Power Tailgate Systems Market

Power Tailgate Systems Market Size by Vehicle Type (SUVs and Crossovers, Sedans, Minivans, Pickup Trucks, Hatchbacks, Luxury Vehicles and Others), Technology Type (Conventional Power Tailgate Systems and Hands-Free Power Tailgate Systems), Sales Channel (OEMs (Original Equipment Manufacturers) and Aftermarket), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2024 to 2033

Base Year: 2023 Historical Data: 2020-22
  • Report ID: TBI-14618
  • Published Date: Nov, 2024
  • Pages: 238
  • Category: Information Technology & Semiconductors
  • Format: PDF
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Market Introduction

The global power tailgate systems market was valued at USD 11 billion in 2023 and grew at a CAGR of 8% from 2024 to 2033. The market is expected to reach USD 23.74 billion by 2033. The increasing demand for luxury featured vehicles given the rising disposable income of the population will drive the growth of the global power tailgate systems market.

Modern clients strive to have comfortable cars which are easy to operate. Power tailgate systems satisfy this need because they allow the user to easily open and close the boot, more so if they are handling heavy or bulky goods. Since car consumers look for aspects that can make their tasks easier, auto makers continue to integrate power tailgate systems into more models than before. Improvements in the overall automotive technology, electronic motors, sensors, and compatibility with a car’s firmware architecture have enhanced the performance and dependability of power tailgate systems. The operation of power tailgate systems was originally limited to luxury and some top-end cars. But as consumer choices expanded, manufacturers have been incorporating these specifications on mid-level vehicles to meet consumer demands. People who stay in touch with their work and family, reading and responding to e-mail, texts, listening to music, watching videos, playing games, and socializing during commute find power tailgates to be a convenient if they have to load their groceries, luggage or sports items. This trend has led to more vehicle’s owners opting for cars with automatic features. Some of feature included with power tailgate systems are the anti-pinch sensors and obstacle detection, which ensures that vehicles become safer to use, especially for families. Safety and family-oriented characteristics of vehicles have put weight on power tailgate systems as consumers look for more equipment that will not pose any danger to them. Electric and Hybrid cars that include technology and modern features such as power tailgate have boosted the market of power tailgate systems.

Power Tailgate Systems Market Size

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Recent Development

  • The new 5 Series Touring, which will be offered as an all-electric variant for the first time as the i5 Touring, was announced by BMW. The i5 eDrive40 Touring and the i5 M60 xDrive Touring were the two models that the electrified estate came with at launch. The two i5 Touring models' performance metrics match those of the well-known i5 saloon. With an electric motor mounted on the back axle, the i5 eDrive40 Touring produces 250 kW. A second motor and all-wheel drive enable the i5 M60 xDrive Touring, the current top model of the complete 5 Series, to deliver a much higher power output of 442 kW.

Market Dynamics

Drivers

The increasing consumer expectations – Increasing the requirements for powerful and convenient systems and the emergence of new brands of electric and hybrid vehicles contribute to the popularity of power tailgate systems. Contemporary customers appreciate the solutions that make their lives easier, thus, such elements as power tailgates will become increasingly popular in the automotive industry. Convenience features are another advantage considering that the systems can be operated remotely, activated by a foot and offer the ability to adjust opening heights which makes these systems popular. The sales volume of electric and hybrid cars continues to increase, which has contributed to increasing adoption of power tailgate systems. Automakers plan to offer power tailgates because it correlates with the high-tech aspect of EVs and hybrids and the desire by consumers to purchase eco-friendly vehicles with extra luxury and convenience. Car manufacturers add power tailgate systems to their models as a feature that would set vehicles apart and satisfy the desire of the purchasers for comfortable and advanced automobiles. This has been intensified by the growing market of EVs and hybrids because of customer awareness, government incentives, and increased market facilities.

Restraints

High costs of power tailgate systems Costs are still significantly high and continue to be a barrier to innovation in power tailgate systems and its growth in the future. They are costly because the formation of value-added systems entails the use of sophisticated technologies such as electric actuators, control units, integrated sensors, and motors among others. This makes power tailgate systems incredibly expensive compared to conventional tailgates. This is why they are included only in high-end or mid-range models, where people are ready to pay extra money for additional comfort and convenience. For entry-level or compact car market segments, the cost of including power tailgate systems may not be manageable, thus restricting the market application of this feature. Costs belonging to the power tailgate systems are not limited to the manufacturing costs as these costs translate to high retail costs for consumers. Expensive maintenance and repairs also challenge the market’s growth.

Opportunities

Technological advancements expanding power tailgate systems applications – The market for power tailgate systems is being driven by technological enhancements. Recent advances in electric actuators and control systems have made tailgate operations more reliable, faster and smoother. These enhancements make certain that power tailgates work perfectly well, and deliver a more comfortable and luxurious experience to the consumers. Improvements on the flexibility of power tailgates enhance integration with vehicle software, which enables users to operate tailgate features from their mobile devices remotely. Activation without the hands has become an important feature, especially the ones that are activated by feet and it is the result of trends in simplicity and easy-to-use vehicles systems. These improvements correspond to the development of the concept of automobile complex, where different modules interact and improve each other’s performance. The integration of such systems not only enhances the level of convenience but also asserts power tailgate systems as key components within the smart cars context. As such systems continue to develop, they remain representative of the technology that today’s customers demand, providing value and creating differentiation of cars in a more saturated market and driving the power tailgate systems market’s growth.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global power tailgate systems market, with a 39% market revenue share in 2023.

The region has noted an increased adoption of such big utility vehicles, which have large and heavier tailgates that need advanced features like power tailgates to operate on. Also, the North American market comprises some big automobile manufacturing companies such as GM, Ford, and Chrysler that have been constant users of the power tailgate systems in their car production. The automotive market is also innovative with the key market players/companies continuing to integrate new technologies that meet consumers’ demands in the region. Furthermore, North American consumers are willing to pay a premium for features A combination of governmental regulations and safety and convenience features requirements also provide the impetus for the regional market’s growth.

North America Region Power Tailgate Systems Market Share in 2023 - 39%

 

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  • A Tesla Cybertruck patent was released by the World Intellectual Property Organization (WIPO). The power tailboard of the Cybertruck was designed by Tesla using cutting-edge engineering and technology, as detailed in this new international patent. For over a year, Tesla has been rigorously testing and validating Cybertruck prototypes. Since the manufacturer hopes to begin Cybertruck manufacturing and deliveries this year, testing has accelerated in 2023. The Cybertruck's new electric tailboard patent arrived at the perfect moment. Additionally, this Tesla patent attests to the Cybertruck's powered tailboard.

Vehicle Type Segment Analysis

The vehicle type segment is divided into SUVs and crossovers, sedans, minivans, pickup trucks, hatchbacks, luxury vehicles and others. The SUVs and crossovers segment dominated the market, with a market share of around 35% in 2023. The market for power tailgate systems is majorly fuelled by the increasing popularity of SUVs and crossovers. SUVs and crossovers have broader and heavier tailgates as compared to sedans or hatchbacks; hence, this market equally suits power tailgate systems. Tailgate systems introduce much convenience by allowing the user to open and close the tailgate without any hassle. Further, the enhanced demand for SUVs and crossovers especially in the Americas, Europeans and selected Asian countries have fuelled demand for enhancement of some aspects of the user experience. Such vehicles appear to be more family oriented and utilitarian and customers look for elements of convenience which drives the demand for power tailgate systems. The increasing tendency of educated young consumers to opt for higher-end vehicles given rising emphasis on safety, better comfort, luxury, aesthetics and convenience drive the demand for SUVs and crossovers in the market.

Technology type Segment Analysis

The technology type segment is divided into conventional power tailgate systems and hands-free power tailgate systems. The conventional power tailgate systems segment dominated the market, with a market share of around 52% in 2023. Conventional power tailgate systems are popular in most vehicles as these systems are mainly designed to open and close a tailgate through a button or remote control which increases it appeal to different consumers. The utmost easy integration of conventional systems into the majority of existing and newly developing car models also increase its appeal to manufacturers as well. additionally, this technology has been in circulation for a longer period and hence it is trusted by manufactures and consumers due to guaranteed functionality. They are also considerably cheaper. These systems contribute a positive value to the car while at the same time not really costing too much making these very attractive for both the producers and consumers.

Sales channel Segment Analysis

The sales channel segment is divided into OEMs (Original Equipment Manufacturers) and aftermarket. The OEMs (Original Equipment Manufacturers) segment dominated the market, with a market share of around 78% in 2023. OEMs have a strong market position in the power tailgate systems worldwide because they offer standard-installation systems whose performance and integration into a car are optimum. OEM-installed systems are preferred by consumers as they trust the brand. These systems are covered by factory warranties to give customers a guarantee on repair and servicing. Further, OEMs have developed relationships with tier-one suppliers of power tailgate systems, making it possible for OEMs to provide such features at reasonable prices and equally with safety, functionality and durability.

Some of the Key Market Players

  • Aisin Seiki Co., Ltd.
  • Brose Fahrzeugteile GmbH & Co. KG
  • Daimler AG
  • Faurecia SA
  • Huf Hülsbeck & Fürst GmbH & Co. KG
  • Hyundai Mobis Co., Ltd.
  • Magna International Inc.
  • Mitsubishi Electric Corporation
  • Sichuan Bohong Electric Co., Ltd.
  • Strattec Security Corporation
  • Valeo SA
  • ZF Friedrichshafen AG

Report Description

Attribute Description
Market Size Revenue (USD Billion)
Market size value in 2023 USD 11 Billion
Market size value in 2033 USD 23.74 Billion
CAGR (2024 to 2033) 8%
Historical data 2020-2022
Base Year 2023
Forecast 2024-2033
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East and Africa. Furthermore, the regions are further analyzed at the country level.
Segments Vehicle Type, Technology Type, and Sales Channel

Frequesntly Asked Questions

As per The Brainy Insights, the size of the global power tailgate systems market was valued at USD 11 billion in 2023 to USD 23.74 billion by 2033.

Global power tailgate systems market is growing at a CAGR of 8% during the forecast period 2024-2033.

The market's growth will be influenced by the increasing consumer expectations.

High costs of power tailgate systems could hamper the market growth.

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This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global power tailgate systems market based on below mentioned segments:

Global Power Tailgate Systems Market by Vehicle Type:

  • SUVs and Crossovers
  • Sedans
  • Minivans
  • Pickup Trucks
  • Hatchbacks
  • Luxury Vehicles
  • Others

Global Power Tailgate Systems Market by Technology Type:

  • Conventional Power Tailgate Systems
  • Hands-Free Power Tailgate Systems

Global Power Tailgate Systems Market by Sales Channel:

  • OEMs (Original Equipment Manufacturers)
  • Aftermarket

Global Power Tailgate Systems Market by Region:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa

Methodology

Research has its special purpose to undertake marketing efficiently. In this competitive scenario, businesses need information across all industry verticals; the information about customer wants, market demand, competition, industry trends, distribution channels etc. This information needs to be updated regularly because businesses operate in a dynamic environment. Our organization, The Brainy Insights incorporates scientific and systematic research procedures in order to get proper market insights and industry analysis for overall business success. The analysis consists of studying the market from a miniscule level wherein we implement statistical tools which helps us in examining the data with accuracy and precision. 

Our research reports feature both; quantitative and qualitative aspects for any market. Qualitative information for any market research process are fundamental because they reveal the customer needs and wants, usage and consumption for any product/service related to a specific industry. This in turn aids the marketers/investors in knowing certain perceptions of the customers. Qualitative research can enlighten about the different product concepts and designs along with unique service offering that in turn, helps define marketing problems and generate opportunities. On the other hand, quantitative research engages with the data collection process through interviews, e-mail interactions, surveys and pilot studies. Quantitative aspects for the market research are useful to validate the hypotheses generated during qualitative research method, explore empirical patterns in the data with the help of statistical tools, and finally make the market estimations.

The Brainy Insights offers comprehensive research and analysis, based on a wide assortment of factual insights gained through interviews with CXOs and global experts and secondary data from reliable sources. Our analysts and industry specialist assume vital roles in building up statistical tools and analysis models, which are used to analyse the data and arrive at accurate insights with exceedingly informative research discoveries. The data provided by our organization have proven precious to a diverse range of companies, facilitating them to address issues such as determining which products/services are the most appealing, whether or not customers use the product in the manner anticipated, the purchasing intentions of the market and many others.

Our research methodology encompasses an idyllic combination of primary and secondary initiatives. Key phases involved in this process are listed below:

MARKET RESEARCH PROCESS

Data Procurement:

The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.

The data procurement stage involves in data gathering and collecting through various data sources.

This stage involves in extensive research. These data sources includes:

Purchased Database: Purchased databases play a crucial role in estimating the market sizes irrespective of the domain. Our purchased database includes:

  • The organizational databases such as D&B Hoovers, and Bloomberg that helps us to identify the competitive scenario of the key market players/organizations along with the financial information.
  • Industry/Market databases such as Statista, and Factiva provides market/industry insights and deduce certain formulations. 
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Primary Research: The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. Primary research mainly involves in telephonic interviews, E-mail interactions and face-to-face interviews with the raw material providers, manufacturers/producers, distributors, & independent consultants. The interviews that we conduct provides valuable data on market size and industry growth trends prevailing in the market. Our organization also conducts surveys with the various industry experts in order to gain overall insights of the industry/market. For instance, in healthcare industry we conduct surveys with the pharmacists, doctors, surgeons and nurses in order to gain insights and key information of a medical product/device/equipment which the customers are going to usage. Surveys are conducted in the form of questionnaire designed by our own analyst team. Surveys plays an important role in primary research because surveys helps us to identify the key target audiences of the market. Additionally, surveys helps to identify the key target audience engaged with the market. Our survey team conducts the survey by targeting the key audience, thus gaining insights from them. Based on the perspectives of the customers, this information is utilized to formulate market strategies. Moreover, market surveys helps us to understand the current competitive situation of the industry. To be precise, our survey process typically involve with the 360 analysis of the market. This analytical process begins by identifying the prospective customers for a product or service related to the market/industry to obtain data on how a product/service could fit into customers’ lives.

Secondary Research: The secondary data sources includes information published by the on-profit organizations such as World bank, WHO, company fillings, investor presentations, annual reports, national government documents, statistical databases, blogs, articles, white papers and others. From the annual report, we analyse a company’s revenue to understand the key segment and market share of that organization in a particular region. We analyse the company websites and adopt the product mapping technique which is important for deriving the segment revenue. In the product mapping method, we select and categorize the products offered by the companies catering to domain specific market, deduce the product revenue for each of the companies so as to get overall estimation of the market size. We also source data and analyses trends based on information received from supply side and demand side intermediaries in the value chain. The supply side denotes the data gathered from supplier, distributor, wholesaler and the demand side illustrates the data gathered from the end customers for respective market domain.

The supply side for a domain specific market is analysed by:

  • Estimating and projecting penetration rates through analysing product attributes, availability of internal and external substitutes, followed by pricing analysis of the product.
  • Experiential assessment of year-on-year sales of the product by conducting interviews.

The demand side for the market is estimated through:

  • Evaluating the penetration level and usage rates of the product.
  • Referring to the historical data to determine the growth rate and evaluate the industry trends

In-house Library: Apart from these third-party sources, we have our in-house library of qualitative and quantitative information. Our in-house database includes market data for various industry and domains. These data are updated on regular basis as per the changing market scenario. Our library includes, historic databases, internal audit reports and archives.

Sometimes there are instances where there is no metadata or raw data available for any domain specific market. For those cases, we use our expertise to forecast and estimate the market size in order to generate comprehensive data sets. Our analyst team adopt a robust research technique in order to produce the estimates:

  • Applying demographic along with psychographic segmentation for market evaluation
  • Determining the Micro and Macro-economic indicators for each region 
  • Examining the industry indicators prevailing in the market. 

Data Synthesis: This stage involves the analysis & mapping of all the information obtained from the previous step. It also involves in scrutinizing the data for any discrepancy observed while data gathering related to the market. The data is collected with consideration to the heterogeneity of sources. Robust scientific techniques are in place for synthesizing disparate data sets and provide the essential contextual information that can orient market strategies. The Brainy Insights has extensive experience in data synthesis where the data passes through various stages:

  • Data Screening: Data screening is the process of scrutinising data/information collected from primary research for errors and amending those collected data before data integration method. The screening involves in examining raw data, identifying errors and dealing with missing data. The purpose of the data screening is to ensure data is correctly entered or not. The Brainy Insights employs objective and systematic data screening grades involving repeated cycles of quality checks, screening and suspect analysis.
  • Data Integration: Integrating multiple data streams is necessary to produce research studies that provide in-depth picture to the clients. These data streams come from multiple research studies and our in house database. After screening of the data, our analysts conduct creative integration of data sets, optimizing connections between integrated surveys and syndicated data sources. There are mainly 2 research approaches that we follow in order to integrate our data; top down approach and bottom up approach.

Market Deduction & Formulation: The final stage comprises of assigning data points at appropriate market spaces so as to deduce feasible conclusions. Analyst perspective & subject matter expert based holistic form of market sizing coupled with industry analysis also plays a crucial role in this stage.

This stage involves in finalization of the market size and numbers that we have collected from data integration step. With data interpolation, it is made sure that there is no gap in the market data. Successful trend analysis is done by our analysts using extrapolation techniques, which provide the best possible forecasts for the market.

Data Validation & Market Feedback: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helps us finalize data-points to be used for final calculations.

The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. The data validation interview and discussion panels are typically composed of the most experienced industry members. The participants include, however, are not limited to:

  • CXOs and VPs of leading companies’ specific to sector
  • Purchasing managers, technical personnel, end-users
  • Key opinion leaders such as investment bankers, and industry consultants

Moreover, we always validate our data and findings through primary respondents from all the major regions we are working on.

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