The global automotive active grille shutter market is likely to reach a multi-billion dollar valuation by 2030, albeit stagnantly, attributed to the COVID-19 pandemic induced downswing. Demand for aerodynamic suspensions to provide enhanced safety and comfort levels has been expanding the scope of active grille shutters in recent years.
Automotive Active Grille Shutter Market Trends
Rising Demand for High Fuel Efficiency: As world fuel consumption rises, demand for efficient automotive solutions is also increasing. Most light-duty vehicles are equipped with gasoline-powered spark ignition engine powertrains; meaning, they are highly fuel-intensive. This entails regular engine maintenance, including regulation of fuel burning, thus accelerating active grille shutter usage.
Studies suggest that, fossil fuels will represent 60% of primary energy consumption by 2040. Naturally, demand for automotive engine efficiency solutions is bound to proliferate. Global efforts to reduce CO2 emissions are prompting automotive manufacturers to incorporate efficient assemblies, which will boost demand in the automotive active grille shutter market.
Improved Aerodynamic Performance: Demand for automotive active grille shutters is increasing on the back of increasing automotive ownership. In 2019, global automotive sales surpassed 65 million vehicles. This has led to simultaneous increase in automotive assembly parts, including active grille shutters. These shutters offer excellent aerodynamic performance.
Active grill shutters typically offer up to nearly one-fifth reduction in vehicular weight, and improvement in aerodynamic performance up to 30% as compared to non-AGS vehicles. A majority of luxury car manufacturers equip their models with the most advanced active grille shutters. These shutters help regulate airflow to manage connective heat transfer. All these factors bode well for the expansion of the automotive active grille shutter market size.
Regional Outlook of Automotive Active Grille Shutter Market
Europe is expected to emerge as the global market hegemon, accounting for a substantial proportion of the global automotive active grille shutter market share as far as revenue is concerned. Stringent regional legislations governing carbon emission levels are driving the European market. Recently, in November 2020, the United Nations Economic Commission for Europe issued an updated recommendation incorporating procedures to measure exhaust gases entering the vehicle’s cabin through ventilation systems. This measure pertains to the three most noxious gases - nitrogen oxide, nitrogen dioxide, and carbon monoxide. According to this legislation, each vehicle is subjected to an emission test, typically within one month of its manufacturing. Such strict regulations are permitting manufacturers is the automotive active grille shutter market to establish their presence within the European region.
Asia Pacific shall emerge as the fastest-expanding automotive active grille shutter market, attributed to rising ownership of luxury passenger vehicles in emerging economies such as China, India, and Southeast Asia. These countries/regions have implemented strict emission and vehicle efficiency standards, thus necessitating the adoption of active grille shutters.
COVID-19 Impact on Automotive Active Grille Shutter Market
The novel coronavirus pandemic has induced recessionary trends in the growth trajectory of the automotive active grille shutter market, primarily due to declining automobile sales. As supply chains get disrupted, sourcing assembly parts has become a significant challenge for several OEMs and associated vendors, leading to decelerating sales and cessation of production. Shortfalls have been especially acute across China, the epicenter of the COVID-19 pandemic. Automotive sales in the East Asian giant declined over 40% in March 2020, the initial phase of the pandemic. This led to significant drop in sales of active grille shutters too. However, post August, a substantial resurgence was recorded.
Similar slumps were recorded across the North American and European markets. For instance, American Honda reported that it recorded a production loss of around 40,000 vehicles in the initial stages of the pandemic. However, as time has gone by, the industry is gradually reverting to normal.
Based on these aforementioned trends, it is clear that the overall growth projections for the automotive active grille shutter market appear largely stagnant. Despite resumption of economic activities, the pandemic-induced recession is bound to take time to recover, leading to stunted growth of the automotive active grille shutter market.
Automotive Active Grille Shutter Market: Prominent Players
As per PMR’s analysis, the global automotive active grille shutter market is characterized by the presence of the following players: Broze Fahrzeugteile GmbH, Johnson Electric Holding Ltd., Mirror Controls International, Sonceboz SA, Rochling Automotive, Magna International Inc., SRG Global, HBPO, Shape Corporation, Valeo Inc., and others.
These players largely focus on new product offerings, strategic collaborations, joint ventures, acquisitions and technological innovations. Lucrative opportunities across developing and emerging economies are compelling these vendors to foray into markets across the Asia Pacific region.
As emission standards become more stringent, automotive manufacturers are investing in enhanced engine exhaust, heating, and ventilation systems, thereby providing fertile ground for prominent manufacturers in the automotive active grille shutter market to carve a foothold in the global landscape.
Automotive Active Grille Shutter Market: Report Scope
A latest market report by Persistence Market Research on the global automotive active grille shutter market evaluates the opportunities and current market scenario, providing insights and updates about the corresponding segments involved in the market for the forecast period of 2020-2030. The report provides detailed assessment of key market dynamics and comprehensive information about the structure of the global automotive active grille shutter market. This market study contains detailed insights about how the global automotive active grille shutter market is anticipated to grow during the forecast period of 2020-2030.
The primary objective of the global automotive active grille shutter market report is to provide insights regarding opportunities in the market that are supporting the transformation of global businesses associated with automotive active grille shutters. It is very important to consider that, in an ever-wavering economy, we provide estimated (Y-o-Y) year-on-year growth rate in addition to compound annual growth rate (CAGR) for overall forecasts, to enable readers better understand the analysis and evaluation of the global automotive active grille shutter market, and to discover lucrative opportunities in the market.
This report also provides an estimate of the global automotive active grille shutter market size and corresponding revenue forecasts carried out in terms of absolute $ opportunity. It also offers actionable insights based on the future trends in the automotive active grille shutter market. Furthermore, new and emerging players in the global automotive active grille shutter market can make use of the information presented in the study for effective business decisions, which will provide momentum to their businesses as well as the global automotive active grille shutter market.
The study is relevant for manufacturers, suppliers, distributors, and investors in the global automotive active grille shutter market. All stakeholders in the global automotive active grille shutter market, as well as industry experts, researchers, journalists, and business researchers can leverage the information and data represented in PMR’s report.
Key Segments of Global Automotive Active Grille Shutter Market
PMR’s report on the global automotive active grille shutter market offers information divided into three segments – shutter vane type, vehicle type, and region.
Shutter Vane Type
Key Questions Answered in PMR’s Global Automotive Active Grille Shutter Market Study
Global Automotive Active Grille Shutter Market: Research Methodology
Persistence Market Research is committed to providing unbiased market research solutions to its clients. PMR follows a robust methodology for the deduction of data included in this report. A unique research methodology is utilized to conduct extensive research on the global automotive active grille shutter market, and reach conclusions about the future growth factors of the market. PMR’s research methodology comprises primary research methods coupled with secondary research methods, which ensure the accuracy and reliability of the conclusions in this report.
A demand-side approach is followed to estimate the sales of target products, followed by an in-depth supply-side assessment of value generated, key trends, and events over a predefined period. This methodology is based on standard market structures, methods, and definitions that are based on inputs from local sources in over seven regions - North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East & Africa, which PMR considers for segmenting the global automotive active grille shutter market. Statistics, characteristics, and variances are collected at a regional level, aggregated at the same level, and then synthesized at a worldwide level to create global market measurements. Our main sources of research include: