Automotive Axles Market Analysis North America, APAC, Europe, South America, Middle East and Africa - China, US, Germany, Japan, Canada - Size and Forecast 2024-2028

Automotive Axles Market Size 2024-2028

The automotive axles market size is estimated to grow by USD 23.54 billion at a CAGR of 5.89% between 2023 and 2028. The market's expansion relies on various factors, such as the rising demand for commercial vehicles, increasing adoption of electric vehicles (EVs), and the significant growth in the premium car vehicle segment. These factors collectively drive the market forward, with commercial vehicle demand indicating economic activity and infrastructure development. The shift towards electric vehicles 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.

What will be the Size of the Automotive Axles Market During the Forecast Period?

 Request Free Sample of Market Forecasting Report

Automotive Axles Market Segmentation

The automotive axles market growth analysis report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Vehicle Type Outlook 
  • Passenger cars
  • SUVs
  • Light commercial vehicles
  • Heavy commercial vehicles
  • Others
• Axel Type Outlook 
  • Drive axle
  • Dead axle
  • Lifting axle
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By Type 

The market share growth by the Drive Axle segment will be significant during the forecast period. A drive axle is a split axle with universal joints (UV joints) and a differential between the two half axles. It is a key component of a vehicle's drivetrain and has central shafts that connect to the wheels. A front drive axle relies on the power that is transmitted to it from the transfer case via the drive shaft to steer the wheels of a vehicle. Rear drive axles connect the differential side gears to the drive wheels and deliver power to the driving wheel, thus driving the demand for parts such as automotive axle And propeller shaft.

Get a glance at the market contribution of the segments. Request Free Sample

The Drive Axle segment was valued at USD 21.68 billion in 2018. Rear drive axles can be categorized into three types which include semi-floating, full-floating, and three-quarter floating. Semi-floating rear drive axles find application in common passenger vehicles and light trucks as well as other motor vehicles. Full-floating rear drive axles are mostly used in heavy-duty trucks. A three-quarter floating rear drive axle is a type of rear drive axle used on older commercial vehicles. The demand for drive axles is increasing due to the rising production and sales of commercial vehicles, including trucks and buses, which heavily rely on effective axle systems to handle heavy loads and ensure durability over long distances. 

Region Analysis

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.

For more insights on the market share of various regions, Request Free Sample

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. These factors will increase the demand for parts such as e-axles and also support the growth of the automotive axles market in North America during the forecast period.

Automotive Axles Market Dynamics

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 2023 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.

Key Market Driver

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 and automotive axles market growth during the forecast period.

Significant Market Trends

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 automotive axles market growth during the forecast period.

Major Market Challenge

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, a leading automaker announced that the production plans in India would experience a decline due to the automotive chip shortage. Similarly, in 2022, a leading automaker 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 fell by 21% compared to 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 automotive axles market growth during the forecast period.

Key Automotive Axles Market Companies & Insights

Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or 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 automotive axles market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about key companies, including: 

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 Engineering Ltd., and ZF Friedrichshafen AG

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, as highlighted in the market research and growth report.

Market Analyst Overview

The automotive axles 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 and 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.

The automotive axles market is growing rapidly, driven by increasing urbanization and demand for luxury passenger cars and heavy-duty commercial vehicles. Axles, including drive axle type, lift axle type, and all-wheel-drive axle, are an integral part of powertrains in wheeled vehicles. Front-wheel drive axle and semi-floating axle systems are used for passenger cars, while heavy-duty vehicles utilize lift axles to balance cargo loads and minimize rolling resistance. Advanced all-wheel-drive drivetrain and steer axle systems enhance performance on uneven road surface irregularities. In addition, shocks and front application axles are designed to improve stability and steering. As transportation trailers and rear axle housing in commercial vehicles evolve, the demand for durable axles that support rotating wheels and braking systems is on the rise.

Request Free Sample

What are the Key Data Covered in this Automotive Axles Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this automotive axles market research report to meet your requirements. Get in touch