Frost & Sullivan Product Report: Suspension

Performance suspension is a category to watch in 2008. Contrary to general repair, where technicians struggle to communicate the value of suspension replacement, the performance segment seeks to balance styling demands with safety, handling and component durability expectations and legislation.

In 2007, sales of performance shocks, struts and coils accounted for 12 percent of total suspension revenues. With forecasted growth of 8 percent to 10 percent annually through 2012, it is a category to watch. Even with a slowing U.S. economy, vehicle modification is a priority for consumers. Some new vehicles sport specialty suspension components, but some enthusiasts create their own.

Experts agree most vehicles can be lowered 1.5 inches without affecting the vehicle's stock setup, so shocks, struts and coils comprise the bulk of performance suspension category revenues. But the push to go lower heralds the arrival of camber kits, modified bump stops, coil over kits and driver-adjustable shocks.

According to Frost & Sullivan's research, suspension mods are more common among intense enthusiasts. Approximately 9 percent of the general vehicle population modified their suspension in the last 12 months, while 32 percent of enthusiasts performed suspension modifications.

So who's the suspension modification customer?

They are most likely male, but age is not a defining factor. Suspension-lowering often is integrated into a costly tire and wheel modification, so enthusiasts tend to be in the higher income brackets and favor luxury vehicles and SUVs. Those who have reported suspension mods spend $1,000 to $3,000 annually on their vehicle.

Only 7 percent of enthusiasts report altering the suspension as their first action. However, 42 percent report suspension modifications within their first five actions, or 24 months, of vehicle ownership.

Understanding the relationship between various modifications can help suspension companies position themselves. Interestingly, Frost & Sullivan found that the most common sequence of modifications involving suspension is where the stereo was modified first, the wheels and tires second and suspension third. The relationship between tires and wheels and suspension has been exploited for some time by participants in both product areas, but the link to stereos presents new possibilities for suspension participants.

The performance and specialty suspension categories are niche segments where smaller companies such as KONI, Neuspeed, Aerospeed, Tanabe Racing, Buddy Club, Tein and Tokico have flourished.

But the general repair industry, unable to reverse the declining replacement rate trend, is taking note of the opportunities presented by performance. Should they choose to participate, the dynamics of this industry are about to change.

Featured products

1 Shock absorbers

Customers who drive light trucks, SUVs, vans and full-size wagons are ideal candidates for Monroe Sensa-Trac load-adjusting shock absorbers. These units combine application-engineered valving with a heavy-gauge calibrated spring to maintain precise ride height even with 1,200 pounds of extra load. With Sensa-Trac load-adjusting shocks, vehicles can maintain proper ride height and safe steering, stopping and stability characteristics, the company says.

2 Suspension lowering kits

Carlsson now offers the C-Tronic® Suspension Electronic Lowering Kit. Available as part of a comprehensive tuning package or as a stand-alone upgrade, the C-Tronic® Suspension lowers the center of gravity by 35 millimeters and interacts with the road surface to adjust the car's ride height and ensure ride comfort. The kit is a plug-and-play tuning package that requires no wire splices, according to Carlsson.

Mary-Beth Kellenberger is a consultant with Frost & Sullivan's North American Automotive and Transportation Practice. She focuses on monitoring and analyzing emerging trends, technologies and market behavior for services, personnel and component sales in the North America Automotive Aftermarket. For more information about Frost & Sullivan, visit www.frost.com.