Automotive Composite Liftgate Market

The Automotive Composite hatch market is developing rapidly due to the growing demand for lightweight, durable and fuel-efficient vehicles. Made from materials such as carbon fiber and fiberglass, composite hatches offer significant advantages over their traditional steel counterparts, including reduced weight, greater design flexibility, and improved corrosion resistance. As automakers struggle to meet strict emissions regulations and consumer expectations for high-performance vehicles, the adoption of composite hatches is gaining momentum. This market is further supported by advances in composite manufacturing technologies and the growing trend of electric and hybrid vehicles benefiting from weight savings. This blog explores the key drivers, challenges and future prospects of the Automotive Composite Hatches market and provides insights into its growth trajectory and emerging opportunities.

Automotive Composite Liftgate Market valued at $1.42 Billion in 2023 and projected to reach $2.73 Billion by 2032, growing at an 8.6 % CAGR

Automotive Composite Liftgate Market

Size, by Product, - (USD Billion)

Carbon Fiber Reinforced Plastics (CFRP)

Glass Fiber Reinforced Plastics (GFRP)

Other Composites (Natural Fibers, Hybrid Composites)

Other Products

The Market will Grow

At the CAGR of:

8.6%

The Forecast Market

Size for in USD:

$2.73 Billion

Market Overview:

The global automotive composite hatch market is experiencing strong growth as the automotive industry moves to lightweight materials to improve fuel efficiency and reduce emissions. Made primarily from advanced materials such as carbon fiber and fiberglass reinforced plastic, composite tailgates offer significant savings compared to traditional steel hatches. This weight reduction improves the vehicle's performance and fuel efficiency while meeting strict global emissions regulations. North America and Europe dominate the market due to the presence of major car manufacturers and strong innovation and sustainable development. Asia Pacific is also experiencing rapid growth, supported by increasing vehicle production and the spread of electric and hybrid vehicles. Technological advances in the manufacturing of composite materials and the growing trend of electric mobility continue to drive market expansion. However, there are still challenges such as high production costs and complex production processes that require continuous research and development to optimize cost effectiveness and efficiency.

Key players:

• Magna International Inc.
• Plastic Omnium
• Gurit
• Toray Industries, Inc.
• Hexion Inc.
• Hexcel Corporation
• Continental Structural Plastics Inc.
• SABIC
• SGL Carbon
• Covestro AG
• Teijin Limited
• Huntsman Corporation
• Cytec Solvay Group
• DowDuPont Inc.
• Quantum Composites
• BASF SE
• Mubea Carbo Tech GmbH
• Hanwha Advanced Materials
• DSM
• Lanxess AG

Market Segmentation:

By Type

Carbon Fiber Reinforced Plastics (CFRP)

Glass Fiber Reinforced Plastics (GFRP)

Other Composites (Natural Fibers, Hybrid Composites)

By Manufacturing Process

Injection Molding

Compression Molding

Resin Transfer Molding (RTM)

Others (Hand Lay-Up, Vacuum Bagging)

By Application

SUVs

Hatchbacks

Sedans

Others (Commercial Vehicles, Electric Vehicles)

By End User

Original Equipment Manufacturers (OEMs)

Aftermarket

By Region

North America

Europe

Asia-Pacific

Latin America

Middle East & Africa

Automotive Composite Liftgate Market

Share, by end user, (USD Billion)

1.42 Billion%

OEMs (Original Equipment Manufacturers)

Aftermarket

Other End-Users

2.73 Billion

Total Market Size

USD (Billion),

8.6%

CAGR

-

Market Dynamics:

Trends:

Increasing use of lightweight materials: Automakers are increasingly using composite materials in tailgates to reduce vehicle weight and improve fuel efficiency.

Growth of Electric and Hybrid Vehicles: The growth of electric and hybrid vehicles, which benefit significantly from weight reduction, is driving the demand for composite tailgates.

Advances in Manufacturing Techniques: Innovations in composite manufacturing processes such as High-Pressure Resin Molding (HP-RTM) and Automatic Fiber Placement (AFP) increase manufacturing efficiency and reduce costs.

Integration Trend: The growing adoption of automotive composite liftgates is driving increased demand for specialized automotive labels that enhance traceability and brand identification while complying with industry regulations.

Limitations:

High production costs: high raw material costs and complex production processes are still major challenges for composite doors.

Regulatory Influence: The Diesel Particulate Filter (DPF) market is influenced by stringent emission regulations, which drive demand for advanced filtration technologies in vehicles, indirectly affecting the automotive composite liftgate market by promoting lighter, more fuel-efficient designs.

Limited repair and recycling options: Composites can be more difficult to repair and recycle than traditional materials, creating sustainability and maintenance issues.

Barriers to market entry: The automotive industry has traditionally been slow to adopt new materials because they require rigorous testing and validation, which can delay market entry

Opportunities:

Growing demand for fuel efficiency: As global fuel efficiency standards become more stringent, demand for lightweight automotive components such as composite doors is increasing.

Emerging Markets: Rapid industrialization and increasing automotive production in emerging markets, particularly in the Asia-Pacific region, offer significant growth opportunities.

Technological Innovations: Continued research and development of composite materials and manufacturing processes are expected to reduce costs and improve the performance of composite hatches, opening up new market opportunities.

Challenges:

Supply Chain Complexity: The composites supply chain is complex and involves multiple stakeholders, from raw material suppliers to automakers, which can lead to coordination and logistical challenges.

Regulatory barriers: Navigating different regulatory environments in different regions can be difficult for manufacturers, requiring compliance with different safety and environmental standards.

Integration with Autonomous Technology: The rise of autonomous technology is driving demand for advanced automotive composite liftgates, as these liftgates need to accommodate sophisticated sensor systems and automated mechanisms for seamless vehicle operation and enhanced safety features.

Consumer understanding and acceptance: Educating consumers about the benefits of composite materials and understanding the reduced durability compared to traditional materials is essential for market acceptance.

Asia Pacific is Anticipated to Lead the Market:

The Asia-Pacific region is one of the world's leading car manufacturers. China, India and Japan are major economies in the regional market that are expected to influence the global market as well. Regional car sales reflected stable growth in 2022, despite the overall weak market situation in car sales caused by new energy vehicles. 

The region is a key market area for many global and local automakers and platform manufacturers. Auto exterior manufacturers are working with OEMs to develop the next generation of tailgates for their future vehicles.

China has a dominant hand in automotive performance and vehicle manufacturing in the Asia-Pacific region. The region's leading OEMs, automotive suppliers and automotive components ensure consistent supply worldwide. A total of 26,863,745 vehicles were sold in China in 2022, compared to 26,274,820 units in 2021, representing a year-on-year increase of 2.2 percent.

Rising vehicle emissions and increasing demand for eco-friendly cars are likely to lead to market expansion during the forecast period. The increase in demand for electric vehicles across the region is likely to create a lucrative opportunity for the market in the coming years.

Indian companies are engaged in R&D to develop new products that would positively impact the growth of the target market during the forecast period. For example, India's largest car manufacturer, Maruti Suzuki, confirmed in August 2022 that it will soon launch its first electric car by the end of 2025.

Growth in vehicle sales along with increasing safety and convenience features in vehicles is likely will increase the demand for automatic doors in the coming years.

Integration of Smart City Technologies: The rise of smart city technologies, particularly public safety solutions that use advanced surveillance and communication systems, is influencing the automotive sector. Automotive composite liftgates, designed to be lightweight and durable, are increasingly incorporating smart sensors and connectivity features to enhance vehicle safety and integration with urban infrastructure. These innovations not only improve vehicle performance but also align with broader smart city initiatives aimed at optimizing urban mobility and safety.

Automotive Composite Liftgate Market

Size, by Product, - (USD Billion)

The Market will Grow

At the CAGR of:

8.6%

The Forecast Market

Size for in USD:

$2.73 Billion

Value Chain Analysis:

Raw Material Suppliers:

Role: Supply key materials such as carbon fiber, fiberglass, resins and other composite materials.

Key players: Toray Industries, Hexcel Corporation and SGL Carbon.

Challenges: high costs and variable prices of raw materials. Composite Fabricators Role: Transforms raw materials into composite components using processes such as injection molding, injection molding, and resin transfer molding.

Composite Manufacturers:

Key players: Gurit, Continental Structural Plastics and Quantum Composites.

Challenges: The need for advanced technology and skilled labor to ensure quality production.

Component manufacturers:

Role: Produces composite hatches by integrating them with other vehicles. 

Key players: Magna International, Plastic Omnium and Mubea Carbo Tech.

Challenges: Ensuring compatibility with different vehicle models and maintaining product efficiency.

Original Equipment Manufacturer (OEM)

Role: Integrate composite hatches into the final vehicle.

Major players: Major car companies such as Ford, GM, Toyota and BMW.

Challenges: Balancing cost, performance and consumer demand for lightweight and durable components.

Distributors and Dealers:

Role: Facilitates distribution of van vehicles to end users.

Key players: car dealers and distribution networks.

Challenges: Maintaining inventory levels and ensuring timely deliveries to meet consumer demand.

End Users:

Role: Purchase vehicles with composite hatches and appreciate benefits such as better fuel efficiency and durability.

Key players: individual buyers and fleet owners.

Challenges: Knowledge and acceptance of composite materials in the automotive industry.

Supply Chain Analysis:

Inbound Logistics Raw Material Sourcing: Sourcing high quality carbon fibers, glass fibers and resins.

Suppliers: Global and regional suppliers who often have long-term contracts to ensure continuous supply.

Procedures Manufacturing Processes: Use of advanced techniques such as injection molding, compression molding and RTM to manufacture composite doors.

Quality Control: Ensuring that products meet the strict safety and performance standards of the automotive industry.

Outbound logistics Distribution: Composite hatches are distributed to automotive OEMs for integration into vehicles.

Logistics providers: Coordination with logistics companies ensures timely and efficient deliveries.

Marketing and Sales Campaign: Highlights the benefits of composite hatches such as weight reduction, fuel efficiency and durability.

Channels: Auto shows, industry publications and direct sales to OEMs.

Maintenance:

After-sales support: providing maintenance and repair services for composite doors.

Customer Feedback: Feedback is collected to improve future product design and materials.

Porter's Five Forces Analysis

1. Threat of New Entrants

Barriers to Entry: High capital investment and technological expertise required.

Threat Level: Low to moderate. Established players have strong brand recognition and economies of scale.

2. Bargaining Power of Suppliers

Suppliers’ Influence: High due to the specialized nature of composite materials.

Mitigation: Long-term contracts and strategic partnerships with key suppliers.

Threat Level: Moderate to high.

3. Bargaining Power of Buyers

Buyers’ Influence: Automotive OEMs have significant bargaining power due to large order volumes.

Mitigation: Differentiation through advanced materials and innovative designs.

Threat Level: Moderate.

4. Threat of Substitutes

Alternative Materials: Traditional steel and aluminum liftgates.

Consumer Preference: Shift towards lightweight materials for better fuel efficiency.

Threat Level: Low to moderate.

5. Industry Rivalry

Competitive Landscape: High competition among established players to innovate and reduce costs.

Market Growth: Driven by increasing adoption of composite materials.

Threat Level: High. Constant need for innovation and cost reduction to maintain competitive edge.

Automotive Composite Liftgate Market TO (USD BN)

CAGR OF

8.6%

Automotive Composite Liftgate Market

2.73 Billion%

Recent Developments:

• SHANGHAI, China, April 02, 2018-- Magna International Inc. As the market for crossovers and sport utility vehicles continues to grow in China, so does the need for innovative, lightweight solutions. Today, Magna announced it has entered into a joint venture (JV) with GAC subsidiary, GAC Component Co., Ltd. (GACC), to begin production of composite liftgates for a global automaker's crossover vehicle starting in late 2018. The JV will work out of a new 55,900 square-foot facility located in Changsha, China, with an estimated 116 employees at the start.
• Zurich (Switzerland), November 30, 2016 – Advanced Composites Specialist Gurit will introduce two new automotive materials to the market at Composites Europe 2016, November 29 to December 1, 2016, on Stand E04 in Hall 8b at Messe Duesseldorf Exhibition Center.

Frequently Asked Questions:

What is the projected market size & growth rate of the Automotive Composite Liftgate Market?

Automotive Composite Liftgate Market valued at $1.42 Billion in 2023 and projected to reach $2.73 Billion by 2032, growing at an 8.6 % CAGR

What are the key driving factors for the growth of the Automotive Composite Liftgate Market?

Strict Regulations and Emission Standards, Consumer Demand for Lightweight and Gasoline-Efficient Automobiles, Advancements in Composite Material Technologies are the factors driving the growth of the Automotive Composite Liftgate Market.

What are the top players operating in the Automotive Composite Liftgate Market?

The major players are BMW AG, Ford Motor Company, Group PSA, Groupe Renault, Magna International, Inc., Nissan Motor Co. Ltd., Peugeot, Plastic Omnium Group.