Air Suspension Systems Market

2021 Analysis and Review: Air Suspension Systems Market by Vehicle Type –Buses & Coaches, Trailers, and Heavy Trucks for 2021-2031

Air Suspension Systems Market Snapshot

Exhibiting growth at 6.7% CAGR, the global air suspension systems market is anticipated to post substantial gains during the forecast period. Driven by growing e-commerce sector, rising cargo transportation and surging production of commercial vehicle, the market will reach a valuation of US$ 4.6 Bn in 2021.

Market is projected to witness high demand, especially across Western Europe, due to increasing demand of luxury buses across Germany, the U.K and other countries. As per Future Market Insights, nearly 55% air suspension systems sales will concentrate in the heavy trucks segment.

Key Points Covered in Air Suspension Systems Market Study

  • Market estimates and forecast 2021-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Air Suspension Systems Market and How to Navigate
  • Recommendation on Key Winning Strategies

Air Suspension Systems Market Historic Sales Compared to 2021-2031 Forecast Outlook

Driven by e-commerce expansion, global trade and urbanization are impacting the supply chain logistics. This will in turn guarantee impressive growth of the global air suspension systems market.

ESOMAR-certified consulting firm Future Market Insights (FMI), projected the air suspension systems market value to surpass US$ 4.6 Bn in 2021. Increase in intercontinental trade along with the expansion of construction industry across the U.S, Germany, the U.K. and China, will strengthen the sales of new heavy and light trucks.

Subsequently, continuous operations through trucks and growing freight transport will improve the demand for air suspension systems. However, recent outbreak of COVID-19 dipped the sales significantly in the FQ-2020. Nonetheless, recovery of automotive industry is on the card on account of surging production of commercial vehicles. This will continue creating opportunities for growth of the market.

For instance, in 2017, Japan, the U.S., and China registered a slight dip in the demand for commercial vehicles, which negatively impacted the demand for air suspension systems.

Heavy duty vehicles are major contributors to climate change and emissions. Hence, sustainability concerns have improved the adoption of electric vehicles and public transport across the globe. This, in turn, have increased the demand for air suspension systems among the OEMs and the automakers.

Preference for luxury and comfort vehicles for long distance travelling also has encouraged the adoption of electric buses. Due to this, manufacturers are incessantly focusing on development of air suspension systems to offer greater vehicle performance.

Based on aforementioned factors, the global air suspension market will post substantial gains, registering an impressive growth at 6.7% CAGR during the forecast period of 2021 and 2031.

How will Increasing Commercial Vehicle Production Impact Growth?

Rising construction activities across the globe coupled with increasing transportation of machinery and equipment, and expansion of logistic industry have propelled the production of heavy trucks.

As of 2020, over 77.9 million vehicles were produced across the globe, among which commercial vehicle sales accounted for around 24.3 million units, according to International Organization of Motor Vehicle Manufacturers. With increasing production of commercial vehicles, adoption for air suspension system have increased.

Also, surging demand for luxury buses for long distance travelling have improved the production of electric buses as well as luxury passenger cars.

Rise in production of electric buses as well as luxury passenger cars integrated with air suspension systems will propel the market demand over the coming years.

Growing urbanization along with adoption of heavy duty vehicles will increase the air suspension systems demand. Growing sustainability concerns are pushing the adoption of electric vehicles, especially across China, the U.S., and Germany.

Hence, increasing production of commercial vehicles across the globe will create growth opportunities for the air suspension systems market players over the coming years.

High Development Cost Likely to Impede Growth

As demand for air suspension is quite high in the original equipment manufacturers (OEM) segment, providing premium features in the commercial vehicle incurs high cost to consumers.

Due to high adoption cost, the sales of commercial vehicles are expected to decline in the low-to-middle income economies, hampering the market growth.

High cost associated with installing suspension system within heavy trucks & buses will reduce the growth of air suspension system.

Also, development and incorporation of advanced technologies within the systems gives complex structure.

Complex structure of systems reduces the shelf life of commercial vehicles. Hence, high installation cost and complex structure is likely to restrict the growth of air suspension systems market.

Country-wise Insights

Why will the U.S. Dominate North America Air Suspension Systems Market?

North America is anticipated to offer lucrative opportunities for the air suspension systems market players through 2021 & beyond. Growth of the construction sector coupled with the government initiatives in the U.S. will drive the demand.

As per FMI’s analysis, North America air suspension systems market is poised to expand at an impressive rate of 6.5% CAGR over the forecast period.

In 2020, production of commercial vehicles in the U.S were recorded for 8.1 million units, as per International Organization of Motor Vehicle Manufacturers. With increasing production of heavy trucks and buses, OEMs and automakers are increasing the adoption of air suspension systems catering the demand.

Also, leading players across the U.S. are investing heavily to curb the heavy operational cost of electronic operated air suspension systems, fuelling the market growth.

In addition to this, stringent guidelines pertaining the safety and comfort of vehicles, automakers are obliged to incorporate the air suspension systems in the commercial vehicles.

Based on the aforementioned factors, the air suspension systems market is estimated to witness steady growth in the upcoming decade.

How is India Likely to Transform the South Asia Market Growth Landscape?

According to the Society of Indian Automobile Manufacturers, the automotive industry across India despite the unprecedented outbreak of COVID-19, the market posted impressive gains in 2020.

However, industry produced a total of 22.6 million vehicles, among which commercial vehicle sales registered a decline of 20.77% in April 2021 due to the disruption in the manufacturing activities.

Although, with slight relaxation in the regulatory norms and inoculation of COVID-19 vaccines, there have been a surge in the production of automobiles.

Also, with ever-expanding construction industry and extensive usage of heavy trucks, there have been a notable growth in the adoption of air suspension systems within heavy trucks.

 As per India Brand Equity Foundation, with growing sustainability concerns and improving adoption of electric vehicles, sales of electric buses have burgeoned across the country.

Electric vehicle sales, including E-buses, in India witnessed a growth of 20% during the FQ-20. Favourable government initiatives for the adoption of electric buses as public transport have certainly improved the adoption of air suspension systems.

For instance, the Ministry of Heavy Industries have shortlisted 11 cities in the country for introduction of electric vehicles in their public transport systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme.

Such initiatives are likely to foster the sales of air suspension systems over the forecast period, registering impressive growth.

How will the Air Suspension Systems Market Growth Unfold in China?

The air suspension system market across China is anticipated to retain its global hegemony across the automotive industry. As per the report of China Association of Automobile Manufacturers, sales of commercial vehicle are poised to grow by 4%, reaching 26 million by 2021.

As of 2020, sales of trucks are expected to reach around 42.4 million units, registering a year-on-year growth at 20.7% in November 2020.

Government across China is initiating production of electric buses against the backdrop of growing adoption for greener means of public transport. With surging adoption of electric buses, OEMs involved in bus manufacturing are adopting air suspension systems catering demand.

Sales of buses across China reached to 4.8 million in November 2020 while the sales of new electric commercial vehicles accounted for 1.4 million units.

While China rolled out 42,000 units’ bus & coaches in September, registering an uptick by 11.1% against September 2019, the adoption of air suspension systems is expected to gain traction over the coming years.

Considering such promising forecast, automakers are increasing their research & development activities for the development of advanced suspension systems, eventually paving way for heightened air suspension systems sales.

In addition to this, robust growth of commercial vehicles have improved the China’s exports of commercial vehicles, reaching 24,000 units in September 2020.

How Lucrative is Germany Market for Air Suspension Systems Sales?

Germany is expected to be one of the most lucrative market owing to the higher adoption rate of air suspension systems across all vehicle types. OEMs and technology-driven suppliers are improving the adoption of advanced air suspension systems for heavy duty vehicles.

Expansion of German automotive industry and increasing production of commercial vehicles will improve the demand of air suspension systems.

Over 2.1 million commercial vehicles were produced in the European Union in 2020, with Germany accounting for over 227,082 commercial vehicles, states European Automobile Manufacturers Association.

With rising production of heavy duty and light duty vehicles across Germany, leading automotive manufacturers such as Daimler AG, BMW and Volkswagen are increasing the adoption of air suspension systems.

Comfort of the vehicle lies in the suspension systems and with increasing demand for luxury passenger cars the demand for air suspension systems is expected to grow manifold over the coming years.

Automakers and technological giants are increasing research & development activities for developing advanced air suspension systems necessitating the end users demand.

Technology giants such as DuPont, K-Tech German and Gruppe Motion Technologies are adopting electronic air suspension systems in heavy & light duty vehicles.

With Germany as one of the most lucrative market across Western Europe, the market will register significant growth over the forecast period.

Category-wise Insights

Why are Heavy Trucks gaining traction in Air Suspension Systems?

Demand for air suspension system is on the rise with rising adoption of commercial vehicles such as heavy trucks. Heavy trucks segment is anticipated to be the largest and fastest growing segment.

Increasing application of heavy trucks within diverse end-use industries such as construction, logistics, and e-commerce industries are improving the adoption of air suspension systems.

As per Future Market Insights, heavy trucks are accounted to hold over 54.1% of global market share over the forecast period. The segment is anticipated to expand at an impressive CAGR as compared to trailers and buses & coaches.

Growing e-commerce industry and increasing construction activities across the globe is increasing the sales of commercial vehicles such as heavy trucks. Also, stringent regulations for vehicles to install advanced systems for safety & comfort will push the sales.

Further, trailers segment is anticipated to be the second-largest, after heavy trucks. It is estimated to account for over 32.1% of global market share over the forecast period. Also, buses and coaches segment is anticipated to witness positive growth over the coming years.

Why OEMs are the most preferred in terms of Sales Channel?

On the basis of sales channel, global air suspension systems market is classified into original equipment manufacturers (OEMs) and aftermarket. Further, the OEM segment is bifurcated into electronic operated systems and non-electronic operated systems.

Increasing government initiatives for greener means of public transport across the globe have pushed the adoption of electric buses, especially in China. With growing production of electric buses, OEMs manufacturers are equipping those buses with air suspensions.

Soaring demand for electronic operated systems (EOS) within commercial & luxury vehicles such as buses and heavy trucks will improve the growth of OEMs segment.

Industry giants and OEMs are manufacturing automobiles equipped with electronically operated air suspension systems.

Luxury passenger cars such as Audi 8, Land Rover Discovery, Mercedes S-Class, and Porsche Cayenne are equipped with EOS, augmenting sales from OEM segment.

As technological advancements rises in vehicle technologies, OEMs are showing inclination towards commercializing innovative components such as air suspension systems.

Automakers are forming alliance with OEMs catering the demand of advanced air suspension systems in buses & heavy trucks, improving the adoption.

With surge in demand for advanced air suspension systems unit without compromising on performance of the vehicle, market players are collaborating with OEMs to develop innovative designs.

Over 86.4% sales of air suspension systems concentrated in OEM segment, expanding at a CAGR of over 8.7% over the forecast period, estimates FMI.

OEMs are anticipated to cement their dominance, surpassing a valuation of approx. US$ 9665.8 Mn in terms of revenue by 2031-end.

However, demand for air suspension systems from the aftermarket segment is slated to increase at an impressive CAGR of nearly 8.8% with component segment leading at the forefront.

Competitive Landscape

Leading key players are incessantly focusing on enhancing their product portfolios through new product launches and innovation. Alongside this, heavy investment in research & development activities to implement new features in air suspension systems.

Some of the prominent manufacturers are relying on strategic collaborations and partnerships to augment their customer base and maintain their position in the industry.

In May 2021, Bridgestone announced the expansion of its plant in Williamsburg, Kentucky by investing US$ 51 million in the Firestone Industrial Products catering the demand for advanced air suspensions in electric vehicles.

Material Processing Solutions Limited, on May 27th 2021, announced the launch of IFE Air Suspension System, available as an optional support solution for the IFE Aufbereitungstechnik GmbH range of screening solutions.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Middle East & Africa, and Japan.

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Vehicle Type, Sales Channel, and Region

Key Companies Profiled

  • SAF-Holland SA
  • Hendrickson USA LLC
  • BPW Transpec Pvt. Ltd.
  • TMC Australia Pvt. Ltd.
  • Guangzhou TND Axle Co. Ltd.
  • Meritor Inc.
  • Wabco Holdings
  • York Transport Equipment (Asia) Pvt. Ltd.
  • VDL Weweler-Colaert
  • Others

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current air suspension systems market value?

    The air suspension systems market is expected to surpass a valuation of US$ 4.6 Bn in 2021

  • At what rate did the Air suspension systems market grow between 2016 and 2020?

    The air suspension systems market witnessed sluggish growth at 1.3% CAGR between 2016 and 2020.

  • What are the key trends driving air suspension systems sales?

    Growing e-commerce sector, rising road cargo transportation, and burgeoning demand of luxury buses will improve the sales.

  • Who are the leading players of air suspension systems?

    Saf-Holland, Hendrickson USA LLC, BPW Group, Guangdong Fuwa Engineering Group Co., Ltd., TMC Australia are the top players leading the air suspension systems market.

  • What will be the demand outlook for North America Air suspension systems market?

    The demand for air suspension systems across North America is set to rise at over 6.5% CAGR during the forecast period.

  • At what rate will air suspension systems demand rise in Europe?

    The sales for Air suspension systems are set to rise at a steady rate of 4.2% across Europe over the forecast period.

  • Which are the top countries driving the air suspension systems market demand?

    Top countries in terms of air suspension systems sales are the U.S., Germany, Japan, China and the U.K.

  • What is the market share of leading players in air suspension systems market?

    Leading players of global air suspension systems market is expected to contribute around 40% of total market share.

  • What is the current market share of Japan and China in the global air suspension systems market?

    South Korea and Japan, collectively, will account for over 4% market share of global air suspension systems market in 2021.

Air Suspension Systems Market by Category

By Vehicle Type:

  • Buses & Coaches
  • Trailers
  • Heavy Trucks

By Sales Channel:

  • OEM
    • Electronic Operated Systems
    • Non Electronic Operated Systems
  • Aftermarkets
    • System
    • Components

By Region:

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • South East Asia
  • China
  • India
  • Japan
  • Middle East and Africa (MEA)

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