Global Automotive Chassis Market, By Vehicle Type (Passenger Cars and Commercial Vehicles), By Electric Vehicle Type (BEV, HEV and PHEV), By Chassis Type (Backbone, Ladder, Monocoque, Modular), By Material (Steel, Aluminium Alloy, Carbon fibre Composite), By Company and By Geography, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 113.78 Billion
CAGR (2026-2031)	10.84%
Fastest Growing Segment	Modular
Largest Market	Asia Pacific
Market Size (2031)	USD 210.98 Billion

Market Overview

The Global Automotive Chassis Market will grow from USD 113.78 Billion in 2025 to USD 210.98 Billion by 2031 at a 10.84% CAGR. The automotive chassis defines the internal structural framework of a vehicle, engineered to support the powertrain and body while sustaining mechanical loads during operation. The primary drivers propelling this market include the sustained rise in global vehicle production rates and the imperative for modular platforms required by the electrification of transport. This correlation between vehicle assembly and component demand is evidenced by recent manufacturing output. According to the China Association of Automobile Manufacturers, in the first half of 2024, automobile production reached approximately 13.89 million units, necessitating a parallel volume of chassis fabrication to meet this industrial output.

However, the sector encounters significant impediments arising from the volatility of raw material costs. Manufacturers face ongoing uncertainty regarding the pricing of steel and aluminum alloys, which are essential for constructing durable yet lightweight frames. This cost instability complicates pricing strategies and compresses profit margins, effectively challenging the financial sustainability of suppliers within the global value chain.

Key Market Drivers

The rapid electrification of the automotive sector is driving a fundamental shift toward specialized skateboard chassis platforms. These modular architectures are engineered to house battery packs within the floor structure, thereby lowering the center of gravity and optimizing interior space while supporting the increased weight of electric powertrains. This structural evolution allows manufacturers to scale production across various vehicle models using a single flexible base, significantly reducing development costs and time-to-market. The momentum of this transition is underscored by substantial market penetration; according to the European Automobile Manufacturers’ Association (ACEA), January 2025, in the 'Economic and Market Report', battery-electric cars held a 13.6% market share in the European Union in 2024, a figure that highlights the growing reliance on these dedicated platforms.

Simultaneously, the surge in consumer preference for Sport Utility Vehicles (SUVs) and light trucks is necessitating the fabrication of more robust and durable chassis systems. To accommodate the larger footprints and heavier payloads of these vehicles, chassis designs are increasingly utilizing high-strength steel and advanced joining techniques to ensure superior crashworthiness and torsional rigidity. This trend is particularly pronounced in key markets where utility vehicles dominate; according to the Alliance for Automotive Innovation, April 2025, in the 'Get Connected Electric Vehicle Report Q4 2024', light truck sales represented 81% of the EV market in the United States in the fourth quarter of 2024. This segment-specific demand contributes to the broader expansion of the industry, as evidenced by overall volumes. According to the European Automobile Manufacturers’ Association (ACEA), in 2025, global car sales reached 74.6 million units in 2024, demonstrating the immense scale of manufacturing required to support this growth.

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Key Market Challenges

The volatility of raw material costs constitutes a significant barrier to the expansion of the global automotive chassis market. Chassis fabrication relies heavily on metals such as steel and aluminum to ensure the structural integrity and durability required for vehicle safety. When the pricing for these essential commodities fluctuates unpredictably, manufacturers struggle to establish consistent cost structures and maintain stable profit margins. This financial uncertainty makes it difficult for suppliers to commit to long-term pricing agreements with automakers, leading to delayed contracts and reduced investment in production capacity.

The impact of this instability is magnified by the immense volume of raw material that the industry consumes annually. According to the World Steel Association, in April 2024, global steel demand was forecast to rebound by 1.7% to reach 1,793 Mt. With such substantial aggregate demand, even minor variations in material costs translate into major operational expenditure shifts for chassis producers. Consequently, this unpredictability forces manufacturers to absorb higher costs or risk losing business, which directly impedes market growth and financial sustainability.

Key Market Trends

The transition to Steer-by-Wire and Brake-by-Wire systems represents a critical evolution in chassis technology, replacing traditional mechanical linkages with digital interfaces that enable fully software-defined vehicle dynamics. This shift allows for variable steering ratios and improved cabin ergonomics by permitting the retraction of the steering wheel during autonomous driving modes, directly addressing the industry's push toward automation and flexible interior configurations. The commercial momentum behind this technology is accelerating as major suppliers validate the reliability of these digital architectures for mass-market applications. This scale of adoption is substantiated by recent contract volumes; according to ZF, February 2025, in the 'Start of series production for Steer-by-Wire steering at Chinese car manufacturer NIO' press release, the company disclosed a significant order to supply brake-by-wire systems for nearly five million vehicles, underscoring the rapid industrial move toward purely electronically controlled actuation.

Simultaneously, the deployment of AI-enabled predictive active suspension systems is revolutionizing ride comfort by utilizing electromechanical actuators to actively cancel road imperfections and mitigate motion sickness in high-performance electric vehicles. Unlike passive or semi-active dampers, these advanced systems leverage real-time sensor data to control vertical wheel dynamics independently, creating a stable platform that is essential for enhancing the passenger experience in increasingly digitalized cabins. The efficiency of these solutions is a key competitive factor for electric mobility; according to Marelli, April 2025, in the 'Marelli Wins 2025 Automotive News PACEpilot Award for its Fully Active Electromechanical Suspension' press release, the company's new oil-free suspension architecture achieves up to 80% energy efficiency compared to conventional semi-active systems, demonstrating the market's focus on combining superior handling with minimized power consumption.

Segmental Insights

The modular segment is currently the fastest-growing category within the global automotive chassis market, driven by the widespread adoption of flexible platform strategies. Automakers are increasingly utilizing modular architectures to standardize production across different vehicle models, which optimizes manufacturing efficiency and lowers development costs. This growth is further accelerated by the industry shift toward electrification, as modular designs easily accommodate battery systems. Additionally, stringent emission regulations from authorities such as the European Commission compel manufacturers to adopt these adaptable, lightweight structures to improve fuel economy and ensure regulatory compliance.

Regional Insights

Asia Pacific holds the leading position in the Global Automotive Chassis Market, driven by the substantial vehicle production volumes in China, India, and Japan. The region benefits from a well-established supply chain providing easy access to essential raw materials such as steel and aluminum, alongside competitive manufacturing costs. Additionally, the increasing adoption of electric vehicles has fueled the requirement for specialized chassis architectures, sustaining local manufacturing momentum. This strong industrial foundation and the presence of key original equipment manufacturers ensure the region remains the dominant hub for automotive chassis production.

Recent Developments

• In November 2024, Hyundai Mobis introduced a chassis module incorporating lightweight polymer composite materials for suspension systems during a technology performance sharing meeting. This innovation replaces traditional metal coil springs with a new composite material, significantly reducing the weight of the chassis module while improving ride comfort and lateral stiffness. The development is part of the company's broader research initiative to enhance electric vehicle efficiency and optimize autonomous driving capabilities through weight reduction and structural improvements. The company also demonstrated other advanced module technologies, signaling its focus on integrated solutions for the future mobility market.
• In October 2024, Schaeffler showcased its expanded portfolio of advanced chassis mechatronics at a major automotive aftermarket trade show. The company presented fully integrated components, including a rear-wheel steering system and a force-feedback actuator designed for next-generation steer-by-wire applications. These technologies are engineered to improve vehicle maneuverability, safety, and driving comfort, particularly for electrified and automated mobility platforms. By introducing these innovations, the company reinforced its transition toward intelligent mechatronic solutions that support the automotive industry's shift toward software-defined vehicles and enhanced chassis performance.
• In May 2024, ZF Friedrichshafen AG and Hon Hai Technology Group (Foxconn) completed a joint venture agreement focused on the development and assembly of passenger car chassis systems. Foxconn acquired a 50 percent stake in ZF Chassis Modules GmbH, establishing a strategic partnership designed to harness mutual strengths in engineering, manufacturing, and supply chain management. The collaboration, which values the enterprise at approximately €1 billion, aims to expand the customer base for axle system assemblies and explore new development fields in the global automotive market. This strategic move enables both companies to optimize their growth strategies and deliver advanced chassis solutions to automakers worldwide.
• In May 2024, REE Automotive unveiled the next generation of its P7-S stripped chassis at an industry exposition in Las Vegas. This new Class 5 chassis was developed in collaboration with a leading delivery fleet to enhance fleet management capabilities and delivery efficiency. The platform utilizes the company's proprietary corner technology, which integrates steering, braking, suspension, and powertrain components into a single compact module, enabling a fully flat chassis design. The launch highlights the company's commitment to providing software-driven, full by-wire electric vehicle platforms that offer significant design flexibility for various commercial vehicle applications.

Key Market Players

• Robert Bosch GmbH
• ZF Friedrichshafen AG
• Continental AG
• Magna International Inc
• Aisin Seiki Co., Ltd.
• Hyundai Mobis Co., Ltd.
• Benteler International AG
• Gestamp Automoción S.A.
• Schaeffler AG
• Tower International, Inc.

By Vehicle Type	By Electric Vehicle Type	By Chassis Type	By Material	By Region
Passenger Cars and Commercial Vehicles	BEV HEV and PHEV	Backbone Ladder Monocoque Modular	Steel Aluminium Alloy Carbon fibre Composite	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Chassis Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Chassis Market, By Vehicle Type:

• Passenger Cars and Commercial Vehicles

• Automotive Chassis Market, By Electric Vehicle Type:

• BEV
• HEV and PHEV

• Automotive Chassis Market, By Chassis Type:

• Backbone
• Ladder
• Monocoque
• Modular

• Automotive Chassis Market, By Material:

• Steel
• Aluminium Alloy
• Carbon fibre Composite

• Automotive Chassis Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE