GLOBAL AUTOMOTIVE SUNROOF MARKET

 

KEY FINDINGS

1. 1. The volume growth of electric sunroof will be predominantly due to addition of premium features in low end trims becoming more popular
   2. Penetration of panoramic sunroofs are likely to be higher in upcoming models if the comfort factor matches the price advantage that OEMs can offer, due to the premium in-car feel that can attract consumers
   3. Electric vehicles are estimated to witness a higher penetration of sunroofs due to their premium perception in the market and this will also influence the growth of sunroof market until 2025
   4. Many Chinese OEMs already have a panoramic sunroof as standard in all their EV models 
   5. Volkswagen had the highest penetration across all regions and with most models featuring a sunroof at least in the top end trim
   6. In Europe, one of the major reasons for volume growth in this region is due to higher penetration among premium segment vehicles such as Daimler, BMW and Audi as well as increase in penetration among the trims in already existing models
   7. In India, with indigenous OEMs such as Tata and Mahindra also introducing sunroofs in their affordable segment of vehicles, the sunroof market is expected to grow during the upcoming years 
   8. Many OEMs such as Ford and Toyota offer a moonroof instead of a sunroof to maintain price balance 
   9. Webasto and Inteva accounted for ~XX% share of the global sunroof market in 2020
   10. Light weight materials and advanced simulation systems for aerodynamics is expected to get better and more accessible for development of replaceable sunroof systems

INTRODUCTION

A sunroof is often considered as an optional feature in automobiles, which is either a fixed or sliding mechanism. The trend of the sunroof as an optional feature has gradually changed to being one of the standard features in premium and luxury segment cars. The automotive sunroof market is driven by innovation in glass technology and rise in demand for safety, comfort and convenience features.

 

 

OEMs are engaged in developing advanced technologies to manufacture sunroof including composite materials for developing lightweight sunroof solutions, thus increasing the demand in the industry. High integration and maintenance cost and low penetration in budget vehicles are some of their drawbacks.

 

AUTOMOTIVE SUNROOF MARKET SEGMENTATION

 

By Material

• Glass
• Fabric

 

By Operation

• Manual
• Automatic

 

By OEMs

• Toyota
• GM
• Ford
• Mercedes
• BMW
• Hyundai

 

By Vehicle Type

• Sports Utility Vehicle
• Sedan
• Hatchback

 

By Type

• Panoramic
• Spoiler Type

 

By Geography

• US
• China
• Europe
• Japan
• ROW

 

AUTOMOTIVE SUNROOF MARKET DYNAMICS

Conventional ICE vehicles will undergo a complete revamp and upgradation of features in the next few years giving rise to addition of premium features in the lower segments. Saturation of additional features in the vehicle will drive OEMs to offer sunroof at a more affordable price.

 

Electric vehicle growth globally will positively impact the growth of sunroofs due to addition of premium features in their respective EV models by most OEMs. High growth rate of SUV segment is expected to be beneficial for the sunroof industry due to rising penetration of sunroof in the SUV and compact SUV segment 

 

Advancements in material technology as well as shifting consumer preference for sunroofs, especially in developing nations will further boost the sunroof market globally. Hybrid vehicles are likely to be equipped with panoramic sunroofs in order to entertain all-round visibility and maximum ventilation

 

The growing demand for SUVs and luxury cars over the years has boosted the automotive sunroof global market.   To augment the sunroof vehicles are now fitted with tinted or UV-reflective glasses in order to avoid sunlight.

 

 

Keeping in mind the safety of the passengers the OEMs are quickly adopting a sunroof airbag system in case of roll over incidents. This new technology will drive the sunroof market.

 

AUTOMOTIVE SUNROOF MARKET BY TYPE

Currently, the two main types of sunroofs being offered are the Spoiler type of sunroof and the premium panoramic sunroof. 

 

Volume growth of panoramic sunroof will be dominated in emerging markets such as APAC countries and Latin America due to increasing adoption in medium segment vehicles by indigenous OEMs 

 

Glass sunroofs have the highest share in the market compared to the fabric one. Various features in the glass segment itself have made this popular. Tilt and slide, panoramic and pop-up methods are seen in this segment. Panoramic sunroof holds the highest share among all.

 

Another interesting development in this space is that of solar sunroofs, which is most likely to become common in electric vehicles rather than conventional vehicles

 

Since fabric type is limited to convertible cars, it has always been trailing the glass type.

 

AUTOMOTIVE SUNROOF MARKET BY VEHICLE TYPE

Sports Utility Vehicle holds the highest share in the market. Since the structure of SUVs demand larger sunroofs that has propelled the market in this segment. SUVs constitute 1/3rd of the market share among the types of vehicles. Luxury cars hold the next best share and these two segments hold almost 3/4th of the total global share.

 

 

 

 

US AUTOMOTIVE SUNROOF MARKET

The volume growth of the sunroof market in USA will be predominantly influenced by the likes of Ford, GM and Chrysler and their strategy to provide premium feel-good features in their upcoming models

 

The spoiler type sunroof showed an approximate penetration of 21% in the year 2020 accounting for ~3.6M units sold during the year.

On the other hand, the panoramic sunroof had a mere 5% penetration at about 0.5M units sold in 2020, thereby wrapping the US sunroof market at about 4.12M units overall

 

The US held the second most share in the sunroof market. Power sliding sunroof is found in every top selling model of the passenger cars. The increase in sales of SUVs and pick-up trucks has been the driving factor in the sunroof market.

 

Toyota had an average penetration of 42% of electric sunroof, while no model featured a panoramic sunroof in the list of top selling vehicles. The Ford Explorer in the US market was the only model to feature an openable panoramic sunroof, while the Ford Escape and Ford Fusion had an electric sunroof.  Chevrolet Traverse and Malibu featured an electric sunroof in their top end trim in the US automotive sunroof market.

 

EUROPE AUTOMOTIVE SUNROOF MARKET

The sunroof market in Europe was at about 1.5M units in 2019 and is expected to reach 1.9M units by 2025 growing at a CAGR of 10%

 

The spoiler type sunroofs are expected to grow at ~12.8% during the forecast period from a volume of ~0.4M units in 2020 to ~0.6M units by 2025 

 

The European market was underperforming in the penetration of both sunroof systems in 2020 – predominantly because of the large sales of cost effective and low-end vehicles in the market 

 

Europe holds the largest share in the sunroof market. Major premium car manufacturers are from Europe and sunroofs come as a standard option in this segment. This has made Europe one of the leading markets in the sunroof sector.

 

Every top selling car in Europe has a sunroof option in most of their variants. Panoramic, glass sliding sunroof is most commonly found sunroof among top selling cars.

 

 

CHINA AUTOMOTIVE SUNROOF MARKET

China featured the highest penetration of both categories of sunroof among all regions at a combined penetration of ~XX% in 2020, making it the single largest market for sunroof globally. For a sunroof supplier, China is the market that it will have to eye on, to target volume growth in premium sunroof installations until 2026. Since the sunroof market is a very niche industry, the expectancy for new entrants to start a trend or enter the market is very unlikely. This will also mean growth for the existing sunroof suppliers in the region such as Inteva and Webasto who have new partnerships with new EV startups in China. 

 

Inteva and Webasto dominate the China market with 38% and 28% market share respectively accounting for 66% of the sunroof market in China 

 

Spoiler type sunroof had a penetration of ~46% while the panoramic sunroof had a penetration of ~28% in 2020 

 

The sunroof market in China accounted for 15.8M units in the year 2020 out of which 9.9M units were spoiler type sunroofs and 5.9M of them were panoramic sunroof

 

Chinese manufacturers such as Buick and Roewe has standardized a sunroof in all their trims

 

Models such as the Buick GL8, Buick Regal, VW Golf and Hyundai Fiesta had a 100% penetration of spoiler type sunroof in 2020 

 

The largest automobile market in the world , China , has been the fastest growing market in the sunroof segment. The shift towards the premium and luxury cars in the country has boosted the sunroof market in this region. Among the top selling cars Volkswagen Lavida and Haval H6 come with sunroof as option.

 

In the VW group,the VW Sagitar, Tiguan, Passat, Tayron, Magotan and T-roc were among the top selling models to feature a panoramic sunroof.

 

INDIA AUTOMOTIVE SUNROOF MARKET

The Indian sunroof market was skewed to spoiler type sunroof with panoramic sunroofs showing less than 1% penetration overall. In the year 2020, ~0.2M units of sunroof was sold in the region 

 

Nissan Magnite and Hyundai Venue getting sunroof is a positive trend to the growth of the sunroof market in India

 

The Tata Nexon, Hyundai Venue and Hyundai Creta were the largest contributors of volume market for sunroofs in 2020

 

British-Chinese brand Morris Garages with their Hector, Kia with their Seltos, Hyundai with its Venue are the models which is creating entry of sunroofs in the mid segment variants in 2020

 

Sunroof in Indian cars is found in mid-segment and premium cars. The entry level cars which constitute the top selling cars list do not have a sunroof. Among the top selling cars in India, Kia Seltos and recently Hyundai Venue are the ones to sport the sunroof. The demand for sunroof by the Indian audience will push the auto makers to provide the sunroof even in the hatchback segment. 

• 5 out of 7 models in the Tata Nexon featured an electric sunroof among the top selling vehicles, besides 2 out of 5 in the Hyundai Venue , 2 out of 5 in the Hyundai Creta, while the Hyundai i20 elite featured one trim with an electric sunroof
• The post COVID recovery of auto sales in the region is expected to push the auto industry for newer adaptations and features – sunroof being a very unique selling proposition should benefit from this revival

 

RECENT LAUNCHES

• Webasto has opened its new plant in Guangzhou province in China. It is its 10th such plant in China.
• The roof for the Bugatti Veyron is made from transparent sheets, which are then thermoformed and coated with polysiloxane wet-coat system, translating to a highly scratch and weather-resistant roof
• Upcoming EVs like Hyundai Sonata Hybrid and Lightyear One from Netherlands are coming out with solar cells underneath the sunroof. Thus, the sunroof market is expected to grow substantially.
• Hyundai Mobis is working on to be the first OEM to install airbags to the sunroofs of the passenger car.
• Inteva Products has sold its automotive sunroof and panel system subsidiary to CIE Automotive.
• Mercedes –Benz has recalled around 750,000 cars, as vehicles’ sunroof can potentially detach and fly off.
• Tesla has patented an advanced sunroof with a lighting system. The sunroof comprises a transparent lighting system between a tiny, tinted layer and a transparent layer.

 

GLOBAL AUTOMOTIVE SUNROOF MARKET SIZE AND FORECAST

 

 

Sunroof manufacturing companies are investing in lighter in weight and high durable sunroofs. Such technological advancements will boost the market.

 

The global sunroof market will grow from XXM units in 2019 to XX units in 2025 at a CAGR of XX%. The automotive sunroof market will grow in volumes predominantly due to the EV growth post the pandemic.  China will be the largest contributor of the volume growth due to its aggressive EV market growth, followed by Europe where higher popularity of premium vehicles will be an additional factor 

 

The global sunroof market will grow from $XXB in 2019 to $XXB in 2025 at a CAGR of XX%. The sunroof market will see value addition due to the prices of its actuators and fiberglass. Innovation in the fiber glass used in the sunroof and smoother operation will also influence price rise of this component 

 

Use of polycarbonate for better strength and lightweight characteristics is the way forward for OEMs to deploy sunroofs in their future vehicles, most probably in their electric variants

 

Premium OEMs such as BMW AG, Audi AG, and Daimler AG are continuously investing in R&D for incorporating solar sunroofs in their cars for improving the efficiency of electric vehicles.

 

COMPETITIVE LANDSCAPE

Webasto from Germany is the leading sunroof manufacturer and supplier in this sector. Some of the other players are Inalfa (Netherlands), Yachiyo (Japan), CIE Automotive (Spain), BOS GmbH (Germany), Johnan Manufacturing (Japan) and Wuxi Mingfang (China).

 

The market is dominated by Webasto but followed closely by Inteva products LLC, which is headed in Michigan and is a major supplier to the Volkswagen Group 

 

Yachiyo is partly owned by Honda and therefore is the sole supplier to all of Honda’s models across regions giving them a stable customer base

 

 

In May 2019, Inteva Products LLC, owned by The Renco Group, Inc., sold its Roof Systems product line to CIE Automotive S.A. The Roof Systems business of Inteva operates 16 manufacturing facilities and six R&D centers in seven countries including the United States, Mexico, Germany, Slovakia, Romania, China, and India. Its customer portfolio includes Volkswagen, Daimler, and BMW, with a significant share of Chinese manufacturers as well

 

 Some of the other players include Saint Gobain of France and Aisin Seiki of Japan.

 

COMPANY PROFILES

1. Webasto
2. Inalfa
3. Yachiyo
4. CIE Automotive
5. Aisin Seiki Co Ltd
6. Johnan Manufacturing Inc Japan
7. Wuxi Mingfang
8. BOS GmbH & Co
9. Inteva Products
10. Magna International