North America Automotive Bearing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Automotive Bearing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North America Automotive Bearing market is valued at USD 6.44 Billion in 2021 and is expected to reach USD 8.25 Billion by 2027 and is anticipated to register a CAGR of about 4.2% during the forecast period.

COVID-19 hurt the automotive bearing market. North America witnessed the major impact of pandemics on the supply chain and manufacturing sector. In addition, due to lockdowns and halted production, the supply chain was hit hard. Several companies with huge financial resources are still trying to overcome their challenges. The declined demand for vehicles hampered the automotive bearing market. However, in 2021 the market recovered and is expected to grow significantly during the forecast period. Primary due to growth in electric vehicle demand. This is likely to drive the market in focus during the forecast period.

Over the long term, the rise in vehicle production across the region is likely to witness major growth for the market. The rise in the sale of Hatchback and SUVs across the United States is anticipated to increase the demand for bearings across the country. In Hatchback, an average of about 60 bearings are fitted, while the number goes up in the case of sedans and SUVs. Additionally, bearings add significant weight to the vehicle and as a result, OEMs are working continually toward building lighter units.

Automotive bearing is an integral component of any vehicle due to its basic functionality of allowing the wheels to spin correctly. As a result, automotive bearings have always remained in demand, and with more extensive ownership of personal cars and growing technological advancements, the need for these bearings will only increase.

Due to an enactment of the stringent Environment Protection Agency (EPA) regulations and Corporate Average Fuel Economy (CAFÉ) standards, the demand for lightweight vehicles is high across the region. The North American automotive industry is adopting materials like carbon fiber, plastic, FRP composites, and ASS to lessen vehicle weight.

Key Market TrendsRolling Element Bearing hold significant market share

Based on the product type, rolling element bearing is dominating the North American automotive bearing market in terms of revenue in 2021 and is expected to grow during the forecast period.

Automotive bearing is on the rise amongst bearing manufacturers, owing to the expansion of the automobile industry. Although, there is tremendous competition in the market, resulting in taking manufacturers focusing more on improving their rolling element-bearing products.

Wheel bearings tend to wear out after performing thousands of miles. Both the perpetual revolution of the wheels and the vehicle’s weight result in wearing out of wheel bearings, making the wheels unable to roll effectively.

In recent years, the automotive industry saw numerous developments of new rolling element bearings. Newer car models offer sealed units to keep the bearings away from dust, dirt, debris, and prevent contamination and reduce premature wear are in rising. However, it also limits servicing, cleaning, and greasing of bearing, which was accessible in the older model.

Rise in competition in the automotive rolling bearings segment, bearing manufacturers have focused on improving their rolling element bearing products. For instance,

• In October 2021, NSK Ltd. has developed the world's first 100% bioplastic heat-resistant cage for rolling bearings. This product addresses the low heat resistance of previous bioplastics, with the new cage able to withstand high operating temperatures of 120℃.

United States Remains the Largest Market

In terms of geography, the United States is dominating the North American automotive bearing market in terms of revenue in 2021. United States government raised norms for CAFÉ fuel standards and EPA Tier-3 norms. In the United States, the Corporate Average Fuel Economy (CAFE) implemented laws to improve fuel efficiency for automobile categories by 2025. There is an increasing growth rate for miles per gallon (MPG) regulation, which is growing at 5% every year for all segments of automobiles. Lighter bearings can help overcome this shortcoming.

Also, materials are often not recycled and are sent to landfills. Environmental Protection Agency (EPA) proposed life cycle assessment (LCA) studies to detect higher emissions over the entire life cycle of the vehicle. LCA looks at resources, energy, emissions, extraction phase, and end-of-life phase along with disposal and recycling. Due to these stringent laws by the US, automotive bearing manufacturers are adapting themselves to new forms of reusable alloys.

The United States witnessed a 4% increase in all types of vehicle sales, such a rise in vehicle sales across the country is likely to create an opportunity for the automotive bearing market. However, aluminum prices are on the rise in the United States, which may hinder the growth of the market in the country. As a result, the steel industry is focusing on developing different alloys for processing combinations, steel with high tensile strength and ductility, for bearings used in the automotive sector, indicating the growing demand for enhanced and lighter bearings.

Competitive Landscape

The North American Automotive bearings market is dominated by several key players such as NTN Bearings, SKF, JTEKT Corporation, NSK Ltd, Myonic GmbH, and many others. To have an edge over their competitors’ companies are making joint ventures, partnerships, and launching new products with advanced technology. For instance,

• In October 2021, JTEKT Corporation merged with three subsidiaries that manufacture and sell bearings. Through this merger, the company aims to streamline the group structure, collect the technologies owned by the three companies, and expand the business domain to the processing of automobile parts. Utsunomiya Kiki Co., Ltd., Nippon Needle Roller Manufacturing Co., Ltd., and Tokyo Seiko (Hamura City, Tokyo) will be merged, and the company name will be changed to JTEKT FINETECH Co., Ltd.
• In July 2021, JTEKT Corporation invested an amount of USD 47 million for an expansion of the manufacturing facility in Mexico.

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