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The automotive axles market size is estimated to grow by USD 21.99 billion at a CAGR of 5.81% between 2022 and 2027. The market's expansion relies on various factors, such as the rising demand for commercial vehicles, the increasing adoption of electric vehicles (EVs), and the significant growth in the premium vehicle segment. These factors collectively drive the market forward, with commercial vehicle demand indicating economic activity and infrastructure development. The shift towards EVs reflects the growing environmental consciousness and regulatory support for cleaner transport options. Additionally, the strong growth in the premium vehicle segment suggests an increasing consumer preference for higher-end, feature-rich vehicles. As these trends continue, the market is expected to witness sustained growth, driven by these key factors shaping the automotive industry.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by vehicle type (passenger cars, SUVs, light commercial vehicles, heavy commercial vehicles, and others), axle type (drive axle, dead axle, and lifting axle), and geography (North America, APAC, Europe, South America, and Middle East and Africa).
The market share growth by the passenger cars segment will be significant during the forecast period. Rapid urbanization and rising disposable income have increased the demand for automobiles. People living in emerging economies such as Brazil, India, China, and South Africa, as well as Middle Eastern countries such as the United Arab Emirates, Qatar, and Saudi Arabia, have increased disposable income, mainly due to high economic growth. Rising disposable income is driving the growth of the passenger car segment in these countries. Therefore, the increasing demand for passenger cars has increased the demand for automobile axles.
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The passenger cars segment was valued at USD 17.03 billion in 2017. Nowadays, performance vehicles are more popular in North America and Europe, with countries such as the United States contributing significantly to the growth of performance vehicles. In the Asia-Pacific region, people's per capita income is increasing due to rapid economic growth in countries such as China and India. Such factors will increase consumer purchasing power and lead to continued growth in sales of performance vehicles. Therefore, the increase in global automobile production will drive the demand for auto parts such as axles, driving the growth of the market during the forecast period.
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North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North American countries such as the US, Canada, and Mexico are the major market enablers in the region. These countries dominate the North American automobile market in terms of production volume. The regional consumer preference for large utility vehicles is one of the major driving forces underlying the high demand and sales of commercial vehicles.
The US and Canada dominate the regional commercial vehicle market, which in turn directly contributes to the automotive axles market in North America, as consumers in these countries prefer personal vehicles over public transport for commuting. Such factors will increase the demand and also support the growth of the automotive axles market in North America during the forecast period.
The market is driven by vehicle production demands, with a focus on fuel-efficient vehicles. Advanced stability systems and lightweight materials are key for enhanced performance and safety. Axles play a crucial role in determining wheel position and distributing driving torque in vehicles, particularly in heavy-duty commercial vehicles transporting long trailers or oversize loads. They are integral to both passenger vehicles and luxury vehicles, aiding in torque distribution and reducing carbon emissions. With the rise of hybrid vehicles, axles are adapting to accommodate new powertrain configurations, such as a central shaft transmitting power to rotating wheels through different axle types like full floating and semi-floating axles in the rear axle assembly. The Automotive Axles Market is crucial for heavy-duty commercial vehicles, with components like the front axle, full floating axle, semi-floating axle, and differential assembly being integral to these wheeled vehicles. The rear drive axle is especially critical, ensuring the smooth rotation of wheels, highlighting its importance in vehicle performance. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for commercial vehicles is the key factor driving the growth of the market. In the advanced North American automobile market, including the United States and Canada, commercial pickup trucks are popular, and sales are increasing. Rising demand for medium and heavy-duty trucks has contributed significantly to the growth of the market due to the availability of multiple axles to support heavy loads. Medium- and heavy-duty trucks have been the backbone of commercial activities, including logistics, construction, mining, and any trade-related activities.
In the developing and emerging economies of the Asia-Pacific region, the demand for commercial vehicles is indeed increasing due to improving socio-economic conditions, infrastructure development, expanding employment opportunities, and growth in the manufacturing sector. This trend is driving the need for advanced vehicle features such as stability systems, hybrid vehicles, fuel-efficient technologies, and reduced carbon emissions to meet the growing transportation demands while addressing environmental concerns. Additionally, improvements in road infrastructure are also contributing to the increased demand for commercial vehicles in these regions. This is expected to drive the demand for various vehicles, such as medium- and heavy-duty trucks, across regions during the forecast period.
The increase in popularity of e-axle systems is the primary trend in the market. The demand for electric vehicles is driving demand for high efficiency and extended range on a single charge. By integrating the electric motor into the rigid rear axle, the vehicle weight is reduced by up to 100 kg. Efficiency is further enhanced by the development of the e-axle system, such as the integration of the electric motor and rigid rear axle into a single Streamline module. This system allows the elimination of propulsion systems that rely on centrally located engines and cardan shafts to transmit power to the rear wheels.
Moreover, these e-axles are designed to drop into existing suspension, which makes it easier to fit in any truck structure. In addition to weight reduction, the freed-up space can be used for the installation of a battery with a longer range. These developments and the increasing popularity of e-axles will positively impact the market during the forecast period.
The decline in automotive production due to the global semiconductor chip shortage is a major challenge to the growth of the market. A global chip shortage has led automakers to halt production lines for short periods as supply shortages hamper car production. For instance, in February 2023, Renault Group (Renault) announced that the production plans in India would experience a decline due to the automotive chip shortage. Similarly, in 2022, General Motors (GM) experienced a decline in automotive sales due to an ongoing chip shortage. The company delivered more than 2.3 vehicles in China in 2022, which is 21% down from 2021.
Thus, the current global crisis created by the shortage of semiconductor chips has decelerated automotive production in various parts of the globe. Such factors will negatively impact the application of automotive components such as automotive axles, which, in turn, will hamper the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cardone Industries Inc.: The company offers automotive axles such as CV Axle Assembly 66-5235HD, CV Axle Assembly 66-6057, and CV Axle Assembly 66-5185HD.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market in the commercial vehicle sector is driven by the demand for efficient and durable axles, particularly drive axles and lift axles. Manufacturers are increasingly using lightweight materials such as aluminum, steel, and composite materials to reduce vehicle weight and improve fuel efficiency. The market is also influenced by initiatives like The Electric Vehicles Initiative (EVI), which promotes the adoption of electric vehicles and lightweight axles. However, challenges such as the high cost of composite materials and the risk of counterfeit products impact market growth. Despite these challenges, the market is expected to grow, driven by the need for environmentally friendly and fuel-efficient vehicles.
The market is a critical component of the automotive industry, catering to various segments like heavy-duty commercial vehicles, long-haul trailers, and luxury passenger cars. Front and rear axles play a pivotal role in the vehicle's stability, load distribution, and overall performance. Manufacturers are increasingly focusing on lightweight materials such as carbon fiber to improve fuel efficiency and reduce environmental repercussions. The market also includes aftermarket services for axle maintenance and replacement. With the rise of vehicle electrification and the demand for environmentally friendly solutions, the automotive axles market is poised for significant growth, especially in regions with major manufacturing hubs.
Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.81% |
Market growth 2023-2027 |
USD 21.99 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.4 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 30% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Axle and Manufacturing Holdings Inc., BorgWarner Inc., Cardone Industries Inc., Carraro SpA, Cummins Inc., Dana Inc., Dorman Products Inc., GESTAMP AUTOMOCION SA, GNA Axles Ltd., Hirta Industry Co. Ltd., Hyundai Motor Group, KOREA FLANGE Co. Ltd., Magna International Inc., Melrose Industries Plc, Mercedes Benz Group AG, Press Kogyo Co. Ltd., Robert Bosch GmbH, SAF HOLLAND SE, Talbros Automotive Components Ltd., and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Axle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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