Automotive Idler Arm Market Size, Share & COVID Impact Analysis, By Vehicle Type (Passenger Vehicle and Commercial Vehicle), By Sales Channel (OEM and Aftermarket), and Regional Forecasts, 2023-2030

The global automotive idler arm market size was valued at USD 3.56 billion in 2022. The market is projected to grow from USD 3.68 billion in 2023 to USD 4.85 billion by 2030, exhibiting a 4.0% CAGR during the forecast period.

The idler arm assembly offers pivotal support for the steering linkage system. It consists of a rod that pivots on a bracket fastened to the vehicle's frame on one end while the other end holds a ball socket. The idler arm usually links the side across from the pitman arm on the center link to the vehicle’s frame. This arrangement appropriately maintains the center link's height, enabling precise transmission of the pitman arm's motion. Idler arms are typically more susceptible to wear than pitman arms due to their inherent pivoting function.

The demand for automotive components, including idler arms, is closely tied to the overall production and sales of vehicles. As the number of vehicles in operation grows, there is a corresponding increase in the need for replacement parts. Idler arms hold a pivotal role in preserving proper steering alignment and control. This significance is amplified by the evolving awareness of consumer safety and the desire for a smooth and comfortable driving experience. The pursuit of enhanced automotive technology also has the potential to instigate modifications in idler arm design and materials. The transition toward electric and autonomous vehicles is estimated to reshape the demand landscape for various steering and suspension components.

COVID 19 IMPACT

COVID-19 Pandemic Impacted the Market Negatively due to Supply Chain Disruptions

The COVID-19 pandemic had a ripple effect across multiple sectors, including the automotive industry and its associated markets, such as the automotive idler arm segment. The resulting economic instability and shifts in consumer behavior led to a decreased willingness to invest in new vehicles, including those equipped with components, including idler and pitman arms.

Consumers often postponed discretionary expenses, impacting both vehicle and component sales. Changes in consumer spending habits also extended to the automotive idler arm aftermarket. Customers were less inclined to invest in additional vehicle components during economic uncertainty. Moreover, the significant reduction in vehicle sales due to enforced lockdowns emerged as a major contributor to the market's contraction during the pandemic. According to insights from the International Organization of Motor Vehicle Manufacturers (OICA), motor vehicle sales experienced a 14% decline during this period, adversely affecting the automotive idler arm industry.

However, despite the initial obstacles posed by the pandemic, the automotive industry and its supply chain progressively acclimated to the changed circumstances. Manufacturers put safety protocols in place to recommence production, and over time, consumer demand commenced its recovery.

LATEST TRENDS

Significant Influence of the Vintage and Classic Car Trend Propels Market Growth

The automotive idler arm market growth is largely influenced by the prevailing trend of vintage and classic cars. These automotive icons are responsible for the market's expansion. Enthusiasts and collectors worldwide seek to restore and maintain the authenticity of these timeless vehicles, spurring demand for replacement and restoration parts, including idler arms. These components play a pivotal role in the proper functioning of steering systems, ensuring optimal handling and stability.

As vintage and classic cars gain more attention, the requirement for reliable and authentic idler arms intensifies, directly contributing to the market's upward trajectory. Manufacturers catering to this demand stand to benefit, while innovation in steering system design and production can further amplify growth opportunities. The enduring appeal of vintage and classic cars is a major factor propelling the automotive idler arm industry forward.

DRIVING FACTORS

Growing Demand for Passenger Cars and Light Commercial Vehicles is Anticipated to Boost Market Growth

This market is experiencing a robust growth trajectory, primarily propelled by the surging preference for passenger and light commercial vehicles. This pronounced shift in preference reflects these vehicles' essential role across industries, ranging from commuting, logistics, and transportation to construction and delivery services. As commercial vehicles become the backbone of various economic activities, the demand for idler arms, critical components responsible for steering alignment and control, intensifies.

These components ensure the smooth and precise functioning of the steering system, contributing to the overall vehicle safety and performance. Manufacturers in the automotive sector are strategically responding to this escalating demand by focusing on producing innovative, durable, and high-quality steering systems that cater to the unique requirements of passenger and commercial vehicles. This surge in demand underscores the intricate interplay between vehicle preferences and the automotive component market, dynamically shaping the industry's landscape.

RESTRAINING FACTORS

Increasing Penetration of Rack and Pinion Linkage May Restrain Market Growth

The increasing adoption of rack and pinion steering linkage systems is a restraining factor for the automotive idler arm sector’s growth. Rack and pinion systems have gained popularity due to their precise control, responsiveness, and efficiency in modern vehicles. These systems offer improved handling and a more direct connection between the driver's input and the vehicle's movement, enhancing the overall driving experience. As a result, automotive manufacturers are incorporating rack and pinion systems in several vehicles, especially in passenger cars and light trucks. This shift toward rack and pinion systems reduces the demand for traditional steering systems such as the ones involving idler arms. The idler arm is mostly used in the parallelogram steering linkage or rear-wheel drive vehicles.

As more vehicles are equipped with rack and pinion linkages, the market for automotive idler arms, which are components of different steering systems, experiences a decline in demand due to the preference for more advanced and efficient technology offered by rack and pinion steering.

SEGMENTATION

By Vehicle Type Analysis

Passenger Vehicle Segment Dominated Owing to Growing Aftermarket Demand from Old Vehicle Models

Based on vehicle type, the market is segmented into passenger vehicle and commercial vehicle. Due to the large fleet size, the passenger vehicle segment held the dominant automotive idler arm market share in 2022. The demand for idler arms in passenger vehicles is anticipated to increase aftermarket demand. As modern passenger vehicles use the rack and pinion steering system, the demand for a conventional steering system with an idler is low. Many old conventional vehicles with idler arm-based steering systems support the aftermarket demand for idler arms.

The commercial vehicle segment is expected to grow at a healthy CAGR during the forecast period. The growth of the commercial vehicle market has a direct and profound impact on the automotive idler arm industry. The surge in demand for commercial vehicles increases the potential for idler arm installations. Rising demand for reliable and high-quality steering systems often accompanies the commercial vehicle market's expansion. The growth of the commercial vehicle is often significant in emerging economies. Idler arms are mostly used by parallelogram steering linkage nearly in all commercial vehicles. The increasing demand for commercial vehicles from the transport and logistics sector is a significant factor influencing the growth of commercial vehicles, thereby driving market growth.

By Sales Channel Analysis

Increasing Demand for Idler Arm in Commercial Vehicles Garnered the Traction for OEM Segment

OEM Segments’ Dominance Led by Increasing Demand for Idler Arm in Commercial Vehicles

 Based on sales channel, the market is divided into OEM and aftermarket. The OEM segment held the largest share in 2022. OEMs are a substantial and influential demand driver for idler arms within the automotive sector. Quality is paramount to OEMs, guaranteeing the safety and efficacy of their vehicles. Manufacturers of idler arms targeting the OEM market adhere to these entities' stringent quality and performance criteria. The magnitude of OEMs' vehicle production directly shapes the idler arms requisition. Elevated production volumes correspondingly escalate the need for steering components, such as idler arms, given their fundamental role in the steering system.

The aftermarket segment is expected to grow at the highest CAGR during the forecast period. As the demand for aftermarket idler arms continue to rise, a corresponding surge in the availability of retrofit solutions is observed. Numerous manufacturers and suppliers are introducing aftermarket options customized explicitly for retrofitting applications. This expanding market landscape significantly amplifies the spectrum of alternatives, accessible to vehicle owners who seek to enhance their driving experience through retrofitting measures.

REGIONAL INSIGHTS

Asia Pacific to Grow at a Healthy CAGR Owing to the Region’s Increase in Vehicles Production and Sales

The market is segmented into North America, Europe, Asia Pacific, and the Rest of the World based on region.

North America held a major market share in 2022. The region is set to experience a strong increase in the demand for idler arms, displaying a promising growth path. One of the main drivers of the market growth is the rising fleet numbers in North America.

The Asia Pacific market is anticipated to grow at a healthy CAGR during the projected timeframe. The region is positioned to become the leading influence in the automotive idler arm industry. In recent times, there has been a rapid increase in automotive sales in this region, particularly notable in countries such as China and India, leading to a significant growth in vehicle ownership. This surge in vehicle sales has also driven the adoption of cutting-edge audio systems. As more vehicles enter the market, there is a corresponding rise in the demand for advanced steering technologies. Moreover, Asia Pacific is home to some of the world's largest and rapidly expanding automotive markets. This growing trend in vehicle production and sales naturally increases the need for automotive components, with the idler arm being crucial.

Europe and the rest of the world are anticipated to observe steady growth over the projected period. These regions have a notable presence of premium and luxury vehicle manufacturers known for equipping their vehicles with advanced suspension and steering systems. They prominently include high-quality steering components, aiming to offer improved driving experiences. Europe held a significant market share due to the region's well-established automotive industry. The presence of prominent automotive companies in the region is another factor supporting the automotive idler arm industry growth in the region.

KEY INDUSTRY PLAYERS

Dorman Products' Commitment to Innovation Drives Growth in Automotive Replacement Parts

Dorman Products is a renowned company that provides high-quality automotive parts, solutions, and equipment. With a focus on innovation and reliability, Dorman Products offers an extensive range of aftermarket replacement parts and products designed to meet the needs of both professional mechanics and vehicle owners. Dorman is positioned as a top automotive idler arm market player, contributing to its enduring success and influence.

LIST OF KEY COMPANIES PROFILED:

• Dorman Products (U.S.)


• DRiV Incorporated (Moog) (U.S.)


• Masterparts (South Africa)


• CJ MANUFACTURING COMPANY LIMITED (Thailand)


• Sankei Industries Co, Ltd. (Japan)


• Highlink Auto Parts Co., Ltd. (Taiwan)


• GMB Corporation Japan (Japan)


• Datta Industries (India)


• Rare Parts Inc. (U.S.)


• Emerson Forge Pvt. Ltd (India)

KEY INDUSTRY DEVELOPMENTS

• In July 2023, ZF's Commercial Vehicle Solutions (CVS) division and Volta Trucks, a prominent provider of all-electric commercial vehicles and services, entered into a lasting agreement. This agreement pertains to many fundamental systems and components within the all-electric Volta Zero. ZF is chosen as a primary provider for various essential Volta Zero electric truck systems, encompassing braking, suspension, and steering functionalities.


• In December 2022, DAF unveiled an Electric Hydraulic Steering (EHS) system for its latest 6x2 tractors and rigid vehicles equipped with steered pusher axles. This steering system is compatible with the next-generation DAF truck range - XF, XG, XG⁺, and XD.


• In October 2020, Nexteer Automotive introduced a High-Output Electric Power Steering (EPS) system designed to bring advanced safety and comfort attributes, along with improved fuel efficiency, to both heavy-duty (HD) trucks and light commercial vehicles (LCVs).


• In September 2020, The Schaeffler Group disclosed a collaborative venture with Robert Bosch Automotive Steering GmbH, a subsidiary of Robert Bosch GmbH. This partnership aims to enhance its intelligent rear-wheel steering (iRWS) offerings. In this collaboration, Schaeffler will supply the mechatronic iRWS systems, while Robert Bosch Automotive Steering will bring in its expertise in software and electronics to advance steering technology.


• In May 2020, Koyo Canada Inc. (KCI), a subsidiary under the umbrella of JTEKT Corporation, successfully obtained the assets of an R&D facility located in Halifax, Nova Scotia. The facility was previously owned by KSR International Inc. (KSR), a Canadian company. This strategic acquisition further bolsters JTEKT's capabilities in developing electronic control units (ECUs) for vehicle steering and driveline products.

REPORT COVERAGE

The market report provides detailed market analysis and focuses on key aspects such as leading companies, services, and product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.

REPORT SCOPE & SEGMENTATION