Increasing growth of the transportation industry and trucking activities is one of the most important factors fuelling growth of the air spring components market
According to a study, the air spring components market is witnessing 6.4% year-on-year CAGR in 2018 over 2017. The study finds that burgeoning applications of trucks in the transportation industry are boosting installation of air spring components to improve vehicle safety and ride quality on uneven roads and long descents. This is mainly driving the growth of the air spring components market. Increasing growth of the transportation industry and trucking activities is one of the most important factors fuelling growth of the air spring components market.
Other factors triggering adoption of air spring components include increasing production and sales of commercial vehicles across the globe; awareness about drivers’ safety, comfort, and convenience at long journeys; recent technological developments in suspension systems used in commercial vehicles; globalisation and urbanisation trends initiating developments in road infrastructures; and rapidly-expanding logistics and warehousing industry. With the rising sales of commercial vehicles, the importance of ride quality is making a significant impact on customers’ purchasing decisions.
Thereby, modern automakers are focusing more on the use of high-quality air spring components, which is majorly contributing to growth of the air spring components market. Meanwhile, the report states that traditional dominance of OEMs as a leading sales channel in the air spring components market continues to persist. In fact, original equipment manufacturers are likely to become the leading sales channel in the air spring components market as a majority of OEMs are gaining control of the complete lifecycle of commercial vehicles, including maintenance services.
The study finds that OEMs hold a significant market share of over 75% in the air spring components market as OEMs account for commercial vehicle air spring sales three times higher than other sales channels. OEMs are cashing revenue potential in the air spring components market by beginning to supply as well as manufacture air spring components. OEM workshops are achieving higher sales of air spring components by utilising lucrative opportunities to improve customer experience, putting the entire aftermarket under pressure. Other sales channels in the aftermarket value chain are being challenged by OEMs to supply high-quality as well as cost-effective air spring components.
Massive lobbying by OEMs in the air spring components market is creating barriers to entry for new commercial vehicle air spring suppliers, thereby gobbling up a significant share in this sector. Further, despite the commercial vehicle sales being outnumbered by passenger car sales, lightweight commercial vehicles (LCVs) as well as heavy commercial vehicles (HCVs) are witnessing burgeoning demand in developed countries, which underscores incremental growth of air spring components market in developed nations. With the ever-growing logistics and transportation industries in Europe and North America, the production and sales of commercial vehicles is likely to surge, triggering high demand for air spring components in the upcoming years.
According to the American Trucking Association, the 71% of freight in the US is moved by trucks, which generated $738.9 billion in total freight revenues by transporting over 10 billion tons of freight in 2016. Increasing use of commercial vehicles in the US’ logistics and transportation industry is creating high demand for air spring components to enhance the ride quality of commercial vehicles and cargo safety. Furthermore, a majority of leading manufacturers of air spring components are headquartered in Europe, especially in Germany. Leading players in the European air spring components market continue to introduce innovative and technologically advanced air spring components to leverage the growing demand for safer, comfortable, and cost-effective commercial vehicles in the region.
The study opines that increasing production of high-quality air spring components in developed nations will make air spring components markets in North America and Europe the most lucrative for commercial vehicle air spring manufacturers and distributors in the upcoming years. The report tracks the air spring components market for the period 2018-2026. According to the report, the market is likely to grow at over 6.6% CAGR through 2028.