US Light Vehicle Axle System Market Outlook
The US light vehicle axle system market size was valued at USD 8,712.2 Million in 2019 and is projected to reach USD 8,450 Million by 2027, expanding at a CAGR of 2% during the forecast period.
The market is driven by surging sales of hybrid and electric 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. An axle is an essential shaft for a rotating wheel and is classified as a front and rare axle.
The rear axle function is in vehicles having rear-wheel drive. The front axle supports the front wheels of the automotive. Additionally, the front axle supports weight and absorbs the shocks, owing to patchy roads. This helps in effortless steering and absorption of the sudden torque, owing to braking. An axle system transmits the torque by differential technique to wheels and the engine transmit the torque to the vehicle. The kind of axle used in the vehicle is determined by the function of the automotive and the location of the axle placed in the vehicle.
US Light Vehicle Axle System Market Dynamics
Drivers
Increasing sales of hybrid and electric vehicles are expected to boost the market during the forecast period, 2019-2027, as governments are recognizing the significance of decreasing carbon emissions in the transportation sector. Growing acceptance of lightweight axles, as it improves efficiency in electric vehicles, is expected to boost the market.
Several technological developments and increasing usage of composite tools in axles for reducing the weight of hybrid and electric vehicles is fueling the market. Additionally, government initiatives such as free parking space and tax benefits are expected to encourage customers to purchase electric vehicles, which in turn, is projected to increase the sales of these vehicles.
Demand for light vehicles is increasing in the US, owing to the presence of major manufacturers in the country. Infrastructure growth, rising population, and increased use of personal cars are fueling the passenger car production in the US. Government initiatives for the adoption of electric vehicles to reduce carbon emissions are responsible for the increasing demand for light vehicles in the US. Growing demand for light vehicles is projected to drive the demand for light vehicle axle systems during the forecast period.
Light vehicles consume less energy to accelerate. Improvement in fuel-efficient vehicles provides broad economic benefits. Increasing demand for fuel-efficient vehicles is expected to increase the demand for light vehicles, which in turn, is projected to drive the demand for the light vehicle axle system in the US during the forecast period.
Restraints
An important component of light vehicles is the axles, which are central shafts and connect to the wheels. The number of axles in a light vehicle or automotive depends on the type of vehicle. In most cases, vehicles have two axle system to rotate the wheels. Vehicles with a carrying capacity of six to eight passengers have more wheels, which requires more axles.
Some vehicles or automotive have pre-designed axles in standard layouts and others have modified axles, which fit the specifications and needs of the vehicles. Customized axles are optimal for usage in vehicles, as they allow for modified control over the wheels. Extra components such as axel set up in vehicles, increases the cost of vehicles, which is expected to restrain the market growth.
Opportunities
Increasing adoption of electric vehicles (EVs) to decrease fuel consumption and greenhouse gas emissions contributes to the global efforts of reducing the causes of climate change. Additionally, government initiatives for the adoption of electric vehicles are responsible for the increasing demand for electric vehicles. Growing demand for electric vehicles is expected to drive the demand for the light vehicle axle system, as it is used in electric vehicles.
US Light Vehicle Axle System Market Segment Insights
On the basis of axle types, the US light vehicle axle system market is categorized as drive, dead, and lift axle. The drive axle segment accounted for market share of 65.8% in 2019. The growth of the segment is attributed to increasing demand for technologically advanced axles. The dead axle segment is anticipated to expand at a CAGR of 1.9% during the forecast period, owing to increasing demand for long-haul trailers.
Based on application, the US light vehicle axle system market is bifurcated into front axle and rear axle. The rear segment constituted for market share of 56.7% in 2019, owing to increasing production of vehicles. The front axle segment is anticipated to expand at a CAGR of 2.2% during the forecast period, as it helps in effortless usage in steering and absorbs the shocks owing to patchy roads and sudden torque.
In terms of vehicle types, the US light vehicle axle system market is categorized as passenger car and light commercial vehicle (LCV). The passenger car segment accounted for a market share of 32.0% in 2019 owing to increasing demand for all-wheel-drive drivetrain by consumers of passenger cars. The light commercial vehicle (LCV) segment is anticipated to expand at a CAGR of 2.1% during the forecast period, owing to the increasing penetration of transportation trailers.
On the basis of sales channels, the market for light vehicle axle system in the US is bifurcated into aftermarket and OEMs. The aftermarket segment is expected to dominate the market, as the aftermarket offers a wide range of products and at a cheaper price than OEMs. However, the OEMs segment is expected to expand at a considerable pace during the forecast period, owing to its option of outsourcing labeling, packaging, and direct shipping to the consumers.
On the basis of sub-regions, the market is fragmented into West, Midwest, Northeast, Southeast, and Southwest. Midwest is a promising sub-region of the market in the US and constituted 43.9% share of the market in 2019. The demand for light vehicle axle system is expected to rise due to increasing demand for LVCs and electric vehicles in the region.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Light Vehicle Axle System Market
- Historical, Current and Projected Market Size in terms of Value and Volume
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Light Vehicle Axle System Market Performance
Segments
Axle Types
By Application
Vehicle Types
- Passenger Car
- Light Commercial Vehicle (LCV)
Region
- West
- Midwest
- Northeast
- Southeast
- Southwest
Key Players
Competitive Landscape
Key players in the market include Advanced Innovative Technology Corporation, American Axle & Manufacturing, Inc., BorgWarner Inc., Carraro SpA, Dana Incorporated, DexKo Global, Inc., PRESS KOGYO Co., Ltd., The Driveshaft Shop, Yukon Gear & Axle, and ZF Friedrichshafen AG. These companies are considered manufacturers of light vehicle axle system based on their revenue, research development (R&D) activities, regional presence, and supply chain management system. The players are adopting key strategies such as new product launches and developments in the existing product lines. For instance,
In February 2021, BorgWarner Inc. signed a Business Combination Agreement (BCA) for expanding its commercial vehicle electrification capabilities. As per the agreement, the company is expected to acquire all outstanding shares of AKASOL.
In September 2020, Carraro SpA inaugurated its R&D center in Campodarsego, which is spanned across a total area of more than 6200 square meters with an employee capacity of 100 persons. The facility increased the company’s potential testing capacity by approximately 80%.
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