Automotive Chassis Market Growth, Size, Share, Trends, and Forecast 2030

Automotive Chassis Industry Prospective:

The global automotive chassis market size was worth around USD 65.80 billion in 2022 and is predicted to grow to around USD 112.02 billion by 2030 with a compound annual growth rate (CAGR) of roughly 6.88% between 2023 and 2030.

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Automotive Chassis Market: Overview

Automotive chassis is a pressed-steel frame that acts as the skeleton of an automotive vehicle. It is also known as ‘Frame’ and can be compared to a human skeleton since it lays the required structural foundation for a vehicle. The main purpose of automotive chassis is to wear the overall weight of the vehicle in its dynamic and stationary state. Other components of an automotive unit such as axle assemblies, wheels, engine, steering mechanism, transmission, suspension member, and brakes are mounted on the chassis. In earlier times, the mounting process was carried out during the manufacturing procedure and was known as body-on-frame construction. However, with the aid of the latest technology available in the automotive industry, vehicle manufacturers can choose to combine both components in one structural segment. This process is known as unibody construction. Automotive chassis is a critical part of the overall structural integrity of the vehicle since it is essential in several operational aspects including safety, handling, and performance. While the automotive chassis market is expected to come across certain growth challenges, the overall outlook is showing positive signs of steady growth during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global automotive chassis market is estimated to grow annually at a CAGR of around 6.88% over the forecast period (2023-2030)
• In terms of revenue, the global automotive chassis market size was valued at around USD 65.80 billion in 2022 and is projected to reach USD 112.02 billion, by 2030.
• The automotive chassis market is projected to grow at a significant rate due to the growing demand for sports utility vehicles (SUVs)
• Based on chassis type segmentation, non-conventional was predicted to show maximum market share in the year 2022
• Based on vehicle type segmentation, passenger cars was the leading segment in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Automotive Chassis Market: Growth Drivers

Growing demand for sports utility vehicles (SUV) to create high growth momentum

The global automotive chassis market is expected to grow owing to the increasing demand for SUVs in the current automotive industry across the globe. Several key players in the automobile sector have reported significant growth in the sale and demand for advanced and high-tech sports utility vehicles as compared to other passenger cars mainly because they are highly versatile and offer excellent comfort. Following recent reports, India has recorded an increase of 9.69% in the sale of SUVs in 2023 as compared to 2022 leading to automakers investing more in providing improved features including higher safety to SUV buyers. A similar trend can be observed in the European market. Official reports that growth in demand for SUVs increased by 51% in 2023. Some of these attributes include advanced driver assistance systems (ADAS), advanced lighting systems, excellent off-road features, and overall lightweight structure. The sports utility vehicle sector is expected to continue growing during the projection period and may lead to higher demand for more efficient automotive chassis.

Increasing investments in the development of sophisticated vehicle manufacturing sites may deliver exceptional results

The demand for automotive chassis is likely to be impacted by the increased investments in the construction of new, advanced, and sophisticated vehicle manufacturing facilities. For instance, in September 2023, Toyota, a global automotive giant, inaugurated a state-of-the-art manufacturing facility that is expected to bring revolutionary changes in the future of car making. In a separate development, September 2023 also witnessed the announcement of USD 12 billion granted by the US to automobile makers and suppliers to allow them to retrofit their existing plants to support the production of electric vehicles.

Automotive Chassis Market: Restraints

Constantly changing prices of raw materials for automotive chassis may restrict market expansion

The global automotive chassis industry is expected to be restricted due to the constantly changing prices of essential raw materials used in the production of automobile frames. The most essential materials are aluminum, high-strength steel, plastic, elastomers, magnesium alloys, boron steel, cast iron, and copper alloys. The prices and supply of primary components are however extremely sensitive to the external market including trading relationships between the countries, social & economic factors, and other reasons. Slight changes in these variables can lead to dramatic shifts in the availability of essential raw materials. In 2022, steel imports to Europe remained considerably low in the last quarter resulting in an annual decrease of over -6.6%.

Automotive Chassis Market: Opportunities

Shifting focus toward electric and hybrid vehicles has tremendous opportunities for future growth

The global automotive chassis market growth will register a significantly high growth rate driven by the electric vehicle (EV) sector. In recent times, more players have entered the EV market resulting in reduced prices of these vehicles. Earlier since limited players were operating, the prices remained considerably high. However, with the urgent need to reduce dependence on non-renewable sources of fuel and escalating prices, the demand and consumption of EVs have improved since 2020. In June 2023, VinFast, a Vietnamese EV maker announced that it will soon begin the construction of a new USD 4 billion EV manufacturing facility in the US region. The production is set to start in 2025 with a production capacity of 150,000 vehicles annually.

Integration with advanced technology to improve overall deliverables may benefit the market growth rate

The automotive chassis industry growth rate is projected to receive a positive boost as market players continue to integrate other advanced digital technologies to improve overall deliverables in the automotive chassis industry. In April 2022, Qualcomm Technologies, Inc. and Stellantis N.V. signed a multi-year contract allowing the companies to use Snapdragon® Digital Chassis features for delivering customizable, intelligent, and immersive in-vehicle experience to all vehicles across iconic automobile brands by Stellantis’ 14 starting from 2024 and beginning with Maserati.

Automotive Chassis Market: Challenges

Retrofitting older chassis structures for current expectations from automobiles is a critical challenge

One of the key challenges faced by the global automotive chassis market players is retrofitting older automotive chassis to accommodate contemporary vehicle features. The process is extremely complex, challenging, and time or resource-consuming. The global automobile sector is constantly evolving with the introduction of new safety guidelines along with sensors and advanced driving systems, especially since the introduction of EVs. Companies operating in the industry must focus on meeting consumer expectations.

Automotive Chassis Market: Segmentation

The global automotive chassis market is segmented based on chassis type, material, vehicle type, engine type, and region.

Based on chassis type, the global market is divided into conventional, non-conventional, and modular. In 2022, the highest growth was registered in the non-conventional segment. It generated a revenue of USD 47.16 and is projected to grow at a CAGR of 11.6% during the forecast period. This type of chassis can provide support to all forms of systems and components in a vehicle and improves handling attributes. Furthermore, they also contribute to reduced fuel consumption.

Based on material, the global market is divided into carbon fiber composite, mild steel, aluminum alloy, and high strength steel.

Based on vehicle type, the automotive chassis industry is divided into heavy commercial vehicles, light commercial vehicles, and passenger cars. In 2022, the highest revenue-generating segment was passenger cars with a total sale of USD 69.76. It is projected to grow at a CAGR of 12.2% in the coming years. The increased sale of EVs along with a rising number of automakers offering affordable cars and surging demand for luxury vehicles in the premium category were the essential growth contributors in 2022.

Based on engine type, the global market is fragmented into fuel-powered and electric.

Automotive Chassis Market: Report Scope

Automotive Chassis Market: Regional Analysis

Asia-Pacific is the fastest-growing region and will lead during the forecast period

The global automotive chassis market was dominated by Asia-Pacific in 2022. It generated over USD 58 billion in revenue and is anticipated to grow at a CAGR of 12.65% during the forecast period. The presence of the large-scale automotive ecosystem in countries such as Japan, India, China, and Vietnam is the most critical factor for regional dominance. Furthermore, the auto-makers in Asia-Pacific are continuously striving toward the production of affordable vehicles by leveraging the existence of a large labor force and essential raw materials. China is currently the world’s largest producer and supplier of electric vehicles. It also has high domestic demand for EVs. On the other hand, raw materials such as high-strength steel and aluminum required for the production of automotive frames are readily available in the country. The increasing investments in the regional automotive economy will further help Asia-Pacific to continue registering a high growth rate. Europe is projected to deliver significant results. The region is home to several key producers and suppliers of automotive chassis.

Automotive Chassis Market: Competitive Analysis

The global automotive chassis market is led by players like:

• American Axle & Manufacturing
• Bosch GmbH
• Magna International Inc.
• Continental AG
• Hyundai Mobis
• ZF Friedrichshafen AG
• Faurecia SA
• Aisin Seiki Co. Ltd.
• AAM
• Tenneco Inc.
• BorgWarner Inc.
• Gestamp Automoción
• Thyssenkrupp AG
• BENTELER International AG
• Dana Incorporated
• Tower International
• Martinrea International Inc.
• Schaeffler Group
• Knorr-Bremse AG
• Benteler Automotive

The global automotive chassis market is segmented as follows:

By Chassis Type

• Conventional
• Non-Conventional
• Modular

By Material

• Carbon Fiber Composite
• Mild Steel, Aluminum Alloy
• High Strength Steel

By Vehicle Type

• Heavy Commercial Vehicles
• Light Commercial Vehicles
• Passenger Cars

By Engine Type

• Fuel-Powered
• Electric

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa