Automotive Air Suspension System Market Analysis

Automotive Air Suspension System Market Deep Dive – PESTLE, Porter, SWOT

The air suspension of automobiles is about to undergo a great change. The advancement of technology and the increasing demand for comfort and performance in automobiles are driving innovation in this market. The advantages of air suspensions, with their softer ride, adjustable height and greater load carrying capacity, are well known. Luxury and commercial vehicle manufacturers are therefore increasingly turning to air suspensions. With the industry moving towards electrification and sustainability, the integration of air suspensions is set to play a crucial role in improving vehicle dynamics and the overall driving experience. In addition, the growing emphasis on safety and stability in vehicle design is pushing the adoption of air suspensions, which offer superior control and handling over traditional systems. This report examines the factors driving the air suspensions market, including technological developments, regulatory frameworks and consumer preferences, to provide a comprehensive overview of the current landscape and future prospects.

PESTLE Analysis

• Political:
  In 2024, government regulations regarding vehicle emissions and safety standards are becoming increasingly strict, particularly in the European Union, where the seventh generation of the European standards, known as “Euro 7”, is to be introduced. The new regulations may require automobile manufacturers to invest about 150 billion in order to meet the new standards. This will stimulate the development of advanced vehicle-building materials and the adoption of advanced technologies such as air suspension systems that improve the performance and safety of vehicles. The relationship between the United States and China is also expected to affect the supply chain for vehicle components, including air suspension systems, resulting in higher costs and reduced availability.
• Economic:
  In 2024, the global automobile industry is expected to generate revenues of $3.1 trillion, a portion of which will be devoted to the development of advanced vehicle technology, such as air suspension. Rising incomes in the emerging economies, which are expected to rise by a compounded annual rate of 5%, are driving the demand for premium vehicles equipped with the most advanced suspension systems. As the cost of steel and aluminum rises by as much as 15% in a single year, the cost of materials will rise with it, which will impact the cost structure of the automobile air suspension market.
• Social:
  And the comfort of the ride has become a prime concern of consumers. The result of a survey shows that by 2024, seven out of ten consumers will prefer comfort over performance. This is especially true in the luxury class where air suspension is increasingly considered a desirable feature. Moreover, the growing awareness of the safety and performance of vehicles is accompanied by a higher demand for suspension technology. Up to 68 percent of consumers are willing to pay up to 10 percent more for a vehicle equipped with air suspension.
• Technological:
  In 2024, a great advance in car technology is being made in the field of air-suspension, with the integration of intelligent sensors and automatic control. The market for these is growing rapidly and the share of vehicles with such a system is expected to reach 40 per cent. Further, investment in research and development is expected to reach $500 million. The main focus is on improving the efficiency of the systems and reducing the weight of the vehicles. These are the most important factors in improving fuel economy and vehicle performance.
• Legal:
  Regulations govern safety, the environment, and manufacturing processes. In the United States, for example, the National Highway Traffic Safety Administration (NHTSA) will probably implement new crash-test regulations in 2024 that could require manufacturers to change their air-spring systems to meet new crash-safety requirements. This would require an industry-wide investment of around $200 million to bring products into compliance with the new regulations. These changes would have an impact on the development and production of air-spring systems.
• Environmental:
  In the field of the automobile industry, the environment is increasingly influencing the reduction of the carbon footprint and the promotion of sustainable development. The automobile industry is expected to invest about one billion dollars in 2024 to develop environmentally friendly materials for air suspension, such as recycled plastics and light composites. Electric vehicles are also expected to increase the demand for air suspensions that can meet the unique weight distribution and handling characteristics of EVs. By 2024, the proportion of new vehicles with electric drive is expected to reach 25 percent.

Porters Five Forces

• Threat of New Entrants:
  The market for air-spring suspension systems for motor vehicles is characterised by a medium degree of protection against competition, because of the need for a substantial investment in the development of the technology and the establishment of the manufacturing capability. The established suppliers benefit from economies of scale and brand loyalty, which make it difficult for new entrants. However, the rapid technological development and the growing demand for air-spring suspension systems in electric and luxury vehicles could bring in new competitors.
• Bargaining Power of Suppliers:
  The bargaining power of suppliers in the market for automobile air suspension systems is relatively low. The supply of the necessary components, such as air springs and air cylinders, is extensive, and the supply situation is competitive. The fact that manufacturers can easily change suppliers reduces the bargaining power of suppliers even further.
• Bargaining Power of Buyers:
  High - The buyers in the market for automobile air suspension systems have a high degree of power, as a result of the large number of available options and the growing demand for individualization of automobiles. The more informed and discerning the buyers become, the more easily they can compare the products. To retain their customers, the manufacturers are thus forced to offer better prices and better features.
• Threat of Substitutes:
  The threat of substitutes for automobile air-suspension systems is moderate. The use of conventional suspension systems is widespread, but the growing trend of air-suspension systems in luxury and sports cars represents a challenge. The performance and comfort advantages of air-suspension systems may, however, limit the demand for substitutes.
• Competitive Rivalry:
  The competition is strong in the field of air-suspension systems for automobiles, and the market share is divided among several important players. The companies are constantly innovating and improving their products to make themselves stand out from the competition. This leads to a very aggressive marketing policy and a price war. The growing mobility sector, and particularly the electric vehicle sector, has further intensified this competition.

SWOT Analysis

• Strengths:
  • Enhanced ride comfort and handling performance compared to traditional suspension systems.
  • Ability to adjust vehicle height for improved aerodynamics and fuel efficiency.
  • Growing demand for luxury and high-performance vehicles that utilize air suspension technology.
• Weaknesses:
  • Higher initial cost compared to conventional suspension systems.
  • Complexity in installation and maintenance may deter some consumers.
  • Potential for air leaks and system failures, leading to increased repair costs.
• Opportunities:
  • In the past few years, the hybrid and electric cars have been in high demand.
  • The development of the air suspensions, with their integration into the smart vehicle technology.
  • Expansion into emerging markets with increasing vehicle ownership and demand for comfort features.
• Threats:
  • Intense competition from traditional suspension manufacturers and alternative technologies.
  • Economic downturns that may reduce consumer spending on luxury features.
  • Regulatory changes and environmental concerns that could impact manufacturing processes.

The Automotive Air Suspension System Market by 2024 is characterized by its strengths in providing superior ride quality and flexibility, which makes it particularly suitable for luxury vehicles. However, the market is hampered by the high cost of air suspension and the complexity of its maintenance. Opportunities lie in the growing electric vehicle market and in technological innovations, while threats include competition and economic fluctuations. Strategically, the focus is on improving the reliability of the product and expanding into new markets.