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The automotive axles market size is estimated to grow at a CAGR of 5.81% between 2022 and 2027. The automotive axles market size is forecast to increase by USD 21,994.05 million. The growth of the market depends on several factors, including the increasing demand for commercial vehicles, the growing adoption of EVs, and the high growth volume for premium vehicle segment.
This automotive axles 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). 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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The increasing demand for commercial vehicles are notably driving the market growth, although factors such as the decline in automotive production due to global semiconductor chip shortage may imped the market growth. 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 global automotive axle 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 APAC, the demand for commercial vehicles is increasing due to the improving socio-economic conditions, infrastructure, employment opportunities, and manufacturing. This is expected to drive the demand for various vehicles, such as medium- and heavy-duty trucks, across regions during the forecast period.
Increase in popularity of e-axle system is the primary trend in the global automotive axles 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 of electric vehicles 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.
Decline in automotive production due to global semiconductor chip shortage is 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 global automotive axles 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 Automotive Axles Market Customer Landscape
Vendors 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 vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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 17,038.86 million in 2017 and continue to grow by 2021. 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 fac tors will increaase the demand for vehicles and also supports the growth of the automotive axles market in North America during the forecast period.
In 2020, the COVID-19 pandemic hindered the growth of the market in the region mainly due to the imposition of lockdowns, which led to the shutdown of all industrial operations in many North American countries. However, with the initiation of vaccination drives and the lifting of restrictions on industrial operations, automobile companies resumed their operations with strict adherence to safety guidelines to bring business activities back to normalcy. Such factors are likely to increase the demand for automotive axles during the forecast period.
The automotive axles market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global automotive axles market as a part of the global automotive components and accessories market within the global auto components market. The global automotive components and accessories; market covers companies engaged in the production of parts and accessories for automobiles like passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Automotive Axles 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 21,994.05 million |
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 Vendors, Market Positioning of Vendors, 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 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 forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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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