The global automotive axles market size is projected to reach USD 39.78 billion by 2027, exhibiting a CAGR of 5.1% during the forecast period. Development of advanced axles by companies will be a crucial growth driver for this market, shares Fortune Business Insights™ in its report, titled “Automotive Axles Market Size, Share & Industry Analysis, By Application Type (Front Axle and Rear Axle), By Axle Type (Drive Axle, Dead Axle, and Lift Axle), By Vehicle Type (Passenger Car, Light Commercial Vehicle, and Heavy Commercial Vehicle) and Regional Forecast, 2020-2027”. Automakers and component manufacturers are constantly exploring new technologies to enhance the efficiency of their vehicles and are giving a high amount of attention to automotive axles. For example, in 2017, Bosch introduced its electric axle drive, or e-axle, powertrain, which unifies three powertrain components in a single unit, ensuring lower development time for automakers and increased efficiency. Similarly, in 2019, Kinetic Engineering Limited announced the development of axle assemblies as well as two-speed gearboxes for electric vehicles, which will be in the form of a kit, made ready-to-fit onto the vehicles. Thus, the growing presence of such advanced axle solutions will benefit the market in the long run.
Source:
https://www.fortunebusinessinsights.com/industry-reports/automotive-axle-market-101586
According to the report, the global market value stood at USD 27.19 billion in 2019.
The report provides the following information:
- In-depth analysis of the key market segments;
- Comprehensive examination of the trends, drivers, and restraints shaping the market;
- Tangible insights into the leading players’ profiles and strategies; and
- Granular study of the regional prospects and developments impacting the market.
Market Restraint
Falling Revenues & Plant Closures amid COVID-19 to Constrain Market Growth
The COVID-19 pandemic has caused a severe downturn in the automotive industry, primarily because of a drastic decline in market demand for cars and other vehicles as majority of the working population worldwide has shifted to remote working. As a result of the steep drop in demand, prominent companies in this market are grappling with shrinking revenues and reduced profits. For example, ZF Friedrichshafen announced in May 2020 that it will be slashing 15,000 jobs over the next five years at its plants across the globe owing to the frozen demand for cars amid the coronavirus pandemic. Another major market, Dana Incorporated, reported a loss of USD 174 million in the second quarter of 2020 due to lower sales in the COVID-19 pandemic. Large automakers have been hit as well by the pandemic, with several of them being forced to close some of their plants. Fiat Chrysler, for instance, announced the closure of its plants in Poland, Serbia, and Italy in March 2020. These unfavorable developments will inevitably affect the automotive axles market growth as the coronavirus has disrupted investment plans of most of the players in the automotive industry.
Regional Insights
Asia Pacific to Command the Market Powered by Speedy Urbanization
Asia Pacific is expected to dominate the automotive axles market share during the forecast period owing to the rapid growth of urban areas in the region. Speedy growth of large cities in India, China, Vietnam, and Thailand has escalated the demand for vehicles in the region, with consumers demanding vehicles with advanced components and features, which bode well for this market. The region’s market size in 2019 stood at USD 14.23 billion.
The market in North America and Europe will be mainly driven by the strong presence of automotive component manufacturers in these regions. Furthermore, the adoption of electric and hybrid vehicles is also steadily rising in these continents, which is propelling the demand for more sophisticated automotive axles along with other vehicular components.
Competitive Landscape
Key Companies to Capitalize on Novel Innovation Opportunities
A wide spectrum of innovation opportunities awaits key players in this market and these players are pulling all stops to exploit them. Many companies are engaged in developing electric solutions for sustainable urban mobility, while several others are investing to elevate their research & development capabilities.
Industry Developments:
- May 2020: ZF Friedrichshafen’s electric portal axle, AxTrax AVE, has been deployed on the thirty-seven Metrodecker EVs in London. ZF will provide clean mobility solutions to the British bus maker, Optare, and the London bus operator, Tower Transit.
- August 2019: Meritor, Inc. announced an axle assembly facility at Automotive Axles, its joint venture the India-based Kalyani Group, valued at USD 36.5 million. Along with the facility, Meritor also announced a research and development center in Mysore, Karnataka.
List of Key Companies Covered in the Automotive Axles Market Report:
- Jtekt Corporation (Japan)
- Hyundai Wia Corporation (South Korea)
- Meritor Inc. (United States)
- American Axle & Manufacturing Holding Inc. (United States)
- ZF Friedrichshafen AG (Germany)
- Gestamp (Spain)
- Showa Corporation (Japan)
- GKN Plc (United Kingdom)
- Dana Incorporated (United States)
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