Alternative Sourcing Strategies Help Maintain Steady Supply Chains during COVID-19 Crisis
Several number of companies are restarting their operations since the COVID-19 pandemic has significantly subsided with the beginning of 2021. China, being the manufacturing hub for automobiles, is dictating the global automotive market in terms of demand and supply. Shortages of supplies from China have led to a domino effect around the world. Hence, companies in the automotive suspension spring market are focusing on supplying critical components to support manufacturers. They should consider adopting alternative sourcing strategies to maintain steady international supply chains.
Apart from identifying alternate suppliers, companies in the automotive suspension spring market should take into account the potential tax and tariff implications of suppliers. This involves customs, duties, and transfer pricing considerations, if the substitute components are internally sourced. As a response to the coronavirus pandemic, manufacturers are improving supply chain visibility and lines of communication to assess potential problems early on.
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Air Spring Systems: Potential Threat to Automotive Suspension Spring Systems
The automotive suspension spring market is predicted to expand at a CAGR of ~5% during the assessment period. However, air spring systems made with airbags are emerging as a threat to steel coil springs and traditional spring suspension, which is likely to hamper market growth. As such, high cost, mechanical, and maintenance issues of air spring systems tend to establish a steady demand for conventional automotive suspension spring systems.
In order to increase sales of automotive suspension spring systems, manufacturers need to adopt inventiveness in their R&D and production activities. For instance, Mubea— a lightweight construction specialist for high-strength automotive components, has introduced its GFRP (Glass Fiber Reinforced Plastic) tension leaf spring, which is replacing traditional steel leaf springs. Thus, weight reduction in vehicles has become a crucial focus point for manufacturers in the in the automotive suspension spring market.
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Collaborations Unlock Lucrative Potentials in Specialist Passenger Vehicles
Superior handling, less weight, and added comfort are being looked after in independent front suspension systems. Companies in the automotive suspension spring market are deploying innovations in independent front suspension systems, owing to their advantages of more stability and improved ride quality in rough terrains. The growing consumer preference for SUVs has fueled the demand for automotive suspension spring systems. This is evident since vehicle owners are becoming aware about superior lower and upper control arm features.
Suppliers and OEMs are collaborating with prestigious automotive vehicle manufacturers to design robust suspension springs. For instance, Melling Performance Springs— a spring supplier in Lytham St Annes, England, is partnering with renowned automotive vehicle manufacturers to deploy inventive technologies in steering system springs and suspension. Companies in the automotive suspension spring market are extending their supply arms for specialist passenger vehicles and premier automotive to expand their revenue streams.
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Economical Production of Helical Compression Springs Grabs Attention of Stakeholders
The current density of traffic on roads has triggered the requirement for safe and comfortable vehicles. Manufacturers in the automotive suspension spring market are increasing efforts to introduce intuitive designs, cost-effectiveness, and fault-free operation in systems to enhance driver safety and comfort. Apart from coil and leaf springs, manufacturers are developing helical compression springs that offer resilience in components and systems. The compact design of helical compression springs is grabbing the attention of OEMs, automotive manufacturers, and others in the value chain.
Space saving installations with compact design of helical compression springs is likely to boost car sales. Manufacturers in the automotive suspension spring market are capitalizing on this opportunity, as developing helical compression springs is economical. Maintenance-free attributes of helical compression springs ensure a proper pitch response and ground clearance of the vehicle body.
Automotive Suspension Spring Market: Overview
- The global automotive suspension spring market is anticipated to expand at a CAGR of ~5% during the forecast period, owing to increase in urbanization and rise in the demand for smart cities around the world that have propelled the usage of passenger cars and light commercial vehicles significantly
- Increased competition among automakers to launch models with competitive features has fueled the adoption of suspension springs across the globe. In 2014, Nissan launched Navara, the first pick-up truck with rear coil spring suspension. Likewise, the Ford Motor Company, General Motors, and Toyota Motor Corporation have been working actively to design new models with suspension springs, including coil and leaf springs, which is likely to boost the automotive suspension spring market across the globe.
Drivers of Automotive Suspension Spring Market
- Increasing demand for commercial vehicles due to expansion of the industrial sector is estimated to boost the production of light commercial vehicles, as they are used in industries, which, in turn, is likely to increase the demand for leaf springs and coil springs across the globe. This is anticipated to boost the automotive suspension spring market across the globe.
- Increased demand for electric vehicles is projected to further boost the demand for lightweight suspension springs. Manufacturers of suspension springs must, therefore, make necessary investments and gain expertise to develop lightweight suspension springs. Moreover, light weighting is imperative in the automotive industry and lightweight coil springs offer significant opportunity to manufacturers, which is likely to propel automotive suspension spring market across the globe.
Challenges for Automotive Suspension Spring Market
- The COVID-19 pandemic has caused a majority of businesses across the globe to crumble, owing to the forced shutdown of production and manufacturing activities. This has led the global economy to contract to its lowest growth rate. Majority of businesses in every industry is codependent and part of major supply chain in the market. Disruption in supply chain attributing to stoppage of transportation and shipping services, and reduced demand for vehicles across the globe are likely to affect the global automotive industry.
- High quality materials, including hardened steel for suspension spring may increase the cost of vehicles. Major fluctuation in prices of raw materials, which is likely to pose a challenge for the automotive suspension spring market across the globe.
Segmentation of Automotive Suspension Spring Market
- The global automotive suspension spring market has been segmented based on spring type, vehicle type, material, sales channel, and region
- Based on spring type, the coil spring segment dominated the global automotive suspension spring market. The transition among light duty vehicles and pick-up trucks from leaf springs to coil springs is anticipated to increase the demand for the coil springs during the forecast period. Rise in sale of passenger vehicles across the globe is likely to boost the demand for coil springs, which, in turn, is anticipated to boost the automotive suspension spring market across the globe.
- Based on vehicle type, the passenger vehicle held a major share of the global automotive suspension spring market. Rise in demand for passenger vehicles across the globe is projected to fuel the demand for suspension spring, as they provide comfort while driving. This, in turn, is anticipated to propel the automotive suspension spring market across the globe.
Automotive Suspension Spring Market: Regional Analysis
- Based on region, the global automotive suspension spring market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- Europe and Asia Pacific are projected to be highly lucrative markets during the forecast period. Rapid expansion of manufacturing industries across Asia Pacific is anticipated to propel the automotive suspension spring market across the region. Major presence of vehicle manufacturers across Europe is likely to drive the automotive suspension spring market.
Automotive Suspension Spring Market: Competition Landscape
- Key players operating in the global automotive suspension spring market include
- Eaton Detroit Spring
- Jamna Auto Industries
- FAW Group
- NHK Springs
- Continental AG
- Kilen Springs
- Draco Spring Mfg. Co.
- Renton Coil Spring Co.
- American Showa Inc.
- Marelli SpA
- Showa Corporation
- Key players at the global level are expanding their footprint by engaging in mergers & acquisitions with several other players in the industry. In May 2018, Sogefi SpA announced that it would start the production of coil springs at its production facility located at Wujiang, China. Previously, the company used to manufacture stabilizer bars at this facility. The production of coil springs is expected to cater to the increasing demand for higher technical standards required by local manufacturers. Emco has expanded its business in Asia Pacific by opening a new production facility at Haixing, Hebei Province in China. The facility is spread over an area of 200,000 square feet. The company aims to establish a strong service network by providing its products to several reputable steel mills.
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