Growing adoption of AWD vehicles as well as advancement in engineering to enhance vehicle performance to drive the demand for axle and propeller shaft. The global automotive axle and propeller market size in terms of value is estimated to be USD 21.
New York, July 22, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Automotive Axle & Propeller Shaft Market by Axle Type, Axle Position, Propeller Shaft Type, Passenger Car Propeller Shaft Material and Region - Global Forecast to 2025" - https://www.reportlinker.com/p04764444/?utm_source=GNW
7 billion in 2020, which is projected to grow to USD 25.4 billion, by 2025 at a CAGR of 3.2%. 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
Live axle is estimated to hold the largest share of the market during the forecast period between 2020 and 2025.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, has triggered the growth of live axles’ market.The demand of 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 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 and propeller shaft in the region.
The recent COVID-19 pandemic is expected to impact the global automotive industry.The entire supply chain is disrupted due to a limited supply of parts.
For instance, Hubei province in China accounts for 8 -10% of the Chinese auto production and is severely impacted by pandemic.China suppliers around the globe placed production lines on halt or temporarily shut them down the production facilities.
Also, legal and trade restrictions, such as sealed borders, increased the shortage of required parts.Such disruption in the supply chain is expected to affect the assembly of OEMs in Europe and North America.
Thus, growth may have been derailed in 2020 owing to the COVID-19 outbreak. However, as per estimates, the Asia Oceania will witness growth in the forecast period owing to the successful containment of the virus in countries such as China, Japan, and South Korea
The study contains insights provided by various industry experts. The break-up of the primaries is as follows:
• By Company Type – Tier-1 - 59%, Tier-2 - 26%, and OEMs - 15%
• By Designation — C level - 70 %, Director level - 20%, and Others - 10%
• By Region — North America - 38%, Europe - 31%, Asia Oceania - 21%, and RoW - 10%
The key companies profiled in the study are ZF Friedrichshafen AG (Germany), GKN Automotive (U.K.), Dana Incorporated (U.S.), American axle & manufacturing (U.S.), Meritor Inc. (U.S.), Showa Corporation (Japan), Hyundai Wia Corporation (South Korea), Gestamp Automocion (Spain), JTEKT Corporation (Japan) and IFA Rotorion (Germany)
The primary objective of the study is to define, describe, and forecast the automotive axle and propeller shaft market, by value and volume.The study segments the market by axle type (dead, live, and tandem), propeller shaft type (single piece and multi-piece), axle position (front and rear), propeller shaft by position (front, rear, interaxle) ,passenger car propeller shaft by material (alloy and carbon fiber), and region (North America, Europe, Asia Oceania, and RoW).
The study tracks and analyzes competitive developments such as market share analysis, expansions, joint ventures, acquisitions, and other activities carried out by key industry participants.
Reasons to Buy the Report:
The report provides insights with reference to the following points:
• Market Size: The report gives in-depth market sizing and forecasts up to nine years with third level segmentation.
• Market Development: The report provides comprehensive information about lucrative emerging markets. The report analyzes the axle and propeller shaft market for automotive across regions.
• Product Development/Innovation: The report gives detailed insights into R&D activities, upcoming technologies, and new product launches in the axle and propeller shaft market for automotive.
• Market Diversification: The report offers detailed information about untapped markets, investments, new products, and recent developments in the axle and propeller shaft market for automotive.
• The study provides a qualitative and quantitative analysis of the automotive axle and propeller shaft market, by volume and value, based on the axle type (dead, live, and tandem) at the regional level
• The study provides a qualitative and quantitative analysis of automotive axle and propeller shaft market, by volume, and value, based on the propeller shaft type (single piece and multi-piece) at the regional level
• The study provides a qualitative and quantitative analysis of passenger car propeller shaft market, by volume and value, based on the material (alloy and carbon fiber) at the regional level
• The study provides a qualitative and quantitative analysis of the automotive axle and propeller shaft market, in terms of volume and value based on the axle position (front and rear) at the regional level
• Company profiles: The report provides detailed information and in-depth analysis of key players of axle and propeller shaft market for automotive based on their business strategy excellence and strength of product portfolio.
Read the full report: https://www.reportlinker.com/p04764444/?utm_source=GNW
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
CONTACT: Clare: email@example.com US: (339)-368-6001 Intl: +1 339-368-6001