Automotive Axle Market Size, Share, Growth Analysis, By Type(Live Axle and Dead Axle), By Material(Steel and Aluminium), By Region - Industry Forecast 2024-2031

Automotive Axle Market size was valued at USD 62.05 billion in 2022 and is poised to grow from USD 62.98 billion in 2023 to USD 70.95 billion by 2031, growing at a CAGR of 1.5% in the forecast period (2024-2031).

The automotive axle market is expected to grow due to various factors such as the growing demand for heavy duty commercial vehicles, the rise in the sales of passenger vehicles in developing economies like Mexico, China, and India, and the increasing sales of luxury vehicles that require higher torque and performance. Additionally, the growing concerns over carbon emissions have led to a shift in consumers' preference for hybrid and electric vehicles over conventional ones. Governments worldwide are strongly advocating for the adoption of EVs and hybrid vehicles, further contributing to market growth.

The automotive industry is also developing technically advanced lightweight axles that provide improved efficiency and contribute to lowering the overall weight of hybrid, EV, and commercial vehicles. The aftermarket services for replacing and maintaining axles in powertrains are also creating new market opportunities. Key players are also developing lightweight, fuel-efficient axles that can carry heavy cargo loads. However, the volatile and fluctuating cost of raw materials required to manufacture automotive axles, such as steel, copper, and aluminum, is a major restraint hampering the growth of the market. The high initial cost of technologically advanced and lightweight axles and expensive aftermarket service cost of maintenance and replacement can also prove to be hindrances to market growth. In response to the evolution of powertrains in automobiles, the design of axles is changing, and manufacturers are developing faster axles with lower ratios. Many axles now also include modular motor design, which provides easy service and maintenance accessibility and is scalable due to their motor interchanging capability. The growing trend of vehicle electrification and innovation continues for drive axle coupled with electric powertrain. To meet the greenhouse emission regulations, downsizing, weight reduction, and torque-carrying qualities have been prioritized in drive and steer axle development.

US Automotive Axle Market is poised to grow at a sustainable CAGR for the next forecast year.