In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Suspension system in the automotive industry is a tool used to minimize the shock absorbed by the body of the vehicle, while moving on a surface. The prime goal of the automotive adaptive suspension system is to keep the tires in constant contact with the surface, regardless of the contours that comes through its way.
Springs are a key component of the automotive adaptive suspension system. It is classified into leaf springs, coil springs and torsion bars. Most of the light commercial vehicles use coil and leaf springs, while passenger vehicles use light coil springs in their automotive adaptive suspension systems. Leaf springs or air suspension are being used in heavy commercial vehicles.
Technical advances in automotive adaptive suspension systems has resulted into the innovation of electrical generator suspension and Magic Body Control® suspension. Electrical generator suspension is in its nascent phase and serves its usual purpose of absorbing shock, along with generation of energy needs of the vehicle.
The Magic Body Control® is a registered technology owned by Mercedes Benz, used especially in its S-class vehicles. This suspension system uses stereo camera installed in the windshield or rear view mirrors. It uses sensors to analyze the front surface, up to a distance of 50 meters. The microprocessor uses these data to adjust the vehicle’s suspension, providing the rider an extra edge by maximizing its comfort levels.
In a report stated by Organisation Internationale des Constructeurs d’Automobiles (OICA), which is the international organization of motor vehicle manufacturers, an international trade association of thirty nine members of national automotive industry, reported that sales of passenger vehicles of the world increased from 49.7 million in 2009 to 68.7 million in 2018, growing at average annual rate of 3.74%, whereas sales of commercial vehicles of the world increased from 15.9 million in 2009 to 26.4 million in 2018, growing at an average annual rate of 5.89%.
The market of automotive adaptive suspension system market is observing vibrant growth on account of increasing number of automobiles sold globally. Additionally, rising demand for regenerative lightweight suspension systems that increases rider comfort levels in a vehicle is another major factor propelling the growth of the automotive adaptive suspension system market.
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The market is anticipated to record robust CAGR throughout the forecast period, i.e. 2019 – 2027. The automotive adaptive suspension system market is segmented by vehicle type into passenger and commercial, out of which the passenger segment is anticipated to hold the largest market share, owing to increasing disposable income of the individuals in developing economies that is estimated to drive the sales of passenger vehicles over the forecast period.
Vehicles in the twentieth century have observed rapid technological advancements. Hunger for comfort, luxury, driving passion and best in class riding performances, combined with increasing disposable incomes to purchase premium category passenger vehicles have driven the demand for advanced suspension systems in the automotive adaptive suspension system market over the forecast period.
Governments of various economies have come up with stringent rules and regulations keeping in mind the necessity to ensure safety of vehicles . Dynamic changes taking place in safety regulations, such as the Federal Motor Vehicle Safety Standards (FMVSS), Canada Motor Vehicle Safety Standards (CMVSS), Bharat New Vehicle Safety Assessment Program (BNVSAP) and others over time has resulted in the growing need for advanced safety systems. This factor is anticipated to fuel the growth of the automotive adaptive suspension system market throughout the forecast period.
Availability of automotive adaptive suspension system in a vehicle denotes its luxury, comfort and safety. It is highly improbable that the majority of the mass population can afford the purchase such high priced vehicles with advanced technology, owing to the fact that they are meant for luxury. Manufacturing enterprises have psychologically applied premium pricing models to their suspension systems as a measure of differentiating from their competitors. Thus, the factor of rising cost is anticipated to act as a barrier to the growth of the automotive adaptive suspension system market during the forecast period.
Our in-depth analysis of the automotive adaptive suspension system market includes the following segments:
On the basis of regional analysis, the automotive adaptive suspension system market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The markets in Asia-Pacific and Middle-East are expected to occupy the largest market share on the back of rapid growth in the sales of passenger vehicles and rising disposable incomes. Another statistical data provided by OICA, stated that passenger vehicle sales in Asia, Oceania and Middle-East grew from 15,097,677 numbers in 2005 to 39,296,980 numbers in 2018. Further, Europe is anticipated to gain significant market share on account of growing demand for luxury vehicles having high safety standards combined with additional features such as performance and stability. This factor is expected to support the growth of the market in this region.
The automotive adaptive suspension system market is further classified on the basis of region as follows: