The Automotive Chassis Market is experiencing a significant transformation due to the rising demand for electric vehicles (EVs) and advancements in automotive technologies. Governments across the globe are implementing stringent regulations to reduce carbon emissions, pushing automakers to focus on lightweight and fuel-efficient vehicles. This, in turn, is driving the demand for innovative chassis designs and materials.
The Automotive Chassis Market, valued at USD 145.6 Billion in 2023, is anticipated to reach USD 365.68 Billion by 2031, registering a compound annual growth rate (CAGR) of 12.2% throughout the forecast period.
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Environmental Push and Consumer Demand Drive Growth in Electric Vehicle Chassis Market
Governments worldwide are implementing stricter emission regulations, aiming for cleaner transportation by 2050. This has spurred significant growth in the electric vehicle (EV) market. To encourage EV adoption, many countries offer incentives to consumers, such as tax breaks on purchasing new EVs. The U.S., for instance, provides incentives of up to USD 7,500 for new electric vehicles.
Recognizing this trend, EV manufacturers are prioritizing innovative chassis designs focused on weight reduction and cutting-edge technology. U POWER Tech exemplifies this focus with their “UP Super Board” unveiled in January 2024 at CES. The plug and play EV chassis is equipped with electric propulsion, suspension, steering, thermal management, and even a Level 2+ advanced driver assistance system. It’s a clear example of how companies are developing advanced chassis technology to meet the growing demand for electric vehicles.
The environmental impact of traditional vehicles is another key driver of the market. Chassis design plays a significant role in a vehicle’s overall carbon footprint. This has led to a shift towards advanced materials like composites and hybrid systems (combinations of metal and composites or multiple composite types). These materials offer numerous benefits, including reduced weight, lower tooling costs, improved noise reduction, and elimination of corrosion concerns. ArcelorMittal’s March 2023 MOU with KIRCHHOFF Automotive exemplifies this trend. Their collaboration focuses on developing complex metal and hybrid structures for body-in-white (unfinished vehicle body) and chassis components. Notably, the agreement also aims to reduce carbon emissions by developing low-carbon steel for cars and trucks.
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Rising Popularity of SUVs
According to the IEA, global SUV sales surged over 10% between 2020 and 2021, reaching record highs and accounting for more than 45% of all new vehicle sales worldwide. This trend continues in countries like the U.S., India, and some European nations. For instance, India witnessed a 27% increase in passenger car sales (which includes SUVs) in April 2023, reaching the highest ever sales figure for the previous financial year. However, it’s worth noting that China, a major automotive market, is experiencing a shift towards smaller, battery-powered electric vehicles, leading to a decline in SUV adoption. Despite this, with over 35 million SUVs on the road globally in 2021, the continued popularity of SUVs is expected to significantly contribute to the growth of the automotive chassis market.
Key Players of Market
- Schaeffler Technologies
- Hyundai Motor
- Aisin Seiki
- Mahna International
- Continental Ag
- Tower International
- CIE Automotive
- REE automotive
- Benteler International AG
- ZF Friedrichshafen AG
Segment Analysis
By Chassis Type:
The non-conventional chassis segment dominates the market due to its lightweight design and contribution to fuel efficiency.
The modular chassis segment holds the second-largest share, fueled by the growing demand for EVs and its flexibility in accommodating different powertrains.
By Vehicle Type:
The passenger car segment holds the largest share and is expected to maintain its dominance owing to the rising demand for passenger vehicles with advanced features.
The electric vehicle segment is projected to be the fastest-growing segment due to increasing environmental consciousness and government support for EVs.
Fuel Efficiency, New Technologies Drive Automotive Chassis Market Despite Challenges
Stringent fuel efficiency regulations, coupled with growing environmental concerns, are driving the demand for fuel-efficient vehicles. Automakers are responding by employing lightweight materials like aluminum and carbon fiber in chassis systems. Additionally, the advent of electric vehicles, particularly in the light and medium & heavy commercial vehicle segments, is creating new growth opportunities. However, fluctuating raw material prices and rising adoption of car-sharing services pose challenges to the market’s growth. Conversely, the development of ultra-light chassis systems and the increasing demand for advanced driver-assistance systems (ADAS) are anticipated to present lucrative avenues for the market.
Recent Developments in the Automotive Chassis Market
April 2024: Benteler Enters Lightweight Chassis Market: Benteler, a leading automotive supplier, announced its entry into the lightweight chassis market with a new production facility in Germany. This facility will focus on manufacturing aluminum chassis components for electric vehicles, catering to the growing demand for lightweight and sustainable solutions.
March 2024: Startup Unveils 3D-Printed Chassis Technology: A Silicon Valley startup, XY Dynamics, unveiled its revolutionary 3D-printed chassis technology. This technology utilizes recycled aluminum to create a lightweight and highly customizable chassis structure. This innovation has the potential to disrupt traditional chassis manufacturing processes and reduce environmental impact.
February 2024: Collaboration for Self-Driving Car Chassis: Aurora, a self-driving car company, partnered with chassis manufacturer Dana Incorporated to develop a new chassis platform specifically designed for autonomous vehicles. This platform integrates sensors, computing power, and advanced suspension systems to support the unique needs of self-driving cars.
Impact of Geopolitical Disruptions
The ongoing war in Ukraine has significantly impacted the automotive chassis market due to disruptions in the supply chain. Ukraine is a major exporter of raw materials like steel and aluminum, crucial for chassis production. These disruptions have led to price hikes for raw materials and transportation costs, pushing up manufacturing expenses for chassis manufacturers. Consequently, the price of new vehicles has also increased, potentially impacting consumer demand.
Impact of Economic Slowdown
Economic downturns can lead to a decline in consumer spending, causing a decrease in vehicle sales. Lower production volumes due to reduced demand translate into decreased demand for chassis systems and components. This can result in production cuts and plant closures for chassis manufacturers and suppliers. Additionally, recessions can disrupt supply chains, leading to delays in the delivery of materials and chassis parts. These factors can cause financial strain on suppliers and manufacturers in the chassis sector.
Key Regional Developments
North America:Â The US is a major producer of car chassis, particularly for light vehicles, SUVs, and pickup trucks. Stringent safety and emission regulations in this region influence chassis design.
Europe:Â Europe is well-established in the automotive sector, with a strong focus on safety and environmental regulations. Efficiency and pollution reduction are prioritized in chassis designs. Countries like Slovakia and Hungary have emerged as major hubs for chassis production.
Asia Pacific (APAC):Â APAC holds the highest CAGR due to the presence of China, the world’s largest automotive market. This region caters to a variety of vehicle types, ranging from small cars to large trucks. Technological advancements in the automotive industry in Japan and South Korea are also influencing the market.
Why You Need This Automotive Chassis Market Report:
- Gain in-depth insights across every market segment, empowering you to make targeted choices for your business.
- Understand the market’s current size and projected growth, both globally and across specific regions.
- Our unique research design ensures the most accurate market size estimations and future growth predictions.
- Identify key players in the market and stay up-to-date on their latest developments.
- Our exhaustive research covers all relevant segments, providing valuable information for every stakeholder.
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