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The truck axle market size is forecast to increase by USD 4.50 billion, at a CAGR of 5.18% between 2023 and 2028. Market growth hinges on numerous factors. Major factors include the diminishing production costs of axles, a trend fueled by strides in manufacturing technology. Additionally, enhancements in supply chain strategies contribute significantly. These advancements streamline operations, fostering efficiency and cost-effectiveness. Moreover, the burgeoning demand for trucks plays a pivotal role. As industries expand and global trade increases, the need for reliable transportation grows, propelling the demand for trucks upward. Collectively, these factors form a synergistic ecosystem, driving market expansion. As production costs decrease, supply chains optimize, and demand escalates, the market for axles and associated industries experiences notable growth. This symbiotic relationship underscores the intricate interplay between technological innovation, supply chain dynamics, and market demand in shaping industry landscapes. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the market growth and trends report includes historic market data from 2018 - 2022.
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In the bustling landscape of commercial transportation activities, the truck axle market is witnessing a paradigm shift towards technologically advanced axles. These axles boast intricate axle geometry optimized for enhanced performance, especially when integrated into independent suspension systems alongside air springs and electronic control modules to deliver smart features. Whether it's the reliability of live-axle suspension or the precision of wheel alignment, each component contributes to the overall efficiency of the vehicle body. From front beam shafts to non-driving shafts, every aspect is meticulously designed to meet the demands of the auto industry and the rising trend of electric trucks. With a focus on load-bearing capability, stability, and maneuverability, truck axles play a pivotal role in ensuring the smooth power transmission and vehicle movement even under heavy loads. Our researchers analyzed the market research and growth 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.
The growth of the global market is heavily influenced by the improvement of supply chain strategies. The automotive industry has witnessed significant consolidation through acquisition, which has compelled automotive component manufacturers to enhance their supply chain strategies, leading to a reduction in procurement costs. The acquisition by automotive component manufacturers has positively impacted suppliers, as these manufacturers consolidate the supplier base and shift towards vendor-managed inventory to mitigate inventory costs. The manufacturers are also focusing on supplier-vendor collaboration to improve cost-effectiveness.
Further, in pursuit of improving cost-effectiveness, automotive component manufacturers are partnering with key global suppliers under the cost-reduction initiative known as the Should Cost business model. These strategies, implemented in the upstream side of the supply chain, have resulted in cost reduction at all stages of the value chain, and are expected to drive the growth of the global market during the forecast period. With supply chain strategies becoming increasingly sophisticated, it is anticipated that market players will continue to adopt these strategies to stay competitive in the market. This, in turn, will propel the growth of the global market in the foreseeable future.
The global market is experiencing significant growth, and one of the major trends driving this growth is the development of intelligent products. Fuel efficiency is a crucial factor that manufacturers consider when developing new technology. As such, Daimler is developing a new final drive technology that can control oil regulation inside the unit, which can boost fuel economy by 0.5%. Daimler has integrated the powertrain, which includes the engine, transmission, and axle.
Moreover, other parts have undergone changes to further improve its performance, such as laser-welded gear without bolt head to stir up the oil, new gear teeth geometry for reducing friction, and ferrite-optimized pinion bearing. These technological advances in products are expected to have a positive impact on the market during the forecast period. The integration of the powertrain and other improvements in the product ultimately result in increased fuel efficiency, reduced maintenance cost, and improved overall performance, thereby driving the growth of the global market.
High manufacturing costs of medium and heavy-duty trucks pose a major challenge to the growth of the global market. Medium and heavy-duty trucks generate the maximum revenue for the global market owing to the availability of multi-axle trucks. The incorporation of advanced technologies in heavy-duty trucks is increasing the manufacturing cost, which is partially being transferred to end-users. This is decreasing the sales of new trucks that are sold at high prices, which affects the growth of the medium and heavy-duty market.
Moreover, manufacturing medium- and heavy-duty trucks are capital-intensive due to the need for a high level of precision for components such as braking systems, axles, suspension systems, and hauling and steering cylinders. In addition, the prices of raw materials, such as stainless steel, hardened steel, cast iron, and other metal alloys, fluctuate constantly. The adoption of newer technologies would also increase manufacturing costs. This thing will act as a challenge for the growth of the medium and heavy-duty segment during the forecast period, which will negatively impact the market.
The market forecasting 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 market growth and forecasting strategies.
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 share growth by the light-duty trucks segment will be significant during the forecast period. Pickup trucks are more popular in the developed automotive markets in North America and Europe. In particular, in North America, pickup trucks are popular, wherein they account for a significant portion of regional automobile sales. This directly contributes to the growth of the light-duty truck segment.
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The light-duty trucks segment was valued at USD 8.97 billion in 2018. The automotive industry in several Asian countries, including China and Malaysia, has witnessed a rise in the demand for pickup trucks in recent years. As a result, there has been a significant surge in the demand for light-duty products, which has led to technological advancements in this area to support the improvement in fuel efficiency. American Axle and Manufacturing's QUANTUM driveline technology is one such innovation that has gained traction in the market. This technology enhances power density by 20% and reduces mass by at least 30% at the same torque capacity.
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APAC is estimated to contribute 69% 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. The production in APAC is highly dependent on the production and sales of passenger cars, as well as the increase in demand for export-oriented production of automotive components. India and China have large manufacturing industries, which mainly aim at export-oriented production. Low wages, the easy availability of human resources and raw materials, and the associated transportation services, as well as the low value of the local currency, drive the manufacturing industry in these countries. This will influence them to offer more differentiated products, thereby driving the market in the region during the forecast period.
The market research 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.
The market is experiencing a revolution fueled by advancements in electric and hybrid axles, catering to the growing demand for electric and hybrid vehicles in the transportation and logistics sectors. Integration of electric motors, battery systems, and sophisticated connectivity and automation technologies has led to the emergence of electromechanical propulsion systems and e-axles, ensuring fuel-efficient and environmentally friendly operations. The chassis, equipped with a suspension system and supported by front and rear axles, integrates a non-driving shaft and a front beam shaft for optimal vehicle performance.
Incorporating telematics systems and sensors, these axles enable autonomous driving and facilitate advanced driver assistance systems, enhancing safety and efficiency. From mechanical axles to electric and hybrid axles, manufacturers are offering diverse options to meet the needs of various applications, including commercial vehicles and passenger vehicles. The rise of electric truck manufacturers is further propelling the adoption of electric truck drive axles equipped with advanced technologies for improved mileage and load distribution. In the face of harsh operating conditions, lightweight yet high-performance axles constructed with materials like carbon fiber are gaining traction, ensuring reliability and durability in road construction and infrastructure development projects.
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Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.18% |
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Market Growth 2024-2028 |
USD 4.49 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.83 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 69% |
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Key countries |
China, US, Japan, India, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
All Truck Parts Ltd., American Axle and Manufacturing Holdings Inc., Automotive Axles Ltd., BRIST Axle Systems Srl LLC, Cardone Industries Inc., Cummins Inc., Dana Inc., Hendrickson Holdings LLC, Kross Ltd., Magna International Inc., Mercedes Benz Group AG, Press Kogyo Co. Ltd., Qingte Group Co. Ltd., Raba Automotive Holding Plc, SAF HOLLAND SE, Shandong Heavy Industry Group Co. Ltd., Sinotruk Hong Kong Ltd., Sisu Axles Inc., Vikrant Group, and ZF Friedrichshafen AG |
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Market dynamics |
Parent market analysis, Market forecast, 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 the forecast period. |
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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.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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