Passenger Cars Axle & Propeller Shaft Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Passenger Cars Axle & Propeller Shaft Market is projected to grow from USD 17.42 Billion in 2025 to USD 27.37 Billion by 2031, registering a CAGR of 7.82%. Passenger car axles function as central shafts that transfer torque from the differential to the wheels to support vehicle weight, while propeller shafts transmit rotational power from the transmission to the differential in rear and all-wheel drive configurations. This market expansion is primarily fueled by the consistent rise in global automobile manufacturing volumes and increasing consumer demand for sports utility vehicles requiring durable drivetrain systems, alongside the growing need for enhanced vehicle stability and traction across diverse road conditions.

However, the industry encounters a significant challenge due to the rapid transition toward electric mobility, which frequently employs integrated electric axles and eliminates the need for traditional propeller shafts. This technological shift in powertrain configuration presents a structural threat to the long-term demand for mechanical drive shafts. To put the market scale into context, the China Association of Automobile Manufacturers reported that passenger vehicle production in China reached approximately 27.5 million units in 2024, a figure that highlights the immense ongoing requirement for axle assemblies despite the evolution of propulsion technologies.

Market Drivers

The expanding volume of global passenger vehicle manufacturing acts as a primary catalyst for the axle and propeller shaft sector. As automakers increase output to meet post-pandemic demand recovery, the requirement for standard drivetrain components scales proportionally to support new vehicle assembly, particularly in mature markets where production stability ensures steady revenue streams for manufacturers of front and rear axle assemblies. According to the European Automobile Manufacturers’ Association's 'Economic and Market Report' from February 2024, EU passenger car production grew by 11.3 percent to reach 12.1 million units in 2023, necessitating a parallel supply of drivetrain hardware to maintain supply chain fluidity.

Simultaneously, the industry is undergoing a structural transformation driven by the accelerated shift toward electric mobility, which fundamentally alters axle architecture through the adoption of integrated e-axles. While this transition reduces reliance on traditional propeller shafts in specific configurations, it increases the value of complex electric drive units that combine motors, power electronics, and axles. According to the International Energy Agency's 'Global EV Outlook 2024' published in April 2024, global electric car sales surpassed 14 million units in 2023, representing a 35 percent year-on-year increase and mandating the development of specialized lightweight axle systems to offset battery weight; furthermore, emerging economies like India contribute significantly to demand, with the Society of Indian Automobile Manufacturers reporting record domestic sales of 4.21 million units in the fiscal year ending March 31, 2024.

Market Challenges

The rapid transition toward electric mobility presents a fundamental structural challenge to the market by rendering traditional propeller shafts obsolete in a growing segment of vehicle architectures. In conventional rear-wheel and all-wheel drive internal combustion engine platforms, the propeller shaft is critical for transmitting torque from the transmission to the differential, but modern electric vehicles increasingly utilize integrated e-axles where the electric motor is mounted directly on the axle or within the wheel assembly. This engineering consolidation removes the mechanical necessity for long drive shafts, thereby permanently shrinking the total addressable market for these specific components even as global vehicle production expands.

This technological displacement is intensifying as electric vehicle adoption rates climb in major automotive regions, creating a direct volume risk for component manufacturers solely dependent on mechanical drivetrain parts. To illustrate the scale of this shift, according to the European Automobile Manufacturers' Association, in 2024, battery electric vehicles accounted for a market share of 13.6% of new car registrations in the region. As automakers continue to prioritize these electric architectures to comply with emission standards, the demand for traditional propeller shafts faces a sustained, inevitable decline relative to the overall industry growth.

Market Trends

The shift toward lightweight aluminum and composite axle materials is reshaping component manufacturing as automakers prioritize mass reduction to meet stringent emission standards and extend the range of electric vehicles. Engineers are increasingly replacing traditional heavy steel components in axle housings and propeller shafts with advanced aluminum alloys and carbon fiber reinforced polymers to decrease unsprung weight, a material evolution that directly enhances vehicle handling and energy efficiency while maintaining the structural durability required for modern torque loads. According to American Axle & Manufacturing's 'Annual Report 2023' released in February 2024, the company emphasized that its lightweight axle technology offers significant mass reduction to support improved fuel economy, aligning with its corporate commitment to reduce absolute Scope 1 and 2 greenhouse gas emissions by 45 percent by 2030.

Simultaneously, the rise of modular and scalable axle platforms is addressing the industrial need for flexible manufacturing lines capable of accommodating diverse powertrain architectures. By developing versatile axle families that share common interfaces, suppliers enable OEMs to seamlessly integrate internal combustion, hybrid, and fully electric drive units onto a single chassis framework, an approach that significantly lowers development costs and accelerates the time-to-market for new vehicle models. According to Dana Incorporated's 'Fourth-Quarter and Full-Year 2023 Financial Results' from February 2024, the company reported a record three-year new business sales backlog of $950 million, underscoring the robust global demand for its adaptable portfolio of conventional and clean-energy driveline solutions.

Key Players Profiled in the Passenger Cars Axle & Propeller Shaft Market

• Dana Corporation
• IFA Rotorion
• Meritor Inc.
• Korea Flange Co. Ltd.
• ZF Friedrichshafen AG
• Showa Corporation
• JTEKT Corporation
• GKN-Walterscheid GmbH
• American Axle & Manufacturing, Inc.
• Gelenkwellen-Service GmbH

Report Scope

In this report, the Global Passenger Cars Axle & Propeller Shaft Market has been segmented into the following categories:

Passenger Cars Axle & Propeller Shaft Market, by Axle Type:

• Live
• Dead
• Tandem

Passenger Cars Axle & Propeller Shaft Market, by Propeller Shaft Type:

• Single Piece
• Multi Piece

Passenger Cars Axle & Propeller Shaft Market, by Demand Category:

• OEM
• Aftermarket

Passenger Cars Axle & Propeller Shaft Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Passenger Cars Axle & Propeller Shaft Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.