Falling Steel Prices and Low-cost Manufacturing Will Significantly Drive the Demand for Automotive Crankshafts Until 2020, Says Technavio

LONDON--()--According to the latest research study released by Technavio, the global automotive crankshaft market is expected to reach close to 111.6 million units in production by 2020.

This research report titled ‘Global Automotive Crankshaft Market 2016-2020’, provides an in-depth analysis of market growth in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all leading regions.

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“The automotive crankshaft market in APAC is anticipated to grow at a much faster rate when compared to EMEA and the Americas. APAC has some of the fastest growing economies in the world, such as China, India, Thailand, Indonesia, and South Korea. These vibrant economies in the region make APAC one of the fastest and largest automotive markets globally,” said Siddharth Jaiswal, one of Technavio’s lead analysts for automotive components research.

“Sourcing of products and components from low-cost countries has significantly grown in the past decade. Low-cost countries in APAC such as China and India have a strong impact on automotive crankshafts and other automotive ancillary products. With falling steel prices and a rise in the demand for automotive crankshafts the market will witness intensified competition among global players during the forecast period,” added Siddharth.

Global automotive crankshaft market segmentation by geography 2015 (% share)

APAC     52.44%
Americas 23.26%
EMEA 24.30%

The global automotive crankshaft market by material type can be categorized into three segments:

  • Forged steel
  • Cast iron
  • Machined billet

Forged steel: largest segment of the global automotive crankshaft market

Combustion in diesel engines is uneven compared to gasoline engines as impurities present in diesel result in irregular piston movements, which exerts added pressure on crankshaft operations. Forged crankshafts are mechanically stronger, can withstand such pressure, and are less prone to the forces of wear and tear. Therefore, forged cranks are preferred in diesel engines and high-performance vehicles. Increased demand for diesel engine vehicles and high-performance engines and the benefits of using forged crankshafts power may expand the market for forged crankshafts. However, the use of hydraulic presses and machining in the forging process makes the product expensive, and it poses a key challenge to the market.

Cast iron: second largest segment of the global automotive crankshaft market

The cast iron/steel crankshaft market produced 35.52 million units in 2015, and it is likely to reach 40.15 million units by 2020. Manufacturing process of crankshafts play a significant role in the final quality of the product. Casting processes include melting iron or steel into a liquid state, which is poured into a mold, thereby creating the final shape of the product. Such manufacturing processes exclude machining. Therefore, cast crankshafts are less expensive when compared to forged and billet-machined cranks.

Iron was the primary ingredient in crankshaft production, but manufacturers are now using steel to make the final product much stronger. Cast iron crankshafts are expected to remain a preferred choice for OEMs, as these are less expensive and offer the intended strength. The use of steel (instead of iron) has also expanded the market for cast crankshafts.

Global market for billet-machined crankshafts

The billet-machined crankshaft market is expected to reach a CAGR of close to 5.31% until 2020. In billet-machined processes, the main crankshaft and its sub-components are machined to the highest level and this confers a perfect shape and balancing to a much lighter product. These crankshafts are used in high-end sports cars and luxury vehicles, because such shafts enable better performance and faster response.

Unlike forging and casting processes, billet machining shapes the crankshaft by carving away extra material. The additional material, labor, and advanced machining technology make billet-machined crankshafts more expensive. The market for billet-machined cranks is growing at a significant pace, thanks to rising demand for racing vehicles and growing demand for luxury automobiles.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com

Release Summary

According to the latest research study released by Technavio, the global automotive crankshaft market is expected to reach close to 111.6 million units in production by 2020.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com