Power Liftgate Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)
Get a Comprehensive Overview of the Power Liftgate Market Report Prepared by P&S Intelligence, Segmented by System Type (Hands-Free, Conventional), Sales Channel (OEM, Aftermarket), Vehicle Type (Passenger Vehicle, Commercial Vehicle), and Geographic Regions. This Report Provides Insights From 2017 to 2030.
Explore the market potential with our data-driven report
Power Liftgate Market Analysis
The global power liftgate market was valued at USD 3,059.8 million in 2023, and it is expected to witness a CAGR of 9.0% during the forecast period, to reach USD 5,579.8 million by 2030. These liftgates use a powerful hydraulic system to decrease the human effort in lifting heavy objects into vehicles, thus shortening the process.
Hands-free power liftgates have a precise switch locking mechanism and capacitive motion sensors integrated into vehicle bumpers, for smart access; as a result, the adoption of hands-free power liftgates is predicted to grow in demand significantly over the forecast period.
The main function of a power liftgate is to quickly and easily load and unload goods. It simply minimizes the loading time and enhances the productivity of work. Power liftgates may lift heavy items like furniture and other heavy items, and consumers can be saved from any kind of injuries.
Power Liftgate Market Trend & Drivers
Advanced Connected Features Is a Key Trend
Advanced technologies are being extensively used by manufacturers to offer safety, security, and comfort in their premium vehicles. These include a variety of services for customers, such as navigation, remote access, and security.
Original equipment manufacturers (OEMs) are now looking at power liftgates as a way to add value to vehicles. Since this technology helps improve passenger comfort, all major car manufacturers are incorporating this technology in their newer models.
A power liftgate motor, deck lid cable drive, capacitive sensor system for hands-free door opening and closing, and a lift gate lock with a power cinching unit make up the power liftgate system.
Thus, the continuous expansion of the automotive industry is set to boost the power liftgate market growth over the forecast period.
Urbanization trends and changes in consumer lifestyles, such as increased outdoor activities and recreational pursuits, have led to a greater need for versatile and practical vehicle features like power liftgates, particularly among families and active individuals.
Rising Demand for Autonomous Vehicles Propels the Market
The key factors driving the development of the power liftgate market are the surging need for ease of driving and the growing concern for vehicle and passenger safety.
As a result, automakers are developing advanced technology to improve road safety and create intelligent transportation systems, such as the advanced driver-assistance system (ADAS) and self-driving. Since autonomous vehicles use the power liftgate technology, the market is set to grow with the adoption of such vehicles.
Moreover, the development in sensor technology, electric actuators, and smart vehicle integration has improved the functionality and reliability of power liftgate systems, making them more appealing to consumers.
Moreover, various vehicle manufacturers are integrating power liftgates in their vehicles with innovation, which is expected to boost the market growth over the forecast period.
Companies are introducing powered liftgate retrofit for their models. For instance, in September 2023, Tesla Inc. announced a powered liftgate retrofit for its Model 3. It will allow its customers to close and open the liftgate with just the touch of a button.
High Cost of Power Liftgate
Power liftgates are expensive as they come mostly for luxury cars, which may hinder the market over the forecast period.
Moreover, the power liftgate systems are expensive to manufacture and install, which may increase the overall price of vehicles, which have these features. This can make them less favorable for middle-class consumers and may resist their sales.
Power liftgate should be durable and reliable to withstand regular usage over the lifetime of the vehicle. Issues related to motor failures, sensor malfunctions, and mechanical breakdowns may lead to customer dissatisfaction and completely retard the market.
Companies are recalling their vehicles because of the electric shortage in power liftgates. For instance, in May 2023, Stellantis N.V. announced a recall of its 219,000 Jeep Cherokee SUVs globally.
The main reason for this recall is an electric shortage in the power liftgate module, which may lead to a fire in the vehicle. These kinds of factors such as malfunction, expensiveness, and recall can negatively influence the market growth.
In-Depth Segmentation Analysis
System Type Insights
The conventional category held a larger market share in 2023 and it is expected to grow at a good pace during the forecasted period. This is because it is the original style of liftgate. Moreover, these gates provide the maximum possible platforms and are manufactured for general freight loading.
On the other hand, the hands-free category is expected to witness faster growth in the market for power liftgates during the forecast period.
This can be because automakers all over the world are incorporating modern features in their vehicles to provide customers with greater convenience.
Moreover, a hands-free liftgate can also be opened and closed via remote. It also provides benefits in loading and unloading stuff.
Thus, the increasing demand for comfort and automation in passenger vehicles is propelling the market growth.
Based on system type, the market is divided into the following:
Hands-Free (Faster-Growing Category)
Conventional (Larger Category)
Sales Channel Insights
By sales channel, the OEM category accounts for a larger share of the market and it is also expected to witness a higher CAGR of 9.3% over the forecast period.
This is because liftgates are mostly integrated by OEMs and people believe that the brand from whom they are purchasing will provide them a good quality product, as OEM-fitted liftgates are more reliable and durable.
Moreover, the OEM sales channel has the advantage of integrating power liftgate systems directly into the manufacturing process of new vehicles.
This integration allows for seamless installation during the assembly of the vehicle, reducing additional aftermarket installation costs and complexities for consumers.
OEMs work closely with automakers during the vehicle design and development phase. This close collaboration enables them to tailor power liftgate systems to specific vehicle models, ensuring optimal fit, functionality, and aesthetic integration.
Further, sales channel categories include:
OEM (Larger and Faster-Growing Category)
Aftermarket
Vehicle Type Insights
Based on vehicle type, the passenger vehicle category dominates the market, with a revenue share of around 75% in 2023, and it is expected to grow at a higher growth rate during the forecast period.
This can be mainly ascribed to the surging demand for luxury vehicles due to the rising disposable income and living standards of the middle class.
Furthermore, the growing demand for passenger vehicles with features such as automatic door opening and closing, advanced sensor systems, and liftgate lock systems is propelling the passenger vehicle category.
The increasing demand for luxury passenger cars is further adding fuel to the growth of the market. Power liftgates were initially introduced in luxury vehicles but have gradually trickled down to mid-range and even some entry-level vehicles as consumer demands have increased. The expansion of the luxury and premium vehicle segment has further boosted the adoption of power liftgates.
In a similar way, the growing popularity and adoption of crossovers and SUVs, which mostly come equipped with power liftgates as a standard or optional feature, has driven the demand for automotive power liftgate systems.
Moreover, the commercial category held a significant share of the market in 2023. This is due to the development of infrastructure, the growing e-commerce industry, and the rising transportation of goods.
Vehicle type is divided into two categories:
Passenger Vehicle (Larger and Faster-Growing Category)
Commercial Vehicle
Drive strategic growth with comprehensive market analysis
Regional Insights
Geographically, the APAC market is expected to witness the fastest growth during the forecast period, due to the rising disposable income of its middle-class population and their high living standards, and rising car sales.
Other factors driving the market include the surging need to improve customer comfort and convenience, the increasing sales of electric vehicles due to the strict emission regulations, the rising demand for autonomous vehicles, the introduction of hands-free power liftgate technology, and the increasing demand for sensors and a range of other electronic devices/components in automobiles.
Whereas, North America dominates the market, with a revenue share of around 45% in 2023. This is attributed to the increasing demand for luxury vehicles, the presence of key industry players, and the increasing consumer spending and investment.
Key players in the market are focusing on the opening of new plants and investments in this region. For instance, in November 2023, Hyundai Motor America announced a development concept centered near its new, wider liftgate opening, and spacious interior. Moreover, Hyundai Motor Manufacturing LLC announced around USD 190 million for equipment tooling and upgrades.
Luxury vehicles are very popular in this region and consumers have high expectations for convenience and innovative features.
Power liftgate meets the demand and offers a smooth way to access the vehicle’s cargo space. The incorporation of power liftgates in the luxury domain is a strategic approach by automotive manufacturing companies to obtain a competitive advantage and enhance the user experience.
Further, these regions and countries were analyzed for this report:
North America (Largest Regional Market)
U.S. (Larger and Faster-Growing Country Market)
Canada
Europe
Germany (Largest Country Market)
U.K. (Fastest-Growing Country Market)
France
Italy
Spain
Rest of Europe
Asia-Pacific (Fastest-Growing Regional Market)
China (Largest Country Market)
Japan
India (Fastest-Growing Country Market)
South Korea
Australia
Rest of APAC
Latin America (LATAM)
Brazil (Largest and Fastest-Growing Country Market)
Mexico
Rest of Latin America
Middle East and Africa (MEA)
Saudi Arabia (Largest Country Market)
South Africa
U.A.E. (Fastest-Growing Country Market)
Rest of MEA
Market Nature - Consolidated
Power liftgates have become a competitive differentiator for automakers looking to attract customers with innovative features. As a result, more automakers are incorporating power liftgates into their vehicle models to stay competitive in the market. Companies are focusing on the integration of advanced features like hands-free power liftgates to increase the sales of their vehicles.
Top Power Liftgate Companies:
Continental AG
Tesla Inc.
Huf Hulsbeck & Furst GmbH & Co. KG
Johnson Electric Holdings Ltd.
HI-LEX Corporation
VOXX Electronics Corp.
Powder-Packer Corp.
Autoease Technology
Strattec Security Corporation
Stabilus GmbH
Mitsuba Corporation
Power Liftgate Industry News
In January 2023, Rezavni Motors launched its SUV with features including sunroofs and hands-free power liftgates.
In February 2022, Tesla Inc. introduced a new trunk for the autonomous electric Model 3 as an aftermarket sales channel in its official service centers. The product is only for the Chinese market and is expected to expand its market in other regions.
In April 2023, Mitsubishi Motors Corporation announced that they would start sales of the vehicle named “New Delica Mini” in Japan. The new SUV has advanced interior and exterior features.
Want a report tailored exactly to your business need?
Working with P&S Intelligence and their team was an absolute pleasure – their awareness of timelines and commitment to value greatly contributed to our project's success. Eagerly anticipating future collaborations.
McKinsey & Company
India
Unmatched Standards
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
Complete Data Security
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws