Automotive Closure Market Trends

Automotive Closure Market Drivers

Growth in Demand for Comfort Features

• The market for automotive closures is expanding as a result of rising car production and rising consumer demand. Passenger automobiles are expected to hold the largest share among the various market segments. The growing demand for innovative features in cars and consumers' increasing disposable income will propel the expansion of the automotive closure market for both ICE and EVs.

Production Shifts in EVs and PHEVs

• Reduced production costs, lax pollution and safety regulations, among other factors, have made the area a manufacturing hotspot. Since the demand for automobile closure is closely correlated with vehicle production, numerous European and American automakers have relocated their manufacturing facilities to developing nations in Asia-Oceania. Furthermore, it is anticipated that the market for automotive closure would rise with plug-in hybrid vehicles (PHEVS).

Automotive Closure Market Restraints

Complexity Associated with Electronic System Component

• Growth in the industry is anticipated to be hampered by electronic systems' increasing complexity. Various electronic systems, including sensors, actuators, and controllers, are present in contemporary automotive closures. The cost of these systems is rising due to their increased complexity. High-end electronic components, like semiconductors and sensors, are frequently utilised in automotive closures.

Safety Standards and Component Shortages

• Automotive closures' electronic systems also need to adhere to strict safety regulations. As manufacturers have to spend money on testing and certification, this raises their price. The market's expansion is further hampered by the limited supply of electronic components. For example, the global shortage of semiconductors led to an increase in the cost of electronic components. This adds to the high cost of electronic system components in the automobile closing industry.