Automotive Rear-end Module Market Overview:
As per MRFR analysis, the automotive rear-end module market Size was estimated at 21.82 (USD Billion) in 2022. The automotive rear-end module market is expected to grow from 23.05 (USD Billion) in 2023 to 37.8 (USD Billion) by 2032. The automotive rear-end module market CAGR (growth rate) is expected to be around 5.65% during the forecast period (2024 - 2032).
Key Automotive Rear-end Module Market Trends Highlighted
The global automotive rear-end module market is driven by factors such as increasing demand for vehicles, rising popularity of rear-end cameras and sensors, and growing adoption of lightweight materials.
The market is also benefiting from advancements in technology, particularly in the areas of electronics and software. These advancements are enabling the development of more sophisticated and efficient rear end modules that can meet the increasing demands of the automotive industry.
Key market opportunities include the development of new rear end module designs that improve vehicle safety and performance, the expansion of the market for electric vehicles, and the growth of the aftermarket for rear end modules.
Trends in recent times include the increasing adoption of rear-end cameras and sensors, the use of lightweight materials, and the development of more sophisticated and efficient rear end modules.
These trends are expected to continue in the years to come, driving the growth of the global automotive rear-end module market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Rear-end Module Market Drivers
Rising Demand for Electric Vehicles
The growing popularity of electric vehicles (EVs) is a major driver of the global automotive rear-end module market. EVs require specific rear-end modules that can handle the unique torque and power characteristics of electric motors.
The increasing adoption of EVs is expected to drive demand for rear end modules that are designed to meet the specific requirements of electric powertrains. Furthermore, government regulations and incentives aimed at promoting EV adoption are also contributing to the growth of the automotive rear-end module market.
Advancements in Automotive Technology
The automotive industry is undergoing a period of rapid technological advancement, with a focus on improving vehicle performance, safety, and fuel efficiency.
These advancements are driving demand for rear-end modules that can integrate with advanced technologies such as autonomous driving systems, adaptive cruise control, and electronic stability control.
The increasing complexity of automotive systems is creating opportunities for rear end module manufacturers to develop innovative solutions that meet the evolving needs of the industry.
Growing Demand for SUVs and Crossovers
The attractive SUVs and crossovers are not only comfortable to drive and spacious but also have wide and long rear ends, which means that they need large rear-end modules.
As a result of the rising demand for such vehicles, the growth of the global automotive rear-end module market is anticipated to accelerate in the forthcoming years.
Automotive Rear-end Module Market Segment Insights:
Automotive Rear-end Module Market Propulsion Type Insights
The automotive rear-end module market is segmented by Propulsion Type into Internal Combustion Engine, Electric, and Hybrid. The Internal Combustion Engine segment is projected to make the largest revenue in 2023 due to the extensive adoption of gasoline and diesel-powered vehicles.
The Electric segment is anticipated to witness the fastest growth during the forecast period. This is attributed to the government regulations that promote the adoption of electric vehicles and the rising adoption by consumers. The Electric segment is further segmented into BEVs and PHEVs.
BEVs are expected to witness a larger revenue due to their longer driving range and low operational cost in the Electric segment. The growth of the market is attributed to the increase in the production of vehicles and the rising adoption of rear end modules in electric vehicles.
The growing adoption of advanced safety features may also raise the growth of the market. The growth of the market may be hindered by the economic slowdown and supply chain disruption. The key players in the global automotive rear-end module market are BorgWarner, GKN Automotive, Hyundai Mobis, and Magna International.
These players are concentrating on the development of innovative products to adapt to the demand of the changing automotive industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Rear-end Module Market Vehicle Class Insights
In the global automotive rear-end module market, the Vehicle Class segment is divided into Passenger Cars and Commercial Vehicles. In 2023, the Passenger Cars segment held the largest share of the market, which is expected to continue during the forecast period.
The growth of this segment can be attributed to the increasing demand for passenger cars resulting from the growth of disposable income, urbanization, and better infrastructure. Moreover, the rising demand for SUVs and crossovers that generally use more rear end modules also drives this market segment.
However, the Commercial Vehicles segment is expected to maintain a stable growth rate in the upcoming years. It is stimulated by the increasing demand for goods and services transport and the development of the e-commerce industry and logistic and supply chain networks.
Automotive Rear-end Module Market End Application Insights
The global automotive rear-end module market is segmented by End Application into Original Equipment Manufacturing (OEM) and Aftermarket. The OEM segment held a larger market share in 2023 and is expected to continue its dominance over the forecast period.
The growth of the OEM segment can be attributed to the increasing production of new vehicles, as well as the rising demand for advanced safety features.
The Aftermarket segment is also expected to witness significant growth over the forecast period, driven by the increasing number of vehicles on the road and the growing popularity of do-it-yourself (DIY) repairs.
Automotive Rear-end Module Market Rear-End Configuration Insights
The automotive rear-end module market is segmented into Independent Rear Suspension (IRS) and Solid Axle based on Rear End Configuration. In 2023, the IRS segment held a larger market share, accounting for approximately 55% of the global automotive rear-end module market revenue.
The IRS system offers several advantages over the solid axle, including improved handling, stability, and ride comfort. As a result, the IRS system is expected to continue to gain popularity in the coming years. The solid axle segment, on the other hand, is expected to experience slower growth due to its limited capabilities compared to the IRS system.
However, the solid axle is still expected to remain a popular choice for heavy-duty vehicles and off-road applications due to its durability and lower cost.
Overall, the global automotive rear-end module market is expected to continue to grow at a steady pace in the coming years, driven by increasing demand for vehicles with improved handling and stability.
Automotive Rear-end Module Market Material Insights
The global automotive rear-end module market is segmented by Material into Steel, Aluminum, and Composite Materials. The Steel segment held the largest market share value of USD 12.8 billion in 2023 and is projected to reach USD 18.5 billion by 2032, exhibiting a CAGR of 4.8% during the forecast period.
The Aluminum segment is anticipated to register the highest CAGR of 6.5% over the forecast period, owing to its lightweight and high-strength properties. Composite Materials, including carbon fiber and glass fiber, are gaining traction in the market due to their superior strength-to-weight ratio and corrosion resistance.
The increasing demand for lightweight and fuel-efficient vehicles is driving the growth of the automotive rear-end module market, especially in the electric vehicle segment.
Automotive Rear-end Module Market Regional Insights
The regional segmentation of the global automotive rear-end module market offers insights into the market's geographic distribution and growth potential.
North America is expected to hold the largest market share in 2023, driven by the presence of major automotive manufacturers and a high demand for advanced safety features.
Europe is another key region, with a mature automotive industry and a growing focus on electric vehicles. APAC is expected to witness significant growth in the coming years as countries like China and India experience rising vehicle production and demand for rear-end modules.
South America and MEA are expected to have a smaller but steady growth rate. The key factors driving regional growth include government regulations, technological advancements, increasing vehicle production, and consumer demand for safety and convenience features.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Rear-end Module Market Key Players and Competitive Insights:
Major players in the automotive rear-end module market are constantly striving to develop and innovate new technologies to gain a competitive edge. Leading automotive rear-end module market players are investing heavily in research and development to improve the performance and efficiency of their products.
The automotive rear-end module market is characterized by intense competition, with several major players vying for market share. These players are focusing on expanding their product portfolio, increasing their production capacity, and enhancing their distribution network to cater to the growing demand for automotive rear-end modules.
The automotive rear-end module market development is being driven by the increasing adoption of lightweight materials, the growing demand for electric and hybrid vehicles, and the stringent government regulations on fuel efficiency and emissions.
Aisin Seiki Co., Ltd. is a Leading automotive rear-end module market player with a strong global presence. The company offers a wide range of automotive components, including rear-end modules, transmissions, and driveline systems.
Aisin Seiki has a long history of innovation and has developed several advanced technologies for its rear-end modules. The company's products are known for their high quality, performance, and reliability. Aisin Seiki is a major supplier to several major automakers, including Toyota, Nissan, and Mazda.
Continental AG is another Leading automotive rear-end module market player with a strong global presence. The company offers a wide range of automotive components, including rear-end modules, brakes, and electronic systems. Continental AG is a major supplier to several major automakers, including Volkswagen, BMW, and Ford.
The company has a strong focus on research and development and is constantly investing in new technologies to improve the performance and efficiency of its products. Continental AG's rear-end modules are known for their high quality, reliability, and fuel efficiency.
Key Companies in the automotive rear-end module market Include:
- GKN Automotive
- JTEKT
- Brembo
- Mando
- American Axle Manufacturing
- Nexteer Automotive
- Continental
- Tenneco
- ZF
- Aisin
- Cardone Industries
- Schaeffler
- Magna International
- Dana
- BorgWarner
Automotive Rear-end Module Market Developments
The rising demand for electric vehicles is one of the key factors driving the growth of the automotive rear-end module market. Electric vehicles require more efficient and compact rear-end modules to accommodate the electric motors and batteries.
Additionally, the increasing adoption of advanced driver assistance systems (ADAS) and autonomous driving technologies is also contributing to the growth of the market. Major players in the market are Continental AG, ZF Friedrichshafen AG, JTEKT Corporation, BorgWarner Inc., and GKN Automotive.
Automotive Rear-end Module Market Segmentation Insights
Automotive Rear-end Module Market Propulsion Type Outlook
- Internal Combustion Engine
- Electric
- Hybrid
Automotive Rear-end Module Market Vehicle Class Outlook
- Passenger Cars
- Commercial Vehicles
Automotive Rear-end Module Market End Application Outlook
- Original Equipment Manufacturing (OEM)
- Aftermarket
Automotive Rear-end Module Market Rear End Configuration Outlook
- Independent Rear Suspension (IRS)
- Solid Axle
Automotive Rear-end Module Market Material Outlook
- Steel
- Aluminum
- Composite Materials
Automotive Rear-end Module Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
21.82(USD Billion) |
| Market Size 2023 |
23.05(USD Billion) |
| Market Size 2032 |
37.8(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.65% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
GKN Automotive, JTEKT, Brembo, Mando, American Axle Manufacturing, Nexteer Automotive, Continental, Tenneco, ZF, Aisin, Cardone Industries, Schaeffler, Magna International, Dana, BorgWarner |
| Segments Covered |
Propulsion Type, Vehicle Class, End Application, Rear End Configuration, Material, Regional |
| Key Market Opportunities |
Advanced driver assistance systems Electric vehicle proliferation Lightweight materials adoption Advanced rear suspension solutions Connected rear modules |
| Key Market Dynamics |
Rising demand for EVs Stringent emission regulations Technological advancements Increasing safety concerns Growing adoption of lightweight materials |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global automotive rear-end module market is expected to reach a valuation of 37.8 billion USD by 2032.
The global automotive rear-end module market is projected to grow at a CAGR of 5.65% from 2024 to 2032.
The Asia-Pacific region is expected to dominate the global automotive rear-end module market in 2032.
Automotive rear-end modules are primarily used in passenger cars, light commercial vehicles, and heavy commercial vehicles.
Major competitors in the global automotive rear-end module market include ZF Friedrichshafen, GKN Automotive, Dana Incorporated, and Magna International.
Factors driving the growth of the global automotive rear-end module market include increasing demand for lightweight and fuel-efficient vehicles, rising production of electric vehicles, and technological advancements.
Key trends shaping the global automotive rear-end module market include the adoption of advanced materials, integration of sensors and electronics, and the development of modular designs.
Challenges faced by the global automotive rear-end module market include intense competition, fluctuating raw material prices, and stringent safety regulations.
Autonomous vehicles are expected to have a significant impact on the global automotive rear-end module market, as they require specialized modules with enhanced sensing and control capabilities.
Opportunities for growth in the global automotive rear-end module market include the development of new materials, partnerships with technology providers, and expansion into emerging markets.
