Automotive Camshaft Market

Increasing acceptance of electric vehicles and developments in technology and materials utilized to make automobile camshafts are driving the market growth

Market CAGR for Automotive Camshaft is being driven by the Increasing acceptance of electric vehicles, and developments in technology and materials utilized to make automobile camshafts. The automotive sector is experiencing a surge in demand attributed to factors such as rapid urbanization, increased disposable income, and a growing middle-class population.

In the fiscal year 2022-23, the automotive industry produced a total of 25,931,867 vehicles, showcasing notable growth compared to the previous fiscal year. The first quarter of 2023-24 witnessed production of 6.01 million units of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles.

India achieved a significant milestone with the sale of 832,434 electric vehicles (EVs) in the year 2023-24, signaling the expanding EV market expected to reach INR 50,000 crores (USD 7.09 billion) by 2025. The revenue growth in the camshaft market is driven by the increasing demand for fuel-efficient vehicles, leading to advancements in engine technologies. The automotive industry is focused on developing and enhancing fuel-efficient engines to comply with stringent government regulations on emissions and fuel efficiency.

Moreover, the rise in electric vehicle adoption, which eliminates the need for traditional camshafts in internal combustion engines, contributes to the demand for innovative camshaft solutions. Hybrid and Plug-in Hybrid Electric Vehicles, incorporating both electric and internal combustion engines, still necessitate camshafts.

Furthermore, technological and material advancements are shaping the market. Manufacturers are leveraging innovative materials such as carbon fiber and composites to create lightweight, high-performance camshafts. These advanced camshafts offer superior performance, increased fuel efficiency, and reduced emissions compared to conventional counterparts, driving market growth.

As a result, it is anticipated that throughout the projection period, demand for the Camshaft Market will increase due to the Increasing acceptance of electric vehicles, and developments in technology and materials utilized to make automobile camshafts. Thus, driving the Camshaft Market revenue.

The Global Automotive Camshaft Market Industry experiences a notable surge in demand driven by the increasing emphasis on fuel efficiency. As automotive manufacturers strive to meet stringent emissions regulations and consumer preferences for eco-friendly vehicles, camshaft technology plays a pivotal role in optimizing engine performance. Advanced camshaft designs, such as variable valve timing systems, enhance fuel efficiency and reduce emissions. This trend is reflected in the projected market growth, with the Global Automotive Camshaft Market expected to reach 4.1 USD Billion in 2024, indicating a robust response to the evolving automotive landscape.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Car Camshaft market in North America can be attributed to several key factors. The North American region hosts a substantial number of automotive manufacturing facilities, contributing to significant vehicle production. According to CEIC, United States Motor Vehicle Production reached 10,060,339 units in December 2022, reflecting an increase from the previous year's figure of 9,157,205 units in December 2021. The data, updated annually, indicates a consistent trend, with an average of 11,295,017 units from December 1997 to 2022.

The continuous production of new vehicles creates a concurrent demand for high-quality camshafts, and the growth in vehicle production serves as a direct catalyst for the expansion of the Auto Camshaft Market.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Global Automotive Camshaft Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Auto  Camshaft Market accounts for the second-largest market share as The European Auto Camshaft Market is positively influenced by continuous advancements in the automotive industry. The demand for camshafts is not only driven by traditional internal combustion engine vehicles but is also bolstered by the increasing market presence of electric and hybrid vehicles. These alternative propulsion systems incorporate advanced camshaft technologies to enhance overall efficiency. According to the Federal Motor Transport Authority (FMTA), the first half of 2022 witnessed a 25% increase in registered electric cars in Germany compared to the same period the previous year.

During this timeframe, fully electric vehicles accounted for 13.5% of all new registrations. This trend underscores the evolving landscape of the automotive market and the role of camshafts in both conventional and alternative propulsion systems. Further, the German Automotive Camshaft Market held the largest market share, and the UK Auto Camshaft Market was the fastest-growing market in the European region

The Asia-Pacific Automotive Camshaft Market is expected to grow at the fastest CAGR from 2023 to 2032. The growth of a burgeoning middle class driven by urbanization and rising disposable incomes in the Asia-Pacific region has led to increased demand for automobiles, subsequently boosting the market for automotive camshafts. The expansion is further facilitated by the availability of cost-effective manufacturing options and supportive government regulations that promote automotive manufacturing. China, a major global hub for car production, significantly influences the Asia-Pacific automotive camshaft industry. With its substantial production capacities and cost advantages, China competes fiercely in the international market.

The presence of both domestic and foreign automakers has heightened the need for high-quality camshafts, contributing to the overall growth of the market in the region. Moreover, China’s Automotive Camshaft Market held the largest market share, and the Indian Automotive Camshaft Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Auto Camshaft market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Automotive Camshaft industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Automotive Camshaft industry to benefit clients and increase the market sector. In recent years, the Automotive Camshaft industry has offered some of the most significant advantages to the transportation sector and overall automotive performance. Major players in the Automotive Camshaft Market, including Mahle GmbH, JD Norman Industries, Inc., Thyssenkrupp AG, Linamar Corporation, ESTAS CAMSHAFT & CHILLED CAST, Crance Cams Inc., Aichi Forge USA Inc., Engine Power Components Inc., Hirschvogel Holding GmbH, KAUTEX TEXTRON GmbH & Co.

KG, Shadbolt Cams, Comp Performance Group, Precision Camshafts Ltd., Varroc Group, Camshaft Machine Company are attempting to increase market demand by investing in research and development operations.

Mahle GmbH, a prominent player in engine systems and components manufacturing, is a key supplier of piston systems, cylinder components, and other critical parts for automotive applications. The company's diverse product portfolio encompasses connecting piston rings, rods, cylinder liners, bearings, piston pins, and bushings, catering to combustion engines. Mahle's offerings extend to engine systems, filtration, thermal management, and electrics/mechatronics, providing comprehensive solutions for passenger cars, commercial vehicles, motorsport, high-performance engines, and industrial applications.

In a strategic move to enhance its market position, Mahle acquired Behr Hella Service GmbH in 2020, a German company specializing in thermal management solutions for the automotive industry. This acquisition aimed to broaden Mahle's product range, reinforcing its presence in the global automotive camshaft market. The company also delivers various services, including engineering, module testing, engine testing, and cooling wind tunnel services. Mahle is headquartered in Stuttgart, Germany.

ThyssenKrupp AG, an industrial conglomerate, operates across diverse sectors, including automotive, steel, processing, trading, construction, engineering, energy, utilities, public sector, packaging, and more. The company provides a range of offerings, such as steel products, component technology solutions, marine systems, and automation solutions tailored for automotive original equipment manufacturers (OEMs). ThyssenKrupp serves as a partner in engineering, construction, and industrial plant services, catering to sectors like automobiles, chemicals, power generation, oil and gas, shipbuilding, and aerospace. With a global presence, including operations in Germany, China, and the US, ThyssenKrupp owns manufacturing, research and development, and various facilities worldwide.

In 2021, the company introduced a new line of camshafts known as Rothe Erde camshafts, specifically designed for electric and hybrid vehicles. These camshafts utilize lightweight materials to enhance efficiency, aligning with the evolving trends in the automotive industry. ThyssenKrupp is headquartered in Essen, Nordrhein-Westfalen, Germany.