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(I-AutoNewsWire.com, November 19, 2021 ) The Global Automotive Axle and Propeller Shaft Market size is estimated to be USD 21.7 billion in 2020, which is projected to reach USD 25.4 billion by 2025, at a CAGR of 3.2%, driven mainly by the rising consumer demand for light, safe, and comfortable drive. Additionally, growing demand for fuel efficiency and increasing adoption of all-wheel drive (AWD) vehicles is likely to result in the growth of the axle and propeller shaft market.
Opportunity: Growing market for AWD vehicles
The market demand for AWD vehicles is increasing owing to the increased need for stability, safety, and driving dynamics from end-users. AWD vehicles offer the advantage of better traction in harsh weather conditions and off-road applications along with an increase in fuel efficiency than conventional drivetrains. The increase in the adoption of such vehicles is directly proportional to the increasing demand for propeller shafts.
The market for AWD vehicles is also growing owing to the increased demand for SUVs—one of the biggest adopters of this drivetrain. Currently, many passenger cars and SUVs in the US have an RWD or AWD drivetrain. Hence, the demand for live axles has grown consistently in North America. Thus, the market for automotive axle and propeller shafts would rise.
Some of the key players in the automotive axle and propeller shaft market are ZF Friedrichshafen AG (Germany), Dana Incorporated (US), GKN Automotive (UK), American Axle & Manufacturing, Inc. (US), Meritor, Inc. (U.S.), Showa Corporation (Japan), Hyundai Wia Corporation (South Korea), and JTEKT Corporation (Japan).
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Alloy is Estimated to be the Highest Consumed Material During the Forecast Period
Alloys hold the maximum market share in the passenger car propeller industry. A majority of passenger cars and light commercial vehicles are installed with propeller shafts made up of alloy material owing to its benefits such as satisfactory strength, stiffness, and lower cost. However, in the case of high-speed performance, and efficient torque requirement, either the diameter of the metal shaft needs to be increased, or manufactured in the form of two or three-piece components. The shaft joints and couplings handle the service loads, high angles, terrain change, and need to have a support structure that further results in increased weight. Hence, the ongoing trend is shifting to design and develop propeller shafts, which are lightweight and cost-effective. As a result, suppliers are now more inclined toward using lightweight materials (carbon fiber) with high durability and comfort factors while designing drivetrain components, especially propeller shafts.
The Tandem axle segment is anticipated to register the highest growth rate from 2020 to 2025
The tandem axle is expected to be the fastest-growing market for the automotive axle market by type from 2020 to 2025. According to OICA statistics, heavy commercial vehicle sales have increased from 23.0 million units in 2014 to 26.0 million units in 2019, at a CAGR of 3.26%. The growth can be attributed to factors such as increasing infrastructure spending, rising import-export trade, and growing e-commerce activities. Furthermore, the increasing goods trade has prompted the installation of the tandem axle, which offers additional load carrying capacity to the vehicle. The rising growth of good transport would fuel the demand for heavy-duty trucks and semi-trailers, which are usually installed with the tandem axle, which sub or goods transport, which brings the necessity of tandem axle.
Mr. Aashish Mehra