Power Liftgate Market

Growing luxury vehicles is driving the market growth

Market CAGR for power liftgate is being driven by the rising luxury vehicles. Globally, demand for hands-free power liftgates is increasing. One of the major factors driving the market's growth is the growing benefits of hands-free power liftgates, such as their high level of convenience for both drivers and passengers. Drivers may open the cargo space of their automobile with only a press of a button or a wave of their foot, even if their hands are full. This is very helpful when transporting groceries, luggage, or other stuff.

The hands-free power liftgate's high level of safety, which lowers the possibility of damage when lifting big goods, also contributes to the market's expansion. The demand for premium cars worldwide is anticipated to drive the market for power liftgates. 

Luxury cars frequently have power liftgates because they provide convenience and safety. They allow drivers to open and close the tailgate without getting out of the car, which is useful in confined parking situations or while towing large goods. To avoid accidents, power liftgates now contain sensors that can identify items in the path.One of the prospects for the power liftgate business is the development of cutting-edge technology and innovation in the automobile industry. With the advanced driver assistance system (ADAS) technology, you may identify particular objects and hazardous driving circumstances and have the vehicle's speed automatically reduced.

In addition, the Internet of Things (IoT) and other cutting-edge technologies are driving the market expansion of the power liftgate.

Suppliers of car components are putting a lot of effort into developing new technologies for vehicle exteriors with a range of new features that may be customized to the drivers' and passengers' changing needs. These liftgate systems increase vehicle efficiency by decreasing the vehicle's weight and increasing fuel economy. Metalized paint, which produces a chrome-like look without the added weight associated with utilizing actual metal, enhances these qualities further. This innovative paint method decreases overall weight by 10 to 20% while costing around 5 to 20% less than chrome electroplating. 

Customers of luxury vehicles are more likely to be hauling hefty cargo or several passengers, which can make it challenging to manually lift and close a tailgate. Power liftgates facilitate the loading and unloading of freight, which is a significant benefit for owners of luxury vehicles. The demand for luxury automobiles is increasing as more individuals can afford them as the economy expands. The need for power liftgates increases along with the popularity of premium automobiles. SUVs and crossovers are becoming increasingly common, and many of these cars have bigger tailgates that can be challenging to open manually.

Owners of SUVs and crossovers benefit from the ease of power liftgates, which make it simpler to open and close these bigger tailgates. Thus, driving the Power Liftgate market revenue.

The Global Power Liftgate Market Industry is influenced by an increasing focus on safety regulations in the automotive sector. Governments worldwide are implementing stricter safety standards, which necessitate the incorporation of advanced safety features in vehicles. Power liftgates, equipped with sensors and automatic stop functions, contribute to enhanced safety by preventing accidents during operation. As manufacturers comply with these regulations, the demand for power liftgates is likely to rise. This trend not only ensures consumer safety but also positions manufacturers favorably in a competitive market, as adherence to safety standards becomes a key selling point for new vehicle models.

The Global Power Liftgate Market Industry experiences a surge in demand for convenience features in vehicles. Consumers increasingly prefer automated systems that enhance ease of use, particularly in SUVs and crossovers. This trend is driven by the growing consumer expectation for advanced technology in automobiles. As a result, the market is projected to reach 3.93 USD Billion in 2024, reflecting a significant shift towards automated solutions. Manufacturers are responding by integrating power liftgate systems into more vehicle models, thereby expanding their market reach. This shift not only caters to consumer preferences but also aligns with the automotive industry's broader move towards automation.

The Global Power Liftgate Market Industry is witnessing increased adoption of electric vehicles (EVs), which often come equipped with advanced liftgate technologies. As EV manufacturers prioritize user-friendly features, power liftgates are becoming a common component in their designs. This trend is further supported by government initiatives promoting electric mobility, which encourage the integration of modern technologies in EVs. The market is expected to grow significantly, with projections indicating a rise to 6.87 USD Billion by 2035. This growth is indicative of the automotive sector's shift towards sustainability and the incorporation of features that enhance the overall driving experience.

The Global Power Liftgate Market Industry is significantly impacted by consumer preference for premium vehicles, which often feature advanced technologies. As consumers increasingly seek luxury and convenience, the demand for power liftgates in high-end models is on the rise. This trend is reflected in the growing number of premium SUVs and sedans equipped with automated liftgate systems. Manufacturers are capitalizing on this trend by offering enhanced features that cater to affluent consumers. As a result, the market is poised for growth, with projections suggesting a substantial increase in revenue as more consumers opt for vehicles that provide both luxury and functionality.

Technological advancements play a pivotal role in shaping the Global Power Liftgate Market Industry. Innovations in sensor technology, electric motors, and control systems enhance the functionality and reliability of power liftgates. These advancements enable features such as obstacle detection and remote operation, which improve user experience and safety. As manufacturers invest in research and development, the integration of these technologies is expected to drive market growth. The anticipated compound annual growth rate of 5.21% from 2025 to 2035 indicates a robust future for power liftgate systems, as they become standard in new vehicle models, reflecting the industry's commitment to innovation.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Power Liftgate market area will dominate this market; the most popular car categories in the region are crossovers and SUVs. Hands-free power liftgates are a common feature of many of these cars, which has aided in spreading the use of the technology.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy,  China, Japan, India, Australia, South Korea, Spain, and Brazil.

Figure 2: Power Liftgate Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's Power Liftgate market accounts for the second-largest market share. Urbanization and an increase in the number of female drivers are two reasons that are driving up demand for hands-free power liftgates. Due to this, SUVs and crossovers—which frequently have this feature—have grown in popularity. Further, the German Power Liftgate market held the largest market share, and the European region's fastest-growing market was the UK Power Liftgate market.

The Asia-Pacific Power Liftgate Market is expected to grow fastest from 2023 to 2032. The market for luxury cars is expected to develop in this area due to rising consumer demand for electric cars. Moreover, China's Power Liftgate market held the largest market share, and the Asia-Pacific region's fastest-growing market was the Indian Power Liftgate market.

Leading market companies are extensively spending R&D on increasing their product lines, which will help the Power Liftgate market grow even more. Important market developments include new product releases, contractual agreements, acquisitions and mergers, greater investments, and collaboration with other organizations. The Power Liftgate industry must produce cost-effective merchandise to flourish and thrive in a more competitive and increasing market climate.

Manufacturing locally to reduce operating costs is an effective business strategy manufacturers use in the worldwide Power Liftgate industry to serve clients and expand the market sector. The Power Liftgate industry has provided some of the most important benefits recently. Major players in the Power Liftgate market, including Magna International Inc, and others, are attempting to increase market demand by investing in research and development operations.

A Canadian company called Magna International Inc. produces vehicle parts. According to sales of original equipment components, the firm is North America's largest automotive parts maker. It creates automotive systems, assemblies, modules, and components sold to various automakers, including General Motors, Stellantis,  Ford, BMW, Mercedes, Volkswagen, Toyota, Tesla, and Tata Motors. In May 2019, Magna International Inc. unveiled a thermoplastic motorized liftgate from Fiat Chrysler Automobiles for the Jeep Cherokee SUV. This is used to create components that perfectly integrate with tethering attachments.

The fourth-largest family-owned automotive supplier in the world is Brose. The business creates and manufactures mechatronic systems for car doors and seats and electric motors, drives, and electronics used in steering, brakes, gearboxes, and engine cooling, among other applications. At 62 sites throughout 23 countries, there are about 26,000 workers. In June 2019, On-sensor technologies for novel door and seat functionality, Brose and Vayyar work together. The inside of the car is adaptable: the seats, displays, and consoles move to accommodate different uses, such as working or unwinding.

Sensors constantly detect interior occupancy to provide the essential degree of safety in the interplay of mechanical and electrical systems. Additionally, these sensors will allow side doors to open and close automatically, stopping the movement before it makes contact with any impediments or other cars in the path.