HOME Research Insight New Product Development and Geographical Expansion as the Most Preferred Strategies to Gain Traction in the Automotive Suspension Market.

New Product Development and Geographical Expansion as the Most Preferred Strategies to Gain Traction in the Automotive Suspension Market.

The global automotive suspension market is projected to grow at a CAGR of 3.88%, during the forecast period, from an estimated USD 50.76 billion in 2017 to USD 68.84 Billion by 2025. The key driving factors are the increased vehicle production and demand for luxury features which will increase the suspension usage.

Automotive suspension manufacturers have adopted supply contract, new product development and geographical expansion as the most preferred strategies to gain traction in the automotive suspension market. For instance, in February 2017, ThyssenKrupp announced it will build an automotive components plant in Hungary.@The construction of the USD 43.23 million plant on a 20,000-square-meter site in Debrecen, Hungary, will start in spring 2017. More than six million coil springs and stabilizers will be annually produced there from 2018.

On the basis of revenue generation, geographic footprint, and organic & inorganic strategies, the top players in the automotive suspension  market are identified as ZF (Germany), Tenneco (US), KYB (Japan), Continental (Germany), Magneti Marelli (Italy), Mando (South Korea), NHK Spring (Japan), ThyssenKrupp (Germany), Sogefi (Italy), and Benteler (Austria).

NHK Springs has a strong presence in the North American, European, and Asian markets. It has been adopting strategies such as expansion, and new product development to strengthen its position in the automotive suspension market. Of these, new product development is the key strategy adopted by the company. For instance, in November 2017, NHK Spring announced that its production subsidiary will build a new plant to produce automotive suspension springs in Hungary. The company will invest USD 50 million in the new plant, which will have a floor area of approximately 23,000 square meters. Also, the company has jointly developed a steel product for lightweight plate springs used in truck suspensions. 

Tenneco has strong R&D and production capacities. Strong presence in the developed markets of North America and in emerging economies such as Asia Oceania has made the company a formidable competitor in the global automotive suspension market. The companyfs key strengths are high revenue and advanced R&D capabilities, which have helped it to adopt a different strategy such as supply contract. For instance, in January 2018, Tenneco announced that it is supplying Suzuki its Multi-Tuned Valve (MTV) suspension technology on the Swift Sport manufactured in Japan and in the Dzire compact-sedan passenger car produced in India by Maruti Suzuki India.

Related Reports:

Automotive Suspension Market By Architecture (MacPherson Strut, Double Wishbone, Multi-link, Twist Beam, Leaf Spring, Air Suspension), System Type, Actuation, Component OE & Aftermarket, Vehicle (ICE, BEV, HEV, PHEV), and Region-Global Forecast To 2025

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