAC region is the expanding youth population. Another significant market for luxury vehicles in India. The Indian government is also taking steps to increase the sales of luxury cars in the nation by lowering the GST, import duties, and registration taxes on (luxury) cars and supporting banks and NBFCs in their efforts to provide dealers and customers with simple access to loans, which will help grow the market and strengthen the industry as a whole. In April 2021, at the Shanghai Auto Show, the SAIC-GM-Wuling announced that the company would launch the most popular Hongguang Mini EV in a convertible body style. Due to the factors mentioned above, the convertible roof systems market is likely to grow due to the demand for luxury cars.
Increasing Consumer Preference toward Sunroofs
Over the years, there has been a significant demand from vehicle owners for panoramic sunroofs. A panoramic sunroof is more significant than a standard sunroof. The advantages of smart glass are encouraging its adoption in the car panoramic sunroof sector. Due to possibilities with panoramic sunroofs, many manufacturers are providing panoramic sunroofs in their vehicle models. Covering the entire front and backside of the car helps limit the light and heat emission of the automobile sunroof. While larger sunroofs will boost the demand for glass in automobiles, smart glass and in-glass display technologies will make it a more functional and interactive component in the future.
Increasing sunroof use in high-end, exotic, and mid-range automobiles will likely drive market expansion throughout the forecast period. Panoramic sunroofs come in two types: fixed and openable. They also increase the brightness of the car by allowing sunlight to pass through them. It also makes the car spacious as it contains fewer components occupying space compared to the convertible roof system. The current demand for automotive panoramic sunroof products is relatively high worldwide, owing to the high production of the global automotive market and the increasing demand for comfort. Meanwhile, due to the rapid expansion of the Chinese automotive market, the demand from China was significantly greater. Due to the abovementioned factors, the sunroof demand will likely grow to cause hindrances to the convertible roof systems market over the forecast period.
Developments and Innovations concerning Convertible Roof Systems
As more composites will be used in future cars, there is a high chance that composites will replace traditional materials in roof designs. Ceramics allow more flexibility in roof system designs and construction than other metals. For instance, In March 2021, Elix and Polyscope announced cooperation to develop thermoplastic solutions for premium automotive parts such as roof modules and other structural components. The companies have worked together for years to develop specialty compounds for highly demanding applications.
Similarly, in March 2019, Netherlands-based Polyscope Polymers BV, Webasto France, and the Groupe Renault in France combined to develop a 15% glass-reinforced copolymer, compound of styrene maleic anhydride and acrylonitrile butadiene styrene (SMA-GF) material, called Xian SGH30EB to make the roller-blind guide rails on the panoramic sunroof modules installed in Renault Scenic. Using composite material allowed the makers to free up 13 mm headspace for passengers and increase the angle of vision through the glass panel. Such developments and innovations are possible concerning convertible roof systems in the coming years, which create potential market opportunities.
By region, the global convertible roof system market is segmented into North America, Europe, Asia Pacific, South America, and the Rest of the World.
Europe accounted for the largest market share and is estimated to grow at a CAGR of 3.8% during the forecast period. The presence of premium and luxury car manufacturers in Germany and the simultaneous development of convertible roof systems for these models are expected to drive demand in the market.4 Series Cabriolet, Mercedes-Benz E-Class Cabriolet, MC20, T-Roc Cabriolet, Mercedes-AMG GT C Roadster, etc., are some key models operating in the country. Webasto being dominant in the German market is strengthening its presence in Germany through various growth strategies as it supplies these convertible roofs to most models operating in Germany. For instance, In July 2021, Webasto presented multiple innovations developed in collaboration with several startups at the Startup Autobahn exhibition, and One such innovation is an integrated dynamic lighting concept for automotive roofs developed in cooperation with design LED, a specialist in thin and flexible LED lighting and smart surface solutions. Such developments in the German market are likely to contribute to the market's overall development over the forecasted period.
North America is the second largest region. It is expected to reach USD 660 million by 2031, registering a CAGR of 3.7%. The United States is among the largest automotive markets worldwide, owing to its large-scale domestic production, with the major global players having their production plants in the United States. Furthermore, the growing popularity of luxury and premium cars is anticipated to create prospects for the convertible roof system in the country. Convertible sales have been on the rise in recent years, as have the number of options for getting a ragtop. The most considerable drive-in sales increase is the improvement in materials and technology, making these vehicles increasingly popular in new places. For instance, In March 2020, MINI USA announced the availability and the US pricing for the new 2021 MINI Sidewalk Edition. The latest MINI convertible offering, which is expected to reach dealerships in the US, comes to the market as a Cooper S variant. This model has an anthracite Sidewalk soft-top roof. In May 2019, Webasto announced it was investing USD 40 million in a new facility in Auburn Hills, Michigan, where it can expand its engineering and testing functions. The consolidation of Michigan locations will create a thriving environment of collaboration and business processes of roof systems, including sunroofs, panorama roofs, and convertible roofs, to automotive OEMs. Such robust expansion plans adopted by players and the rising demand for convertibles indicate active market growth over the forecast period.
Asia Pacific is the third largest region. China is the world's largest automotive industry market, with a total of 19 million passenger cars sold between Ja 2021 and Nov 2021. Such high sales figures indicate the country's immense market potential for convertible roof systems. Various surveys about people's willingness to use convertible roofs indicate the high inclination of buyers toward the same. For instance, a survey conducted by Webasto in 2019 indicated that most people were interested in buying a car with a convertible roof system. The exponential growth in electric vehicles, primarily due to the stringent emission norms and increasing demand for luxury car models in the country, is opening opportunities for convertible roof system manufacturers.
The global convertible roof system market is segmented by roof system components type, rooftop type, vehicle type
By roof system components type, the global convertible roof system market is segmented into roof material (polyvinyl chloride (PVC), carbon fiber, other roof materials), roof drive system (motors), other roof system component types (supporting frames, electronic parts, etc.). The roof material segment accounted for the largest market share and is estimated to grow at a CAGR of 3.9% during the forecast period. Poly Vinyl Chloride is critical in helping make modern automobiles safe, cost-effective, and high-quality while reducing their environmental impact. Moreover, due to its varied advantages, PVC has always been a popular material in car manufacture. Owing such advantages, like the growing demand for lightweight vehicles and electric vehicle penetration, will further enhance the development of the PVC roof systems in these vehicles over the forecast period.
By rooftop type, the global convertible roof system market is segmented into the hard top and soft top. The soft top segment accounted for the largest market share and is estimated to grow at a CAGR of 3.8% during the forecast period. Soft top convertibles are less secure due to the fabric roof than hard tops. However, soft-top roofs are good at insulating passengers, and When comprised of multiple layers, they can dampen a lot of road noise when the roof is closed. However, as soft tops can be neatly folded, they take up less boot space when the roof is open and have simpler mechanisms than hard tops. Such benefits are expected to drive demand in the market.
By vehicle type, the global convertible roof system market is segmented into the hatchback, sports utility vehicles, and sedans. The sedan segment accounted for the largest market share and is estimated to exhibit a CAGR of 4% during the forecast period. Most European and Asia-Pacific countries are witnessing more significant sales in sedans than other types of vehicles, as sedans deliver functionality, fluidity, and design. Such growing sales of sedans are likely to encourage players in the convertible market to launch new products into the market. Moreover, some of the key players in the market have already started updating their available older models with these convertible vehicle features to accommodate the growing popularity of these convertible sedans among consumers. For instance, In March 2021, Mercedes was seen testing its new E-Class Cabriolet Facelift version to be tentatively released into the Indian market by September 2022. This vehicle is expected to come with a convertible variant to cater to the needs of the Indian automotive industry. In June 2021, Lamborghini Huracan Evo RWD Spyder was launched in India with a fabric roof that folds in 17 seconds at speeds up to 50kph. This is the fourth iteration of the V10 supercar currently offered in India. Such developments in the Sedan segment of the market are likely to enhance the overall development of the market over the forecasted period.
Key global convertible roof system market companies are