Since the COVID-19-induced slump of 2020, vehicle sales have started picking up again, with Organisation Internationale des Constructeurs d’Automobiles (OICA) registering 35,603,497 unit sales during January–June 2021, compared to 27,799,942 unit sales during the same period last year. Though these figures are still lower than the 38,991,568 of January–June 2019, industry experts have rejoiced by the surge in automotive sales in 2021, and they remain hopeful for an even better show next year.
As per P&S Intelligence, the growing vehicle sales will be the key factor behind the growth of the power liftgate market value from around $4 billion in 2020 in the coming years. The power liftgate is a mechanism that opens and closes the backdoor hatch of vehicles, which is why its procurement directly depends on the volume of auto production. Liftgates are not a new feature in automobiles, having being around for almost as long as vehicles with backdoors. However, the traditional technology requires people to turn the key and manually lift the hatch.
Another key reason for the rising procurement of such systems by automakers is the booming demand for autonomous vehicles. With the rising incidence of road crashes, which lead to more than 1.3 million fatalities each year, as per the World Health Organization (WHO), countries are taking initiatives to develop autonomous vehicles. The idea is that since most of the road accidents are attributed to human error, taking the driving control away from people will make roads and automobiles safer. Power liftgates are prominently featured in semi-autonomous vehicles, and their usage will grow with the launch of level 4 and level 5 autonomous vehicles in 2023 and 2025, respectively.
Therefore, the fastest power liftgate market advance will be witnessed in Asia-Pacific (APAC) because it already is home to the largest auto sector on earth. Luxury vehicles produced by BMW, Mercedes–Benz, Audi, Lamborghini, and Porsche are already hugely popular among the rich and elite. Moreover, with the masses witnessing an increase in their spending power, auto sales are booming, which is encouraging manufacturers to offer such advanced technologies in their economy and mid-segment cars too.
Hence, with the booming auto sales, the demand for power liftgates will rise.