Automotive Suspension System Market Size, Share & Trends Analysis Report By Component Type (Coil Spring, Leaf Spring, Air Spring, Shock Absorber, Other Components), By Type (Passive Suspension, Semi-active Suspension, Active Suspension), By Vehicle Type (Passenger Car, Commercial Vehicle) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global automotive suspension system market revenue was valued at USD 64.44 billion in 2022. It is estimated to reach USD 104.86 billion by 2031, growing at a CAGR of 5.56% during the forecast period (2023–2031).

Automotive suspension system also helps to maintain the correct vehicle alignment and height. It also regulates the vehicle's orientation to maintain the steering wheel perpendicular to the ground and maximize traction. The suspension also aids in protecting the vehicle and its contents from harm and deterioration. A car's front and rear suspensions might be made differently. The vehicle's suspension system controls the vehicle and ensures comfortable travel. The suspension system increases tire-to-road friction to provide steering stability and excellent handling.

A vehicle's suspension system is the collection of mechanical components that connect the wheels to the structure or body. A substantial amount of engineering effort has gone into designing suspension systems due to the never-ending effort to enhance vehicle ride and handling, as well as passenger safety and convenience. It has traditionally served two purposes: keeping passengers safe by controlling the vehicle's handling and braking and providing comfort by isolating them from bumps, vibrations, and other variables.

Market Dynamics

Market Drivers

Growing Demand for Marlines Commercial Vehicles

The need for commercial cars (for ride-hailing services) is rising due to the development of the logistics industry and the rising use of vans and other light commercial vehicles. One of the most vital factors driving the market for light commercial vehicles is the growing preference for pickup trucks and compact vans over heavy-duty trucks and railways for logistics. In addition, the hefty demand for logistics stems from the growing e-commerce industry globally. As the e-commerce market expands, demand for pickup vans, small trucks, and other LCVs will likely increase. Due to rising environmental concerns, electric buses and trucks are widely adopted across regions like Asia-Pacific, Europe, and North America, which is estimated to boost the demand for advanced automotive suspension systems during the forecast period.

Growing Demand for SUVs

SUVs typically have more ground clearance than sedans or hatchback vehicles. This means SUVs need more durable suspension systems to tackle rocky terrain and off-road conditions. Manufacturers invested in new suspension components and technology to meet the increased SUV demand. In addition, consumers' increasing preference for high-end SUVs with cutting-edge amenities and comfortable rides fueled the market for these systems. These automobiles also feature cutting-edge suspension innovations like air suspension and adaptive damping systems, which expand the market for premium suspension systems and propel industry expansion.

For instance, XPENG Inc. launched its fourth production of the flagship SUV model G9 in China in September 2022. The G9 portfolio consists of three series, each with a unique driving range and six variations. They include the 4WD Performance 650E and 650X, the Launch Edition 650X, the RWD 570G, RWD 570E, and RWD 702E. This is expected to drive market growth over the forecast period.

Market Restraint

Decline in Passenger Car Sales

Since the ending of the global recession in 2007, annual sales of passenger cars as a whole have increased year over year. However, the sales plummeted in 2018, and the decreasing trend is continued post-pandemic. Global passenger car sales declined to 55.8 million in 2020 from 67.1 million new units sold in 2019. Moreover, people are gradually shifting over the shared mobility options to cut the expenses and liability of owning a vehicle. Ridesharing services provide transportation with another person on a similar route on very short notice through a cab company's mobile app or website and then further split the fare. The demand for ridesharing is escalating due to on-demand payment from customers for convenience and affordability, suppressing the demand for passenger cars and hampering the market growth.

Market Opportunities

Growing Trend Toward Advanced Suspension Systems

The rise in vehicle autonomy is expected to drive the market growth for sensor and electronic-based suspension systems. The development of air suspension in automobiles was among the most crucial changes in the industry. Air suspension is frequently employed in commercial vehicles such as buses and trucks instead of traditional steel springs. Air suspension is designed to provide comfortable, consistent ride quality and is usually self-leveling. The crucial advantage of air suspensions is that they have raised ride comfort alongside lowering noise levels.

Additionally, major companies are investing in developing and manufacturing new suspension systems for commercial deployment, which is estimated to offer lucrative market growth opportunities. For instance, ZF Commercial Vehicle Control System's India division leveraged an advantage from the acquisition of WABCO. It launched a new system that combines air suspension (rubber bellows filled with pressurized air) with ECAS technology. The system is anticipated to reduce the total cost of ownership for bus fleet operators over time due to its capacity to deliver optimal performance under variable vehicle loads and driving conditions.

Regional Analysis

Based on region, the global automotive suspension system market is bifurcated into North America, Europe, Asia-Pacific, and Rest of the World.

Asia-Pacific is the most significant global automotive suspension system market shareholder and is estimated to exhibit a CAGR of 5.48% during the forecast period. The market for new vehicle sales, including passenger automobiles and commercial vehicles, is expanding significantly across the region. Market opportunity may exist due to major corporations extending their regional production facilities. For instance, ThyssenKrupp aimed to increase its business in China in March 2021. On an existing ThyssenKrupp automotive factory in Changzhou, a new production line for dampers is being developed. The factory will make damping systems that can be adjusted electrically. These semi-active dampers use sensors to track vibrations during the trip and identify the traffic scenario and vehicle condition. These projects are anticipated to increase car manufacturing in the next years, increasing the need for vehicle suspension systems in the area.

North America is anticipated to exhibit a CAGR of 5.61% over the forecast period. The U.S. dominates the regional market growth. According to the American Automotive Policy Council, the automotive industry is the greatest manufacturing sector in the United States, with Ford, Chrysler, and General Motors manufacturing plants in the region. These businesses are investing strategically in the market to support their future endeavors. Additionally, the regional market is anticipated to expand due to the government's many initiatives. The sales of fresh passenger and commercial vehicles in the United States totaled 14,991,954 units in 2020 and 15,544,404 units in 2021, an increase of approximately 4% from 2020 to 2021. This was an important factor in increasing the automotive suspension market in the U.S.

Europe holds the largest revenue share due to engineering infrastructure and the rise in the export of automotive spare parts. Moreover, high production capacities enabled by high-end infrastructure are anticipated to trigger regional growth for the European market in the forthcoming period. Germany is well-known for its excellence in the automotive industry and is amongst the world's top automakers. Germany's automotive sector is one of the most advanced and competitive today, producing 3.2% of the world's cars and 4.2% of all vehicles. Germany ranks 1st in car production in Europe, with a 52% market share among the Western European countries and 31% in the European Union. In addition, Germany, one of the major contributors to automotive sales, has witnessed a significant demand for passenger cars over the past few years as sales of passenger cars have shown positive yearly growth. The automotive industry is the biggest industry sector in Germany. In 2020, the auto sector listed a turnover of EUR 379.3 billion – around 20% of total German industry revenue. Such factors propel regional market growth over the forecast period.

The Rest of the World consists of Latin America and the Middle East and Africa. The demand for suspension systems will increase significantly during the forecast period due to the growing automotive sector in Latin America. For instance, Brazil's new passenger cars sold were valued at 1.6 million units in 2020, decreasing from 2.2 million units in 2019, majorly attributed to the COVID-19 pandemic. The used cars sold were valued at 8.1 million units. Furthermore, with significant developments in the electric vehicle segment of the market, the demand for suspension systems in the Middle East and Africa (MEA) is anticipated to witness steady growth. The United Arab Emirates is at the edge of the revolution, with 200 Tesla EVs introduced into the Dubai Taxi industry. This was the first step in Dubai's plan to promote green mobility solutions, linked to the government's ambitions to reach a quota of 25% of trips made by self-drive vehicles by 2030, boosting the market expansion.

Segmental Analysis

The global automotive suspension system market is bifurcated into component type, type, and vehicle type.

Based on component type, the global automotive suspension system market is bifurcated into coil springs, leaf springs, air springs, shock absorbers, and other components. 

The coil spring segment dominates the global market and is expected to exhibit a CAGR of 5.63% over the forecast period. Coil springs are the conventional springs that are used in the majority of lightweight cars sold globally. Depending upon the suspension type, the springs and dampers assembly is installed in the cars to give the occupants a comfortable ride depending upon the vehicle. Vehicle sales were growing at a rapid pace in 2021. For instance, in China in 2021, 9.9 million hatchbacks and sedans were sold, an increase of 2.21%. More than 50% of 9.9 million vehicles use coil spring suspensions. Furthermore, with the development of new vehicles like budget electric vehicles and low-emission vehicles, the market is expected to surge in the forecasted period.

Air springs are among the most advanced springs in the automotive industry. An air spring is a column confined within a rubber-and-fabric container shaped like a bellows. The air inside these bellows is compressed and expanded, creating the spring motion. A vehicle with air springs can keep the vehicle at a constant standing height regardless of load when running on the road. Because the various air springs are adaptions, these springs are used with multiple types of vehicles, including luxury buses and cars. The air suspension allows the vehicles to be raised or lowered depending upon the situation.

Based on type, the global automotive suspension system market is bifurcated into passive suspension, semi-active suspension, and active suspension. 

The passive suspension segment owns the highest market share and is predicted to exhibit a CAGR of 5.25% over the forecast period. The basic type of suspension is the passive suspension, where the damping and rebound cannot be adjusted. Hence, the settings remain as stock. It is affordable, and most vehicles across the globe use this type of suspension. For instance, cars like Suzuki Baleno, Suzuki S-Cross, Toyota Corolla, and others come with passive suspension. In the market like India and Brazil, car manufacturers invest in budget cars to cater to the market's demand. For instance, in March 2021, Maruti Suzuki India Limited launched a facelift of Baleno in the country equipped with passive suspension.

Active suspension is another advanced automotive suspension system that can adapt to real-time changing road conditions. It "artificially" expands the system's design parameters by continually monitoring and adjusting itself. The active suspension can adjust its character continuously, courtesy of powerful sensors and microprocessors constantly giving it information. An active suspension improves handling, road feel, reactivity, and safety by altering its nature to respond to changing road conditions.

Based on vehicle type, the global automotive suspension system market is divided into passenger cars and commercial vehicles. 

The passenger cars segment is the most significant contributor to the market and is anticipated to exhibit a CAGR of 5.86% over the forecast period. Passenger cars contributed to more than 70% of the global sales in 2021. In recent years, the SUV segment of the passenger car market has grown due to demand from not only North America and Europe but also Asia-Pacific (Especially China). The electrification of SUVs is likely to continue during the forecast period, owing to upcoming e-SUV models from automakers across the globe, which is expected to drive the automotive suspension system market in the study period. For instance, Audi stated that it will introduce 20 new electric vehicles by 2025, with the Q4 Sportback e-tron expected to go on sale by the end of 2021.

Pickup trucks, vans, buses, and trucks have been considered in the commercial vehicle segments in the market studied. Various government organization around the world are upgrading their fleet to electric. For instance, the London Metropolitan Police & Fire Service has planned to achieve a fleet zero emissions target by 2025. It expects that by 2030, 40% of vans will be 'new energy' (i.e., electrified), and by 2040, all vans will have also made the switch. The government and car manufacturers' initiatives to introduce commercial electric vehicles will drive the automotive suspension market over the forecast period.

Recent Developments

• April 2023- BYD, a Chinese electric vehicle manufacturer, introduced a new chassis suspension system as part of a stepped-up effort to market premium products. BYD DiSus Intelligent Body Control System is comparable to chassis suspension systems in high-end and prestige vehicles, such as Porsche's Dynamic Chassis Control and Mercedes Benz's Magic Body Control.

• December 2022- BMW filed a patent for a novel regenerative suspension system with the German Patent Office. As the name suggests, the German automaker's new suspension system is said to be capable of harvesting energy as it absorbs the impact of a bump when an electric vehicle travels over a rough stretch of pavement.