Medium & Heavy Commercial Vehicles Axle & Propeller Shaft Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Medium & Heavy Commercial Vehicles Axle & Propeller Shaft Market is projected to expand significantly, rising from USD 11.86 billion in 2025 to USD 18.71 billion by 2031, representing a compound annual growth rate of 7.89%. This sector covers essential drivetrain elements that transmit torque from engines to wheels while supporting the vehicle's structural weight. The market's upward trajectory is primarily sustained by the intensifying global need for freight transportation and logistics, prompting continuous fleet expansion and upgrades. Additionally, heavy government spending on infrastructure projects in emerging nations is bolstering the demand for robust heavy commercial vehicles, subsequently ensuring a steady requirement for durable axles and propeller shafts.

However, the market confronts serious hurdles arising from macroeconomic volatility and oscillating raw material prices, both of which can suppress vehicle manufacturing and sales. Economic downturns frequently cause fleet operators to cut capital spending, resulting in delays in purchasing new vehicles and parts. This impact is highlighted by data from the European Automobile Manufacturers’ Association, which reported that in 2024, new truck registrations in the European Union fell by 6.3 percent to 327,896 units due to difficult economic conditions. Such declines demonstrate how regional economic difficulties can temporarily obstruct the broader growth of the component market.

Market Drivers

A major catalyst for market growth is the surge in construction and infrastructure development, which drives the acquisition of vocational trucks fitted with robust drivetrain systems. Extensive projects focused on road networks, urban planning, and mining require heavy-duty tippers and concrete mixers that depend on reinforced axles and propeller shafts to manage high torque and heavy loads under severe conditions. This increase in infrastructure investment leads directly to higher orders for components, especially in developing nations focused on modernization. For instance, Invest India reported in February 2024 that the Interim Budget 2024-25 raised the capital expenditure outlay for infrastructure development by 11.1 percent to ₹11,11,111 crore, indicating a continued need for construction-oriented commercial vehicles and their mechanical systems.

Simultaneously, the shift toward electric and hybrid commercial vehicle powertrains is fundamentally transforming manufacturing priorities and product specifications. As the industry pivots away from internal combustion engines, there is growing adoption of e-axles that combine electric motors, transmissions, and differentials into compact units, enhancing the drivetrain's unit value. The International Energy Agency’s 'Global EV Outlook 2024', released in April 2024, noted that global electric truck sales rose by 35 percent in 2023 compared to the prior year, highlighting the rapid move to electrified transport. This shift is further bolstered by recovering production volumes in key Asian markets; according to the China Association of Automobile Manufacturers, cumulative heavy truck sales in China for the first quarter of 2024 hit 272,700 units, a 13 percent year-on-year rise, showing strong regional momentum that supports demand for advanced propulsion components.

Market Challenges

Macroeconomic instability serves as a significant barrier to the growth of the axle and propeller shaft industry by directly reducing the production and sale of new commercial vehicles. In times of high inflation or economic volatility, fleet operators and logistics providers usually adopt conservative financial strategies to protect their liquidity. This hesitation to invest frequently leads to the postponement of capital expenditures, specifically delaying the replacement of older fleets and the purchase of new trucks. Consequently, as vehicle manufacturers reduce output to match this diminished demand, orders for critical drivetrain parts like axles and propeller shafts inevitably shrink, disrupting supply chains and curbing revenue growth.

The tangible effects of these economic headwinds are reflected in recent statistics from key automotive regions. For example, the German Association of the Automotive Industry (VDA) reported in 2024 that registrations of heavy commercial vehicles exceeding 16 tonnes in Germany fell by 11 percent during the first nine months compared to the same period the previous year. This significant drop in vehicle uptake underscores how regional economic struggles directly result in lower volume requirements for component suppliers, effectively stalling the market's broader momentum.

Market Trends

A critical trend gaining traction is the integration of smart sensors for predictive maintenance, as fleet operators focus on reducing total cost of ownership and minimizing vehicle downtime. Manufacturers are increasingly incorporating intelligent sensors into propeller shaft and axle assemblies to track essential metrics such as vibration, bearing temperature, and brake wear in real-time. This move toward digitalization enables condition-based maintenance, replacing standard scheduled servicing and averting severe component failures. Highlighting the scale of suppliers driving these connected chassis technologies, SAF-Holland reported in its 'Annual Report 2024' (March 2025) that the group achieved sales of EUR 1.88 billion, reflecting the market's continued advancement in operational efficiency and roadworthiness.

Concurrently, the market is experiencing a significant shift toward the use of lightweight aluminum and composite materials to boost fuel efficiency and vehicle payload capacity. Engineering efforts are concentrated on substituting heavy steel parts with high-strength, lighter alternatives, a strategy that is especially vital for offsetting battery weight in electric trucks and maximizing cargo limits in traditional vehicles. This optimization of materials leads to improved handling and lower energy consumption while maintaining structural strength. For instance, Volvo Trucks revealed in a May 2025 article, 'Delivering both range and payload with the lightweight tag axle', that their newly engineered lightweight tag axle is approximately 300 kg lighter than a standard axle, illustrating the substantial weight reductions possible through advanced design.

Key Players Profiled in the Medium & Heavy Commercial Vehicles 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 Medium & Heavy Commercial Vehicles Axle & Propeller Shaft Market has been segmented into the following categories:

Medium & Heavy Commercial Vehicles Axle & Propeller Shaft Market, by Axle Type:

• Live
• Dead
• Tandem

Medium & Heavy Commercial Vehicles Axle & Propeller Shaft Market, by Propeller Shaft Type:

• Single Piece
• Multi Piece

Medium & Heavy Commercial Vehicles Axle & Propeller Shaft Market, by Demand Category:

• OEM
• Aftermarket

Medium & Heavy Commercial Vehicles 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 Medium & Heavy Commercial Vehicles 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).

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