Automotive Axle Market Market Scope
The automotive axle market 2023 can procure considerable gains at a high rate between 2023 and 2030 (appraisal period). We will provide COVID-19 impact analysis with the report, offering an in-depth review of the market following the coronavirus disease outbreak.
· The report aims to provide an enhanced assessment; therefore the study segments the market with respect to type, material as well as propeller shaft type.
· The types of automotive axle in the market include front axle as well as rear axle.
· The market categories, in terms of material, are carbon fiber and alloy.
· The propeller shaft types are single and multi-piece.
The onset of novel coronavirus led to significant impact on all the industries, which also includes the automotive sector. The short term impact pertains to manufacturing units being shut down following the lockdown policy imposed by the governments. Production units are also faced with issues including lack of staff due to social distancing practice due to the pandemic. The impact of SARS-CoV-2 has led to showrooms being closed shut, in addition to a downfall in vehicle sales in every part of the world. The automotive industry is struggling in the light of economic crisis due to the COVID-19 outbreak, coupled with disruption in the supply chain network across the globe.
With that said, the automotive industry and related markets can expect some respite as a result of various mitigation measures being taken by governments in several regions. For instance, the European Union is backing the automotive industry with the Pandemic Emergency Purchase Program, which helps buy commercial papers and sovereign bonds from the commercial firms and member states while maintaining liquidity within the financial system. EU has also relaxed its regulations and is willing to expand the size of any asset purchase for extended period. With the advent of contingency plans across countries and financial institutions proposing relief plans, the automotive industry and in turn, the automotive axle market can make a strong comeback the COVID-19 impact.
Primary Boosters and Key Deterrents
The surge in worldwide vehicle production and the increasing preference for luxury and hybrid vehicles featuring modern technologies are some of the major growth enhancers in the automotive axle market. The increasing commercialization of the latest technologies to bring down the overall weight of the vehicle also helps boost the demand for automotive axle in the market.
Furthermore, the mounting production level of autonomous and semi-autonomous vehicles integrated with innovative technologies can boost vehicle sales and consequently drive the demand for automotive axles. The increasing popularity of road freight transport has also led to considerable market gains in recent years and the trend can remain the same even in the coming years.In the wake of mounting concerns regarding the environment and carbon emission’s toxic effects on it, consumers now prefer vehicles that emit lower amount of smoke and consume less fuel, which has led to higher sales of hybrid vehicles. Hybrid vehicles function backed by various power sources that bring down the level of fuel consumption and also improve the driving experience. In a nutshell, the higher the sales of hybrid vehicles, the more demand automotive axles can witness in the near future.
Significant competitors in the automotive axle industry include Meritor Inc. (U.S.), ELBE Gelenkwellen-Service GmbH (Germany), GKN Plc (U.K.), American Axle & Manufacturing, Inc. (U.S.), Showa Corporation (Japan), ZF Friedrichshafen AG (Germany), to mention a few.
North America, APAC/Asia Pacific, MEA/Middle East & Africa and Europe have been identified as the key markets for automotive axle in the study.
APAC has emerged as the biggest gainer in the global market, because of the high automotive sales in India and China. Both these countries boast of an enormous automotive industry, which works in favor of the axle industry. High availability of cheap labor and frequent advancements in engineering along with the increasing vehicle production are boosting the demand for automotive axle in the region. Rising prevalence of speed trains and the introduction of government initiatives like Make in India campaign that facilitates 100% foreign direct investment can also aid in more revenue generation during the appraisal period.
Europe has established itself as the second leading market on account of the expansive automotive sector present in the U.K., Italy and Germany. The massive speed train network and the surging air pollution are other factors that induce the sales of e-axles across the region. Incentives such as free parking space and tax benefits offered by the government promote the sale of electric vehicles. The soaring demand for electric vehicles is bound to benefit the automotive axles market in the approaching years.