Automotive Axle Market Size, Share, Trends, Growth 2032

Automotive Axle Industry Prospective:

The global automotive axle market size was worth around USD 58.79 billion in 2023 and is predicted to grow to around USD 68.12 billion by 2032 with a compound annual growth rate (CAGR) of roughly 1.65% between 2024 and 2032.

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Automotive Axle Market: Overview

Automotive axles are essential tools required in an automotive vehicle. An axle is a shaft or a rod connecting a pair of vehicles. Although axles are often not as prioritized as other parts of a vehicle, axles deliver the power necessary for moving a vehicle in the forward or reverse direction. Automotive axles while connecting wheel pairs also aid in retaining the position of the vehicles to one another. The axle-spinning motion is what allows the car to be driven. Moreover, the axles are also responsible for holding car weight apart from transferring power from the engine to the wheels.

On rough streets, they absorb any form of shock and hence, the strength of the axle cannot be neglected. Usually, automotive vehicles are made of robust materials that are resistant to fracture, abrasion, compression, and deformation. The high performance of the vehicle relies heavily on the structure and the strength of the car axle. Sturdy rear and front axles are essential for the steady transfer of force from the engine to the vehicle while offering comprehensive control over driving. The three main types of automotive vehicles are rear axle, front axle, and stub axle. Multiple factors are working in tandem to deliver a higher growth rate in the automotive axle industry.

Key Insights:

• As per the analysis shared by our research analyst, the global automotive axle market is estimated to grow annually at a CAGR of around 1.65% over the forecast period (2024-2032).
• In terms of revenue, the global automotive axle market size was valued at around USD 58.79 billion in 2023 and is projected to reach USD 68.12 billion, by 2032.
• The market is projected to grow at a significant rate due to the rising government measures for promoting the regional automotive sector
• Based on vehicle type segmentation, passenger cars were predicted to show maximum market share in the year 2023
• Based on type segmentation, drive was the leading segment in 2023
• On the basis of region, Asia-Pacific was the leading revenue generator in 2023

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Automotive Axle Market: Growth Drivers

Rising government measures for promoting the regional automotive sector will drive market demand

The global automotive axle market is expected to grow owing to the rising measures and initiatives adopted by several regional governments across the globe to promote the domestic automotive industry. The demand for automotive vehicles across sectors is rapidly rising as a consequence of increased industrialization, commercialization, and urbanization. Since the automotive industry holds tremendous growth potential, more governments are emphasizing creating an ecosystem that supports automobile manufacturing and innovation. In March 2024, the Indian Ministry of Heavy Industries announced the launch of new policies for the electric vehicle (EV) sector. These new policies expect more electric vehicle makers to enter the Indian market.

Some of the points drafted in the new policies include a minimum investment of USD 500 million with no limit on maximum investment. Companies willing to invest in the Indian market must set up manufacturing facilities within 3 years and by the 5th year, they will attain localization level. Emerging nations are at the forefront of the change as they look forward to attracting international players to set up manufacturing plants while also encouraging domestic companies to continue making efforts in the local automotive market. As the production of the automotive industry flourishes, the demand for automotive axles is expected to grow simultaneously.

Growing research & development (R&D) to improve axle performance may attract more revenue

The change in consumer expectations and the rising competition in the automotive industry have led to automakers investing in research & development activities to promote innovation. The ongoing efforts to improve axle performance are expected to garner higher revenue for the market during the forecast period. Axle parameters that interest automotive companies are their overall strength and the material used for achieving high-performance axles.

In July 2023, Hendrickson, a leading supplier of integrated and non-integrated axles and other components of commercial vehicles, launched novel air and mechanical axles and suspensions for trailer applications in the Indian market thus contributing to the global automotive axle market.

Automotive Axle Market: Restraints

Changing prices of raw materials and supply chain uncertainty will limit market expansion

The global automotive axle industry is expected to be restricted due to the changing prices of essential raw materials used in the production of axles. The most commonly used raw material is steel. The latest findings indicate that the shortage of ore globally is impacting the supply and production of steel.

As of June 2023, the year-on-year steep exports had declined by over 50%. Factors such as regulations related to export duties on products made of steel and supply chain disruptions were considered as the leading reasons for the decline in steel production. Environmental concerns associated with steel production further impact the market growth rate.

Automotive Axle Market: Opportunities

Electric vehicle sector may open up expansive growth opportunities

The global automotive axle market has tremendous growth opportunities in the electric vehicle sector. EVs are registering a surge in demand. Electric axles are powering EVs and hence the demand for improved and superior-grade e-axles is on the rise. In February 2022, South African EV producer Agilitee Africa announced the launch of its first self-charging electric vehicle under the brand name Agility-Go with a range of 300km. As per market research, Australia’s EV industry is currently dominated by Tesla. The company owns more than 50% of the regional market share. The increasing subsidies offered by governments to EV makers and buyers along with growing prices of fuel have pushed the EV makers toward new growth horizons.

In February 2024, Tata Group announced the location of its new multibillion-pound UK factory which will be based in Bridgewater. The ongoing innovation in the EV sector is expected to further propel the market toward a new growth horizon. In June 2023, MG Motor India and Jio Platforms announced a partnership. Through this deal, the leading automaker will now provide an In-Car Voice Experience that will be powered by Jio Platforms. EV makers are experimenting with new technology to improve battery power and deliver longer-lasting batteries. Additionally, as the cost of modern EVs reduces, the demand for electric axles will rise to meet the growing production rate of electric vehicles.

Increased investments into public transport infrastructure will propel market demand

The growing investments in economic prosperity at the regional level have resulted in increased investments in public transport infrastructure resulting in a higher number of high-performance passenger vehicles on the road. As of March 2023, London had more than 8000 public buses running on the road. The segment can help in creating higher revenue for the global automotive axle market.

Automotive Axle Market: Challenges

Managing the dynamic nature of the industry can be challenging

The global automotive axle industry is challenged by its dynamic nature. This translates to fluctuations in demand for automobiles and the corresponding parts. Companies must work toward developing systems that protect them from sudden dip in demand for automotive axles. However, this can be challenging thus affecting the market growth rate.

Automotive Axle Market: Segmentation

The global automotive axle market is segmented based on vehicle type, application, type, and region.

Based on vehicle type, the global market segments are heavy commercial vehicle (HCV), light commercial vehicle (LCV), passenger cars, and others. In 2023, the demand was the highest in the passenger cars segment. It dominated over 50% of the segmental share. The higher sales trends observed in the EV sector were the major growth propellers. Additionally, the growing number of affordable car makers and increasing access to financial assistance or subsidies further promoted segmental revenue. The light commercial vehicle (LCV) is also an important contributor to the industry for automotive axles.

Based on application, the global automotive axle market is divided into rear and front.

Based on type, the global market is segmented into lift, dead, and drive. In 2023, the highest return was registered in the drive segment which dominated nearly 65.01% of the total share. The rising popularity of front-wheel and all-wheel drive axles is the primary reason for higher segmental demand. Lift axles find higher application in vehicles meant for long hauls such as the ones used in the e-commerce sector.

Automotive Axle Market: Report Scope

Automotive Axle Market: Regional Analysis

Asia-Pacific has multiple factors supporting its dominance

The global automotive axle market is projected to witness the highest growth in Asia-Pacific during the forecast period. In 2023, the region held control over 50% of the overall market share. Countries such as China, India, Japan, and South Korea are the leading contributors to the region’s prominence in the global sector. China, for instance, is the world’s largest producer of automobiles and their parts. The country is in the number one position in terms of EV manufacturing.

In addition to this, China is also the leading producer of steel. It accounted for nearly 55% of the total steel production in 2022. These factors along with the presence of affordable labor in large-scale work toward helping the region maintain its dominance. In December 2023, Chinese automaker BYD announced that it is planning to build a new electric vehicle factory in Europe. In July 2023, Leapmotor, another Chinese EV maker, unveiled its new manufacturing platform called the Four Leaf Clover. The company is inviting other players to use the platform for manufacturing smart EVs. Europe has a high demand for automotive axles. The thriving and world-renowned regional automotive sector is consequential to the regional revenue. Europe is home to several luxury car makers using premium axles for the proper functioning of vehicles.

Automotive Axle Market: Competitive Analysis

The global automotive axle market is led by players like:

• Dana Incorporated
• American Axle & Manufacturing. Meritor Inc.
• GKN Automotive
• Schaeffler AG
• ZF Friedrichshafen AG
• Gestamp Automoción
• BorgWarner Inc.
• Hyundai WIA Corporation
• Bosch GmbH
• Magna International Inc.
• Aisin Seiki Co. Ltd.
• Hyundai Mobis
• Daimler AG
• JTEKT Corporation

The global automotive axle market is segmented as follows:

By Vehicle Type

• Heavy Commercial Vehicle (HCV)
• Light Commercial Vehicle (LCV)
• Passenger Cars
• Others

By Application

• Rear
• Front

By Type

• Lift
• Dead
• Drive

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa