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The global automotive chassis market size was valued at USD 136.65 billion in 2022. The market is projected to grow from USD 147.68 billion in 2023 to USD 330.02 billion by 2030, exhibiting a CAGR of 12.17% 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.
Disruption in Supply Chains and Travel Restrictions Stifled Market Growth During Pandemic
The COVID-19 pandemic severely impacted the automotive industry across the globe. Various countries worldwide have implemented nationwide lockdown norms to prevent the spread of the virus. Auto sales plunged sharply in the second half of 2020 due to the pandemic and strict social distancing regulations. Stringent social distancing norms and nationwide lockdowns resulted in the complete closure of various OEM manufacturing units, halting the movement of raw materials and directly or indirectly affecting thousands of dependent workers and the industry. Lockdowns, unemployment, and wage cuts have exponentially reduced car needs. This has also significantly reduced the purchasing power of consumers.
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. Multiple countries worldwide have implemented large-scale vaccination campaigns to limit the spread of the virus. These factors have gradually increased the demand in the automotive market, thereby boosting the global market during the projected period.
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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. This factor is expected to increase the capacity of EV batteries, which could boost the demand for EVs during the forecast period.
Rising Demand for Advanced Chassis Materials to Bolster Market Growth
The rising demand for vehicle weight reduction to improve overall vehicle efficiency, along with battery life and fuel efficiency, is one of the major factors driving the market. Moreover, aluminum alloy materials for manufacturing vehicle chassis systems are majorly utilized by the key operating players. Aluminum is the lightest metal and greatly reduces chassis weight. Therefore, aluminum alloys are expected to minimize the vehicle's overall weight significantly. In addition, technological developments have also led to using metals such as carbon fiberglass composites. Reducing vehicle weight is a well-known method automakers and various OEMs utilize it, as it can significantly reduce fuel consumption and CO2 emissions. Less force and inertia must be overcome to attain less weight. Therefore, the rising use and adoption rate of such advanced materials for different vehicle manufacturing applications, including chassis, will create demand for automotive chassis in the near future.
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.
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 69.75 billion in 2022 and is expected to grow at a CAGR of 12.17% over the estimated 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.
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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 47.14 billion in 2022 and is expected to grow at a CAGR of 11.58% 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 5.24 billion in 2022 and is anticipated to grow at a CAGR of 22.80% 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.
Asia Pacific Automotive Chassis Market Size, 2022 (USD Billion)
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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 57.78 billion in 2022. Exhibiting a CAGR of 12.64% the market is estimated to reach USD 144.74 billion by 2030. The region is expected to dominate the market over the estimated period.
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.
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.
An Infographic Representation of Automotive Chassis Market
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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.
ATTRIBUTE | DETAILS |
Study Period | 2019-2030 |
Base Year | 2022 |
Estimated Year | 2023 |
Forecast Period | 2023-2030 |
Historical Period | 2019-2021 |
Growth Rate | CAGR of 12.17% from 2023 to 2030 |
Unit | Value (USD Billion) and Volume (Thousand Units) |
By Vehicle Type
| |
By Chassis Type
| |
By Region
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As per the Fortune Business Insights study, the market size was USD 136.65 billion in 2022.
The market is likely to grow at a CAGR of 12.17% over the forecast period (2023-2030).
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 2022.