The unexpected shifts in the global markets because of the sudden outbreak of the COVID-19 virus have brought many major and minor tremors to industries of all sizes including Automotive Active Grille Shutter (AGS) Market.
It was estimated prior to this unanticipated outbreak that the Automotive Active Grille Shutter (AGS) Market will reach US$ 1,206.0 million in 2024. However, the gradual slowing down of industries will undoubtedly impose limits on the previously estimated growth rate.
Automotive Active Grille Shutter (AGS) Market Insights
The automotive active grille shutter market is likely to grow at an impressive double-digit rate over the next five years to reach US$ 1,206.0 million in 2024. The auto industry has efficaciously been ushering in a new era of aerodynamic vehicles with a meticulous investment into advanced components that can address the changing business requirements in the most effective manner. All the major automakers have vigorously been incorporating active components in their most-renowned vehicle models with the purpose to improve the overall fuel efficiency of vehicles in order to address stringent government regulations, such as CAFE Standards and EU Commission on Carbon Emissions Reduction Targets.
Active grille shutter is a key component of active aerodynamic family and has been catching the automakers’ attention by offering a vast list of advantages. On an average, AGS offers signification weight reduction up to 20% and improvement in aerodynamic performance up to 30% as compared to non-AGS vehicle. Today, AGS has successfully found its presence in both premium vehicle models as well as mass-produced vehicle models of almost all major automakers including Ford, GM, Toyota, BMW, Lincoln, Honda, Mazda, Mercedes-Benz, and Rolls Royce.
The biggest factor driving the market for AGS is an incessant increase in its penetration in the automotive industry year on year as all the major automakers are incorporating this technology in their major vehicle models. One side, major automakers are working closely with the AGS suppliers in order to make their vehicle more fuel efficient, whereas another side, AGS suppliers are working hard to quickly meet automakers’ rising demand for a well-engineered, high-quality AGS system that helps to address fuel economy standards.
AGS has a disruptive journey so far in the automotive industry and has evolved a lot with changing market needs and designs. However, to maintain the growth momentum, AGS must to adapt itself as per the new business environments including a greater incorporation of ADAS (Advanced Driver-Assistance Systems) electronics, such as auto-braking and auto cruise control; the development of new diesel and electric engines; and introduction of more stringent regulations regarding pedestrian protection and carbon emission reductions.
The development of innovative AGS solutions is an indispensable focus area of the AGS suppliers based on the requirements of auto OEMs. The market for AGS is marked by major global automotive tier players including Rochling Automotive, Magna International Inc., and Valeo SA.
Automotive Active Grille Shutter (AGS) Market Share Analysis
Automotive Active Grille Shutter (AGS) Market Share by Vehicle Type
The global automotive active grille shutter market is segmented based on the vehicle type as Passenger Car, LCV (Light Commercial Vehicle) and M&HCV (Medium- and Heavy-Duty Commercial Vehicle). Passenger car is expected to remain the growth engine of the global automotive active grille shutter market during the forecast period of 2019 to 2024. Increasing production of passenger cars coupled with increasing penetration of AGS in passenger car models is likely to elevate the demand for AGS in the passenger car segment.
Automotive Active Grille Shutter (AGS) Market Share by Shutter Vanes Type
Based on the shutter vanes type, the automotive active grille shutter market is segmented as Horizontal Vanes and Vertical Vanes. Horizontal vane-based active grille shutter is expected to remain most dominant type in the global automotive active grille shutter market during the forecast period.
Regional Insights
Based on the regions, Europe is expected to remain the largest automotive active grille shutter market during the forecast period. Stricter emission norms of European Commission have led to a faster adoption of active grille shutter into European vehicles. Ford Focus & Fusion, BMW 5 Series & 7 Series, Renault Twingo & Talisman, Citroen C4 Picasso, and Audi Q7 are some key European models that have active grille shutters.
Key Players
The supply chain of this market comprises raw material suppliers, actuator suppliers, automotive active grille shutter manufacturers, automotive OEMs, and dealers, and end-users. the key raw material suppliers for automotive active grille shutter are Lanxess AG, Celanese Corporation, and BASF SE, whereas some of the major active grille shutter actuator suppliers are Hella KGaA Hueck & Co., Sonceboz SA, Johnson Electric, and Brose Fahrzeugteile GmbH & Co. KG.
The key automotive active grille shutter manufacturers are Rochling Automotive, Magna International Inc., Valeo SA, SRG Global, HBPO, and Shape Corporation. The development of integrated active grille shutters and forming strategic alliances with the automakers are the key strategies adopted by the key players to gain a competitive edge in the market.