- Single piece segment is estimated to hold the largest share in automotive propeller shaft market.
- Live axle segment is expected to be the largest market, by axle type, during the forecast period.
- Europe is expected to account for the second largest automotive axle and propeller shaft market during the forecast period.
The Global Automotive Axle and Propeller Shaft Market size in terms of value is estimated to be $29.5 billion in 2019, which is projected to grow to $35.0 billion, by 2025 at a CAGR of 2.9%. Increasing production of heavy commercial vehicles, rising SUV demand, and growing adoption of AWD vehicles to get enhanced traction is expected to fuel the demand for Automotive Axle & Propeller Shaft Market.
- Growth in Vehicle Production
- Technological Advancements
- Changing End User Preference
Europe is estimated to be the second-largest and established automotive axle and propeller shaft market and is projected to witness stable growth in the coming years. A major growth driver is expected to be stringent fuel-economy norms which would encourage research activities to develop lightweight solutions for vehicles. The increased production level in Germany, the UK, and France, along with the rise in premium vehicle sales, are estimated to drive the demand for axles and propeller shafts.
Rising preference for comfort while driving by end-users would also positively impact the demand for a better quality of axles and propellers. Also, ZF Friedrichshafen AG (Germany), Dana Incorporated (US), GKN PLC (UK), IFA Rotorion (Germany), and Gestamp (Spain) are the key suppliers in the European market which are continually making R&D efforts to further extend the growth of automotive axle and propeller shaft market in Europe.
Single-piece propeller shaft dominates the automotive propeller shaft market during the forecast period. The factors that drive the growth of this segment are cost-effectiveness as well as its overall durability. The single-piece propeller shaft is used more than the multi-piece propeller shaft majorly because of its lightweight with high fuel efficiency. The single-piece propeller shaft becomes an ideal choice for the shorter distance between the engine and the rear axle.
The demand for the sport utility vehicle segment is rising mainly in the US, China, and India, owing to the improving economic environment, low crude oil prices, and rising per capita income. This will prompt the demand for rear-wheel drive vehicles which are usually installed with single-piece shaft and subsequently the growth of SUVs would also foster the demand for single-piece propeller shaft in the future.
Alloys hold the maximum market share in the passenger car propeller industry. A majority of passenger car and light commercial vehicles are installed with propeller shaft made up of alloy material owing to its benefits such as satisfactory strength, stiffness, and lower cost. However, in case of high-speed performance, and efficient torque requirement, either the diameter of the metal shaft needs to be increased, or manufactured in the form of two or three-piece component.
The shaft joints and couplings handle the service loads, high angles, terrain change, and need to have a support structure that further results in increased weight. Hence, the ongoing trend is shifting to design and develop propeller shafts, which are lightweight and cost-effective. As a result, suppliers are now more inclined toward using lightweight materials (carbon fiber) with high durability and comfort factors while designing drivetrain components, especially propeller shafts.