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News Release from: Frost and Sullivan | Subject: European automotive suspension system market
Edited by the Manufacturingtalk Editorial
Team on 21 November 2005
Automotive suspension suppliers face
change
Multi link systems and advanced systems such as air suspension systems likely to drive revenue growth in the European suspension systems market - suppliers face greater pressure says report.
Driven by an increasingly demanding customer base, the European automotive industry is continuously working towards improving the ride handling capabilities and comfort levels of vehicles Suspension systems are vital in achieving such improvement and apart from working on developing advanced suspension systems such as air suspensions, original equipment manufacturers (OEMs) are also working on improving existing base suspension technologies such a McPherson struts, twist beam systems and multi link systems
This article was originally published on Manufacturingtalk on 28 Apr 2004 at 8.00am (UK)
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Given that the cost feasibility of such technologies is crucial to their market success, suppliers will need to ensure that their solutions meet desired cost technology ratio that vehicle manufacturers expect.
Base suspension systems such as McPherson strut systems feature on the front of most vehicles, giving it a market penetration of over 85.0 per cent in 2004.
While the penetration of front double wishbone systems and multi link system is expected to increase around 2008-2009, twist beam and multi link systems are the predominant technologies among rear suspension systems.
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Fuelled largely by the lower medium, medium and higher segments, multi link systems are however, expected to corner over 55 per cent of the market for rear suspension systems in the long term.
"Considering the increasing willingness of end users to pay for significant improvements of the vehicles comfort and ride handling features, the automotive industry is investing considerable resources into researching and developing advanced suspension systems," says Frost and Sullivan research analyst Jatin Khanna.
"Air suspension systems lead the advanced suspension systems market with about 3.0 per cent penetration in 2004 and opportunities in the air suspension systems market are expected to increase with the lower D segments moving towards adopting these systems as standard equipment in the medium to long term." In the face of a growing trend towards the elimination of hydraulics in cars and for integrated chassis control, electronically controlled air suspension is likely to be the technology of the future.
However, vehicle manufacturers are likely to sharpen their focus on the development of suspension-by-wire as well, but only after other vital systems such as brake-by-wire and steer-by-wire are launched in larger volumes.
Hence, its introduction in select applications is expected only around 2012-2013.
Revenues from front suspension systems stood at EUR 846.0 million in 2004 and this figure is forecast to reach EUR 1.11 billion by 2012.
On the other hand rear suspension systems accounted for revenues of EUR 1.28 billion in 2004 and this figure could reach EUR 1.75 billion by 2012.
While the European suspension systems market is witnessing changes in terms of improvements in existing base suspension systems and development of advanced suspension, component suppliers will need to keep pace with industry trends and requirements in order to retain and expand their client base.
With the growing use of electrical components to increase chassis automation and achieve faster response, it is becoming imperative to provide solutions that can be integrated with electronic components.
Moreover, as multiple functions need to be performed by a single electronic control unit, suppliers need to design systems that can adapt to these electronic components and also ensure compatibility with other chassis components without putting too much pressure on costs.
In addition, suppliers of components have to refrain from standardising components as doing so may inhibit their adaptability across different vehicles.
Tire manufacturers in particular are confronted with this challenge, as when a particular tire concept is fitted onto a particular brand of vehicle, there is no guarantee that the consumer will replace that tire with original equipment at the workshop or garage.
This creates hindrances from the suppliers' point of view as well as inconvenience for the end users.
"The suspension components market in Europe is fragmented with a number of suppliers possessing the expertise to meet the requirements of OEMs," says Khanna.
"While the increased competition is pushing suppliers towards providing customised solutions, companies will have to be strategically disciplined in their efforts and avoid digressing towards opportunistic strategies for short-term gains." *Title - 'Strategic Analysis of the European Suspension Systems Market' - Code: B511.
* About Frost and Sullivan - Frost and Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years.
The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities.
Frost and Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
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