Active Grille Shutter Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)
Get a Comprehensive Overview of the Active Grille Shutter Market Report Prepared by P&S Intelligence, Segmented by Vehicle Type (Passenger Cars, Commercial Vehicles), Shutter Type (Visible, Non-visible), Vane Type (Horizontal, Vertical), Sales Channel (OEMs, Aftermarket), and Geographic Regions. This Report Provides Insights From 2017 to 2030.
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Active Grille Shutter Market Analysis
The active grille shutter market generated revenue of USD 1,950.0 million in 2023, and it is expected to witness a CAGR of 8.4% during 2024–2030, to reach USD 3,413.2 million by 2030. This growth is driven by the advancements in control systems and sensor technologies, to provide accurate and real-time data on the vehicle surroundings and driving conditions.
Advanced sensors, radar, LiDAR systems, and cameras are integrated into active grille shutters to gather data on engine temperature, traffic conditions, and driving conditions. Using data, the shutters can adjust their position for specific driving scenarios. Further, enhancing the processing power of control systems enables the real-time analysis of the sensor data. With the help of advanced control systems, the active grille shutter responds quickly to the changes in environmental conditions, vehicle speed, and other relevant parameters.
With the help of new technologies, the AGS, which is located at the front grille opening of the vehicle, automatically adjusts its angle to control the flow of air that enters the engine compartment, in response to the vehicle speed, external stimulus, and engine efficiency.
OEMs mostly integrate these components into luxury and mid-segment cars and sports vehicles. However, based on demand, many new kinds of vehicles may come with this feature in the future. Furthermore, due to the expanding middle-class population, along with the rise its income, vehicle sales increase, and, in turn, the market grows.
Active Grille Shutter Market Trends & Drivers
Hybrid and Electric Vehicles Are Biggest Trends
For optimal performance, HEVs and EVs mostly rely on efficient thermal management. The active grille shutter controls the flow of air to several battery and motor components, while minimizing drag. This helps cool the batteries, electric motors, and other vital parts, which can only perform at an ideal temperature.
The rising demand for EVs and HEVs is primarily attributed to the increasing awareness of environmental degradation and rising government efforts to fund clean transportation solutions. Further, fossil-fuel-based automobiles are being replaced by green alternatives due to their low/no carbon emission, enhanced utility, and long-term cost-savings.
Rising Demand for Fuel-Efficient Vehicles Is Strongest Growth Driver
Most automobiles have the shutter located in the front grille to control the vent via which air flows through the radiator and into the engine compartment. The primary purpose of the component is to control the flow of air that enters the engine bay, thus increasing the overall aerodynamics of the automobile. In modern automobiles, the system is installed to decrease the emission of CO2, by customizing the aerodynamics and enhancing fuel efficiency.
Thus, major driver for the growth of the market for active grille shutters is the rising demand for fuel-efficient automobiles. This is because AGS systems help reduce CO2 emissions. Governments’ stringent emission control regulations force manufacturers to implement technologies that can decrease drag as well as minimize emissions.
Numerous factors affect the fuel efficiency of automobiles while in motion, such as air resistance or drag. With active grille shutters, the vehicles can dynamically adjust the flow of air through the front grille, which helps cool the engine. Moreover, by improving the aerodynamics, they can move through the air easily and more efficiently. They also require less energy and fuel to maintain their speed, which automatically reduces emissions.
High Repair and Maintenance Costs Are Key Barriers
The integration of technologically advanced components in modern automobiles creates concerns about maintenance and repair costs. As AGS systems improve the aerodynamics and efficiency of the automobile, their complexity may create difficulties in maintenance and repairs.
There are some specific components in this system that help it operate efficiently, such as sensors, actuators, and control modules. This makes AGS more specialized in comparison to the traditional grille systems. As this requires more-advanced technologies and materials, it causes replacement expenses to escalate.
Fixing problems with active grille shutters might need special tools and expertise. For repairing and troubleshooting them effectively, technicians must be aptly trained in the maintenance process. Such workers may not be easily available at all automotive service centers, especially in developing countries. The limited availability of qualified and experienced technicians leads to increased labor costs, potential inconvenience for vehicle owners, and longer repair times.
Active Grille Shutter Industry Outlook
Vehicle Type Insights
The passenger car category dominates the market, with a share of around 70% in 2023, and it will grow with a CAGR of 8.6% from 2024 to 2030. This will be due to the rising production of and demand for passenger cars in developing countries. With more money to spend, more people are purchasing cars around the world for personal mobility and as a symbol of affluence.
During the study, we analyzed the following vehicle types:
Passenger Vehicle (Larger and Faster-Growing Category)
Commercial Vehicle
Shutter Insights
In 2023, the non-visible category acquired the larger market share, of around 75%, and it is expected to witness a CAGR of 8.5% from 2024 to 2030. This is because non-visible active grille shutters can manage the airflow effectively, which helps reduce the noise, thus enhancing the comfort for the vehicle operator.
These variants are intentionally designed to improve the aerodynamics of the vehicle by adjusting the airflow through the radiator. Moreover, their non-visibility allows automakers to better integrate it with the vehicle’s design, with the flexibility to improve aerodynamic features without compromising the overall look.
During the study, we analyzed the following shutter types:
Visible
Non-Visible (Larger and Faster-Growing Category)
Vane Type Insights
The horizontal category dominated the market, with a share of around 65%, in 2023. The horizontal AGS system is widely used because it can be installed easily. This is because it is positioned immediately below the grille in any vehicle.
The vertical bifurcation is expected to witness the higher CAGR, of 8.7%, during 2024– 2030. This will be because this variant improves the tunning capability/performance of the vehicle, as well as enhances the aesthetics of high-end automobiles.
During the study, we analyzed the following vane types:
Horizontal (Larger Category)
Vertical (Faster-Growing Category)
Sales Channel Insights
In 2023, the OEM bifurcation acquired the larger market share, of around 80%, in the sales channel segment. OEMs provide active grill shutters with luxury automobiles to enhance their performance and reduce maintenance expenses for users. Some OEMs are backward-integrated, manufacturing their own active grill shutters.
During the study, we analyzed the following sales channels:
OEMs (Larger Category)
Aftermarket
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North America is the Largest Region
North America acquired the largest market share, of around 45%, in 2023. This is because of the implementation of strict emission regulations by governments, quick adoption of the latest technology, increase in the consumer spending, and high expenditure on R&D. Further, the major market players’ attempt to design aesthetically pleasing vehicles is beneficial for the regional market.
APAC is the fastest-growing market, with a predicted CAGR of 8.8% during the forecast period due to the exponentially rising production of vehicles. Since the COVID-19 period, there is an increasing demand for owning an automobile, which boosts automobile production and, in turn, the demand for safety components, including active grille shutters. Additionally, government efforts and the growing demand for electric and autonomous vehicles will support the regional market.
The European Commission also follows strict emission standards, which accelerates the growth of the market in Europe. Due to the presence of many key players in this region, active grille shutters are offered for many vehicle models. The increasing demand for electric vehicles, autonomous vehicles, and shared mobility is another key driver for the market in this region.
The regions and countries analyzed in this report include:
North America (Largest Regional Market)
U.S. (Larger and Faster-Growing Country)
Canada
Europe
Germany (Largest and Fastest-Growing Country Market)
Brazil (Largest and Fastest-Growing Country Market)
Mexico
Rest of LATAM
Middle East and Africa (MEA)
Saudi Arabia (Largest Country Market)
U.A.E. (Fastest-Growing Country Market)
South Africa
Rest of MEA
Active Grille Shutter Companies:
Magna International Inc
Röchling SE & Co. KG
Robert Bosch GmbH
Brembo S.p.A.
ZF Friedrichshafen AG
Continental AG
Akebono Brake Industry Co.
Knorr-Bremse AG
Hitachi Astemo Ltd.
Aisin Seiki Co. Ltd.
Aptiv PLC
Active Grille Shutter Companies News
In 2023, NIO introduced the EC7 Electric Coupe SUV with high aerodynamics. The EC7 has a 0.230 drag factor due to its shark nose, all-glass roof, front spoiler, shoulder lines, side mirrors, and rear aero edges. Additionally, the EC7 comes with an active spoiler and active grille shutter, which further improves its aerodynamic performance.
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