Report Overview

The Automotive Axle Market size is expected to be worth around USD 81,655.32 million by 2032 from USD 63,170 million in 2022, growing at a CAGR of 2.60% during the forecast period from 2022 to 2032.

This market is expected to expand due to factors such as the growing need for heavy-duty commercial vehicles and lorries with long trailers that can accommodate large loads, and the increase in sales of passenger cars in developing countries like India, China, and Mexico. Market growth is being further encouraged by the surging demand for luxury automobiles with higher performance and torque capabilities.

Consumer inclination towards hybrid and electrified automobiles has changed due to growing environmental concerns and increasing levels of carbon emissions. Governments around the globe are in strong support of implementing Electric/Hybrid vehicles. Market growth is expected to be driven by a growing interest in EVs and hybrid vehicles. The automotive industry is also developing lightweight, fuel-efficient, and smaller-size axles. The lightweight quality of axles has seen a rise in adoption rates due to technological advancements. They are lighter and more efficient vehicles.

New market opportunities are also being created by aftermarket services that replace and maintain demand for axles in powertrains. COVID-19 has had a negative impact on industries around the world. Government establishments have imposed severe quarantine regulations in an effort to stop the spread of this virus. The worst affected industries were aviation, hospitality, and automotive. Travel restrictions, disruptions in the production and manufacturing of automotive components, and bottlenecks throughout the supply chain, all caused a dramatic decline in automotive demand, and subsequently had a negative impact on the automotive market.

Global Automotive Axle Market Scope:

Type Analysis

On the basis of ‘Type’, this market was dominated by the drive axle segment, which accounted for over 66.3% of total revenues in 2021. Manufacturers and consumers are increasingly embracing all-wheel and front-wheel drive axles due to their superior traction on different terrains. A variety of drive-type axles are expected to be in demand due to the increasing mandate for passenger and commercial automobiles throughout North America, Europe, and the Asia Pacific.

The highest expected CAGR for the lift axle segment is 2.8% over the forecast period. Lift axles can be used to transport heavy loads and long-haul vehicles. A lift axle extends the life of brake shoes and other tiers, reduces rolling resistance, and improves fuel efficiency. A lift axle distributes cargo weight evenly. These are the main benefits of a lift axle for heavy-duty cargo trucks.

Application Analysis

In 2021, the front axle application segment will account for the largest market share at over 51.1%. Because of the lower complexity involved in the assembly of the economy and mid-range cars, the front axle is often installed in passenger cars.

The growing popularity of all-wheel-drive vehicles such as four-wheel, six-wheel, and eight-wheel drives is expected to increase the demand for front axles. Over the forecast period, the rear axle segment is expected to index the highest CAGR at 2.3%. Rear drive axles are expected to be needed due to the increasing demand for passenger, commercial and heavy-duty vehicles in Europe and the Asia Pacific. Rear axle manufacturers are focusing on comfort, safety, and cost. A growing number of countries involved in road logistics is another element encouraging this segment’s growth.

Vehicle Type Analysis

In 2021, the passenger car segment was the dominant market segment and represented the highest revenue share at over 51.3%. The demand for passenger vehicles is driven by key factors such as growing urbanization levels, increasing populations, and surging disposable incomes. Market growth is being influenced by the increase in passenger car production in countries like South Africa, India, China, and Indonesia.

This segment is anticipated to index rapid growth due to the introduction of all-wheel-drive, front-wheel, and rear-wheel drive in many luxury and hybrid passenger car segments. Heavy commercial vehicles are expected to experience the highest CAGR of 2.8% over the forecast period. The growing logistics industry in North America and Europe is responsible for the augmentation of the HCV market. Another factor that favors market growth is the use of lift axles by heavy commercial vehicles. Market growth is possible because many heavy commercial vehicles are six- or eight-wheel drives, or are larger vehicles.

Key Market Segments

By Vehicle Type

• Passenger Cars
• Electric Vehicles
• Light Commercial Vehicles (LCVs)
• Heavy Commercial Vehicles (HCVs)

Basis of Type

• Dead
• Lift
• Drive

By Application

• Rear
• Front

Market Dynamics

The demand for and the production of axles are directly related to the demand for automobiles. However, as respective lockdowns were lifted gradually in 2021, the demand for automobiles surged. This was despite a still disrupted supply chain. The automotive market showed signs of recovery, which led to a resurgence in demand for application powertrain axles. Innovations in axle development for heavy-duty commercial trucks are continually ongoing. It objects to recovering performance and maintenance.

Vehicle electrification is a growing trend. This includes the use of an electric motor train and drives the axle. This trend has resulted in changes in design to recover torque load and include a suitable axle for electric applications. In order to meet greenhouse emanation rules, drive and steer axle design has been dominated by weight reduction, downsizing, and torque-resounding characteristics. To handle larger axle input torques, drive axles have higher ratios. This is done by decreasing the engine revolts per hour at the speed of the highway.

To support engine down speeding, single-drive axles can be built using 612 configurations. Steer axle systems have enhanced kinematics, with less bump-and-roll steer being conveyed to drivers over the seat or steering wheel. This can decrease driver fatigue. Key players are also working on fuel-efficient and lightweight axles capable of carrying heavy cargo loads. The axle is being developed considering its scalability for light, medium, and heavy-duty rear-wheel-drive-based pickups. The axles are lighter and can carry more cargo because they are smaller and less workhorse.

This axle will be lighter and more efficient than traditional axles. The axle’s downsizing helps to progress vehicle traction. This helps reduce wheel slippage when driving on wet or icy roads. Due to the development of automobile powertrains, axle design is changing. Manufacturers are working to develop faster axles that have lower ratios. This will allow the engines to run at a sluggish rate. Many axles now include modular motor designs, which make them easy to service and maintain and are scalable because of their motor interchanging capabilities.

The market’s growth is hindered by the unstable and unpredictable cost of raw materials required for automotive axles. Automotive axle manufacturers’ revenue margins are being negatively affected by rapid changes in the value of metals like steel, copper, or aluminum. Major automotive sectors and manufacturers source most of their components from manufacturing centers like China.

The conflict between Russia & Ukraine is also causing fluctuation in metal raw material prices, which affects the total cost of an automotive axle. Market growth is also hindered by the high initial costs of lightweight materials and advanced technologies axles. It can be costly to replace or maintain the aftermarket service costs provisional on the car model and brand. This has encouraged bogus product sales and negatively impacted market growth.

Regional Analysis

The Asia Pacific was the dominant market for automotive axles and accounted for the majority share at 49.3% in 2021. This region is home to major automotive production markets like China, India, and Japan; and is responsible for driving the market growth for the automotive axles industry. To boost these prospects, technologically advanced axles, which are lighter, more traction, fuel-efficient, and use different materials such as carbon fiber, are being fitted to vehicle weight.

Major automotive axle manufacturers like Hyundai Transys Inc. are present, thereby boosting the market growth in the Asia Pacific. North America is projected to experience the highest CAGR at 2.3% over the forecast period. The growing demand in North America for luxury and commercial vehicles can explain this market’s growth trajectory. Market growth is also being driven by the occurrence of major manufacturers like Meritor Inc., DANA Incorporated, and American Axle & Manufacturing Inc., as well as the widespread acceptance and adoption of All-Wheel-Drive vehicles.

Key Regions and Countries Covered іn this Rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share Analysis

Market players have established a strong distribution network and supplier network, a broad portfolio, and a solid presence in developing markets. They invest deeply in research & development to develop new technologies for automotive axles. Major players have lucrative supplier and construction contract opportunities due to the popularity of electric and autonomous vehicles.

Dana Incorporated, for example, began manufacture of the eS9000r eAxle of Spicer Electrified zero-6 eAxles in 2021, to support Freightliner Customchassis Corporation’s (FCCC), all-electric medium-duty last-mile delivery vehicle MT50e. Meritor Inc. also announced in the equivalent year that it had signed a supply deal with Beijing Foton Daimler Automotive Co. Ltd. to yield a customized variant of its single rear drive and long-haul tandem axles for the Daimler AG heavy-duty on-highway tractors. These are being manufactured in Beijing, China, by BFDA.

Key Market Players

• Daimler AG
• American Axle & Manufacturing Inc.
• Meritor Inc.
• Talbros Engineering Limited
• Hyundai Wia Corporation
• JTEKT Corporation (Japan)
• Showa Corporation
• Dana Incorporated
• Melrose Industries PLC
• GKN Automotive
• GNA Group
• ZF Friedrichshafen AG
• SG Automotive
• Benteler
• RABA
• AxleTech International
• SAF-HOLLAND
• PRESS KOGYO CO
• Korea Flange Co
• Ankai Futian Shuguang Axle
• Other Key Players

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For the Automotive Axle System Market research study, the following years have been considered to estimate the market size: