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The automotive axle market is impacted by different market factors that play a significant part in forming its elements. One of the essential drivers of this market is the worldwide flood of car creation. As interest in vehicles keeps on rising around the world, especially in arising economies, the requirement for automotive axle has stuck to this same pattern. The need for cutting-edge axle systems is being driven by manufacturers in the automotive industry's efforts to improve vehicle performance and efficiency.
Furthermore, rigid unofficial laws in regard to vehicle security and discharges have impelled the auto business to take on imaginative advancements, including pivot frameworks. The mission for eco-friendliness and diminished emanations has prompted the improvement of lightweight and superior execution axles. Thus, administrative guidelines go about as a key market factor, controlling the auto hub market towards ceaseless development and improvement.
The developing scene of electric vehicles (EVs) has arisen as another huge market factor. With the rising movement towards feasible and eco-accommodating transportation, electric vehicles have built up some decent momentum. Electric axles, explicitly intended for EVs, have become indispensable parts, adding to the general development of the automotive axle market. The progress from customary gas-powered motors to electric powertrains has provoked pivot makers to adjust and take care of the extraordinary necessities of electric vehicles.
The automotive axle market is also significantly impacted by the state of the global economy. Financial soundness and development add to expanded purchaser buying power, thusly affecting the interest in vehicles and, subsequently, auto axles. On the other hand, financial slumps can prompt a decrease in vehicle deals, influencing the auto hub market adversely. The economic factors that influence the market's trajectory are further influenced by fluctuations in raw material prices and currency exchange rates.
Mechanical headways assume an essential part in deciding the seriousness of organizations in the auto pivot market. Persistent innovative work endeavors lead to the presentation of inventive hub advances, improving execution, solidness, and security. Companies that make investments in cutting-edge technologies frequently gain a competitive advantage and attract customers looking for advanced axle systems that are dependable.
The automotive axle market is likewise a huge market factor impacting the car pivot area. As vehicles age and aggregate mileage, the requirement for hub substitutions and fixes increments. Accidents, vehicle maintenance, and consumer preferences for customization all have an impact on the aftermarket market. In order to meet the requirements for vehicle replacement and maintenance, axle manufacturers must establish robust aftermarket networks and solutions.
In addition, the pattern towards independent vehicles has suggestions for the market. As the auto business moves towards independent and semi-independent driving advances, hub frameworks should adjust to the changing prerequisites of these vehicles. Independent vehicles require progressed sensor coordination, exact control frameworks, and particular axles to guarantee protected and effective activity.
The Market is molded by a blend of variables, going from worldwide monetary circumstances and administrative norms to innovative headways and arising patterns like electric and independent vehicles. Producers in this market should explore these variables decisively to remain serious and fulfill the developing needs of the auto business.
Automotive Axle Market Highlights:
Automotive Axle Market Overview
The global automotive axle market size is projected to expand USD 61,190 million at a CAGR of 5.10% during the forecast period 2022 - 2030. The global automotive axle market's shipment was recorded at 195 million units in 2019. There has been an increase in automotive production across the globe. The trends suggest that the rising consumer preference for hybrid and luxury vehicles with advanced technology is expected to fuel the market growth from 2022 to 2030. Besides, the commercialization of advanced technologies in the global market help to reduce the overall vehicle weight is anticipated to drive the market for the automotive axle.
The rising degree of consumer awareness concerning the need to reduce vehicular emission and fuel consumption has led to significant growth in the demand for hybrid vehicles. Hybrid vehicles in the market are driven by multiple power sources that reduce fuel consumption and enhance the driving experience. Thus, the rising demand for hybrid vehicles is also expected to fuel the demand for automotive axles.
Long trailers followed by the presence of heavy commercial vehicles have witnessed significant demand from Europe and North America. An extended trailer has around 6 to 8 axles to distribute the vehicle's overall load uniformly. Thus, there has been an increase in the demand for long trailers is anticipated to boost the demand for automotive axles between 2022 and 2030. For instance, in the European region, around 188,000 units of long trailers were sold in 2016. Moreover, demand for trailers is growing significantly due to their demand across the e-commerce industry. Hence, some of the leading trailer truck manufacturers plan to increase annual production capacity by around 10-20% by 2021.
COVID 19 Analysis
The automotive axle and propeller shaft market includes significant Tier I and II suppliers like ZF, GKN Automotive, Dana Incorporated, Meritor, Automotive axle & manufacturing, and others. The global automotive axle market suppliers have their manufacturing facilities spread across various countries across the Asia Pacific, Europe, North America, South America, and Middle East & Africa. The outbreak of the COVID-19 pandemic has impacted all of its businesses globally; these players have announced a temporary shutdown of production due to lockdown and also to protect the safety of their employees, which created lowered demand and supply chain disruptions in the US, France, Germany, Italy, and Spain during the COVID-19 pandemic.
As a result, the demand for overall automotive production has declined, directly affecting the automotive axle and propeller shaft market. The arrival of the COVID-19 crisis has brought about transformations such as digital platforms, touchless payments, and virtual dealerships in the automotive axle market.
Market Dynamics
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Drivers
The global automotive axle market manufacturers are signing collaborative agreements and striking alliances with automotive OEMs to strengthen their foothold in the market. For instance, in May 2019, one of the prominent companies - Dana Incorporated, supplied driveline technologies, including Spicer prop shafts and rear and front Spicer AdvanTEK axles, to General Motors Vehicle in South and North America.
Increasing demand for AWD and FWD vehicles and the growing popularity of hybrid and autonomous vehicles are key factors creating significant growth opportunities for automotive axle manufacturers. Besides, increasing demand for safer and more comfortable automobile functions has boosted the demand for technologically-advanced automotive axles market.
Thus, global companies are significantly investing in research and development activities to manufacture highly advanced automotive axles and secure their position in the market. For instance, in April 2019, the same company that is Dana Incorporated has started the production of the Spicer AdvanTEK Ultra axle with the Spicer SmartConnect disconnecting AWD system in China. The advancement is anticipated to result in a 45% reduction in loss of energy compared to the standard automotive axle, simultaneously improving the vehicle's fuel efficiency.
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Restraints
The fluctuating price of raw materials is one of the critical challenges faced by automotive axle manufacturers. Volatile prices of raw materials, such as aluminum, steel, and copper, can negatively impact automotive axle manufacturers' revenue and profit margins.
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Technology Analysis
The passenger car segment is anticipated to hold a dominant share throughout the forecast period. Increasing production of passenger cars across emerging countries, including India, Mexico, Indonesia, and others like South Africa, is expected to influence the segment growth. Additionally, the rising production of Front Wheel Drive (FWD) and All-Wheel Drive (AWD) vehicles is anticipated to encourage automotive axle manufacturers to develop advanced automotive axles for luxury and hybrid passenger cars. Penetration of the all-wheel-drive systems is higher in Europe and North America than in other regions.
Segment Overview
The automotive axle market has been segmented based on the following to meet the rising needs of the global target audience for the continuous period that ends in 2027. The segments are mentioned as follows:
By Type
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Dead
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Live
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Tandem
By Axle Position
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Front
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Rear
By Region
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Asia Oceania
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Europe
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North America
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RoW
Regional Analysis
The Asia Pacific region had held a dominant share in the overall market in 2019, and the market in this region was valued at USD 29.87 billion. Demand for the automotive axle market functions in China is mainly driven by the rapid growth of the automotive sector in the country, which provides various lucrative opportunities for automotive axle manufacturers. Moreover, favorable government initiatives such as the Make in India campaign, which allows 100% foreign direct investment (FDI), are expected to boost vehicle production, consequently driving the market. The strong presence of prominent automotive axle manufacturers, such as Korea Flange Co. Ltd. and Hyundai Transys, Inc., is also anticipated to boost the market growth in the Asian Pacific region.
North America is projected to expand at a CAGR of 1.6%in terms of volume over the forecast period. The growth can be attributed to the growing demand for luxury cars and commercial vehicles. The U.S. held most of the share in the North American market in 2019. Around 8.32 million commercial vehicles and 2.54 million passenger vehicles were manufactured in 2019. Since 2015, the country has witnessed a perpetual decline in passenger car production.
Competitive Landscape
The global automotive axle market is highly consolidated, with a few global and regional players holding a dominant share in the market during the period that ends in 2027. The key industry players include the following:
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American Axle & Manufacturing, Inc.
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GNA Group
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Talbros Engineering Limited.
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Dana Incorporated
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Meritor, Inc.
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Melrose Industries PLC
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Daimler AG
Recent Developments
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The lift axle segment is projected to witness considerable growth from 2022 to 2030. The lift axle shipment was recorded at 2.4 million units in 2019 and is anticipated to expand at a CAGR of 1.0% over the forecast period.
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The Heavy Commercial Vehicle (HCV) segment will expand at a revenue-based CAGR of 0.6% between 2020 and 2027. The growth can be attributed to the increasing production of HCVs, particularly across Europe and North America. The need for more than two axles in heavy commercial vehicles is estimated to provide growth opportunities for automotive axle manufacturers.
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The rear application segment dominated the market in 2019 and accounted for 56.1% in terms of volume. The growth can be attributed to the increasing production of commercial vehicles across the developed and emerging economies, as most commercial vehicles have rear-driven axles. Additionally, the growth of the logistics industry is expected to surge the demand for the extended trailer, subsequently influencing the segment growth over the forecast period.
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The front application segment is estimated to exhibit a value-based CAGR of 1.4% from 2020 to 2027. The growth can be attributed to the increasing production of economy and mid-range segment cars. Moreover, the market is witnessing a rise in the penetration of all-wheel-drive vehicles, such as four-wheel-drive (4WD), six-wheel-drive (6WD), and eight-wheel-drive (8WD), is estimated to contribute to the segment growth over the forecast period.
Report Overview
The automotive axle market report has been prepared to understand the functions of the market, followed by the market requirements that are likely to be fulfilled with the help of the market resources and investments for the continuous period ending in 2030. The global market has been prepared to understand the effect of the pandemic outbreak and also know the basics of the market segments, followed by the role of the regional and international players as per their recent developments for the period.
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