US Automotive Chassis Market Size Worth $30.8 Billion By 2030: IndustryARC

The US Automotive Chassis Market size is predicted to reach $30.8 billion by 2030, growing at a CAGR of 5.0% during the forecast period 2024-2030 according to the latest market research report published by IndustryARC. The growing demand for electric vehicles (EVs), shift towards autonomous driving, consumer preference for SUVs and crossovers, are driving the industry's growth in the US. High R&D costs and technology adoption, global competition and market consolidation are few of the factors hampering the market. Efficient powertrain options, including hybrid and plug-in hybrid variants, provide consumers with eco-friendly alternatives without sacrificing performance or utility, contributing to the growing popularity of SUVs and crossovers in the US automotive industry, finds IndustryARC in its recent report, titled “Automotive Chassis Market – By Drive Type (Internal Combustion Engine {Diesel, Gasoline}, Electric Vehicle {PHEV, HEV, Pure Electric}), By Vehicle Type (Passenger Cars {Small Car, Sedan, SUV, Others}, Heavy Commercial Vehicle, Light Commercial Vehicle), By Frame Material (Steel {Advanced High-Strength Steel, High Carbon Steel, Others}, Aluminum Alloy, Carbon Fiber Composites, Others) By Level of Autonomy (Level 0, Level 1, Level 2, Level 3, Level 4, Level 5), By Chassis Subsystem (Frame {Monocoque, Ladder, Chassis Rail, Others}, Steering {Fly-by-Wire System, Redundant Steering System, Others}, Braking {Redundant Braking System, Brake-by-Wire System, Automatic Emergency Braking (AEB) System, Others}, Suspension, Tires, Others), By Geography - US Opportunity Analysis & Industry Forecast, 2024-2030”

The U.S. is anticipated to experience the highest Growth of CAGR 5.0% in the Automotive Chassis Market between 2024 and 2030. Within the U.S. market, there is a notable shift towards electric vehicles across all segments. Automakers are investing heavily in the development of electric vehicle platforms and expanding their electric vehicle offerings to meet growing consumer demand. By increasing environmental concerns, government regulations promoting cleaner transportation, and advancements in battery technology, there is a rapid rise of electric vehicles. Automakers are introducing hybrid powertrains across various vehicle segments to improve fuel efficiency, reduce emissions, and meet regulatory requirements. HEVs and PHEVs can offer a transitional solution for consumers. The U.S. Automotive Chassis Market is the continuous advancements in lightweight materials and design optimization techniques. Lightweighting is crucial for improving fuel efficiency, reducing emissions, and enhancing vehicle performance.

By drive type, electric vehicle segment is analyzed to grow with the highest CAGR of 7.1% during the forecast period 2024-2030. The electric vehicle segment in U.S. automotive chassis market uses electric motors powered by batteries or fuel cells to propel the vehicle, eliminating the need for traditional internal combustion engines. The increase in EV sales prompts adjustments in the automotive supply chain to meet the growing demand for electric vehicle chassis components in the market.

Steel segment held a major market share in 2023 and is analyzed to continue its dominance over the market growing at CAGR 5.3% during the forecast period 2024-2030. The Steel segment in U.S. Automotive Chassis is constructed using various steel grades, offering a balance of strength, durability, and cost-effectiveness. Within this category, advanced high-strength steel (AHSS) and high-carbon steel are commonly used for automotive chassis due to their superior mechanical properties. Continued advancements in steel metallurgy and manufacturing processes enable the development of lighter and stronger steel alloys. Therefore, opportunities exist for chassis manufacturers to leverage these innovations.

By level of autonomy, level 0 segment held a major market share in 2023 and is set to witness a growth of CAGR 1.6% during 2024-2030. Manufacturers prioritize innovative technologies like regenerative braking and ABS (anti-lock braking system) for Level 0 autonomy. The industry’s trajectory is influenced by the growing adoption of electric cars and the emergence of autonomous vehicles. These trends herald a future where Level 0 autonomy in automotive chassis incorporates advanced braking systems to meet evolving demands in the US.

Stringent safety regulations have spurred manufacturers to integrate robust safety features. The NHTSA’s mandate for automatic emergency braking in vehicles since 2022 drives innovation. Market players are actively launching enhanced systems, fueling growth in Level 0 autonomy braking systems for automotive chassis in the US.

With increasing competition, pricing pressures, and rising input costs, U.S. Engineering Services Outsourcing for Automotive Chassis providers face the dual challenge of delivering high-quality services while maintaining profitability. This is particularly challenging in the context of automotive chassis design and development, where the complexity of projects and the need for specialized expertise can drive up costs.

Moreover, margin erosion is a significant concern for Engineering Services Outsourcing providers in Automotive Chassis, as intense competition and commoditization of services put pressure on pricing and profit margins. This may lead to downward pressure on prices and the need to absorb additional costs, such as investments in technology and regulatory compliance, without passing them on to clients. As a result, Engineering Services Outsourcing providers may face challenges in maintaining profitability and sustaining long-term growth in a highly competitive market environment.

The accelerating adoption of Electric Vehicles (EVs) and Autonomous Driving Technologies heralds a transformative era in the automotive industry, presenting substantial opportunities for U.S. engineering services in the realm of chassis design and development. As traditional combustion engine vehicles give way to their electric counterparts and manual driving yields to autonomous systems, automotive companies are under increasing pressure to innovate and adapt. This shift necessitates a fundamental reimagining of chassis systems to accommodate the unique requirements of EVs and autonomous vehicles. U.S. engineering firms are poised to meet this demand with specialized expertise in lightweight materials, battery integration solutions, and advanced safety features critical for the successful implementation of these technologies.

The ongoing digital transformation and integration of advanced manufacturing technologies represent a pivotal opportunity for U.S. engineering services within the automotive industry, particularly concerning chassis development. 

As automotive companies, navigate the complexities of Industry 4.0, U.S. engineering firms stand poised to facilitate this transition by offering expertise in digital engineering tools, simulation, and analytics. 

Through the creation of digital twins, these firms enable virtual testing and optimization of chassis designs, streamlining the development process and reducing time-to-market. Moreover, the advent of additive manufacturing presents novel avenues for producing complex chassis components with unprecedented precision and efficiency.

The COVID-19 epidemic has left a significant impact on the automotive sector. Rising coronavirus incidence throughout the world prompted strict social separation and lockdown standards, causing supply chain disruption and hurting product demand. The COVID-19 problem affected sectors globally, with the global economy suffering the most in 2020 and perhaps 2021. The pandemic caused damage on main businesses such as shipping, retail, and e-commerce. The major fall in the transportation industry has hampered the expansion of the worldwide automotive market.

The Russia-Ukraine war has broader consequences on the global economy, including energy prices, supply chains, and trade flows. These macroeconomic factors have indirectly affected overall demand for Automotive Chassis.

The US Automotive Chassis Market is fragmented with several global and regional companies operating with expansive manufacturing capabilities and extensive distribution networks. The key companies profiled are listed below:

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