The global convertible roof system market is anticipated to register a CAGR of over 7.60%, during the forecast period (2020 – 2025).
- A convertible roof system is used in luxury and semi-luxury vehicles, which can be controlled with or without a roof in the vehicle. This system allows an open-air driving experience, with the ability to provide a roof, when necessary.
- Over the past three years (2016-2018), the automotive industry has been continuously witnessing the penetration of convertible roof systems in various car models, such as in hatchbacks, SUVs, sedans, and others. During the forecast period, the convertible roof system in SUVs is likely to witness a considerable growth, as few automakers are planning to sell their SUV models, with convertible roof features, across various countries. However, the few developing countries, like India and South Africa, among others, will continue to see a slow growth, due to some reasons, such as convertible roof system chassis shudder, high price associations, leaks, faster aging of the interiors, and security issues.
- The increasing demand for premium vehicles is majorly driving the demand for convertible roof systems. Furthermore, the advancement in material technology and the growing preferences of the consumers for convertible roof systems, in the developing nations, are further boosting the demand for convertible roof systems. Additionally, an increase in the population of young consumers is also a major factor, propelling the growth of the market.
Key Market Trends
Auto Manufacturers are Increasing Investments in Convertible Roof Systems
There have been consistent evaluations and innovations in the market studied, which were undertaken with the aim of improving ease and comfort. For instance, BMW is one of the major luxury car makers that has launched its i8 Roadster, the latest plug-in-hybrid convertible sports car.
Webasto is one the major players in the convertible roof system market. The company is expanding it’s convertible roof business by opening a new plant in Mexico. The Mexican plant is an important textile competence center for Webasto’s convertible business unit. Presently, the company is manufacturing the soft top for the VW Beetle and the aftermarket roof for the Jeep ThrowBack, as well as all textile components for the North American market.
The convertible roof system market is dominated by Sedan, followed by Hatchback. However, currently, the convertible roof system in the SUVs is garnering interest among people. For instance, Land Rover expects the convertible to hold approximately 15% of Evoque's global volume, which is nearly 20,000 units. The convertible will be sold in 170 countries. Land Rover expects the United Kingdom, Germany, and the United States to be the best markets for the car.
Geographical Analysis of the Convertible Roof System Market
The convertible market is expected to grow, over the forecast period. This system is majorly used in luxury vehicles, and the demand for luxury vehicles is high in countries, such as the United States, Canada, France, the United Kingdom, Germany, Spain, and some countries in the Middle East and Asia-Pacific. The United States is one of the largest automotive markets in the world and is home to over 13 major auto manufacturers.
- With an average of 8 million passenger vehicle production units per annum and growing consumer popularity of luxury and premium cars, prospects for the convertible roof industry in the country are high. The convertible roof system industry is highly dependent on the sales of luxury and premium cars, which are, in turn, dependent on the per capita income levels.
Additionally, China and Germany are the major hubs for technological advancement in automotive, leading to a significant expansion of the luxury vehicles market.
Currently, Europe accounted for the most significant share in the convertible roof system market, by value and volume. The Asia-Pacific region is projected to register a high CAGR, during the forecast period. Emerging economies, such as China and India, are expected to play significant roles in the increasing vehicle production. Also, the increasing installation of convertible roof systems in vehicles, such as sedans/hatchbacks and SUVs, is driving the market in the Asia-Pacific region.
The convertible roof system market is majorly dominated by Webasto, Magna International, Valmet Automotive, Aisin Seiki, and Continental AG, among others. The companies are expanding their businesses by launching new products and by acquiring new businesses. For instance:
- Webasto is now focusing on movable roof systems for the marine market segment. Innovation and technological leadership, increase in the product portfolio, and usage of new materials, have been at the forefront of company’s business strategies.
- Webasto invested USD 8.96 million in establishing a new plant at Baoding, China, in order to increase its sunroof production capacity, to cater to the market demand for sunroofs, especially panorama roofs, more efficiently.
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