Market Trends of Automotive Suspension System Industry
Growing Sales of Commercial Vehicles to Drive the Demand in the Market
The growth of the infrastructure and logistics industry has also played a significant role in driving the demand for commercial vehicles and their associated suspension systems. With the increasing need for efficient transportation and storage solutions, businesses are investing in a larger fleet of commercial vehicles, further fuelling the market’s growth.
- The primary factor contributing to the growth of the automotive suspension systems market is the increasing sales of commercial vehicles. As businesses expand their operations and logistics networks, there is a higher demand for trucks, vans, and other commercial vehicles to transport goods and services. This, in turn, leads to a greater need for reliable and efficient suspension systems to ensure the safe and comfortable transportation of goods and passengers.
In 2022, over 312,000 commercial vehicles were sold or registered in Germany. Sales increased by 0.6% from 2020 to 2021. Similarly, 397,519 commercial vehicles were sold in France in 2022, including light-duty, medium-duty, and heavy-duty trucks and buses.
The government and car manufacturers' initiatives to introduce commercial electric vehicles are expected to drive the automotive suspension market. In the past few years, the electric commercial vehicle market witnessed major automakers rolling out their strategies toward electric mobility, helping boost the global suspension market. For instance:
- In July 2023, Hendrickson launched air mechanical suspensions for trailers in India, aiming to cater to local terrain.
- In May 2022, ThyssenKrupp inaugurated a new technology center for the global development of suspension products for heavy vehicles in Sao Paulo, Brazil, operated by its Springs & Stabilizers business unit. ThyssenKrupp has Springs & Stabilizers factories in Sao Paulo and Ibirité, producing springs and stabilizer bars for various-sized vehicles, including cars, buses, and trucks.
Technological advancements, coupled with new vehicle launches and the increasing adoption of commercial EVs worldwide, are expected to propel the automotive suspension system market during the forecasted period. Due to the growing environmental concerns, the electric commercial vehicle market is in its growth phase, and the market is anticipated to expand significantly during the forecast period.
Asia-Pacific is Anticipated to Register the Highest Growth During the Forecast Period
The Asia-Pacific automotive suspension system market is expected to grow at a significant rate in terms of revenue during the forecast period. The rise in new vehicle sales, including passenger cars and commercial vehicles across the region, is boosting the market’s growth.
As per the China Association of Automobile Manufacturers (CAAM), in 2023, over 30.9 million passenger cars were sold in China, making it the largest market in Asia-Pacific. India was the second-largest market in the region, with nearly 4.1 million unit sales in 2023.
Major companies expanding their production facilities across the region may also create an opportunity for the market. For instance,
- In December 2023, Clearmotion, a leading suspension technology provider, partnered with NIO, a pioneering Chinese electric vehicle manufacturer. As part of this collaboration, Clearmotion will supply its advanced suspension technology to NIO's upcoming Electric Vehicle (EV), the ET9. This strategic alliance aims to enhance the driving experience for NIO's customers by offering a smoother and more comfortable ride, further solidifying Clearmotion's presence in the rapidly growing EV market.
- In April 2023, Chinese automaker BYD introduced self-developed chassis and suspension systems. This strategic move showcases BYD's commitment to vertical integration and independence in key automotive components. The new chassis and suspension systems are expected to provide enhanced driving experiences, improved safety, and greater efficiency for BYD's electric vehicle lineup, further solidifying the company's position in the global EV market.
- In May 2022, Tenneco Inc. announced that the 2022 Mercedes-AMG SL-Class of luxury roadsters would feature two of the latest intelligent suspension technologies from its Monroe Intelligent Suspension portfolio. The new models will be offered with Tenneco's CVSA2 semi-active or integrated CVSA2/Kinetic suspension.
Such initiatives are expected to drive automotive production in the coming years, which, in turn, may drive the demand for automotive suspension systems across the region.
