Automotive Axle Market Size, Share & Trends Analysis Report By Type (Drive, Dead, Lift), By Application (Front, Rear), By Vehicle Type (Passenger Car, LCV, HCV), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global automotive axle market size was valued at USD 59.18 billion in 2019 is projected to expand at a CAGR of 1.1% over the forecast period. The global automotive axle shipment was recorded at 195 million units in 2019. Increasing automotive production across the globe, along with rising consumer preference for hybrid and luxury vehicles with advanced technology, is expected to fuel the market growth from 2020 to 2027. Besides, the commercialization of advanced technologies to reduce the overall vehicle weight is anticipated to drive the market for the automotive axle.

Consumer’s awareness concerning the need to reduce vehicular emission and fuel consumption has led to significant growth in the demand for hybrid vehicles. Hybrid vehicles are driven by multiple power sources that reduce fuel consumption and simultaneously enhance the driving experience. Thus, rising demand for hybrid vehicles is also expected to fuel the demand for automotive axles in future. As per the International Council on Clean Transportation (ICCT), hybrid systems can reduce CO2 emissions and fuel consumption by up to 35%.

Long trailers and heavy commercial vehicles have been witnessing significant demand from Europe and North America. A long trailer has around 6 to 8 axles to distribute the overall load of the vehicle uniformly. Thus, increasing demand for long trailers is anticipated to boost the demand for automotive axles between 2020 and 2027. For instance, in Europe, around 188,000 units of long trailers were sold in 2016. Moreover, demand for trailers is growing at a significant pace owing to its demand across the e-commerce industry. Hence, some of the leading trailer truck manufacturers are planning to increase annual production capacity by around 10-20% by 2021.

Besides, growing focus on the production of semi-autonomous vehicles and autonomous vehicles with innovative technology is projected to surge vehicle production and consequently increase demand for automotive axles over the forecast period. Additionally, increasing demand for road freight transport has resulted in substantial market growth. For instance, the road freight transport market witnessed relentless growth for the fifth year in a row and the industry grew by around 4.5% between 2016 and 2017.

Fluctuating price of raw materials is one of the key challenges faced by automotive axle manufacturers. Volatile prices of raw materials, such as aluminum, steel, and copper, can negatively impact the revenue and profit margins of the automotive axle manufacturers. Moreover, the automotive industry is undergoing a radical transformation and the use of electric vehicles, which can reduce the emission of greenhouse gases substantially, is on the rise globally. Thus, increasing production of electric vehicles is anticipated to surge the demand for e-axle and act as a restraining factor for the growth of the automotive axle market.

Type Insights

Based on type, the market for automotive axle is segmented into drive, dead, and lift. The drive segment held a dominant share of 56.5% in 2019 based on volume and is expected to expand at the highest CAGR over the forecast period. Growing demand for all-wheel-drive vehicles would take a toll on the adoption of drive-type automotive axles. Besides, increasing production of commercial vehicles across Europe and North America will fuel the segment growth from 2020 to 2027.

The lift axle segment is projected to witness considerable growth from 2020 to 2027. The lift axle shipment was recorded at 2.4 million units in 2019 and is anticipated to expand at a CAGR of 1.0% over the forecast period. Lift-type automotive axles are usually used in heavy commercial vehicles as secondary automotive axles to increase the load-carrying capacity of the vehicles. According to the European Economic Community (EEC), the determined load carried by each axle is limited and the suitable liftable axles should automatically be dropped to obtain an adequate load distribution.

Application Insights

The rear application segment dominated the market in 2019 and accounted for a share of 56.1% in terms of volume. The market share in terms of volume is expected to increase significantly over the forecast period. The growth can be attributed to increasing production of commercial vehicles across the developed and emerging economies as most of the commercial vehicles have rear driven axles. Additionally, growth of the logistics industry is expected to surge the demand for the long trailer, subsequently influencing the segment growth over the forecast period.

The front application segment is estimated to exhibit a value-based CAGR of 1.4% from 2020 to 2027. The growth can be attributed to increasing production of economy and mid-range segment cars. Moreover, increasing penetration of all-wheel-drive vehicles, such as four-wheel-drive (4WD), six-wheel-drive (6WD), and eight-wheel-drive (8WD), is estimated to contribute to the segment growth over the forecast period.

Vehicle Type Insights

The passenger car segment is anticipated to hold a dominant share throughout the forecast period. Increasing production of passenger cars across emerging countries, such as India, Mexico, Indonesia, and South Africa, is expected to influence the segment growth. Additionally, rising production of Front Wheel Drive (FWD) and All-Wheel Drive (AWD) vehicles is anticipated to encourage automotive axle manufacturers to develop advanced automotive axles for luxury and hybrid passenger cars. Penetration of the all-wheel-drive systems is higher in Europe and North America as compared to other regions.

The Heavy Commercial Vehicle (HCV) segment is projected to expand at a revenue-based CAGR of 0.6% between 2020 and 2027. The growth can be attributed to increasing production of HCVs, particularly across Europe and North America. Additionally, increasing penetration of lift-type automotive axles in HCVs is another factor that bodes well for the segment. Need for more than two axles in heavy commercial vehicles is estimated to provide growth opportunities for the automotive axle manufacturers.

Regional Insights

Asia Pacific held a dominant share in the overall market in 2019 and the market in this region was valued at USD 29.87 billion. Demand for automotive axle in China is mainly driven by rapid growth of the automotive sector in the country, which provides various lucrative opportunities for the automotive axle manufacturers in the country. Moreover, favorable government initiatives such as Make in India campaign, which allows 100% foreign direct investment (FDI), are expected to boost vehicle production, consequently driving the market. Strong presence of prominent automotive axle manufacturers, such as Korea Flange Co. Ltd. and Hyundai Transys, Inc., is also anticipated to boost the market growth in Asia Pacific.

North America is projected to expand at a CAGR of 1.6%in terms of volume over the forecast period. The growth can be attributed to growing demand for luxury cars and commercial vehicles in the region. U.S. held majority of the share in the North America market in 2019. Around 8.32 million commercial vehicles and 2.54 million passenger vehicles were manufactured in the country in 2019. Since 2015, the country is witnessing a perpetual decline in passenger car production. However, this decline is compensated by increasing production of light commercial vehicles and heavy commercial vehicles.

Key Companies & Market Share Insights

The market for automotive axle is highly consolidated with the presence of a few global and regional players holding a dominant share in the market. Key industry players include American Axle & Manufacturing, Inc.; Dana Incorporated; Daimler AG; GNA Group; Meritor, Inc.; ZF Friedrichshafen AG; Melrose Industries PLC; and Talbros Engineering Limited.

The manufacturers are signing collaborative agreements and striking alliances with automotive OEMs to strengthen their foothold in the market. For instance, in May 2019, Dana Incorporated supplied driveline technologies, including Spicer prop shafts and rear and front Spicer AdvanTEK axles, to General Motors Vehicle in South and North America.

Increasing demand for AWD and FWD vehicles and growing popularity of hybrid and autonomous vehicles are some of the key factors creating significant growth opportunities for automotive axle manufacturers. Besides, increasing demand for safer and comfortable automobile functions has boosted the demand for technologically-advanced automotive axles.

Thus, companies in the market are significantly investing in research and development activities to manufacture highly advanced automotive axles and secure their position in the market. For instance, in April 2019, Dana Incorporated has started the production of Spicer AdvanTEK Ultra axle with the Spicer SmartConnect disconnecting AWD system in China. The advancement is anticipated to result in a 45% reduction in loss of energy as compared to the standard automotive axle, simultaneously improving the fuel efficiency of the vehicle.

Automotive Axle Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global automotive axle market report on the basis of type, application, vehicle type, and region:

• Type Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

  • Drive

  • Dead

  • Lift

• Application Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

  • Front

  • Rear

• Vehicle Type Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

  • Passenger Car

  • Light Commercial Vehicle (LCV)

  • Heavy Commercial Vehicle (HCV)

• Regional Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Rest of the World (RoW)