active grille shutter Market

The active grille shutter market is projected to reach US$ 3,094.60 million by 2028 from US$ 2,161.67 million in 2021. It is expected to grow at a CAGR of 5.3% during 2022-2028.

Automotive manufacturers are rapidly adopting various technologies to attract new customers and gain a competitive edge, despite the hostile environment created by macroeconomic factors since 2018, including the disruptive impact of the COVID-19 pandemic and political issues affecting component supply. However, despite the challenging circumstances, automobile sales have begun to increase in 2021, with passenger vehicles, including high-end electric vehicles, driving the demand. To attract customers, manufacturers are integrating active grille shutters into their vehicles, which can significantly enhance aerodynamic performance and reduce fuel consumption while helping maintain optimal temperatures for internal combustion engines or EV batteries. The automotive industry is also moving toward lightweight components, including active grille shutters, due to their higher strength-to-weight ratios, corrosion resistance, and workability. These lightweight components can help reduce overall vehicle mass and achieve up to 25% mass savings over steel versions, leading to improved fuel efficiency and lower carbon emissions. As such, demand for lightweight active grille shutters has increased significantly among automakers over the past decade, as they help save assembly time and reduce vehicle mass. Recently, Magna, a leading automotive manufacturer, launched its full-system assembly of composite liftgates and active aerodynamic grille shutters in China.

Impact of COVID-19 Pandemic on Active Grille Shutter Market Growth

During the initial phase of the global health crisis, most automobile manufacturers were impacted by limitations imposed by governments to control the spread of COVID-19, which disrupted their daily operations. Stringent restrictions and supply chain disruptions, particularly the shortage of semiconductor chips, posed a threat to most automobile companies worldwide. This resulted in decreased demand for active grille shutters due to the significant reduction in automobile production, and low traffic volumes on roads led to decreased sales of aftermarket active grille shutters as well. Europe, being a major automobile manufacturer, recorded a significant drop in vehicle production, with low automobile sales in countries such as Germany, France, Italy, and the UK. However, in 2021, as the temporary restrictions were lifted, the automobile industry rebounded and began recording good sales volumes, with electric vehicles witnessing high growth rates and internal combustion engine-based vehicles experiencing moderate growth rates. Many active grille shutter market players introduced new product lines for aftermarket fittings, and several enterprises shifted their focus to opening new factories in different regions to protect themselves from any potential supply chain disruptions in the future. As a result, the outlook post-COVID for the active grille shutter market seems favorable for most active grille shutter market players.

China is currently the leading market for active grille shutters in Asia Pacific, with Japan and South Korea following closely behind. The active grille shutter market in China is growing at a rapid pace, making it one of the fastest-growing markets globally. Automobile manufacturers in China are among the primary adopters of active grille shutters in the APAC region, as they strive to increase their export volumes. As the demand for fuel-efficient vehicles continues to rise worldwide, it is expected that European automobile manufacturers will also adopt similar strategies in the near future. Similarly, automobile manufacturers in India, Japan, and South Korea are also implementing such strategies, contributing to the expansion of the active grille shutter market in the region, with many market players operating in the area.

While the majority of revenue in the active grille shutter market has traditionally come from sales of passenger vehicles, this trend is shifting due to increasing awareness of the benefits of these shutters in both light and heavy commercial vehicles. As these types of vehicles tend to consume larger amounts of fuel, many manufacturers are now adopting active grille shutters to improve aerodynamics and reduce fuel consumption in response to strict carbon emission regulations in various countries. These developments are expected to drive the growth of the active grille shutter market.

HBPO GmbH; Magna International Inc.; R?chling SE & Co. KG; Shape Corporation; SRG Global; Standard Motor Products Inc.; STARLITE Co., Ltd.; Techniplas US LLC; Valeo SA; and Wirthwein AG are among the key companies in the active grille shutter market.

The active grille shutter market size has been determined using a combination of primary and secondary research. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative information related to the market. This process helped provide an overview and forecast of the active grille shutter market size across all market segments. Additionally, multiple primary interviews were conducted with industry participants and experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders specializing in the active grille shutter market. These interviews helped validate the data and provide further analytical insights.