The chassis module is an assembled frame module on which the vehicle body and powertrain are mounted and is located on the lower part of the vehicle, consisting of the suspension, steering, and brakes. The global chassis module market is projected to grow at a promising rate in the upcoming years. Surge in demand for chassis modules from varied application segments is estimated to safeguard the expansion of the market during the forecast period.
Rapid industrialization and construction across the emerging economies globally are some of the key factors fostering the growth of the market. The demand for the chassis module market is projected to grow in the regions of Africa, Europe, Middle East, and Asia-Pacific because of the technological advancement in the field of construction and automotive electronics market.
Market Scope and Structure Analysis
The chassis module provides the strength to support a vehicle's components and the load placed upon it. The suspension system is also connected with it and contains the shock absorbers, springs, and other components that allow the vehicles to pass over.
The construction site refers to heavy material processing to create an infrastructure. Thus, it requires a lot of heavy vehicles to carry out the work. Stored suspensions and chassis modules are required for smooth infrastructural work. Chassis modules are also used in the automotive electronic system which is carried out inroads. This boosts the growth of the market
COVID-19 Impact analysis
- COVID-19 has shut down a large number of construction sites, power plants, technology advancement companies, and others. This has hampered the growth of the chassis module market in the last few months and is likely to continue during 2021.
- COVID-19 has already affected the sales of the chassis module in the first quarter of 2021 and is anticipated to weaken the market growth throughout the year.
- The major demand for chassis modules was previously noticed from giant manufacturing countries including the U.S., Germany, Italy, UK, and China, the spread of the coronavirus negatively affected the market, declining the demand for the product.
- Further, the potential impact of the lockdown is currently vague and the financial recovery of companies is based on its cash reserves. Key players of the chassis module market are expected to afford a full lockdown only for a few months, after which they have to modify their investment plans. For instance, various players in the market halted their service activities for several weeks to reduce the expenses. Whereas few players also adopted employee lay-offs to sustain during the COVID-19 health crisis
- The chassis module market is expected to focus on protecting its workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
Top Impacting Factors
The top impacting factor which drives the chassis module market growth is the increase in the demand for fuel-efficient vehicles. In addition, innovations and technological advancements in automotive electronic vehicles boost the market growth. Vehicles will be more productive as the chassis will get lighter in weight. However, rise in electric vehicle production is anticipated to provide lucrative opportunities for the growth of the market. Emission of harmful gases due to fuel consumption limit the market growth.
- A good example of an advanced electronic systems-based chassis system is the Integral Chassis Control (ICC) that has been developed by ZF. The ICC technology connects individual chassis systems to enable enhanced driving dynamics.
- ZF opened its first plant in Vietnam. Following its local-for-local strategy, the company established a production site for a new Vietnamese customer in Hai Phong. The facility, located in Vinfast's 70-ha Supplier Park of Vinfast Manufacturing Automobile and E-scooter Plant on the Cat Hai Island of the country’s northern shore. It produces chassis modules just in time for a local automotive manufacturer. ZF has invested more than 25 million euros in the site.
Key Benefits of the Report
- This study presents the analytical depiction of the chassis module market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the chassis module market share.
- The current market is quantitatively analyzed to highlight the chassis module market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed chassis module market analysis based on competitive intensity and how the competition will take shape in the coming years.
Chassis Module Market Report Highlights
Key Market Players
Hyundai Mobis, American Axle & Manufacturing, Inc., ZF Friedrichshafen AG, Gestamp., Robert Bosch GmbH, Benteler International AG, Schaeffler AG, AISIN SEIKI Co., Ltd., Magna International Inc., Continental AG