Automotive Axle Market Analysis Report By Type, By Application, By Vehicle Type, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global automotive axle market size was worth USD 59.18 billion in 2019. The market is anticipated to witness a CAGR of 1.1% from 2020 to 2027. In 2019, there were 195 million units recorded. Rising sales of automobiles globally coupled with consumer preferences for luxury and hybrid vehicles are proliferating the demand for the automotive axle. Additionally, the growing use of advanced technologies to cut down the vehicle cost is supplementing the market growth.

Owing to consumer awareness regarding the reduction of fuel consumption and vehicular emission, the demand for hybrid vehicles is gaining traction. Hybrid vehicles usage multiple sources of power for their operation and offer a better driving experience to users. Thereby, growing demand for a hybrid vehicle is estimated to spur the demand for automotive axles over the forecast duration. The hybrid vehicle is capable of reducing fuel consumption by 35% as estimated by the International Council on Clean Transportation (ICCT).

In North America and Europe, the demand for heavy commercial vehicles and long trailers is witnessing significant growth. The long trailer helps in distributing the load uniformly, thereby, expected to promote the growth of the automotive axle market. For example, over 188,000 units of long trailers were purchased in Europe in 2016. With the increasing e-commerce industry, trailers are witnessing significant demand. Considering this, major trailer truck producers are aiming to increase their annual production by 10 to 20% by 2021.

Additionally, increasing production of autonomous and semi-autonomous vehicles has led to an increase in demand for the axle. Further, increasing demand for road freight vehicles is projected to offer a lucrative opportunity for market growth. The road freight transport market registered 4.5% of growth from 2016 to 2017.

Volatility in raw material prices is a major challenge for manufacturers. Fluctuating prices of various raw materials such as steel, copper, and aluminum adversely affect the profit margin and revenue of manufacturers. Additionally, the growing adoption of electric vehicles is significantly changing the market dynamics for the automotive industry. The rise in production of e-vehicles has resulted in high demand for automobile axles, thereby, proliferating the market growth.

Type Insights

On the basis of type, the market is segregated into the dead, lift, and drive. Among them, in 2019, the drive category held the largest market share by volume of over 56%. Further, this segment is anticipated to witness maximum growth from 2020 to 2027. However, the increasing popularity of all-wheel-drive vehicles is estimated to adversely affect drive-type adoption.

On the other hand, the lift axle category is estimated to grow considerably over the forecast period. There were 2.4 million units of lift axles were shipped in 2019. This segment is projected to register a CAGR of 1.0%. Heavy commercial vehicles use lift-type axles as their secondary axle in order to increase their load-carrying capacity. Thus, this factor is likely to augment the growth of the automotive axle market.

Application Insights

In 2019, the rear application category accounted for over 56% of the market share by volume. Further, this segment is estimated to witness significant traction over the forecast period. Growing demand for commercial vehicles equipped with the rear axle is estimated to accelerate the growth of this segment. Additionally, both emerging and developed regions are witnessing growth in logistic operations, which led to a rise in demand for the long trailer, thereby supplementing the market growth.

On the other hand, the front application category is estimated to witness a CAGR of 1.4% by value over the forecast duration. Increasing adoption of mid-range and economy segment cars is attributing to the growth of this segment. Additionally, the rising penetration of four-wheel vehicles, eight-wheel vehicles, and all-wheel vehicles is projected to spur market growth.

Vehicle Type Insights

It is estimated that passenger cars would acquire a significant share in the market by the end of the forecast period. The growth of this segment is attributed to the increasing production of passenger vehicles across developing economies such as Mexico, Indonesia, South Africa, and Brazil. Further, the growing penetration of vehicles equipped with All-Wheel Drive (AWD) and the rise in demand for hybrid and luxury vehicles is anticipated to propel the demand for the automotive axle. North America and Europe regions are witnessing a significant demand for all-wheel drive vehicles compared to other regions.

On the other hand, the heavy commercial vehicle category is estimated to expand at 0.6% of CAGR over the forecast duration. The rising production of such vehicles in North America and Europe is driving the demand for this segment. In addition, HCVs are also witnessing penetration of lift-type axles, which, in turn, are expected to spur market growth. Further, some commercial vehicles require more than 2-axle, which, in turn, offers a lucrative opportunity for manufacturers.

Regional Insights

In 2019, APAC held the largest share in the automotive axle market with revenue of USD 29.87 billion. This growth is majorly attributed to the increasing number of automotive sales in China. Additionally, government initiatives in a country like India that allows 100% FDI, are projected to bolster the regional growth. Further, the presence of key players such as Hyundai Transys, Inc., and Korea Flange Co. Ltd is estimated to bode well for regional growth.

Because of the increasing demand for commercial vehicles and luxury cars, North America is anticipated to register a CAGR of 1.6% by volume from 2020 to 2027. In North America, the U.S accounted for the majority of the market share in 2019. Nearly 2.54 million passenger vehicles and 8.32 million commercial vehicles were produced in the U.S in 2019. The country is observing a gradual decline in the sales of passenger cars; however, the demand for HCV and LCV is on the rise.

Impact of COVID-19

The automotive sector is severely affected owing to the COVID-19 outbreak. The market is directly dependent on the sales of automobiles. COVID-19 has led to manufacturing disruption across Europe and North America to great extent. Additionally, the supply chain from China has been disrupted significantly. The automotive industry was already facing a downshift in demand and the pandemic has resulted in a severe blow to the stakeholders. The crisis in the auto industry is projected to increase the merger and acquisition activity in the near future. However, with relaxing lockdown norms across the globe, several manufacturing units have started their operations. This is expected to bode well for the growth of the industry.

Automotive Axle Market Share Insights

The market is consolidated owing to the presence of some global and few regional players acquiring a major share in the market. Leading industry players include Daimler AG, Meritor, Inc., Talbros Engineering Limited, Dana Incorporated, Melrose Industries PLC, and American Axle & Manufacturing among others. Key players are focusing on strategic collaboration to consolidate their position in the market. For example, Dana Inc. supplied technologies for driveline such as front Spicer AdvanTEK axles and Spicer prop shafts to General Motors in North America and South America.

The rising penetration of all-wheel-drive vehicles provides a lucrative opportunity for industry players. Additionally, the growing need for comfortable and safer automobiles has segmented the demand for advanced axles.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global automotive axle market report on the basis of type, application, vehicle type, and region:

• Type Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)
    • Drive
    • Dead
    • Lift

• Application Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)
    • Front
    • Rear

• Vehicle Type Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)
    • Passenger Car
    • Light Commercial Vehicle (LCV)
    • Heavy Commercial Vehicle (HCV)

• Regional Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • The U.K.
        • France
    • the Asia Pacific
        • China
        • Japan
        • India
        • South Korea
    • Rest of the World (RoW)