Automotive Air Suspension System Market Trends

Key Emerging Trends in the Automotive Air Suspension System Market

The automotive shock absorber market is experiencing significant growth driven by the expanding use of hybrid and electric vehicles. Consumer preferences are shifting towards hybrid and electric vehicles due to the fuel-saving advantages offered by automotive shock absorbers. This demand is further propelled by increasing government support for the automobile industry, particularly for electric vehicles (EVs), contributing to a surge in the need for automotive shock absorbers.
Notably, the adoption of electric vehicles is rapidly increasing in emerging countries. A notable example is India, where the electric car industry witnessed substantial growth in 2019. The Ministry of Heavy Industries and Public Enterprises (MHIPE) reported a positive trajectory, supported by the government's approval of USD 1.3 billion in programs under the FAME-2 initiative. This initiative aims to promote electric and hybrid vehicles, with nearly 285,000 customers receiving incentives, leading to USD 47 million in revenue by November 2019.
The International Energy Agency reports a surge in electric car sales in 2021, and this momentum has continued into 2022. However, sustaining future growth requires increased efforts to diversify battery manufacturing and secure crucial mineral sources to prevent bottlenecks and price increases. The latest Global Electric Vehicle Outlook highlights that sales of electric cars, including fully electric and plug-in hybrids, doubled in 2021, reaching a record high of 6.6 million. The pace of sales remained robust into 2022, with 2 million electric cars sold globally in the first quarter, marking a three-quarters increase from the same period the previous year.
The ongoing growth in the automotive shock absorber market is intricately tied to the surge in hybrid and electric vehicle adoption. As consumers increasingly prioritize fuel efficiency and governments globally promote sustainable transportation initiatives, the demand for electric vehicles, and consequently, automotive shock absorbers, is expected to continue its upward trajectory. Despite challenges in the supply chain, the resilience and growth of electric vehicle sales underscore the importance of addressing critical factors like battery manufacturing and mineral sourcing to sustain this positive momentum in the automotive industry.