Market Trends of Convertible Roof System Industry
This section covers the major market trends shaping the Convertible Roof System Market according to our research experts:
Auto Manufacturers Increasing Investments in Convertible Roof Systems
Consistent evaluations and innovations have been undertaken to improve ease and comfort in the market studied. For instance,
Automobile manufacturers are incorporating several enhanced features in their vehicles. Several companies are launching product line-ups with better electronics and sensor technologies, which allow passengers to purchase customizable vehicles and reduce users' effort. For instance,
o In July 2021, Webasto announced multiple innovations developed in collaboration with several startups at the Startup Autobahn exhibition. The company showcased an integrated dynamic lighting concept for automotive roofs developed with designLED, a specialist in thin and flexible LED lighting and smart surface solutions. The two companies completed a prototype for a convertible roof element with light tiles.
Increasing luxury car sales is another factor driving the market growth for convertible roof systems. Asia-Pacific is expected to dominate luxury car sales during the forecast period due to major automotive markets such as China, followed by Japan and India.
Most major luxury brands see China as the fastest-growing market in terms of growth rate. China is the largest auto market globally, but it is disproportionately important to German premium car brands. German luxury car manufacturers, i.e., Mercedes-Benz, BMW, and Audi, posted record sales in 2020 despite the industry's decline over the previous two years. In 2020, Mercedes-Benz reported a Y-o-Y increase of 22.4%, while other carmakers like BMW and Audi witnessed increases of 15.4% and 10.6%, respectively.
Despite the COVID-19 pandemic, China's luxury vehicle sales in the first 11 months of 2020 exceeded 3 million units with a Y-o-Y increase of 9.3%. This also marked the third consecutive year for luxury brands to register growth in the wake of downward pressure in China's overall automotive market.
Emergence of Asia-Pacific as Major Market for Luxury Vehicles
Europe dominated the overall share of the convertible roof system market. However, the Asia-Pacific region is expected to record a significant CAGR during the forecast period.
The convertible market is expected to grow over the forecast period. Countries like the US, Canada, France, the UK, Germany, Spain, and others in the Middle East and Asia-Pacific regions are witnessing growth in luxury car sales. The US is one of the largest automotive markets globally and is home to over 13 major auto manufacturers.
With an average production of 8 million passenger vehicle units per annum and the growing popularity of luxury and premium cars with consumers, 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 of the population.
Additionally, China and Germany are the major hubs for technological advancements in the automotive sector, leading to a significant expansion of the luxury vehicles market. The growing youth population is yet another contributing factor for the growth of luxury car sales in the APAC region. India is another important market for luxury cars. The Indian government is also taking initiatives to recover the sales of luxury cars in the country by reducing GST, import duties, registration taxes on (luxury) cars, and providing support from banks/NBFCs to offer easy access to loans for dealers and customers, which will help expand the market and boost the overall sector.
