Increasing Need of Vehicles to Rely Less on Energy Sources and the Need to Reduce Carbon Emissions to Augment Growth of Vehicle Balance Shaft Market

 

The vehicle balance shaft market is expected to witness significant growth in the foreseeable future, owing to increasing need of vehicles to rely less on energy sources (coal, petroleum etc.) and the need to reduce fuel emissions. The rapid growth in the Chinese economy is also having an impact on the overall manufacturing sector of China. The rapid growth of the economy has led to an increased demand for raw materials, which has helped manufacturers in China to produce large number of vehicles and other automotive products.

Market Dynamics

Increasing need of vehicles to rely less on energy sources and the need to reduce fuel emissions is expected to propel growth of the vehicle balance shaft market. Moreover, increasing CO2 emission is also expected to aid in growth of the market. For instance, according to Energy Statistical Yearbook 2019, in 2018, carbon dioxide emissions in the U.S. increased by 3.1% compared to that in 2017. 

Increasing launch of electric vehicles is expected to hinder growth of the vehicle balance shaft market. For instance, in January 2020, Great Wall Motor, a China-based automobile manufacturer, announced to launch its electric car Ora R1 in India in 2020.

Among regions, Europe is expected to witness sluggish growth in the vehicle balance shaft market, owing to significant decline in the automotive sector. For instance, according to the Society of Motor Manufacturers and Traders, the new car registrations in the U.K. decreased by 44% in March 2020 compared that in March 2019. Moreover, North America is also expected to witness significant decline in the vehicle balance shaft market, as sales of motorcycles and cars witness downward trend. For instance, Yamaha Motor Co. has projected that the company’s motorcycle sales will drop 4.7% to 60,000 units in North America in 2020. During the fiscal year ended December 31, 2019, motorcycle sales dropped 6.3% to 63,000 units year over year. Similarly, Harley-Davidson Inc. reported that retail sales volumes dropped 4.3% in 2019 from 2018.  

Competitive Analysis

Major players operating in the vehicle balance shaft market include, American Axle & Manufacturing, Inc., Musashi Seimitsu Industry Co., Ltd., SKF Group, Otics Corporation, SHW AG, Sansera Engineering, Mitec-Jebsen Automotive Systems (Dalian) Co. Ltd., Ningbo Jingda Hardware Manufacture Co., Ltd., Tfo Corporation, and Engine Power Components, Inc.

Major players operating in the vehicle balance shaft market are focused on adopting various marketing strategies to enhance their market share. For instance, in November 2020, American Axle & Manufacturing Holdings, Inc. announced to participate in the BofA Securities 2020 Leveraged Finance Virtual Conference on December 2.