Trailer Axle Market Expected to Reach $9.36 Billion by 2031

According to a new report published by Allied Market Research, titled, “Trailer Axle Market," The trailer axle market was valued at $5.93 billion in 2021, and is estimated to reach $9.36 billion by 2031, growing at a CAGR of 4.8% from 2022 to 2031.

Asia-Pacific is expected to dominate the global trailer axle market in 2021. The high growth of industrialization coupled with rise in logistics sector in Asia-Pacific drive the demand for trailer axles in the region. In addition, increase in the overall industrial production has led to increased freight transportation, which is fuels the demand for trailer axle in this region. Moreover, strong presence of global trailer manufacturers along with the emergence of local startups in the region are further anticipated to drive the automotive trailer market in Asia-Pacific.

The tandem axle accounted for a major share in 2021. Tandem axle trailers are more heavy-duty and generally larger in size compared to single axle trailer. This makes them more suitable for transporting heavier loads at higher speed such as landscaping products or firewood. , it provides greater stability on the road as load weight is distributed more evenly due to the two axles. Moreover, tandem trailers are more stable at highway speeds; these offer better suspension and are less prone to swaying. This increases the demand for tandem axle trailer in FMCG and e-commerce logistics and industrial sectors, which in turn is expected to propel the segmental growth.

The growth of the global trailer axle market has propelled due to expansion of automotive & transportation industry, introduction of e-axle in trailers, and introduction of emission regulations for transport refrigeration units. However, fluctuating prices of raw materials used for manufacturing of axles is the factor restraining the growth of the market. Furthermore, increase in use of lightweight material for manufacturing of axle is the factor expected to offer growth opportunities during the forecast period.

COVID-19 Impact Analysis

The COVID-19 crisis has created uncertainty in the market, owing to major impact in the supply chain, falling business confidence, and increasing panic among the customer segments. Governments across the world announced total lockdown and temporary shutdown of industries, thereby adversely affecting the overall production and sales. Countries around the globe imposed stringent restrictions ranging from days to months of lockdown periods. Owing to this pandemic, many businesses have been halted and are still waiting for the market conditions to improve.

For the trailer axle market, the year 2020 is estimated to be a negative performing year, owing to the decreasing demand and supply outlook from the COVID-19 crisis restrictions in end-use industries such as manufacturing, electronics, and textile & apparel, construction industries among others.

Demand from end use industries has reduced as there is limited operational activity. The overall production activities of these industries have declined, owing to operations with limited workforce capacity and inadequate health safety measures. This expected weak business performance directly impacts the overall sales of the trailer axles.

The spread of the COVID-19 pandemic has negatively impacted the global trailer axle market, owing to decrease in the number of new trailer orders, decrease in the production of trailers, and commute restrictions. For instance, the top 25 trailer manufacturers built 211,807 trailers in 2020, down 34% from the 322,341 units built in 2019. In addition, Hyundai Translead of San Diego, California built 34,739 truck trailer in 2020, down 47% from 2019.

KEY FINDINGS OF THE STUDY

• By trailer type, the others segment is anticipated to exhibit significant growth in the near future.
• By axle type, the three or more than three-axle segment is anticipated to exhibit significant growth in the near future.
• By capacity, the more than 25,000 lbs segment is anticipated to exhibit significant growth in the near future.
• By application, the heavy trailers segment is anticipated to exhibit significant growth in the near future.
• By sales channel, the aftermarket segment is anticipated to exhibit significant growth in the near future.
• By region, LAMEA is anticipated to register the highest CAGR during the forecast period.

Key players operating in the global trailer axle market include American Axle & Manufacturing, Inc., BPW Group, Dana Incorporated, DexKo Global Inc., Dexter Axle Company, FUWA K Hitch, GuangZhou TND Axle Co., Ltd., Hendrickson Corporation, Hitachi Ltd., JOST Axle Systems, Meritor, Inc., SAF-Holland, Schmitz Cargobull, Shandong Huayue, and ZF Friedrichshafen AG.