Automotive Axle Market Growth Impact and Demand by Regions till 2027
The global automotive axle market size is projected to be USD 64.79 billion by 2027. The market is estimated to expand at a CAGR of 1.1% over the forecast duration. Rising demand for hybrid and luxury vehicles along with long-sized trailers are attributing to the growth of the market. Additionally, increasing demand for lift axle from heavy commercial vehicles to get better fuel efficiency is likely to drive the market growth.
The rapid rise in e-commerce industry has resulted in the need for efficient road freight transport, thereby; long trailers are gaining significant traction in the transport industry. Long trailers are capable of transporting goods over a long distance, thus, proving to be cost-efficient for logistics providers. For even distribution of load, these trailers are equipped with six axles.
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Rising demand for all-wheel-drive vehicle coupled with increasing overall vehicle production is supplementing the growth of the market. Over the past few years, the demand for the all-wheel-drive vehicle is gaining traction in countries such as Japan, U.S, China and European countries. Around two-thirds of all trucks and over 10% cars that were sold in the U.S were all-wheel drive in 2017. Further, increasing demand for commercial vehicles in Europe and North America is predicted to bode well for the growth of the automotive axle market.
APAC is expected to provide a lucrative opportunity for the market players in the next few years. The growing number of automotive production in 2018 in India and China is driving the growth of the region. China produced more than 23% of the vehicle of total production worldwide.
Further key findings from the report suggest:
- The drive axle category is likely to grow at a 1.6% of CAGR by volume over the forecast period. Rising penetration of all-wheel drive vehicle is attributing to the demand for this segment.
- By application, the rear axle division is projected to reach USD 24.87 billion by the end of the forecast period.
- The passenger car held 67.9% of the market share in 2019 by volume owing to rising penetration of electric vehicles.
- In 2019, APAC accounted for 50.5% of the share and projected to account for shipment of 118.3 million units by 2027.
Impact of COVID-19
The automotive sector is severely affected owing to the COVID-19 outbreak. The market is directly dependent on the sales of automotive. COVID-19 has led to manufacturing disruption across Europe and North America to great extent. Additionally, the supply chain from China has been disrupted significantly. The automotive industry was already facing downshift in demand and the pandemic has resulted in a severe blow to the stakeholders. The crisis in the auto industry is projected to increase the merger and acquisition activity in the near future. However, with relaxing lockdown norms across the globe, several manufacturing units have started their operations. This is expected to bode well for the growth of the industry.
Global Automotive Axle Market: Key Players
Daimler AG, American Axle & Manufacturing Inc., Dana Incorporated and ZF Friedrichshafen AG
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