Frost: Safety Needs, Technology Advancements Mold Chassis System Market

November 30, 2007 // Published as a news service by IHS

Chassis system development is a complex and precise process, as it involves key elements including suspension, braking and steering systems.

"While the suspension system is responsible for distribution of weight at each corner to maintain the vehicle's balance and stability, the braking system ensures vehicle and passenger safety," said Frost & Sullivan research analyst Abhishek Naskar.

"The steering system controls the vehicle's maneuverability in terms of direction and navigation, thereby significantly minimizing road crashes and maximizing vehicle performance."

Chassis systems are also used to better design style, reduce noise levels and energy loss and enhance load-bearing capacity.

Analysts said automakers often differentiate their products through these elements, thereby encouraging chassis companies to develop powerful and economic safety systems to stay competitive.

Analysts said this trend, coupled with the passing of a regulation mandating electronic stability systems by 2011, expects to drive greater sophistication in chassis systems. Manufacturers can use the intervening period to understand various design aspects in order to reduce production costs.

With the passing of strict legislation regarding vehicle and driver safety, the automobile industry is beginning to adopt electrical systems along with mechanical ones to minimize human intervention. Although both manufacturers and consumers have welcomed these regulations, analysts said these improved systems do not come cheap.

Manufacturers will have to spend heavily on obtaining patents and conducting research, apart from upgrading their manufacturing processes. Analysts said the changes to design, development and implementation, as well as the complexity of system integration, will also warrant huge investments. This will ultimately tell on the cost of the final product.

Despite the concerns of high price tags, and ultimately, consumer acceptance, analysts said automakers are determined to make their vehicles technologically competent. They realize they will have to devise a way to offer world-class products at affordable rates without wasting resources.

"By outsourcing their chassis manufacturing requirements to a strategically allied supplier and designer, manufacturers can reduce their R&D costs and manufacturing time," said Naskar. "The production costs will also decrease over time as manufacturers start marketing products in bulk."

Source: Frost & Sullivan.