Automotive Chassis Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

In the year 2022 the chassis market was valued at $ 55.0 billion and it is expected to reach $ 109.25 billion by the year 2030, growing at a CAGR of 8.96%. This growth trend is mainly driven by the increasing demand for advanced automobile technology and the increasing production of vehicles worldwide. The use of lightweight materials, the increasing importance of safety and the shift towards electric vehicles are also driving the market. In addition, the continuous development of materials and manufacturing processes is determining the development of the chassis market. High strength steel and composite materials, which not only improve the performance of vehicles, but also contribute to fuel efficiency and lower emissions, are also being used in the chassis market. The leading players in the market, such as Magna International, ZF Friedrichshafen AG and Continental AG, are investing in strategic initiatives such as R & D and establishing strategic alliances to develop the next generation of chassis. The goal of these efforts is to meet the evolving needs of consumers and regulatory standards.

Regional Market Size

Regional Deep Dive

The global chassis market is experiencing a substantial transformation, with the technological developments, the increasing demand for lightweight materials, and the regulatory frameworks that are aimed at enhancing vehicle safety and reducing the impact on the environment. Each region has its own characteristics, which are influenced by the economic situation, the preferences of the population, and the regulatory framework, and these factors shape the market dynamics. The global growth of electric vehicles (EVs) is also affecting the chassis market, with the introduction of new designs and materials to support the shift to electrification.

Europe

• European countries have pushed ahead with the development of advanced chassis technology, with the emphasis on safety and the environment. The European Green Deal and the tightening of emissions regulations have forced car manufacturers to work hard on new chassis designs, with a focus on lightweight materials and electric vehicle compatibility.
• VW, BMW, Daimler and Ford are involved in the development of the underlying chassis, which can accommodate various vehicle concepts, including hybrid and electric vehicles. This trend is expected to reduce production costs and ultimately benefit consumers.

Asia Pacific

• The Asian-Pacific region, especially China and Japan, is experiencing a rapid increase in the market for chassis, driven by the growth in vehicle production and the trend towards electric mobility. Chinese manufacturers are heavily investing in the production of electric vehicles, which has a significant influence on the development of chassis, in particular with regard to the integration of batteries.
• The smart chassis technology that uses the IoT to monitor and optimize the performance of the vehicle is gaining popularity in this region. Besides BYD and Toyota, the other major players are also making strides in the development of this technology.

Latin America

• In the American continent, a gradual recovery is taking place in the automobile industry, and countries like Brazil and Mexico are becoming important in the manufacture of chassis. The cost of production is cheapened, and a growing demand for inexpensive vehicles is being met.
• The recent agreements such as the USMCA are facilitating cross-border investments and the transfer of technology, which should enhance the competitiveness of the local chassis industry. It could also lead to improvements in quality and innovation in chassis designs.

North America

• The North American market for vehicle bodies is characterized by a growing demand for lightweight materials, in particular aluminum and composites, which are driven by the need for fuel economy and a reduction in emissions. Ford and GM are investing heavily in research and development to produce chassis for their electric vehicles.
• The regulations on average consumption of fuel imposed by the government on car manufacturers are forcing them to adopt chassis technology that improves vehicle performance while at the same time meeting the strictest emissions standards. Consequently, the integration of chassis technology has been a common objective of the car makers and high-tech companies, such as the joint venture between Panasonic and Tesla for the production of batteries.

Middle East And Africa

• In the Middle East and Africa the market for chassis is growing, driven by the growing middle class and the growing urban population. The market is still very young and dominated by vehicles with internal combustion engines, not electric vehicles.
• A visionary government plan like the United Arab Emirates' Vision 2021 is aimed at developing sustainable transport solutions, which may eventually lead to increased investment in advanced chassis technology. Also, local manufacturers are beginning to explore technological collaboration with foreign companies.

Did You Know?

“Did you know that the chassis accounts for approximately 30% of a vehicle's total weight, making it a critical component in the quest for fuel efficiency and performance?” — Automotive Engineering International

Segmental Market Size

The Chassis Division plays a vital role in vehicle performance and safety. The market is currently experiencing stable growth, as it is being driven by a strong trend towards lightweight, fuel-efficient vehicles. Combined with the increasing focus on safety and stricter emissions regulations, the development of new materials, such as high-strength steel and composites, is helping to improve the performance and efficiency of chassis. In the current market, advanced chassis technology is already widely used. For example, the latest models from leading manufacturers such as Ford and Toyota already feature advanced chassis technology. Traditionally, Europe and North America have been the leaders in the development and use of advanced chassis, due to their strong focus on innovation and the environment. The main application areas are passenger cars, trucks, buses and electric vehicles, where the chassis plays a crucial role in performance and safety. The trend towards electric mobility and the introduction of stricter emissions regulations are driving further growth. At the same time, the development of new chassis, using 3D printing and simulation, is bringing about a revolution in the way chassis are designed and manufactured, and is leading to more efficient and bespoke solutions.

Future Outlook

The market for automobile chassis is destined for considerable growth from 2022 to 2030. The total market is expected to rise from 55 billion to 109 billion dollars, which means an annual increase of 9.96 percent. The main reason for this growth is the growing demand for light, fuel-efficient cars, which is in turn driven by the manufacturers’ desire to reduce the weight of the cars to improve their performance and meet increasingly stringent emissions standards. Moreover, as electric vehicles become more common, the chassis market will be forced to change to accommodate more advanced batteries and electric drivetrains, thereby increasing the innovation and investment in the industry. Moreover, the integration of new materials such as aluminum and carbon fiber into the chassis will revolutionize the industry, improving the strength-to-weight ratio and the safety of the vehicles. And finally, the rise of smart vehicles and the trend toward automation will force chassis suppliers to develop chassis that can support the new technology. Besides these technological developments, the growth of the market will also be driven by government initiatives, such as subsidies for the purchase of electric vehicles and stricter emissions standards. By 2030, it is expected that more than 50 percent of new car models will have an advanced chassis, which will reflect a major change in consumers’ preferences and industry standards.