Electric Tailgate Market Outlook

The global electric tailgate market is projected to reach approximately USD 9.5 billion by 2035, with a compound annual growth rate (CAGR) of 8.2% from 2025 to 2035. This growth is driven by the increasing demand for convenience and advanced features in vehicles, particularly in light of the rising trend of smart and electric automobiles. The automotive industry's shift towards enhanced safety and user experience has led to the integration of electric tailgates as standard features in many new vehicle models. The growing consumer preference for SUVs and MPVs, which often feature larger tailgates, further amplifies this trend. Additionally, advancements in automotive technology, including the incorporation of automated and remote access functionalities, are expected to bolster market expansion significantly.

Growth Factor of the Market

The electric tailgate market is experiencing substantial growth due to various interrelated factors that are shaping the automotive landscape. One of the primary drivers of this market is the increasing consumer demand for comfort and convenience features in vehicles. Electric tailgates offer a practical solution to users who prefer hands-free operation, particularly beneficial for individuals carrying heavy items or managing children or pets. Furthermore, advancements in battery and sensor technologies have made electric tailgate systems more reliable and efficient, encouraging manufacturers to include them in more vehicle models. The rise of electric and hybrid vehicles has also contributed to this market's growth, as these vehicles often come equipped with advanced electronic features. Additionally, the growing emphasis on vehicle security and accessibility is compelling manufacturers to innovate and improve electric tailgate systems, making them an essential component in modern automotive design.

Key Highlights of the Market

• The market is projected to reach USD 9.5 billion by 2035.
• Electric tailgates are increasingly being integrated into various vehicle types, especially SUVs and MPVs.
• Technological advancements in sensors and motors enhance the functionality and reliability of electric tailgates.
• Consumer preferences are shifting towards convenience features, boosting the market demand.
• North America and Europe are the leading regions in adopting electric tailgate technology.

By Vehicle Type

Sedan:

Sedan vehicles represent a significant portion of the electric tailgate market as manufacturers increasingly integrate advanced features to enhance consumer appeal. While traditional sedan designs often included manual tailgates, the shift toward electric systems is gaining traction, providing users with enhanced convenience and functionality. Electric tailgates in sedans enable seamless access to the trunk, particularly useful when hands are full. As the sedan segment continues to evolve, automakers are likely to embrace this technology to meet consumer expectations and remain competitive in an increasingly feature-rich automotive environment.

SUV:

The SUV segment dominates the electric tailgate market due to the larger rear cargo areas and the increasing demand for family-oriented vehicles. Electric tailgates in SUVs provide an essential convenience factor, allowing users to access the trunk space easily, especially in scenarios where manual operation may be cumbersome. The adoption of electric tailgate technology in SUVs aligns with the growing preference for features that enhance user experience and safety. As consumers seek vehicles that offer both practicality and luxury, the electric tailgate is becoming a standard feature in many new SUV models, further driving the segment's growth.

Hatchback:

Hatchbacks, known for their compact design and versatility, are experiencing a growing trend toward electric tailgate integration. The convenience of a powered tailgate appeals to urban dwellers who may need to access their cargo space frequently and often with their hands full. Electric tailgates in hatchbacks streamline this process and enhance the overall user experience. Additionally, the demand for innovative features in smaller vehicles is on the rise, prompting manufacturers to equip hatchbacks with modern conveniences typically associated with larger vehicles. This trend is expected to continue as consumer preferences shift toward enhanced functionality in all vehicle categories.

MPV:

Multi-Purpose Vehicles (MPVs) are increasingly incorporating electric tailgates as part of their design to cater to family-oriented users. The electric tailgate feature enhances accessibility, making it easier for parents to load and unload children and cargo without the hassle of manual operation. This convenience is particularly beneficial during busy family outings or shopping trips. With the rising popularity of MPVs in various markets, manufacturers are recognizing the importance of electric tailgates in attracting consumers who prioritize practicality and ease of use in their vehicle choices. This trend is expected to considerably boost the segment's growth in the coming years.

LCV:

Light Commercial Vehicles (LCVs) are also experiencing a shift towards electric tailgate systems, particularly in sectors that require frequent loading and unloading of goods. The integration of electric tailgates enhances operational efficiency for businesses that rely on LCVs for transportation and delivery services. By providing hands-free access, electric tailgates can significantly reduce the time spent on loading and unloading, which is crucial for commercial applications. As businesses continue to seek ways to improve efficiency and productivity, the adoption of electric tailgates in LCVs is expected to grow steadily, contributing to the overall expansion of the market.

By Component

Latches:

Latches are a critical component of electric tailgate systems, serving as the mechanism that secures the tailgate when closed and facilitates its opening when powered. The demand for advanced latching systems is on the rise as manufacturers seek to incorporate more efficient and reliable solutions in their vehicle designs. Electric tailgate latches often include smart technologies that enhance security and user experience. With increased focus on safety and durability, innovations in latch technology will drive their adoption, contributing to the overall growth of the electric tailgate market.

Motors:

Motors are integral to the functioning of electric tailgates, providing the necessary power to open and close the tailgate smoothly. As the market for electric tailgates expands, the demand for high-quality, efficient motors will increase. Manufacturers are likely to invest in more robust motor technology to enhance performance, minimize wear and tear, and improve reliability. Innovations such as brushless motors, which offer better efficiency and longevity, are expected to gain traction in the market. The increasing emphasis on advanced features in vehicles will further drive the need for reliable motor solutions in electric tailgates.

Sensor:

Sensors play a vital role in the operation of electric tailgates, providing the necessary input for automated functions. These sensors facilitate features such as obstacle detection and hands-free operation, significantly enhancing user convenience. As the market for electric tailgates continues to grow, the demand for advanced sensor technology is expected to rise. Innovations in sensor systems that enable seamless operation and improve safety will be critical in attracting consumers and manufacturers alike. The incorporation of cutting-edge sensors will not only enhance the functionality of electric tailgates but also contribute to the overall market growth.

Other:

This category encompasses various other components necessary for the functionality of electric tailgates, including control modules, wiring harnesses, and software systems. The integration of advanced electronics and software solutions is becoming increasingly important in the electric tailgate market, as manufacturers look to optimize performance and enhance user experience. As vehicle technology continues to advance, innovations in component integration and digital solutions will be crucial to the functionality of electric tailgates. The growing trend towards smart vehicles will further stimulate the demand for these components, making them essential for future developments in the market.

By Sales Channel

OEM:

Original Equipment Manufacturers (OEMs) constitute a significant portion of the electric tailgate market, as many new vehicles come equipped with electric tailgate systems as standard features. The trend towards electrification and enhanced convenience has led OEMs to invest in this technology to meet consumer expectations. By incorporating electric tailgates into their production lines, manufacturers can offer vehicles that align with modern consumer demands for comfort and innovation. The growing focus on differentiating product offerings through advanced features is expected to drive the OEM segment's growth in the electric tailgate market.

Aftermarket:

The aftermarket segment of the electric tailgate market is also experiencing growth as consumers seek to enhance their existing vehicles with modern features. Many vehicle owners are looking to retrofit electric tailgate solutions to improve convenience and functionality in their cars. The availability of aftermarket electric tailgates allows consumers to customize their vehicles according to personal preferences. The potential for increased sales through aftermarket channels is significant, driven by the desire for upgraded features and improved vehicle performance. This trend is expected to contribute positively to the overall growth of the electric tailgate market.

By Material Type

Steel:

Steel has long been a predominant material used in vehicle manufacturing, including electric tailgates, due to its strength and durability. Steel electric tailgates offer robust performance, making them a standard choice for many vehicle manufacturers. The use of steel provides a reliable structure capable of withstanding significant wear and tear, which is crucial for tailgate functionality. With advancements in steel manufacturing processes, companies are now able to produce lighter and more efficient steel components, which can enhance the performance of electric tailgates and contribute to fuel efficiency in vehicles. The continued reliance on steel in the automotive sector will ensure its relevance in the electric tailgate market.

Aluminum:

Aluminum is gaining popularity in the electric tailgate market due to its lightweight properties, which contribute to improved fuel efficiency and performance in vehicles. The use of aluminum in electric tailgates allows manufacturers to design more streamlined and efficient components without compromising strength. As the automotive industry increasingly focuses on reducing vehicle weight to improve fuel consumption and emissions, aluminum is becoming a favored choice for tailgate construction. The trend toward lightweight materials is expected to drive the adoption of aluminum electric tailgates, aligning with broader industry goals of sustainability and efficiency.

Composite:

Composite materials are emerging as an innovative choice for electric tailgates, offering a combination of strength and lightweight characteristics. Composites can be engineered to provide exceptional durability while reducing overall vehicle weight, making them an attractive option for modern automotive design. The use of composite materials in electric tailgates can enhance performance, improve aerodynamics, and contribute to better fuel efficiency. As manufacturers continue to explore advanced materials for vehicle components, the adoption of composites in electric tailgates is expected to increase, promoting sustainability within the automotive industry.

By Region

The electric tailgate market is witnessing varied growth dynamics across different regions, with North America leading the charge. In North America, the market is expected to grow at a CAGR of 8.5%, largely fueled by the high demand for SUVs and the expanding electric vehicle market. The consumer shift towards convenience features in vehicles further validates the growth of electric tailgates in this region. The presence of several key automotive manufacturers and increasing investment in advanced vehicle technologies also contribute to the robust growth forecast for North America. Europe follows closely, where stringent regulations on emissions and a strong focus on electric vehicles are propelling the demand for electric tailgates.

In Asia Pacific, the electric tailgate market is also on an upward trajectory, driven by the growing automotive industry in countries such as China and India. The increasing disposable income of consumers and the rising demand for advanced vehicle features are expected to boost market growth in this region. Latin America and the Middle East & Africa are projected to grow steadily, albeit at a slower pace. The growth in these regions will be supported by rising vehicle sales and a gradual shift towards electric and hybrid vehicles, along with the growing demand for comfort features like electric tailgates.

Opportunities

One of the most exciting opportunities within the electric tailgate market lies in the rising adoption of electric and hybrid vehicles. As the automotive industry shifts towards more environmentally friendly options, electric tailgates are becoming a standard feature in many electric vehicle models, offering consumers convenience while promoting sustainability. This trend is likely to create a substantial increase in demand for electric tailgates as manufacturers strive to equip these vehicles with advanced features that enhance user experience. Additionally, the trend towards smart technology in vehicles is opening doors for innovation in electric tailgate designs, including features such as smartphone connectivity and automated operation, further expanding the market potential.

Furthermore, the aftermarket segment presents a significant opportunity for growth as vehicle owners seek to upgrade their existing vehicles with modern features. As more consumers become aware of the benefits of electric tailgates, the demand for retrofitting solutions is likely to rise. Companies that focus on developing compatible and user-friendly electric tailgate solutions for a wide range of vehicle models stand to gain a competitive advantage in this growing segment. The expansion of e-commerce platforms also facilitates the distribution of aftermarket electric tailgate solutions, allowing manufacturers to reach a broader audience and tap into new markets effectively.

Threats

Despite the promising growth prospects, the electric tailgate market faces several threats that could impede its expansion. One of the primary threats is the increasing competition from alternative solutions, such as manual tailgates and competing technologies that may offer similar convenience at a lower cost. As more manufacturers enter the electric tailgate space, price competition could undermine profit margins and impede market growth. Additionally, fluctuations in raw material prices could impact production costs, and global supply chain disruptions may further create challenges for manufacturers in delivering electric tailgate components in a timely and cost-effective manner.

Another significant threat to the market is the potential regulatory challenges regarding safety and functionality standards for electric tailgates. As regulations evolve, manufacturers may be required to invest significantly in compliance measures, which could lead to increased costs and delays in product development. Furthermore, consumer skepticism regarding the reliability and safety of electric systems compared to traditional manual solutions may also hinder the widespread adoption of electric tailgates. Addressing these concerns and ensuring that electric tailgates meet or exceed regulatory standards will be crucial for manufacturers aiming to maintain market momentum and consumer trust.

Competitor Outlook

• Aisin Seiki Co., Ltd.
• BorgWarner Inc.
• Magna International Inc.
• Brose Fahrzeugteile GmbH & Co. KG
• Huf H├╝lsbeck & F├╝rst GmbH & Co. KG
• Valeo SA
• THK Co., Ltd.
• Continental AG
• ZF Friedrichshafen AG
• General Motors
• Ford Motor Company
• Toyota Motor Corporation
• Honda Motor Co., Ltd.
• Hyundai Motor Company
• Nissan Motor Corporation

The competitive landscape of the electric tailgate market is characterized by the presence of several key players that are continually innovating to maintain their market positions. Companies like Aisin Seiki Co., Ltd. and BorgWarner Inc. are at the forefront of developing advanced electric tailgate solutions, leveraging their extensive experience in the automotive sector to enhance product offerings. As competition intensifies, manufacturers are focusing on research and development to create innovative features that cater to the evolving needs of consumers. Collaborations and strategic partnerships are also becoming increasingly common as companies seek to combine expertise and resources to deliver cutting-edge solutions in electric tailgates.

Magna International Inc. is another significant player, known for its comprehensive portfolio that includes electric tailgates among various automotive components. The company has invested heavily in automation and advanced technologies to improve the efficiency and reliability of its products. As demand for electric tailgates continues to rise, Magna is well-positioned to capture a considerable market share by focusing on enhancing performance and integrating smart features. Similarly, Valeo SA and ZF Friedrichshafen AG are actively pushing the boundaries of electric tailgate technology, developing systems that incorporate safety features and advanced sensors to improve user convenience further.

Companies like General Motors and Toyota Motor Corporation have also recognized the importance of electric tailgates in offering a competitive edge in the automotive market. As these companies introduce new electric and hybrid models, the integration of electric tailgates is becoming a standard feature, driving demand for this technology. As manufacturers continue to emphasize sustainability and innovation, they are expected to explore new materials and technologies to enhance the performance and efficiency of electric tailgates, further strengthening their positions in the market. The ongoing advancements in electric and smart vehicle technologies will likely reshape the competitive landscape, pushing all players to innovate continually and adapt to changing consumer preferences.