DUBLIN–(BUSINESS WIRE)–The “Automotive Axle & Propeller Shaft Market by Axle Type (Live, Dead & Tandem), Axle Position (Front & Rear), Propeller Shaft Type (Single & Multi Piece), Passenger Car Propeller Shaft Material (Alloy & Carbon Fiber) & Region – Global Forecast to 2025” report has been added to ResearchAndMarkets.com’s offering.
The global automotive axle and propeller market size in terms of value is estimated to be USD 29.5 billion in 2019, which is projected to grow to USD 35.0 billion, by 2025.
Growing adoption of AWD vehicles as well as advancement in engineering to enhance vehicle performance to drive the demand for axle and propeller shaft
Increasing adoption of AWD vehicles, coupled with growth in global vehicle production as well as advancement in engineering to enhance vehicle performance and fuel efficiency is estimated to drive the market growth. However, fluctuating raw material prices, as well as pricing pressure from automotive OEM’s, are expected to be major challenges for axle and propeller shaft manufacturers.
Carbon fiber propeller shaft is the fastest growing segment
Carbon fiber composites are being used in automotive components owing to their structural advantages over their metallic counterparts. These include lower weight and higher strength, which are of vital importance to the OEMs. The carbon-fiber propeller shaft is fitted mostly in the SUVs provided premium vehicle manufacturers. Mercedes-Benz, BMW, and Audi are prominent car manufacturers in the premium segment and have registered significant growth in recent years in their vehicle sales.
According to a Mercedes-Benz publication, the company sold nearly 2.3 million cars globally in 2017 with sales growing by 9.9% year-on-year basis. Further, as per the BMW press release, the company’s sales grew by 4.2% between 2016 and 2017. Thus, the growth in premium vehicle sales is becoming an essential factor that will drive the carbon fiber propeller shaft market.
Live Axle is projected to lead the automotive axle market, by type, during the forecast period
The live axle is estimated to hold the largest share of the market during the forecast period between 2019 and 2025. The live axle drives the wheel connected to it along with supporting the weight of the car. Increasing consumer preference towards SUVs and RWD passenger cars as well as consistent growth in overall vehicle production have triggered the growth of the live axles’ market.
The demand for RWD/AWD in the US, China, Japan, and European countries have shown significant growth in recent years, and the trend is expected to continue over the forecast period, thus, ultimately boosting the live axle demand for light-duty vehicles. Additionally, the growth in the heavy vehicles, mainly in North America and Europe will propel the live axle demand in the future.
Asia Oceania: The largest and second-fastest growing automotive axle & propeller shaft market
Asia Oceania is anticipated to be the fastest growing market for automotive axle & propeller shaft during the forecast period. The market growth can be attributed to the significant increase in the production of passenger cars and commercial vehicles in the region. Further, with an increase in per capita income, China, Japan, and South Korea have witnessed a significant rise in premium vehicle sales and have emerged as lucrative markets for premium automotive OEMs.
As Asia Oceania contributes to a considerable share of the global bus and truck production, trucks and buses hold the maximum percentage of automotive axle & propeller shaft market in 2018. According to OICA statistics, the share of heavy trucks and buses in Asia Oceania was estimated to be 75% and 76%, respectively in 2018.
Increasing infrastructure spending, rising import-export trade, and growth of e-commerce have driven the growth of the Asia Oceania market. With rising heavy vehicle production, the demand for axle and propeller shaft is expected to grow significantly, which in turn would push foreign suppliers to extend their presence in this region. These factors together are expected to drive the automotive axle & propeller shaft in the region.
Market Dynamics
Drivers
- Growth in Vehicle Production
- Technological Advancements
- Changing End User Preference
Restraints
- Pricing Pressure and Fluctuating Prices of Raw Materials
- Vehicle Recall and Regulatory Concerns
Opportunities
- Growing Market for Awd Vehicles
- Growing Demand for Aluminum Propeller Shaft
- Ongoing Trend for E-Mobility
Challenges
- Weight and Cost Reduction
Companies Mentioned
- American Axle & Manufacturing Holdings, Inc.
- Dana Incorporated
- Gestamp
- GKN PLC
- Hyundai Wia Corporation
- Ifa Rotorion Holding GmbH
- Jtekt Corporation
- Meritor, Inc.
- Showa Corporation
- ZF Friedrichshafen AG
For more information about this report visit https://www.researchandmarkets.com/r/r0rfy8
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Related Topics: Automotive Parts, Automotive Drivetrain and Transmission Components
