Rear Axle Market Size, Share & Trends Analysis Report By Type (Drive, Dead, Lift), By Application (Heavy Vehicles, Luxury Vehicles, Executive Vehicles, Economy Vehicles, SUV, MUV, Railways), By Region, And Segment Forecasts, 2018 - 2024

Industry Insights

The global rear axle market size was valued at USD 40.87 billion in 2015. The increasing demand for fuel-efficient vehicles and stringent norms by the government regarding emissions are expected to drive the industry over the forecast period. Lightweight rear axles are developed and designed to fulfill consumer demand.

The growing demand for safety, optimum comfort, and cost advantage to consumers is anticipated to increase the adoption of the technology. The rising production of vehicles with lightweight fuel-efficient automotive parts has also significantly contributed to growth. Rear axles undergo wear and tear under difficult conditions and are considered to be the vital type for steering, load-bearing, and driving a vehicle.

Global rear axle market, by application, 2015 - 2024 (USD Million)

The increasing development of safer and cleaner vehicles has led to the development of alternative fuel vehicles for reduced emissions. Technological developments for enhanced road safety, including vehicle-to-vehicle communication and intelligent vehicles which have the facility of collision avoidance, have surged the demand for these products.

The increasing demand for Value For Money (VFM), which includes high mileage and fuel-efficient products, is anticipated to catapult the vehicle industry in emerging countries. The optimization of cost efficiency programs and fuel-driven combustion engines are the key opportunities for the automobile industry.

The entry into new markets, such as BRIC and the Asian countries, is expected to result in an upsurge in demand for economy vehicles. The collaboration of OEMs with suppliers and manufacturers has led them to co-invest in new platforms for innovation in the industry. However, the economic slowdown in various regions, such as Europe and Japan, acts as a restraint on the market development.

Type Insights

The market has been categorized by type into drive, dead, and lift axles. The dead segment is expected to lead with a CAGR of over 4.0% over the forecast period. This growth can be attributed to the increasing transportation infrastructure across the globe that raises connectivity between numerous nations, thereby influencing the production of trucks and trailers with rear axles.

North America rear axle market, by type, 2015 (USD Million)

The dead axle is a free rotating and is generally the rear axle of the front-wheel-drive vehicles. It is used in heavy vehicles, such as trucks and trailers, strictly for load-bearing purposes.

Application Insights

The application sectors analyzed in the study include SUV, MUV, railways, heavy, luxury, executive, and economy vehicles. The heavy vehicle segment accounted for over 30% of the overall revenue share in 2015.

The rear axle is used as a positioning type in the indoor areas of heavy vehicle stores where it can help in improving customers’ shopping experience by displaying the latest preferred promotional offers. Drive and fluorescent lamps send out a flickering light that can be detected by smartphones, which enables indoor navigation. The implementation of the rear axle can enhance customer loyalty and services toward heavy vehicles.

The luxury vehicles application is expected to witness the fastest growth among other applications, expanding at a CAGR of over 4.2% from 2016 to 2024. Technological advancements in the drive axle and automotive telematics are expected to drive the adoption of traffic and car lights.

The increasing parameters for traffic management and road safety, featuring instantaneous tracking via applications, are also expected to play a significant role in increasing the penetration

Regional Insights

The North American rear axle Industry accounted for over 40% of the global revenue share in 2015. Growing adoption of All Wheel Drive (AWD) vehicles is a major opportunity for the manufacturers. The National Highway Traffic Safety Administration (NHTSA) and the Department of Transportation (DOT) mandate the application of drive in the headlights and taillights of the vehicles.

Europe is expected to offer a huge platform for growth, accounting for over 30% of the overall share in 2015. The already established infrastructure of the internet-based communication system offers a great potential for growth across this region.

The Asia Pacific market was valued at over USD 11.00 billion in 2015 and is anticipated to witness significant growth, owing to the high manufacturing capacity of the rear axle types in countries such as Japan, Korea, and China.

The growing purchasing power, infrastructure development, and low penetration of automobiles in emerging nations, such as Brazil, China, and India, have resulted in an increase in the demand for commercial vehicles and personal transportation. Advanced navigation technologies in the automobile, such as vehicle-to-vehicle communication and intelligent vehicles, are enabling an enormous boom with new facilities such as accident avoidance, and automatic brakes.

Asia Pacific is anticipated to register a significant rise in demand-driven through numerous initiatives and programs. Additionally, countries such as Australia, Saudi Arabia, Egypt, and UAE are important manufacturing and export bases for automotive OEMs. The growing geographic presence of OEMs in these regions is driving the industry of automotive axle.

Rear Axle Market Share Insight

Companies dominating the rear axle market share include American Axle & Manufacturing Holdings, Dana Holding Corporation, Meritor, Inc., Daimler Trucks North America LLC, and ROC Spicer Ltd. The automakers are focused on developing lightweight vehicles with advanced technology for surviving the competition in the market. Other potential players include Talbros Engineering Limited, GNA Axles Ltd., and Automotive Axles Limited.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth on the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2015 to 2024. For the purpose of this study, Grand View Research has segmented the global rear axle market by type, application, and region:

• Type Outlook (Revenue, USD Million; 2015 - 2024)

  • Drive

  • Dead

  • Lift

• Application Outlook (Revenue, USD Million; 2015 - 2024)

  • Heavy vehicles

  • Luxury vehicles

  • Executive vehicles

  • Economy vehicles

  • SUV

  • MUV

  • Railways

• Regional Outlook (Revenue, USD Million; 2015 - 2024)

  • North America

    • North America Market, by Type

      • Drive

      • Dead

      • Lift

    • North America Market, by Application

      • Heavy vehicles

      • Luxury vehicles

      • Executive vehicles

      • Economy vehicles

      • SUV

      • MUV

      • Railways

  • Europe

    • Europe Market, by Type

      • Drive

      • Dead

      • Lift

    • Europe Market, by Application

      • Heavy vehicles

      • Luxury vehicles

      • Executive vehicles

      • Economy vehicles

      • SUV

      • MUV

      • Railways

  • Asia Pacific

    • Asia Pacific Market, by Type

      • Drive

      • Dead

      • Lift

    • Asia Pacific Market, by Application

      • Heavy vehicles

      • Luxury vehicles

      • Executive vehicles

      • Economy vehicles

      • SUV

      • MUV

      • Railways

  • RoW

    • RoW Market, by Type

      • Drive

      • Dead

      • Lift

    • RoW Market, by Application

      • Heavy vehicles

      • Luxury vehicles

      • Executive vehicles

      • Economy vehicles

      • SUV

      • MUV

      • Railways