Automotive Air Suspension Market

Market Overview

The global automotive air suspension market revenue was valued at USD 5.5 billion in 2023 and is projected to reach USD 9.2 billion by 2032, registering a CAGR of 5.9% during the forecast period (2024-2032). The automotive air suspension market share is credited to the growing need for commercial vehicles and the comfort and safety of cars, which ultimately leads to the demand for air suspension systems in heavy vehicles.

Air suspension is a system used in automobiles to offer drivers comfort. The vehicle's air suspension system is powered by an air pump or compressor that is either electric or engine-driven. These pumps or compressors connected to the suspension system allow air to enter the suspension system, typically comprised of textile-reinforced rubber. Air suspension systems are used in vehicles to replace conventional steel springs and have a wide range of applications in heavy vehicles such as buses, trucks, rolling stock, and other vehicles.

The primary goal of air suspension is to create a smooth and consistent ride quality for drivers and passengers. These factors have had a favorable impact on the automotive air suspension market's growth. A high-quality ride enhances passenger comfort, minimizes cargo damage, and decreases driver fatigue on long journeys. Suspension is crucial for ride quality and control over car handling since cars with firm suspension may result in greater control of body movements and faster reactions. Ambulances require a high level of ride quality to prevent further injury to their already unwell passengers. Such factors have increased the desire for improved driving comfort, influencing the automotive air suspension market trend.

Highlights

• Electronic Control Module holds a significant market share by component type.
• Non-electronically controlled Air Suspension influenced the market growth by technology type.
• Light commercial Vehicles generate the highest revenue share based on vehicle type.

Market Dynamics

Market Drivers

Rising Demand for Comfort and Luxury

The growing consumer demand for higher levels of comfort and luxury in automobiles has been a primary driver of the automotive air suspension business. Air suspension systems offer a sophisticated and flexible option for meeting these expectations by providing a smoother and more comfortable ride. This demand is robust in the premium and luxury car classes, where automakers seek to differentiate their vehicles through more excellent ride experience. Air suspension systems are standard in luxury SUVs and cars, providing an unrivaled driving experience. Air suspension is legal or available on manufacturers like Mercedes-Benz, BMW, and Land Rover models. The Mercedes-Benz S-Class sedan, noted for its sumptuous ride, uses air suspension to give occupants a smooth and polished journey, demonstrating the incorporation of air suspension to meet the demand for increased comfort. For example, the Mercedes-AMG GT 4-door: The standard AMG Ride Control+ air suspension has improved ride quality in Comfort mode and more body control in Sport+ mode. The V8 model's air suspension includes a second pressure limiting valve, with one controlling rebound and the other managing compression.

For example, premium vehicle sales are expected to reach 46,000 to 47,000 in 2023, up 21% from 2022 and 35% from 2019. Luxury and premium automobiles are projected to have higher adoption rates of air suspension due to consumer preferences for a smoother ride. The market data demonstrates the relationship between the expanding demand for comfort and luxury in automobiles and the growing importance of air suspension systems in satisfying these demands. Including air suspension in luxury car models is consistent with automakers' objectives to provide cutting-edge innovations that improve the driving experience. As customer expectations shift, the automotive air suspension industry is positioned to play an essential role in addressing the need for more comfort and elegance in modern automobiles.

Market Restraints

High Cost

The high initial cost of vehicle air suspension systems remains a crucial barrier to greater market adoption. The advanced technology, electronic components, and additional functions increase initial costs, making air suspension systems less affordable to budget-conscious buyers. The Tesla Model S has an air suspension option, which allows drivers to alter the ride height for better aerodynamics and comfort. While adopted in premium automobiles, this advanced technology raises the overall cost of the vehicle, limiting its availability in lower affordable categories. A complete air suspension package can cost anything from USD 2,000 to USD 7,000, with the most popular kits priced at USD 3,500. The average cost of repairing an air suspension in a Tesla Model 3 is roughly USD 2,500, whereas the average cost in a Tesla Model S is over USD 4,000. 

Moreover, while the technology improves ride quality and comfort, the high cost of air suspension-equipped vehicles limits its appeal to a smaller group of consumers willing to pay a premium for advanced features and luxury amenities. Manufacturers and industry stakeholders must look into cost-effective solutions and innovative pricing methods to make air suspension technology more accessible to a broader range of consumers while maintaining quality and performance standards. This could include improvements in manufacturing processes, economies of scale, and focused marketing campaigns to educate consumers about the long-term advantages of air suspension systems.

Market Opportunity

Rising Demand for Semi-Autonomous and Autonomous Vehicles

The rising demand for semi-autonomous and autonomous vehicles creates a substantial opportunity for the automotive air suspension market. As vehicles progress towards higher levels of automation, improved suspension systems become increasingly important to offer a comfortable and regulated ride experience, mainly when the driver delegates responsibility to the vehicle's autonomous features. Air suspension technology, with its capacity to dynamically modify ride height and respond to changing road conditions, meets the needs of these modern vehicle systems. China's auto sales climbed by 12% in 2023 due to global demand for electric vehicles (EVs). In the first quarter of 2023, 826,000 electric passenger vehicles with Level 2 (L2) assisted driving systems were sold in China, accounting for 62.2% of the market share.

Tesla, a major competitor in the electric vehicle market, offers Smart Air Suspension for its Model S and Model X automobiles. This system uses sensors to monitor road conditions and modify the vehicle's ride height. In addition to delivering a smoother ride, this technology is intended to improve aerodynamics at more incredible speeds and increase energy efficiency. The 2024 Tesla Model 3 Highland features softer springs and better frequency-response suspension dampers for a more comfortable ride. The 2024 Tesla Model S and Model X feature intelligent air suspension. As Tesla develops its Autopilot and Full Self-Driving capabilities, the addition of smart air suspension coincides with the changing landscape of semi-autonomous and autonomous driving. 

As the automotive industry progresses toward greater autonomy, demand for precise and adaptive suspension systems is expected to increase, generating a profitable market potential for air suspension technology.

Regional Analysis

The global automotive air suspension market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific's automotive air suspension market share is estimated to grow at a CAGR of 7.3% over the forecast period. Due to increased automobile production rates in the Asia-Pacific region, China has the largest market for automotive air suspension systems, which is expected to grow at a robust CAGR of ~8.1% over the forecast period. Air suspensions have lower NVH levels than leaf spring suspensions, allowing consumers to drive more comfortably and efficiently while maintaining vehicle quality. This is increasing their demand in the region even further.

In addition, during the last decade, the market for premium cars in China has risen at an astonishing 36% per year, exceeding the entire Chinese passenger vehicle market's 26% annual growth rate. According to figures from the China Automobile Dealers Association, China's luxury car sales in the first 11 months of 2021 exceeded 2 million units, representing a year-on-year rise of over 5%. This was also the third year premium brands saw an increase despite the overall decline in China's car sector. The increase in premium car sales is expected to support air suspension market growth over the forecast period.

Europe is anticipated to exhibit a CAGR of 6.8 % over the forecast period. Growing demand for luxury automobiles in Europe, rising replacement demand due to high vehicle age, and increased government investment in road infrastructure are all expected to move this market forward. Furthermore, the increasing use of electric air suspensions is expected to drive fuel usage in Europe. It also has a thriving automotive industry and is one of the world's leading car production cities. Countries such as Germany and Spain account for more than half of all passenger car production on the continent.

Furthermore, the region's growing demand for electric vehicles will likely drive market growth throughout the projection period. In 2023, European electric vehicle (EV) sales increased dramatically, with 2 million battery electric cars (BEVs) sold versus 1.6 million in 2022. This accounts for 14.6% of all new car registrations in 2023, representing a 62% increase over the previous year. 

North America holds a significant market share. Growing technological breakthroughs and consumers' desire to install the latest technology goods in their automobiles to ensure a comfortable ride are likely to drive the market in the region. GM, Tesla, and Ford dominate the North American luxury automobile market. Advanced technology, greater comfort, increased investment in R&D initiatives, and a developing market for electric and driverless vehicles are all driving factors in the market. The intense output of commercial vehicles across the country and the vigorous expansion of the construction sector that uses big trucks are expected to fuel demand for air suspension systems until 2032. Furthermore, government initiatives for research and development activities related to vehicle safety are expected to increase demand.

Segmental Analysis

The global automotive air suspension market is segmented based on components, technology, and vehicle types.

The market is further segmented by component type into Air Springs, Height and Pressure Sensors, Shock Absorbers, Compressors, and Electronic Control Modules.

The Electronic Control Module holds a significant market share. The electronic control module has the most significant market share, rising at a CAGR of ~6.6% over the projection period. The Electronic Control Module (ECM) is the brain of the air suspension system. It collects data from height and pressure sensors, interprets it in real time, and delivers commands to the compressor and other components to control the air springs. The ECM uses complex algorithms to adjust rapidly, ensuring the best ride comfort, stability, and performance. Furthermore, the ECM may interact with vehicle control systems and adapt to driving modes, thus improving the overall driving experience.

Air springs, sometimes called airbags, are essential components of car air suspension systems. These flexible and robust bags are typically constructed of reinforced rubber and filled with compressed air. The air springs support the vehicle's weight, provide cushioning, and allow for ride height change dependent on driving circumstances. As the primary load-bearing element, air springs are critical to delivering a smooth and comfortable ride.

The market can be further bifurcated by technology type into Electronically Controlled Air Suspension and Non-Electronically Controlled Air Suspension.

Non-electronically controlled Air Suspension influenced the market growth. Non-electrically controlled is predicted to grow at a CAGR of ~3.1% over the forecast period. Non-Electronically Controlled Air Suspension is a more traditional or basic air suspension technology that does not include complex electronic controls. The air suspension in this system is usually adjusted manually or mechanically, and real-time adaptability may be limited. While it retains the core advantages of air suspension, such as better ride comfort and load-leveling capabilities, the lack of electrical control restricts the system's ability to adjust dynamically to changing driving circumstances. Non-electronically controlled air suspension systems are commonly found in older automobile models or applications requiring a more straightforward, durable suspension configuration.

Electronically Controlled Air Suspension is a sophisticated, advanced technology that uses electronic systems to control and change air suspension components. In this system, the Electronic Control Module (ECM) uses sensors to continuously monitor numerous parameters such as vehicle height, load, and road conditions. The ECM then interprets this information and transmits commands to the compressor, which adjusts the air pressure in the springs and operates the shock absorbers. This real-time adaptability enables accurate suspension tuning based on driving circumstances, improving ride comfort, handling, and overall performance. Vehicles with electronically controlled air suspension frequently feature several driving modes and customized settings, giving the user a more personalized experience.

The market is fragmented into light commercial and heavy vehicles based on vehicle type.

Light commercial Vehicles generate the highest revenue share in the market. Light commercial vehicles had the largest market share. Light Commercial Vehicles (LCVs) fitted with air suspension systems are intended to meet the transportation demands of businesses and individuals, emphasizing reduced weight. These vehicles, which include vans, minivans, and pickup trucks, are used for various functions such as cargo delivery, passenger transportation, and service-oriented duties. Air suspension in LCVs helps to increase ride comfort, stability, and load-carrying capability. The technology ensures an ideal riding height, mainly when dealing with fluctuating loads, improving overall performance and safety. Heavy Commercial Vehicles (HCVs) fitted with air suspension systems are designed to move heavy cargo over long distances. Trucks, buses, and other large commercial vehicles are commonly used in freight, construction, and public transportation industries. Air suspension in HCVs helps with load leveling, stability, and general road handling, resulting in a smoother ride for both the driver and passengers. The capacity to change ride height based on load circumstances is critical in heavy-duty applications.

Impact of covid-19

The COVID-19 pandemic had a wide range of effects across the globe, and it turned out to be the automotive industry's worst fear. In 2020, Europe manufactured 10.8 million passenger vehicles and 2.1 million commercial vehicles. The European car sector experienced a fall of more than 20% in 2020. The demand for automobile air suspension is linked to the number of vehicles produced, and thus, the market for air suspension had a similar effect on demand.

Production output changed more than sales volume due to the closure of plants and the suspension of operations by many automakers. In particular, Western Europe, North America, and Southeast Asia experienced plant closures in April, restricting production in these areas. In May, production in Japan and South Korea nearly halved, while production and sales in China rebounded dramatically.

Market Recovery Timeline and Challenges

The automobile and transportation industries were clearly the hardest hit by the COVID-19 pandemic. The situation is, however, improving. Automobile dealerships are becoming increasingly crowded, and many are trying to find more inventory to sell.

As most nations have exited the lockdown or reduced lockdown-related regulations, the global automotive sector has begun to recover significantly. It has been discovered that most car manufacturers and dealers have resumed full operations in specific regions and intend to restore manufacturing facilities as soon as possible.

Recent Developments

January 2024- Mercedes-Benz desires Continental's original equipment expertise for the new E-Class.

October 2023- BWI Group, a global pioneer in automotive brake and suspension system technology, has teamed up with ClearMotion Inc., a global transportation technology business, to provide critical full-active suspension components and subsystems to a significant Chinese New Energy Vehicle (NEV) manufacturer.