Automotive Axle Market Size, Analysis, Share & Forecast 2031

Report Description

The global automotive axle market size was valued at USD 62.22 Billion in 2022 and is anticipated to reach USD 74.36 Billion by 2031, expanding at a CAGR of 2% during the forecast period, 2023-2031. The growth of the market is attributed to the growing sales of passenger vehicles in developing countries such as India, China, and Mexico and the increasing need for heavy-duty commercial vehicles, such as long trailers used to transport oversized goods. 

 

Get Free Sample Report

The axle, which delivers driving torque to the wheels and maintains wheel position relative to the vehicle body, is one of the most crucial automotive components. A dead axle, which is typically situated at the end of vehicles, is the axle that retains the wheel location. On the other hand, axles that can transfer torque are referred to as drive axles. The front axle and rear axle are the two categories of automotive axles.

A combination of drive and dead axles make up rear axles. The front axle supports the weight of the vehicle's front end and aids in absorbing shocks that uneven road surfaces may cause. The most recent axle innovation for heavy-duty commercial vehicles is still under development and seeks to enhance performance and maintenance. Drive axles combined with electric propulsion systems are part of the expanding trend toward vehicle electrification.

The COVID-19 pandemic has negatively affected the automotive industry globally. Lockdowns across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to an unfortunate decline in market growth. As the automotive production decreased so has the demand for the automotive axle market.

The COVID-19 pandemic worsened the China-US trade conflict, which began in July 2018. The US placed a 25% tariff on Chinese imports totaling USD 34 billion in 2018. This was the first of several tariff increases during the following year, and China also retaliated by imposing tariffs on some US goods.

The US-China trade war has had a significant impact on supply chains, particularly the flow of raw materials and the finishing of semi-finished items from China to the US. One of the sectors most impacted by these trade disputes is the automobile industry. Due to this, the automotive industry is under great pressure, which is impacting automobile sales and manufacturing.

Additionally, companies are hesitant to move their factories out of countries like China, which not only serve as manufacturing platforms but also as significant markets for their goods. The majority of the automakers reported sharp drops in both production and sales. For instance, major automakers such as Honda, Hyundai, and Toyota have seen their sales drop by 20% to 30% as a result of low stocks and reduced incentives, which are slowing down vehicle sales.                                                                          

Automotive Axle Market Dynamics

The market research report on the global automotive axle market provides a detailed analysis by focusing on revenue growth, facts, figures, and historical data to determine market trends, major drivers, existing restraints, and competitive analysis. The report includes recent developments that can shape the overall performance of the market during the assessment period, 2023 to 2031.

Get Free Sample Report

Key Trends

The partnership between suppliers of raw materials and market participants to boost the market

To meet the increasing demand from the automotive sector, the manufacturers of automobile axles are creating strategic alliances with suppliers of raw materials like steel and aluminum as well as with manufacturing equipment suppliers.

Additionally, there is a growing trend toward designing and creating lightweight, affordable propeller shafts. As a result, suppliers are now inclined to use lightweight materials like carbon fiber for metals while manufacturing axle drivetrain components due to their beneficial qualities, such as enhanced workability, high strength-to-weight ratio, and corrosion resistance.

For instance, Axle manufacturer Meritor Inc., located in the US, invested USD 36 million to upgrade its assembly line in India. This development is projected to provide immense growth opportunities in the coming years.

Major Drivers

Developments in automotive axles to enhance performance and maintenance

Recent advancements in the automotive sector have created opportunities for new automobile axle designs. The most recent axle development for heavy-duty commercial vehicles is centered on enhancing performance and maintenance.

The pattern has resulted in modifications of design that incorporate the proper axle for an electric application and generate torque load requirements. Furthermore, to comply with pollution standards, torque-carrying capabilities, weight reduction, and downsizing have been given top priority while developing drive and steer axles.

Additionally, as vehicles become electrified, innovation in the drive axle and electric powertrain is continuing, which is driving the market. Moreover, increased sales of premium vehicles, which require more torque and performance, are boosting the market.

Drive axles are designed to have quick ratios to accommodate larger axle input torques brought on by decreased engine revolutions per minute at highway speeds for line-haul logistics vehicles used in road transportation.

Similarly, the growing popularity of 612 layouts can be used to create single-drive axles that facilitate engine downpeeding and faster ratios. For instance, the steer axle system has enhanced kinematics, which assists in minimizing driver fatigue by reducing the amount of bump and roll steer that is sent to the driver through the seat or the steering wheel.

Increasing adoption of hybrid and EVs to drive the market

Governments all around the world are actively promoting the adoption of EVs and hybrid vehicles. Consequently, it is expected that an increasing preference for hybrid and electric vehicles to fuel the market.

In addition, the automotive industry is creating technically advanced axles that are lightweight, small, and increased performance- and fuel-efficient. The application of technical innovation has sparked a rise in the use of lightweight axles, which offer increased efficiency and help reduce the overall weight of hybrid, EV, and commercial vehicles, driving the market.

Existing Restraints

The fluctuating cost of raw materials hamper the market growth

The fluctuating cost of raw materials required for the production of automotive axles impedes the market. Axles are made of high-cost metals including steel, copper, and aluminum. The profit revenue for automotive axle manufacturers is thus being significantly impacted.

Additionally, most automakers buy their vehicle parts from countries with strong manufacturing infrastructure, like China. Another significant barrier to market expansion is the high initial cost of technologically innovative and light vehicle axle system. The availability of alternative products with low quality and cost is anticipated to hinder market growth.

Scope of Automotive Axle Market Report

The report on the global automotive axle market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Automotive Axle Market Segment Insights

Axle Type Segment Analysis

Based on axle type, the global automotive axle market is segregated into dead, drive, and lift. The drive segment accounted for a market share of around 64% in 2021. All-wheel and front-wheel drive axles are becoming common among manufacturers and consumers due to their improved grip in various terrains. Additionally, the increasing popularity of passenger and commercial vehicles in North America, Europe, and Asia Pacific is estimated to drive the market.

The lift segment is projected to expand at a high CAGR during the forecast period. Lift axles are the ideal option for long-haul trucks used for logistics and hauling a heavy load. The lift axle increases fuel efficiency, decreases rolling resistance, and extends the lifespan of brake shoes and stages. Additionally, the lift axle evenly distributes the weight of the cargo.

These reasons are anticipated to increase demand for lift axles in heavy-duty freight vehicles. The European Community (EEC) states that since each axle can only carry a certain amount of weight, the appropriate liftable axles should automatically be dropped to achieve a proper load distribution.

Application Segment Analysis

On the basis of application, the market is bifurcated into rear and front. The front segment held around 50% of the total market share in 2021 and is estimated to dominate the market during the forecast period.

The rear segment is estimated to expand at a rapid growth rate during the forecast period.  The demand for rear axles is increasing in Europe and Asia Pacific due to the growing market for commercial, heavy-duty, and passenger vehicles in these regions. Rear axle production companies are concentrating on delivering improved cost benefits, safety, and comfort. Additionally, the demand for the rear axle segment is being driven by the growing roadway logistics activities across nations.

The front axle is typically placed in passenger vehicles due to the less complicated construction of mid-range and economy sector cars. Additionally, the rising popularity of all-wheel-drive vehicles such as those with four, six, or eight wheels is anticipated to boost the demand for front axles.

Get Free Sample Report

Vehicle Type Segment Analysis

In terms of vehicle type, the global automotive axle market is fragmented into heavy commercial vehicles, light commercial vehicles, and passenger cars. The passenger cars segment accounted for a major market share of around 50% in 2021. Growth of the segment is attributed to increasing disposable income, growing population, and increasing urbanization.

The boom in passenger automobile production in nations such as South Africa, Indonesia, China, and India is boosting the segment. Furthermore, the segment is anticipated to increase due to the application of front-wheel, rear-wheel, and all-wheel drive in several premium and hybrid passenger car segments.

The heavy commercial vehicles segment is expected to hold a major market share during the projected period. The growth of the segment is attributed to the expanding logistics sector, particularly in the North American and European nations. Additionally, the implementation of lift axles in heavy commercial vehicles is propelling the segment.

Regional Analysis

On the basis of region, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific held a key market share of around 50% in 2021. The presence of key automobile markets such as Japan, China, and India, where demand for both passenger and commercial vehicles is rising is estimated to boost the market for automotive axles.

The market in North America is estimated to expand at a high CAGR in the coming years owing to increasing demand for commercial and luxury vehicles. The extensive use of all-wheel-drive and the presence of major manufacturers like American Axle & Manufacturing, Inc., Meritor Inc., and DANA Incorporated are contributing to the market growth in the region.

The market in Europe is projected to grow at a substantial rate during the projected period. The automotive sector has made significant technological developments in Europe. As a result, extensive research and development are done for both heavy and passenger vehicles in the region. For instance, Kogel is a pioneer in the field of smart axles.

It significantly improves the trailers' driving characteristics because it was specifically made for Kögel trailers. The redesigned axle meets Kögel customers' primary criteria for maximum maintenance-friendliness, leading to increased cost-efficiency. Additionally, efforts are being made to design automotive axles that are affordable. These factors are estimated to drive the market in the region.

Implementation of technologically advanced axles such as fuel-efficient, more traction, lightweight, and use a variety of materials, including carbon fiber which improves their performance is fueling the market. The existence of significant automobile axle manufacturers such as Hyundai Transys Inc. helps drive the market in the region.

Get Free Sample Report