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The Suspension System Market is Dominated by A Few Global Key Players and Many Regional Players
The suspension system market size, in terms of value, is estimated to grow with a CAGR of 5.11% from 2016 to 2021. The factors which are driving the market are importance of comfort and convenience, increasing vehicle production, technological advancements reducing the gap between performance and cost, increasing demand for commercial vehicles, better camber control and camber limit during cornering, increasing stability, and maneuverability and others. The Asia-Oceania and North American markets are expected to grow at a promising rate in 2016.
In Asia-Oceania, for instance the Government of India is supporting foreign direct investments (FDIs) and presenting attractive market opportunities for OEMs and Tier-1 suppliers. Owing to low production cost and easy availability of low cost labor, many OEMs have set up production and sales facilities in this region. The rise in automobile production is positively impacting the automotive suspension system market. The North America region is dominated by domestic OEMs such as Ford Motors Co. (U.S.), General Motors Co. (U.S.), Fiat-Chrysler Automotive (U.S.), and others, which presents opportunities for suspension system manufacturers. The Mexican automotive industry has benefited from the North American Free Trade Agreement (NAFTA), which encourages the production of automobiles and in turn impacts the suspension system market.
The suspension system market is dominated by a few global key players and many regional players. Key players include ZF Friedrichshafen AG (Germany), Tenneco Inc. (U.S.), KYB Corporation (Japan), Continental AG (Germany) and Magneti Marelli S.p.A (Italy). ZF Friedrichshafen AG is one of the major supplier of suspension systems to automotive OEMs including Mercedes Benz (Germany), MAN SE (Germany), Alfa Romeo (Italy), BMW (Germany) among others. The key strategy adopted by ZF Friedrichshafen AG is supply contracts and agreements. The company signed a supply contract with Honda to the CDC 1XL (continuous damping control), series of electronically controlled adaptive damping systems for Honda’s Civic Tourer. The company in 2015, acquired TRW Automotive Holdings Corp which will be incorporated into ZF as a new division called active & passive safety technology.
The second major player is Tenneco Inc., one of the world’s leading designers, manufacturers and distributors of clean air and ride performance products and systems for the automotive, commercial truck, and off-highway markets. Tenneco’s major customers are General Motors (U.S.), Volkswagen Group (Germany), and Nissan Motor Co. (Japan) among others.
The company focuses on development of advanced suspension technologies which would cater to the customer’s demands. The company has introduced its “Scalable Architecture” concept that uses intelligent actuator constructions to easily scale semi-active suspension systems up to advanced and fully-active applications.
Other major players in the automotive suspension system market include KYB Corporation (Japan), Continental AG (Germany), Magneti Marelli S.p.A (Italy), and Benteler International AG (Austria), among others. These companies are mainly focusing on expanding their regional presence to achieve continuous and sustainable development. This is evident from several collaborations and joint venture projects that these companies have undertaken in recent years.
Suspension Market by System (Passive & Semi-Active/Active), Damping (Hydraulic/Pneumatic, Electromagnetic), Architecture (Dependent & Semi-Independent/Independent), Leaf Spring & Air Suspension Markets, Component, Vehicle Type, & by Region-Forecast to 2021
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