Automotive Sunroof Market - Global Outlook & Forecast 2024-2029

MARKET ANALYSIS

The global automotive sunroof market was valued at USD 10.50 billion in 2023 and is expected to reach USD 15.10 billion by 2029, growing at a CAGR of 6.23% during the forecast period. The market growth is driven by the rising demand for open-air driving and enhanced ventilation in vehicles. Further, emerging countries are anticipated to account for a major part of incremental growth because of the growing affordability and purchasing capacity. Growing demand for premium and luxury vehicles along with advanced automation features including sunroofs is driving the automotive sunroof market growth. Additionally, in recent years there has been an increase in the number of buyers of premium cars, largely because of sunroofs. Further, the developments in sunroof technology such as better insulation and soundproofing have led the growth in this market’s share during recent years by providing improved comfort and ease-of-use reasons which attract customers to these products.

The increasing integration of technologies such as smart sunroofs has emerged as a recent trend. They come with automated opening and closing features, adjustable tinting, and integration with vehicle connectivity systems or smartphone apps. Thus, the expanding adoption of advanced sunroofs is likely to drive the automotive sunroof market. Sunroofs with integrated solar panels and solar cells have emerged as a sustainable solution. These solar sunroofs can generate electricity to power auxiliary systems, such as ventilation or charging electronic devices, thereby reducing the load on the vehicle battery and improving overall efficiency. For instance, in February 2023, the Indian startup Vayve Mobility revealed plans to launch its solar-powered electric vehicle, Eva, in 2024. The vehicle features 150-watt solar panels on the sunroof, which can provide an additional 10-12 km of range per day, equating to approximately 3,000 km annually. Furthermore, the 14kWh battery can power a drive of up to 250 km. These innovations are expected to fuel automotive sunroof market growth during the forecast period. However, the association of high costs with the maintenance and repair of complex sunroof systems can hinder the automotive sunroof market growth during the forecast period.

MARKET TRENDS & ENABLERS

Increasing Adoption of Sunroofs in Sports Utility Vehicles

Sports Utility Vehicles have gained significant popularity, especially in emerging markets like China and India, owing to their adaptability in range, power output, and suitability for off-road and rugged terrains. These advantages have enabled major manufacturers, including Ford, Chevrolet, and Toyota, to enhance their SUV offerings with advanced features to meet consumer demands. While automotive sunroofs were initially limited to premium vehicles, their increasing appeal among younger consumers and their ability to provide ideal sunlight and improved visibility inside the vehicle have led Original Equipment Manufacturers to expand the range of sunroof options in multi-purpose SUVs. Models like the Kia Soul, Hyundai Tucson Limited, and Ford Flex now offer panoramic roofs as an affordable optional feature. Additionally, popular premium SUVs, such as the Acura RDX, BMW X3, Audi Q3, and Audi Q7, also come with fitted panoramic roofs. As a result, the growing adoption of SUVs is expected to significantly drive automotive sunroof market growth.

Expanding Demand for Electric Vehicles

Advances in battery technology, particularly the widespread adoption of lithium-ion batteries, have been instrumental in driving the growth of EVs. As EV sales grow exponentially due to falling costs, improving technology, and government support, the automotive industry is seeing a shift toward more sustainable vehicle options. According to the International Energy Agency, 10% of global passenger vehicle sales in 2022 were all-electric, marking a significant milestone in the EV revolution.

Further, in India, the government's Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme, alongside tax reductions and customs duties announced in the 2023 budget, is set to accelerate the adoption of EVs. These initiatives will also promote the domestic production of lithium-ion batteries, making EVs more affordable and accessible. This surge in EV adoption directly impacts the automotive sunroof market. As the adoption of EVs continues to rise, the demand for sunroof solutions that integrate with the growing sustainability and energy efficiency in the automotive sector.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT TYPE

The global automotive sunroof market by product type is segmented into panoramic, built-in, top-mounted, and other products. In 2023, the panoramic segment accounted for the largest segmental revenue share. It covers a wider area, ensuring that both the front and rear seat occupants can take advantage. These are commonly offered as standard equipment in high-end vehicles. Moreover, the demand for panoramic sunroofs has surged in recent years due to several key factors. Consumer preferences have shifted towards vehicles that offer enhanced aesthetics and innovative features. Panoramic sunroofs provide a premium look and feel, appealing to customers in both the mid-range and luxury segments. Additionally, these roofs improve the overall passenger experience, adding a sense of openness that many find appealing in both urban and scenic environments. These factors are responsible for the growth of this segment.

INSIGHTS BY MATERIAL TYPE

The glass material type segment dominated the global automotive sunroof market in 2023 and is expected to experience a significant growth rate during the forecast period. This growth is attributed to technological advancements and innovations in materials, such as enhanced sunroof glazing, which have alleviated safety concerns. Additionally, modern glass can reflect UV rays, and offers additional advantages. Glass sunroofs also reduce dependence on a vehicle’s air conditioning system by allowing natural light to enter and improving air circulation inside the vehicle.

INSIGHTS BY OPERATION TYPE

The automatic operation type segment holds the largest share of the global automotive sunroof market, driven by the increasing adoption of these sunroofs because of their convenience and ease of use. These sunroofs can be opened, closed, tilted, or positioned in various ways with the simple push of a button or via a control panel without manual effort. These functionalities enhance the sunroof’s versatility and customization options, making it more user-friendly. The manual segment holds the second-largest market share, as manufacturers often opt for manual sunroofs in economical vehicles to keep costs low. Additionally, manual sunroofs are simpler in design and operation, leading to reduced maintenance costs and easier repairs.

INSIGHTS BY VEHICLE TYPE

The global automotive sunroof market by vehicle type is classified into premium & luxury and economy & mid-range. In 2023, the premium & luxury segment accounted for the most dominant global market share. This growth is driven by increased customer spending on luxury automobiles with automated systems and the expansion of passenger cars with sunroofs. However, the economy and mid-range segment is growing at a high CAGR, fueled by increasing interest from middle-income consumers in emerging economies. With the growing consumer interest in open-air driving experiences, even economy vehicles are increasingly offering basic sunroof options to enhance the driving experience without drastically raising costs. Brands like Toyota, Honda, Hyundai, and Ford, among others, are active in this segment, making sunroofs accessible to budget-conscious consumers through strategic design and manufacturing choices.

INSIGHTS BY PROPULSION TYPE

Based on The global automotive sunroof market by propulsion type is classified into ICE and electric vehicles. The ICE segment is dominating the market share during the forecast period, driven by the wide availability of an environment for manufacturing and marketing and the adoption of conventional fuel types, such as gasoline or diesel, making it more accessible for customers to undertake and operate. The electric vehicle segment is anticipated to grow at a significantly higher CAGR attributed to rising, government incentives, advancements in sunroof technologies for EVs, and an overall industry shift towards sustainable solutions.

INSIGHTS BY SALES CHANNEL

In 2023, the offline segment dominated the global automotive sunroof market. Offline distribution leads the market because of consumer preferences and the traditional structure of the automotive industry. Additionally, the online segment for automotive sunroofs is projected to experience a higher CAGR, driven by the penetration of digital platforms and e-commerce in the automotive aftermarket enabling consumers to access a wide range of sunroof options with ease.

GEOGRAPHICAL ANALYSIS

The APAC region holds the largest market share of over 34% of the global automotive sunroof market in 2023, driven by several key factors. The region's rapidly growing economies have resulted in higher disposable incomes, enabling consumers to invest in premium car features such as sunroofs. Additionally, government initiatives promoting electric vehicles, many of which emphasize luxury features, are further boosting sunroof adoption in the market.

Further, North America holds the second-largest share in the automotive sunroof market and is experiencing a growth rate of 5.46% during the forecast period. The region's thriving automotive industries significantly contribute to the demand for automotive sunroofs. Moreover, the region is set to maintain its position during the forecast period, with a substantial portion of the revenue being generated from the U.S., the largest economy in the region. Companies, such as Tesla, developed new variants of EVs and infrastructure for EVs, which is a key highlight of the automobile industry in this region.

The automotive sunroof market in Europe is experiencing significant growth, bolstered by the robust manufacturing industry that plays a crucial role in the European economy. The consistent demand for automotive components, including sunroofs, is a major driver of revenue generation. The increasing inclination for larger vehicles, such as trucks and SUVs, which often come with sunroofs, is a major contributing factor in these regions. Furthermore, rising disposable incomes and a growing automotive and aftermarket industry for sunroof installations are accelerating market expansion in Latin America, and Middle East & Africa. The adoption of comfort-oriented features and high sales of SUVs have positioned the region as a steady contributor to the automotive sunroof market.

VENDOR LANDSCAPE

Market players in the global automotive sunroof market include Bejing Hainachuan Automotive Parts Co., ltd, Magna International Inc., Aisin Seiki Co. Ltd, Zhejiang Wanchao Electric Co., Ltd, Johnan Manufacturing Inc., and AGC Inc. among other key players. These manufacturers focus on providing technologically advanced sunroofs for various vehicle customers across the world. Companies heavily invest in research and development to introduce innovative sunroof solutions, such as solar-powered and smart sunroofs, to meet evolving consumer preferences for luxury, comfort, and sustainability. For instance, Aisin Seiki Co. Ltd offers sunroof systems with lightweight materials and electric operation. Their designs incorporate features like improved sealing, noise reduction, and compatibility with modern vehicle designs, appealing to both luxury and eco-friendly vehicles.

Additionally, to stay competitive in the global automotive sunroof market, players are forging strategic partnerships with automotive OEMs and expanding their manufacturing capabilities, particularly in emerging markets where the demand for both electric and traditional vehicles is growing. For instance, Webasto Group, invested in India by establishing a plant in Chennai specifically for panoramic roof production. This new facility boasts an initial annual capacity of 250,000 units and spans approximately 9,500 square meters, encompassing both production and storage areas. The facility is handling the production and distribution of sunroofs to customers in Southern India, supporting the increasing demand for advanced vehicle features in the region. Such strategies help vendors grow their presence in emerging markets, thereby driving the global automotive sunroof market.