Asia Pacific Automotive Suspension Systems Market Share, Size & Trends Analysis Report By System Type, By Component Type, By Vehicle Type (Passenger, Commercial), By Damping Type, And Segment Forecasts, 2018 - 2025

Report Overview

The Asia Pacific automotive suspension systems market size was valued at USD 30.5 billion in 2016. It is expected to expand at a CAGR of 4.44% over the forecast period. Burgeoning sales of luxury vehicles, advancements in vehicle technologies, increasing global vehicle production, and flourishing automotive industry are the key trends escalating market growth.

Suspension systems enable vehicles to absorb abrupt road shocks produced due to bumps on roads. They also help in maintaining contact between tires and the road, thereby increasing the lifespan of the vehicle. A well-functioning suspension system helps in enhancing the driving experience. It offers benefits such as improved vehicle driving, braking, and cornering. In addition, it maintains the stability of vehicle and prevents shocks from being transmitted to the vehicle frame.

Increasing demand for vehicles with comfort features is augmenting the sales of luxurious vehicles. Luxury vehicle manufacturers such as Mercedes-Benz, Audi, Lamborghini, BMW, MINI, and Rolls-Royce observed significant increase in vehicle sales in Asia Pacific in 2016. Rising disposable income levels in China and India are driving the sale of luxury vehicles in the region. Apart from luxury vehicles, the overall vehicle sales have also witnessed significant growth in the region.

The market is also being driven by heightened awareness and demand for features such as enhanced comfort levels, vehicle safety against vibrations & potholes, and better control over the vehicle. Technological advancements in the market such as introduction of steel springs, independent suspension axle system, rubber spring technology using Post Volcanized (PV) bonding process, and advanced intelligent damping systems (CDC & PDC) will further stoke the growth of the market.

Regulatory framework in the automotive industry is becoming more and more stringent. OEMs are mandated to manufacture vehicles with increased driver safety and reduced emission levels. It requires development of light suspension systems. It increases cost burden on manufacturers such as R&D and manufacturing costs.

System Type Insights

The market has been segmented into independent and dependent (rigid) suspension, on the basis of system types. Independent suspension systems offer a smooth drive along with increase in stability, comfort, and safety. These systems are prominently used in passenger cars and premium vehicles. Increasing preference for luxury vehicles is anticipated to fuel the demand for independent suspension systems over the forecast period. The independent suspension system segment is projected to exhibit a CAGR of 4.6% during the forecast period.

Dependent types are primarily used in heavy commercial vehicles such as trucks and buses. In this type of systems, the motion of one wheel is dependent on that of the other, which results in loss of control while driving at a high speed and at braking. The adoption of dependent suspension system has decreased due to its heavy weight, oscillation, and wheel alignment issues.

Component Type Insights

The market has been classified into springs, control arms, shock absorbers/dampeners, ball joints, and others based on component types. Springs absorb the sudden road shocks that are caused due to bumps on roads, while dampeners help to reduce oscillation. Meanwhile, control arms are used to keep tires in contact with vehicle frame.

The ball joints segment is estimated to witness significant growth over the forecast period. Ball joints are used to connect front suspension with vehicles and maintain stability between them. They ensure that the wheel and suspension move together at the same time and in the same manner.

Vehicle Type Insights

The Asia Pacific automotive suspension systems market has been divided based on vehicle types into passenger vehicles and commercial vehicles. Passenger vehicles include vehicles such as vans, luxury cars, SUVs, and sedan, which are manufactured for carriage of passengers with seats for no more than five persons.

Commercial vehicles include LCVs, such as pickup trucks and vans, and HCVs. LCVs are vehicles with at least four wheels and are often used to carry luggage. Whereas HCVs are meant for the carriage of goods and transportation of passengers. HCVs include tractors, buses, and large trucks. LCVs offer low road tax, improved performance, enhanced safety, and is energy efficient. HCVs require no additional costs and they offer enhanced transmissions and large diesel engines.

Passenger vehicles will be the most prominent segment throughout the forecast period. Safety and convenience are the primary requirements of drivers. Automotive suspension systems not only offer comfort and convenience but also ensure the safety of drivers and passengers. Furthermore, they protect vehicles from wear and tear. As a result, the application of suspension systems is poised to grow in passenger vehicles over the forecast period. Introduction of various laws and standards and increasing sales of luxury vehicles are resulting in surging demand for passenger vehicles.

Damping Type Insights

On the basis of damping type, the market has been divided into electromagnetic damping, hydraulic damping, air suspension, and others. The electromagnetic damping segment is likely to expand at the highest CAGR over the forecast period. Air suspension damping is another segment that is expected to exhibit high growth over the forecast period.

Hydraulic dampers provide high flexibility. They are used in combination with springs and cushions. Air suspension is a replacement of conventional steel springs. Air suspension is widely used in passenger cars, especially in heavy commercial vehicles such as trucks, buses, and passenger trains.

Regional Insights

The market will witness significant growth in Asia Pacific over the forecast period. The growth is attributed to increasing production of passenger cars and rising demand for luxury vehicles in the region. For instance, vehicle sales in China and India increased by 3.3% and 7.1%, respectively in 2016. The market is estimated to gain significant traction in the coming years as several prominent auto manufacturers have established their manufacturing/assembly plants in the region.

Government initiatives such as "Make in India", "Make in China 2025" and "Automobile Mid and Long-Term Development Plan" are projected to create a manufacturing industry supportive environment in the region. It will further strengthen the regional passenger vehicle production. Japan too announced plans to introduce new safety standards. Japan is anticipated to witness significant growth in automated driving technologies. All these factors will have significant contribution to the regional market growth over the forecast period.

Key Companies & Market Share Insights

Some of the prominent players are Continental AG; Tenneco Inc.; F-TECH INC.; WABCO Holdings.; and Multimatic Inc. Establishment of OEM manufacturing and assembly plants along with low labor costs made APAC a significant regional market across the globe.

The key players in the market are adopting several organic and inorganic growth strategies to increase their market shares. Some of the major strategies being adopted are acquisition and establishment of new manufacturing plants & facilities, along with increasing investments in R&D of new product & technology.

Asia Pacific Automotive Suspension Systems Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the regional and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the Asia Pacific automotive suspension systems market report based on systems type, component type, vehicle type, damping type, and region:

• System Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Dependent (Rigid) Suspension System

  • Independent Suspension System

• Component Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Springs

  • Control Arms

  • Shock Absorbers/Dampeners

  • Ball Joints

  • Others

• Vehicle Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Passenger Vehicles

  • Commercial Vehicles

• Damping Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Electromagnetic

  • Hydraulic

  • Air Suspension

  • Others

• Region Outlook (Revenue, USD Billion, 2014 - 2025)

  • Asia Pacific

    • India

    • China

    • Japan