About Automotive Tie Rod Assembly
Tie rod is an essential part of a vehicle's steering system. Tie rod's main function is to tie the steering rack to the steering system. It is a thin structural rod used to link and can carry tensile loads only. Tie rod consists of an outer and inner end. It transmits force from the rack gear or steering center to the steering knuckle. This will cause the wheels to turn at a required angle. Inner and outer tie rods are joined using a sleeve joint that allows the adjustment of the steering system when the front wheels are aligned. Steering knuckles are connected to the outer tie rod, which turns the front wheels.
Technavio’s analysts forecast the global automotive tie rod assembly market to grow at a CAGR of 3.89% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global automotive tie rod assembly market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Automotive Tie Rod Assembly Market 2017-2021
Technavio recognizes the following companies as the key players in the global automotive tie rod assembly market: Federal-Mogul, ZF Friedrichshafen, SANKEI INDUSTRY, ACDelco, and DİTAŞ.
Other Prominent Vendors in the market are: Crown Automotive Sales, FAI Automotive, HONSSION AUTO CHASSIS SYSTEM (ZHEJIANG), K.D.K. Forging Company, Mando, MAS, Mevotech, Patmax Union Corporation, Powers & Sons, Rare Parts, SAMYUNG, Taizhou Terrill Auto Parts Manufacturing, and Zhejiang Jiayuan Machinery Manufacturing.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is application of lightweight materials. The current trend in automotive innovation is toward lightweight design. Lightweight automotive designs are developed by replacing the existing materials with more advanced aluminum, magnesium, plastic, or composite materials, applying manufacturing technology or adopting optimization techniques. The main benefits of lower weight design are that they require low energy as compared with conventional materials.”
According to the report, one driver in the market is rising infrastructure demand in APAC. The rapidly growing economies in APAC have led to a significant boom in the infrastructure sector. India, the Philippines, and China are expected to boost Asia's spending on infrastructure development and capital projects in future. The Asian market has benefited from trends such as foreign direct investment, rapid technological progress, and open markets for trade in goods and services. The continent's growth has also been built upon the foundation of prevailing peace, security, and stability offered by the countries. While distinct from each other, these four trends are all closely interrelated for the development of Asian market.
Further, the report states that one challenge in the market is declining profit margins. In the automotive industry, OEMs used to take the liability for most price pressure and warranty costs from the demand side. However, the situation has changed since the past few years as the OEMs have pushed the liabilities of cost reduction onto tier-1 vendors that in turn drive these onto component manufactures. This has led to the cost optimization across the automotive industry to maintain profitability. To counter the high pricing, auto part makers are outsourcing manufacturing activities to low-cost countries such as India, China, Thailand, and Indonesia. The main reason to outsource from these countries is the high concentration of automotive part manufacturing units in these countries.
Federal-Mogul, ZF Friedrichshafen, SANKEI INDUSTRY, ACDelco, and DİTAŞ, Crown Automotive Sales, FAI Automotive, HONSSION AUTO CHASSIS SYSTEM (ZHEJIANG), K.D.K. Forging Company, Mando, MAS, Mevotech, Patmax Union Corporation, Powers & Sons, Rare Parts, SAMYUNG, Taizhou Terrill Auto Parts Manufacturing, and Zhejiang Jiayuan Machinery Manufacturing.