Significantly influenced by efforts of OEMs in development of smart latches that are IoT-integrated, the global market for automotive door latch will see a modest yet promising CAGR of 5% during 2019 – 2027. A recent study suggests that the favorable policy framework related to vehicle and drivers’ safety and security will continue to influence the demand for automotive door latches in the near future.
The automotive industry is nearing maturity and expects to witness a remarkable number of collaborative alliances and consolidations among OEMs in the automotive door latch market space. The report opines that mid-sized cars would be the highly profitable sector for investors in the automotive door latch landscape.
Key Takeaways – Automotive Door Latch Market Study
- Increasing sales of mid-sized cars, particularly in Asia Pacific, make it a potential segment for manufacturers specializing in compact designs of automotive door latches.
- Side door latch will continue to command a significant share in global automotive door latch market value through 2027.
- The mega trend of electrification in cars and the ability to remotely operate vehicles have necessitated door latch manufacturers toward offering and devising compatible products aligned to the aforementioned technological advancements.
- The market is witnessing a gradual shift from the installation of conventional latches to electronic or mobile app-based systems in premium and luxury cars.
- The introduction of tracking and alert systems using GPS and IoT-based hardware for the security of vehicles has proliferated new avenues for value chain participants in the global automotive door latch market.
- Owing to the negligible replacement rate of door latches in the aftermarket, winning OEM supply contracts holds the key for manufacturers to sustain and grow their market share.
- Adding enhanced security features is the key focal point of automotive door latch manufacturers to meet the unique requirements of autonomous vehicle manufacturers.
With overall safety of passengers being a paramount and drivers relying on secured door locking systems, door latches find a crucial place in automotive manufacturing. The inclusion of mobile connectivity and GPS tracking technologies in existing products is revolutionizing the automotive door latch space.
Know who Spearheading Automotive Door Latch Market is
The global automotive door latch market is significantly consolidated, with the leading five players accounting for nearly one-half of the overall market size as of 2018. Key players in the market are focusing on developing latching systems based on smart technologies to retain their competitive edge in the landscape. Keikart AG, Aisin Seiki Co. Ltd., and STRATTEC are identified as prominent players in the global automotive door latch market. Market participants are keen on developing door latches with minimal mechanical intervention. Companies are focused on developing door latches that reduce vehicular weight and locking system complexity.
OEMs Engaged in Tough Competition
In the coming years, automotive door latches are expected to witness consistent demand. With the persistent trend of introducing smarter latches in door locking systems, OEMs are focused on keeping their product portfolios strong. East Asia, followed by Europe, remains the most crucial region in the automotive door latch market with a leading market share. With increasing demand from East Asia and South Asia, new entrants in the automotive door latch market are expected to find significant opportunities to invest in such target regions.