The global market for automotive suspension systems is expected to witness significant growth over the forecast period. There are several domestic, regional, and international players operating in the automotive suspension system market who continuously strive to gain a significant share of the overall market. During the study, Wantstats has analyzed some of the major players in the global automotive suspension system market who have contributed to the market growth. These include Schaffler AG (Germany), ZF Friedrichshafen AG (Germany), ThyssenKrupp AG (Germany), Continental AG (Germany) Magneti Marelli SpA (Italy), Tenneco Inc (US), KYB Corporation (Japan), BENTELER International AG (Austria), Sogefi SpA. (Italy), Mando Corp. (South Korea), NHK Spring Co., Ltd. (Japan), Parker Hannifin Corporation (US), and Rassini (Mexico).
Among these, ZF Friedrichshafen AG (Germany), NHK Spring Co., Ltd. (Japan), KYB Corporation (Japan), Mando Corp. (South Korea), Continental AG (Germany) are among the top 5 players in the global automotive suspension system market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.
ZF Friedrichshafen AG focuses on research & development projects for its product lines to manufacture efficient and intelligent systems for electric and hybrid drives. The firm is focused on establishing a new and flexible project management approach, which will enable it to enhance its product portfolio to compete in the market. It also focuses on continuously improving its existing technologies for e-mobility, autonomous driving, and artificial intelligence. Furthermore, it concentrates on enhancing its all-wheel-drive system technologies for commercial vehicles to ensure reliable, safe, and economical driving performances, even under demanding driving conditions. It also invests in building its external network through partnerships, collaborations, and joint ventures.
NHK Spring Co., Ltd. follows a capital allocation strategy to improve its portfolio and maintain market cost competitiveness. The company is considering selective acquisitions to broaden its product portfolio and accelerate its global growth. Furthermore, as new distribution channels emerge, it is poised to expand its network in Japan. Moreover, the company is focused on meeting the needs of both developed and developing markets for light vehicles, commercial trucks, off-highway engines, and other vehicles with spring suspensions.
Masco Corporation is consistently focusing on developing technologies for transformers to boost its consumer base in the US. Additionally, it focuses on research & development and incorporating innovative technologies for manufacturing plumbing solutions to enhance its existing product portfolio. Furthermore, it aims to deliver superior value to the customers as part of its strategy.
KYB Corporation strategizes to increase its profitability in the AC operations segment. The company is focused on reorganizing its motorcycle business by consolidating its plants worldwide. In addition, it plans to formulate its EPS business, which has the necessary technology to achieve integrated control of shock absorbers and power steering in autonomous driving. Furthermore, the company is frequently investing in expanding its global presence through expansions and joint ventures in various countries such as India and China.
Mando Corp. believes in investing in product development to enhance its product portfolio. It intends to continue to increase the market share of its current business offerings with internal growth strategies and improve its performance. In addition, with a primary focus on expansion, the company sells and distributes a wide range of products in the global aftermarket while also providing OEMs with automotive parts components.
Continental AG strives to provide users with opportunities to experience innovation in its goods, which helps boost brand memory. By investing in research & development, acquisitions, and joint ventures, the company hopes to expand its product offering. Its goal is to offer low-cost solutions with better capabilities and a faster deployment time. The organization believes in extending its product offerings and market reach by acquiring new competencies and forming strategic alliances. As a result, the client base is expanded, and innovation is accelerated on a bigger scale.
Threat of New Entrants
Due to the high capital requirements in the manufacturing of vehicle suspension systems, new entrants into the worldwide market are less likely. BENTELER International AG, Tenneco Inc., ThyssenKrupp AG, ZF Friedrichshafen AG, Schaeffler AG, and KYB Corporation have strong brand identities, making it difficult for new manufacturers to enter the market. The significant investment is related to product research & development costs, such as the Front and Rear Interconnected (FRIC) system. In North America, the Fédération Internationale de l'Automobile (FIA) or International Federation of Automobile has strong government laws addressing car safety, ensuring that manufacturers satisfy the required government standards. To build a sophisticated suspension system for automobiles, new producers will need significant capital investments, moderate research & development resources, and industry expertise. Government policies on car suspension systems are constantly changing, which may limit the entry of new rivals. On the other hand, low-profit margins may be a challenge for new entrants, as most prestigious suppliers and buyers, such as ZF with Daimler AG and BENTELER International with Ford Group, have long-term partnerships with prominent players. Thus, the threat of new entrants in the global automatic suspension system market is expected to be moderate during the forecast period.
Bargaining Power of Suppliers
The raw material providers of rubber or urethane and ceramic for springs and steel alloys and aluminum alloys for cylinders are the key suppliers in the car suspension systems market. The global market has a significant concentration of suppliers. The manufacturers could incur a significant switching cost as they enter into long-term agreements to secure the continuous supply of raw materials to car suspension system manufacturers. Manufacturers who create an effective supply chain with several suppliers for each material, on the other hand, will limit suppliers' negotiating strength. Thus, the bargaining power of suppliers is expected to be low in the global automotive suspension system market during the forecast period.
Threat of Substitutes
Suspension systems are one of the most essential parts of an automobile's complete assembly. Currently, there are no substitutes for these systems. Thus, as a result, the threat of substitutes for the suspension system and its components is expected to be low in the global automotive suspension system market during the forecast period.
Bargaining Power of Buyers
In terms of approved manufacturers, there is a moderate concentration of buyers in the automotive suspension system market. End-users of vehicle suspension systems are shifting their preferences from price sensitivity to a desire to purchase high-quality components to reduce their safety risk or hazard. Technological innovation, comfort, and safety performance are more important to purchasers. Both aftermarket and original equipment manufacturers are buyers in the vehicle suspension systems industry. Therefore, the bargaining power of buyers in the global automotive suspension system market is expected to be moderate during the forecast period.
Intensity of Rivalry
Existing players in the automobile suspension systems market are fiercely competitive, with key market shareholders such as BENTELER International AG, Tenneco Inc., ThyssenKrupp AG, ZF Friedrichshafen AG, and Schaeffler AG among them. Furthermore, as the aftermarket industry grows, the presence of unauthorized participants in the market grows, resulting in system counterfeiting. These unlicensed players are operating independently, while some major players have begun to distribute their suspension systems in the aftermarket at reduced costs to expand their global footprint. This is expected to lead to a high intensity of rivalry in the global automotive suspension system market during the forecast period.
