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Automotive Chassis Market Size, Share & Industry Analysis, By Vehicle Type (Passenger Cars, Commercial Vehicles, and Electric Vehicles), By Chassis Type (Non-Conventional, Conventional, and Modular), and Regional Forecast, 2024–2032

Last Updated: May 13, 2024 | Format: PDF | Report ID: FBI101581



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The global automotive chassis market size was valued at USD 147.68 billion in 2023. The market is projected to grow from USD 161.66 billion in 2024 to USD 439.69 billion by 2032, exhibiting a CAGR of 13.3% over the forecast period.

Chassis is the frame on which the vehicle is mounted, forming the lower part of the vehicle. It is one of the vehicle's most important components to be evaluated. A strong metal frame can support the entire vehicle's weight in static or dynamic situations. In the manufacturing industry, frame bars are called the backbone of the vehicle. It is described as an element that allows the assembly of other parts or components such as engines, gearboxes, brakes, axles, and tires. Automotive chassis is constructed to provide sufficient strength to withstand the load.

Stringent vehicle emissions and safety standards require automakers to reduce vehicle weight and maintain structural design strength. This factor forced manufacturers to change chassis designs from traditional heavy steel to lightweight composite construction. For example, in September 2021, Lotus unveiled its latest lightweight chassis technology for its next-generation electric vehicles.

During the COVID-19 pandemic, auto sales plunged sharply in the second half of 2020. OEM manufacturing units, halting the movement of raw materials and directly or indirectly affecting thousands of dependent workers and the industry. In the second half of 2021, various OEMs worldwide resumed manufacturing operations with 50% of their workforce while adhering to appropriate social distancing standards to avoid spreading the virus. Thus, the COVID-19 pandemic impacted the market with less vehicle sales and production.

Automotive Chassis Market Trends

Increasing Adoption of Electric Vehicles to Propel Market Growth

Various countries have set goals to reduce vehicle emissions by 2050. They have begun to encourage the development and sale of the EV market and associated charging infrastructure by offering various incentives, such as purchase taxes, to consumers adopting EVs. For example, the U.S. provides incentives of up to USD 7,500 to purchase new electric vehicles. EV manufacturers are focused on delivering automotive chassis with cutting-edge design and weight savings. For instance, in January 2024, U POWER Tech developed a plug and play electric vehicle chassis and showcased it at the CES event 2024. The UP Super Board is designed to integrate electric propulsion, suspension, steering, thermal management, and Level 2+ advanced driver assistance system (ADAS). Thus, the increasing demand for electric vehicles, and companies catering to this demand by developing advanced chassis technology fuels the market development over the forecast period.

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Automotive Chassis Market Growth Factors

Rising Demand for Advanced Chassis Materials to Bolster Market Growth

Chassis contributes significantly to the overall conventional and electric vehicles, and carbon footprint, due to which companies are more focused on developing automotive chassis with advanced material technologies. Companies are shifting to composites and hybrid systems, which comprises multiple materials, mainly metal and composites or several types of composites. This caters to the results such as reduced mass and tooling costs, eliminates corrosion concerns, and provides improved noise, vibration, or harshness. In March 2023, ArcelorMittal signed a MOU (memorandum of understanding) with KIRCHHOFF Automotive, to develop complex metal and hybrid structures for body-in-white and chassis. Under the agreement, the companies also aim to reduce the carbon emission, by developing low carbon-emissions steel for cars and trucks.

Rising Demand for SUVs to Drive the Automotive Chassis Market

According to the IEA, global SUV sales have been very resilient during the pandemic, growing more than 10% between 2020 and 2021. SUV sales and brand share will hit record highs in 2021, accounting for more than 45% of all new vehicle sales worldwide. SUV sales are still growing rapidly in several countries, including the U.S., India, and some European countries. For instance, in April 2023, passenger car sales in India increased by 27% to 3.9 million units, the highest ever in the previous financial year. However, the popularity of battery-powered small electric vehicles is growing rapidly in China, and the adoption of SUVs is declining. In 2021, there were over 35 million SUVs on the road worldwide. Therefore, the rise of SUVs is expected to greatly boost the market expansion.


Fluctuating Price of Raw Materials to Hamper the Growth of the Market

The raw materials used to manufacture automotive chassis systems are mainly carbon steel, and aluminum alloys. Reforms in the European Emissions Trading Scheme have increased the cost of aluminum, carbon, and other metals used in chassis manufacturing. These factors are expected to discourage the use of these metals in chassis system manufacturing. Therefore, the price volatility of raw materials used in automotive chassis systems is expected to restrain the growth of the global market.

Automotive Chassis Market Segmentation Analysis

By Vehicle Type Analysis

Passenger Cars Held the Largest Market Share Owing to the Rising Disposable Income of Consumers

The market is trifurcated into passenger cars, commercial vehicles, and electric vehicles based on vehicle type. The passenger cars segment was valued at USD 74.34 billion in 2023 and is expected to grow at a CAGR of 13.6% over the forecast period.

Demand for passenger cars is growing rapidly as international automakers become more prominent and consumers are ready to purchase new vehicles with advanced technology. Passenger cars have advanced technologies such as fast charging, navigation, voice recognition, and smartphone integration. Some passenger cars are equipped with features such as automatic parking, automatic braking, and lane-keeping assistance. These factors are expected to boost demand for the passenger car segment during the forecast period and drive the global automotive chassis market growth. For instance, in 2021, passenger car sales increased by 5% globally, from 53.92 million cars in 2020 to 56.40 million cars in 2021. Indian passenger car sales are estimated to have increased by more than 8% in January 2023 compared to December 2022. Additionally, the installation of advanced safety features is fueling the growth of the passenger cars segment. For instance, the Union Minister of Road Transport and Highways announced that from 1st October 2022, all new cars sold in India should mandatorily be equipped with six airbags. Moreover, light commercial vehicles and heavy commercial vehicles also contribute significantly to the growth of the market due to increasing adoption/demand for lightweight materials for automotive chassis manufacturing in major regions.

The electric vehicles segment is projected to grow the fastest during the forecast period. Automotive technology is expected to change significantly over the next decade with the introduction of electric vehicles and advances in self-driving cars. Sales of electric vehicles are projected to reach 28% of global passenger car sales by 2030 and 58% by 2040. Additionally, rising demand for clean energy is a major factor contributing to the growth of the electric vehicles market and surging the demand for automotive chassis.

By Chassis Type Analysis

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Non-Conventional Chassis Type Segment Held Significant Share Owing to Advanced Functionalities

By chassis type, the market is classified into non-conventional, conventional, and modular. The non-conventional segment was USD 49.85 billion in 2023 and is expected to grow at a CAGR of 13.3% over the forecast period.

Non-conventional chassis is a chassis type that can support any component or system in the vehicle. This system combines the body, increasing stiffness and weight for better handling. Non-conventional chassis are only used in conventional passenger cars. Since there are no frame joints, vibrations and shocks from some loose parts are reduced. The demand for conventional passenger vehicles with advanced features is, in turn, increasing the demand for non-conventional chassis worldwide. The chassis is light in weight and contributes to the vehicle's low fuel consumption.

The modular segment was valued at USD 6.31 billion in 2023 and is anticipated to grow at a CAGR of 22.7% over the estimated period. This segment holds the second-largest position in the market. Modular EV chassis is a purpose-built architecture that is expected to make EV manufacturing more efficient in the long run as it is easier to assemble and more cost-effective compared to other chassis types. Modular EV chassis is flexible, and manufacturers can increase or decrease production of specific powertrains as needed. This allows manufacturers to create infinite combinations of motors, suspension, steering, brakes, and drives to meet Electric Vehicle (EV) performance requirements. Hence, modular chassis is compatible with small electric vehicles to large minivans. Demand for electric vehicles has increased rapidly due to concerns about clean energy and environmental degradation. This factor is expected to fuel the demand for modular chassis over the forecast period.


Geographically, the market is divided into Asia Pacific, Europe, North America, and the rest of the world

The Asia Pacific market was valued at USD 62. 90 billion in 2023. Exhibiting a CAGR of 13.63% the market is estimated to reach USD 192.64 billion by 2032. The region is expected to dominate the market over the estimated period.

Asia Pacific Automotive Chassis Market Size, 2023 (USD Billion)

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Asia Pacific continues to dominate the market, offering significant cost savings to manufacturers due to the availability of cheap labor and raw materials. This region includes China and India, which account for about 34% of total vehicle production due to their huge populations and rising purchasing power parity. The growing popularity of aluminum alloy chassis has led to an increase in luxury vehicle sales. In addition, increasing growth due to the participation of commercial and government investment and foreign direct investment is expected to propel the Asia Pacific market during the forecast period.

North America holds the second-largest automotive chassis market share due to the development of new technologies and materials. The current trend in automotive chassis in this region is to use alternative materials instead of conventional materials to improve the joining process. Resin, fiber, and metal alloy materials are the current trends in the North America automotive industry, as they offer high payload capacity and are lightweight and cost-saving. Rising demand for luxury and sports cars is also likely to boost market growth in the region. For example, in January 2023, GM began production of the Hummer EV SUV at its Detroit-Hamtramac assembly plant in Michigan.

List of Key Companies in Automotive Chassis Market

Corporations are Focusing on Partnerships and Producing Enhanced Chassis to Maintain Competitive Edge

Key players are concentrated on acquisitions, cost-cutting strategies, and strategic partnerships, to develop their product offerings. For instance, in April 2021, Magna signed an agreement with Israeli startup REE Automotive to build an electric vehicle. The company aims to solidify its position in the EV market during the projected period. In partnership with REE, the company looks forward to expanding its product range.



  • April 2023: Magna International was contracted to build INEOS Automotive's all-new electric SUV, with production scheduled to begin in 2026 in Graz, Austria. Additionally, Magna will be responsible for the engineering of the entire vehicle. 

  • March 2023: Lamborghini has unveiled the carbon fiber chassis of its upcoming Aventador replacement, using more composite materials than ever before. The new design is based on integrating as many components as possible, eliminating the need for joints and welds. Forged composites offer a more efficient manufacturing process without the need for cooling-related energy consumption.

  • March 2023: ZF unveiled a software for an "intelligently networked" chassis system that optimizes the vehicle's longitudinal, lateral, and vertical dynamics. This solution controls all chassis systems and ensures harmonious acceleration, braking, precise steering, and balanced damping.

  • April 2023: ZF announced to invest USD 42.5 million through 2024 to expand its automotive chassis manufacturing capabilities in Mexico. The new facility features high-capacity assembly lines for just-in-sequence manufacturing of front and rear axle mounts and corner module mounts for electric passenger vehicles.

  • October 2022: Hyundai Mobis announced the delivery of chassis modules for four Mercedes-Benz E-SUVs. This made Hyundai the first supplier of chassis modules for a German luxury carmaker outside of Europe.


The report provides in-depth market analysis and focuses on key aspects such as leading companies, vehicle types, and product types. Besides, the report offers insights into the market trends and highlights key industry developments. In addition, the report encompasses several factors that contributed to the market growth in recent years.

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Study Period


Base Year


Forecast Period


Historical Period


Growth Rate

CAGR of 13.3% from 2024 to 2032


Value (USD Billion) and Volume (Thousand Units)


By Vehicle Type

  • Passenger Cars

  • Commercial Vehicles

  • Electric Vehicles

By Chassis Type

  • Non-Conventional

  • Conventional

  • Modular

By Region

  • North America (By Vehicle Type, By Country)

    • U.S. (By Vehicle Type)

    • Canada (By Vehicle Type)

    • Mexico (By Vehicle Type)

  • Europe (By Vehicle Type, By Country)

    • U.K. (By Vehicle Type)

    • Germany (By Vehicle Type)

    • France (By Vehicle Type)

    • Rest of Europe (By Vehicle Type)

  • Asia Pacific (By Vehicle Type, By Country)

    • China (By Vehicle Type)

    • Japan (By Vehicle Type)

    • India (By Vehicle Type)

    • South Korea (By Vehicle Type)

    • Rest of APAC (By Vehicle Type)

  • Rest of the World (By Vehicle Type, By Chassis Type)

Frequently Asked Questions

As per a study by Fortune Business Insights, the market size stood at USD 147.68 billion in 2023.

The market is likely to grow at a CAGR of 13.3% over the forecast period (2024-2032).

The passenger cars segment is expected to lead the market due to increasing sales of electric vehicles and use of advanced chassis technology in coming models.

Some of the top players in the market are Magna, ZF, Hyundai, REE, and Continental.

Asia Pacific dominated the market in terms of market size in 2023.

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