US Light Vehicle Axle System Market Expected to Reach USD 8,450.0 Million by 2027

According to a recent market study published by Growth Market Reports, titled, "US Light Vehicle Axle System Market by axle types, application, vehicle types, sales channels, and by regions: Size, Share, Trends and Opportunity Analysis, 2017-2027", the market was valued at USD 8,712.2 Million in 2019 and is expected to grow at rate of 2.0% by the year 2027. The US light vehicle axle system market is anticipated to grow significantly during forecast period.

The demand for light vehicle axle system in increasing significantly owing to production of light commercial vehicles, increasing demand for passenger cars, growing demand for and advancements in technology for improving performance of vehicles, and rising demand of fuel-efficient vehicles are expected to fuel the demand for light vehicle axle system.

US light vehicle axle system market has been fragmented based on axle types, applications, vehicle types, sales channels, and by regions. In terms of axle types, the market is categorized as drive, dead, and lift axle. Depending on applications, the US light vehicle axle system market is bifurcated into front axle and rear axle. In terms of vehicle types, the US light vehicle axle system market is categorized as passenger car and light commercial vehicle (LCV). On the basis of sales channels, the market is segmented into aftermarket and OEMs. By sub-regions the market is fragmented into West, Midwest, Northeast, Southeast, and Southwest.

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The effect of COVID-19 pandemic situation has had a serious impact on the society and overall economy of the world. The impact of COVID-19 is growing by the day and affecting the supply chain of the industries. The coronavirus pandemic is increasing uncertainty among consumers buying behavior, thus slowing the supply chain, increasing panic among customers, and reducing business confidence. The automotive industry was affected due to the COVID-19 outbreak and is presently reeling under extensive uncertainty. Additionally, closure of manufacturing plants and suspension of operations have affected the automotive industry, which in turn, have negatively affected the light vehicle axle system market.

Majority of the automakers claimed massive declines in sales and production. For instance, leading automotive companies such as Hyundai, Honda, and Toyota have experienced a decline of 20 to 30 percent, due to less incentives and limited inventories, which is holding back the sales of light vehicles. The rapid spread of COVID-19 and the implementation of lockdown in the US had a substantial impact on the freight availability and the movement of goods. The demand for Light commercial vehicle (LCV) decreased in 2019 and is under pressure, due to the axle load norms and economic slowdown.

As per Growth Market Reports industry analyst Vidya Jadhav “The COVID-19 pandemic has negatively affected the US light vehicle axle system market. The lockdowns, along with the financial implications of tackling coronavirus, have had a negative impact on the light commercial vehicle (LCV) sales. Increase in price sensitivity has increased the price of vehicles; therefore, putting the manufacturers at a great disadvantage. Travel restrictions and quarantines are affecting millions of people and have left factories worldwide without work and raw materials. This has disrupted the fair-time supply chain and affected the production of vehicles in US.”

Key Takeaways from the Study

• The market in the Midwest region is anticipated to expand at a considerable pace during the forecast period, owing to the availability of workforce in the sub-region.
• The strong presence of automotive manufacturers in Midwest and Southwest region is expected to be key factor boosting the growth of market across these regions.
• The market in overall US is projected to expand at a moderate pace owing to declining production of passenger cars. However, the decline caused by COVID pandemic is expected to create a long-term negative impact on the market due to which a sluggish growth is expected during forecast period.

Report Scope

Target Audience

• Supply-side: Light Vehicle Axle System manufacturers, raw material suppliers, primary respondents, and distributors
• Demand Side: Passenger cars and Light Commercial Vehicle manufacturers
• Regulatory Side: Concerned government authorities, commercial research & development (R&D) institutions, and other regulatory bodies.
• Associations and Industry Bodies: Motor & Equipment Manufacturers Association (MEMA), Auto Care Association (ACA), Automotive Aftermarket Suppliers Association (AASA), and International Organization of Motor Vehicle Manufacturers (OICA).