Automotive Suspension System Market

According to Stratistics MRC, the Global Automotive Suspension System Market is accounted for $45.3 billion in 2022 and is expected to reach $59.3 billion by 2028 growing at a CAGR of 4.6% during the forecast period. Vehicles' Automotive Suspension System are a critical component that promotes safe and enjoyable driving while preventing damage to other vehicle parts. Changing consumer habits, technical development, and rising urbanisation have all made a significant impact on the expansion of the automobile sector. Vehicle suspension systems are always changing to offer greater ride quality and better road holding capability.

According to statistics from the International Organization of Motor Vehicle Manufacturers, the total number of vehicles produced from January to September 2021 increased to 57.2 million units from 52.1 million units in 2020, during the same period.



Market Dynamics:

Driver:

Growth in ATV sales due to increased off-road recreational activities globally

All-terrain vehicles (ATVs) are four-wheeled or more motorised vehicles with more than four wheels that are typically used for off-road activities but may also be used for on-road activities. A suspension system is used by almost all ATVs since it is one of the most important functional parts of the vehicles, which go across a variety of rough and challenging terrain. Globally, rising GDP and rising disposable incomes have encouraged consumers to spend more on leisure activities. This increased demand for these ATVs before the epidemic, and it is anticipated that it will do so again once tourist picks back up after the outbreak. Along with the growth of off-road ATV competitions, recreational activities offered by tourist destinations around the world have increased. Due to these factors, there is a large market for ATVs, which has increased sales.

Restraint:

Lack of alternative materials

Autonomous, connected, electric, and sharing (ACES) cars are expected to dominate transportation in the future, changing how users interact with automobiles. Automakers view a lightweight car as a key component of sustainable transportation since it reduces both fuel consumption and CO2 emissions. Automotive vehicle electrification presents extra issues since the increased electrical components or batteries make the cars heavier than those with traditional internal combustion engines (ICEs). There is a growing focus on reducing total vehicle weight to extend the driving range of a single full battery charge because EVs are generally 125% heavier than ICE counterparts due to the accommodation of hefty battery packs. The automobile industry will need to start again when designing the frame layout for Battery Electric cars (BEVs) due to the need to fit a big, heavy battery pack at the bottom of the vehicle and the need to use one platform for several cars. In order to replace the present heavy material components in suspension modules, alternative materials are now required.

Opportunity:

Growing sales of SUVs and luxury vehicles

Due to the numerous benefits they provide, the use of independent suspensions has grown over time. The increase is attributable to independent suspensions, which provide vehicles better stability. An independent suspension system is favoured for heavier trucks since it is less in weight. In general, passenger automobiles have an independent front suspension and a dependent rear suspension. Therefore, suspensions that are both independent and dependent are necessary. Another style of independent suspension that offers improved comfort, dynamics, and road holding is the double wishbone. Double wishbone suspensions are typically seen in high-end cars due to their greater manufacture costs. Due to its complex design and added component, including joints and bearings, the double wishbone suspension is also used in high-performance racing cars.

Threat:

Lack of standardization of independent suspension systems

As there would be distinct suspension types for each model, the standardisation of suspension systems with regard to vehicle type is anticipated to lower overall manufacturing costs, and component manufacturers to produce suspension systems in large volumes. OEMs and suspension suppliers can develop independent suspension standardisation with regard to key characteristics during supply contract discussions, potentially benefiting both sides. Given a lack of standardisation, manufacturers must keep track of the tastes in many nations in order to compete in the market. Manufacturers' investment strategies alter as a result of shifts in consumer preferences or the installation of new regulations, which makes the market unpredictable for them. Due to their dependence on supplier demand, component suppliers are also adversely affected right away. As a result, the lack of standardisation has made it difficult for manufacturers to meet the varied architectural requirements of various vehicle types and has limited the automotive suspension industry.

Covid-19 Impact

The COVID-19 outbreak had a detrimental impact on the vehicle suspension system industry. Sales of passenger cars and commercial vehicles are down, and production facilities for vehicles and their components have been temporarily shut down. However, as a result of the decrease in cases, production facilities are once again in use, and vehicle sales have risen in all major geographical areas.

The MacPherson strut segment is expected to be the largest during the forecast period

The MacPherson strut segment is estimated to have a lucrative growth. The MacPherson strut decreases the weight and expense of the design by doing away with the requirement for a separate upper control arm. Due to the benefit that the design provides, OEMs throughout the world have adopted it widely. The substantial presence of the MacPherson strut in the front suspension, which is between 70 and 75 percent, is responsible for the market expansion in this area. This architecture is favoured for tiny passenger automobiles, which are in strong demand in the Asia Pacific region because of its low cost and small installation area requirements.

The Passive System segment is expected to have the highest CAGR during the forecast period

The Passive System segment is anticipated to witness the fastest CAGR growth during the forecast period. In practically all conventional passenger automobiles, it is one of the most often utilised suspension systems. It is extensively used in all reasonably priced vehicles. Additionally, it is simple to find passive segment, which enhances the ease of use for placement and maintenance-related activities. For low- and mid-range automobiles, it is a highly preferred strategy. Simple springs and shock absorbers are used in passive suspension systems to react to changes in the road in order to stop the vehicle from moving excessively. Coil springs, leaf springs, air springs, shock absorbers, and other parts are among the several suspension system components used in automobiles for both passenger and commercial vehicles.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to shifting customer tastes, increased per capita income, and cost advantages for original equipment manufacturers (OEMs). Consumers in the area are drawn to the affordable and little cars. Due to growing automobile demand in nations like China and India as well as rising middle-class disposable income, the Asia-Pacific region has the largest worldwide market share for Automotive Suspension System. Additionally, as more people in the area are purchasing electric vehicles, the market for Automotive Suspension System is expanding because these vehicles need sophisticated suspension systems to back up their heavier battery systems.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period. The world's leading producer of car suspension is now located in Europe and this trend is expected to last for some time. It is the top producer of fuel-efficient cars in the entire globe. The original equipment manufacturers (OEMs) have started to invest in and create cutting-edge automotive technology, nevertheless, as demand for high-end vehicles rises. The market for automobile suspension systems is expanding as a result of the rising popularity of electric vehicles in Europe. These vehicles need sophisticated suspension systems to handle their bulkier battery packs.



Key players in the market

Some of the key players profiled in the Automotive Suspension System Market include KW automotive Group, Hitachi, Ltd., Magneti Marelli SpA, Continental AG, KYB Corporation, Parker Hannifin Corporation, Hyundai Mobis Co., Ltd., Schaeffler AG, Tenneco Inc., FOX Factory, Inc., Gabriel India Limited and Benteler.

Key Developments:

In September 2021, Continental AG launched three new products that expanded its broad automotive product range: air suspension dampers, compressors, and coolant thermostats.

In July 2021, KW automotive Group, a Germany-based automotive manufacturer, acquired the damping technology business unit from AL-KO Vehicle Technology Group. The acquisition would allow KW automotive to technologically upgrade its suspension systems. AL-KO Vehicle Technology Group is a Germany-based manufacturer of shock absorbers.

In March 2021, Mando Corp. clinched a ten-year agreement worth KRW 1.4 trillion (USD 1.25 billion) for supplying 50 million units of suspension systems to Volkswagen Group for its upcoming EVs and popular models. Mando Corp. will produce and supply 50 million units of Automotive Suspension Systemss between June 2022 and 2033 in Europe.

In February 2021, Magneti Marelli SpA expanded its suspension products range with the addition of air suspension. The new range includes air springs, hydraulic-gas shock absorbers, and air struts for key SUVS and car applications covering the high-end and premium segments of the European market.

Suspension Types Covered:
• Air Suspension
• Leaf Spring
• Macpherson Strut
• Multilink Suspension
• Other Suspension Types

Systems Covered:
• Semi-Active System
• Passive System
• Active System

Components Covered:
• Control Arm
• Shock Dampener
• Air Compressors
• Struts
• Ball Joint
• Other Components

Vehicle Types Covered:
• Passenger Cars
• Light Commercial Vehicles (LCV)
• Heavy Commercial Vehicles (HCV)
• Electric Vehicle
• Two Wheelers
• Other Vehicle Types

Actuation Types Covered:
• Electronically Actuated Suspension
• Hydraulically Actuated Suspension

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances