Revenue Forecast:

The revenue estimate for the base year 2023 in the Class 1-3 Steering and Suspension Aftermarket, Europe, 2024–2030 is approximately €1.1 billion. The compound annual growth rate (CAGR) for the study period is projected at 1.2% to 2.4%.

The Impact of the Top 3 Strategic Imperatives:

Transformative Megatrends

Why

• Although shared mobility services have witnessed growth across Europe, the average annual kilometers (km) traveled is dropping across several countries in the region, indicating an overall decline in personal mobility.

Frost Perspective

• Shared vehicles have a higher average km traveled than personal vehicles and thus make a higher contribution to the steering and suspension component aftermarket.
• Original equipment manufacturers (OEMs) and aftermarket brands will likely partner with large and small fleets to increase their market share and revenue.

Disruptive Technologies

Why 

• Battery electric vehicles (BEVs) are forecasted to displace many internal combustion engine (ICE) vehicles in new vehicle sales in Europe by the end of the decade.

Frost Perspective

• Steering and suspension components are relevant to both ICE and EVs. However, the higher vehicle weight of EVs due to the battery pack could lead to greater wear and tear of steering and suspension components.
• The impact of EVs on Class 1-3 steering and suspension component sales will not be significant during the forecast period.

Innovative Business Models

Why

• The eCommerce automotive aftermarket is growing rapidly, with third-party retailers dominating the space.

Frost Perspective

• Aftermarket steering and suspension component brands will partner with leading online retailers in the short-medium term to expand their customer reach, increase market share and revenue, and reduce costs.

scope of analysis:

Product Definitions:

Ball Joints 
Ball joints are spherical bearings connecting the control arms to the steering knuckles. They play a key role in effective weight transfer from the vehicle to the road. Wear and tear of ball joints occurs primarily during their operation and is also a function of road conditions. It also results in noise from the suspension and wheel misalignment.

Tie Rod Ends 
Tie rod ends transfer the forces from steering centers to knuckles. They allow car wheels to be turned right or left, as desired. The inner and outer tie rod ends on each wheel undergo significant wear and tear during operation. The inner tie rod end is connected to the center link, while the outer tie rod end is fastened to the steering knuckle.

Sway Bar/ Stabilizer Links 
Sway bars/Stabilizer links are part of the suspension system that connects the left and right wheels to reduce body roll. The link connecting the outer end of the sway bar to the vehicle suspension system is called a sway bar link, which has 2 small ball joints on either end.

Control Arms 
Control arms link the steering rack in a car to the wheel hubs. There are upper and lower control arms in a vehicle that require replacement when ball joints or bushings are worn out. Additionally, a collision affecting the wheels may necessitate the replacement of control arms.

Competitive Environment: Steering and Suspension Aftermarket