The US light vehicle axle system market 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.
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.
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.
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.
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.
Some frequently asked quetions about this report!
Additional company profiles can be provided on request.
Yes, the report covers vehicle type specific information based on its use and application.
According to this Growth Market Reports report, the market for Light Vehicle Axle System in the US is likely to register a CAGR of 2.0% during forecast period 2020-2027, with an anticipated valuation of USD 8,450.0 million by the end of the 2027.
In addition to market size (in USD Million) and company market share (in % for base year 2019), other data such as market volume data, US automotive industry overview, US vehicle sales outlook, and US vehicle production outlook is provided along with parent market analysis with a short term as well as long term outlook for light vehicle axle system market is available in final report.
Surging production of Light commercial vehicles and passenger cars are expected to drive the market growth during forecast period.
Passenger Car and light commercial vehicle (LCV) are the key vehicle types that are driving the light vehicle axle system market.
Factors such as competitive strength and market positioning are key areas considered while selecting top companies to be profiled.
The market is expected to decrease by 15.4% between 2019 and 2020 owing to the negative impact of COVID-19 pandemic on the production and demand for light vehicle axle system market.
The base year considered for the US light vehicle axle system market report is 2019. The complete analysis period is 2017 to 2027, wherein, 2017 & 2018 are the historic years and the forecast is provided from 2020 to 2027.
Major manufactures include American Axle & Manufacturing, Inc., Dana Incorporated, ZF Friedrichshafen AG, BorgWarner Inc., and DexKo Global, Inc.
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