The high competitive rivalry in the global rear axle commodity market is prompting companies to focus on continuous innovation and upgrade their product line. The leading players in the market are American Axle & Manufacturing Holdings, Dana Holding Corporation, and Meritor Inc. These players are integrating innovative and efficient rear axle components and solutions for the original equipment manufacturers (OEMs), finds Transparency Market Research (TMR) in a new study. A large number of companies are forming partnerships with the leading automobile manufacturers to stay relevant in the market.
The valuation of the global rear axle commodity market was US$38.39 bn in 2015 and is anticipated to reach US$45.99 bn by 2020, rising at a CAGR of 3.7% between 2014 and 2020. By type, drive axle will remain the leading segment throughout the forecast period, accounting for 57.3% of the overall market revenue. The dead axle segment is expected to exhibit a CAGR of 4.2% during the same period. The rising construction activities in emerging countries is driving the demand for dead axle.
Green Revolution in Automotive Industry to Fuel Growth of Asia Pacific
Europe will continue to be the dominant regional market until 2020, representing 35.9% of the overall market revenue. The changing demographics of developed countries have opened new avenues for the rear axle commodity market in Europe. The rising demand for light-weight rear axles and strict government regulations pertaining to emissions are bound to fuel the growth of the region.
The Asia Pacific market for rear axle commodity is likely to expand at a CAGR of 4.7% during the forecast period. The emerging middle class in countries such as India and China along with the green revolution in the automotive industry is propelling the market.
Stringent Government Regulations Pertaining to Fuel Economy and Safety to Drive Demand
Over the past few years, stringent government regulations regarding safety and fuel economy are providing significant momentum to the rear axle commodity market. “These regulations have driven the demand for efficient automotive parts that aid better fuel efficiency and low emission in vehicles,” says TMR’s lead analyst. In addition to fuel-efficiency, the need for better on-road and off-road traction is boosting the demand for improved and lightweight rear axles. Lightweight and advanced rear axles reduce the overall weight of vehicles, enabling better handling and even weight distribution of the vehicle. Moreover, the increasing emphasis on comfort, safety, and security of passenger vehicles is providing a fillip to the growth of the market.
Volatile Fuel Prices to Negatively Impact Market Growth
The profits of rear axle commodity manufacturers are largely dependent on the medium and heavy commercial vehicle (MHCV) manufacturers. The fluctuating fuel prices, higher financing requirements for purchasing vehicles, and inflations in emerging markets are adversely affecting the latter. Therefore, this factor is limiting the market from realizing its full potential. Nevertheless, the burgeoning demand for passenger vehicles and the presence of cheap labor are paving way for automotive components and rear axle manufacturers to expand in emerging economies.
The information presented in this review is based on a Transparency Market Research report, titled,“Rear Axle Commodity Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014-2020.”
The report segments the rear axle commodity market as:
Rear Axle Commodity Market: By type
- Drive Axle
- Dead Axle
- Lift Axle
Rear Axle Commodity Market: By application
- Heavy Vehicles
- Luxury Vehicles
- Executive Vehicles
- Economy Vehicles
Rear Axle Commodity Market: By geography
- North America
- Asia Pacific
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