Medium & Heavy Commercial Vehicles Axle & Propeller Shaft Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Axle Type (Live, Dead, Tandem), By Propeller Shaft Type (Single Piece, Multi Piece), By Demand Category (OEM, Aftermarket) By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 11.86 Billion
CAGR (2026-2031)	7.89%
Fastest Growing Segment	Tandem
Largest Market	Asia Pacific
Market Size (2031)	USD 18.71 Billion

Market Overview

The Global Medium & Heavy Commercial Vehicles Axle & Propeller Shaft Market will grow from USD 11.86 Billion in 2025 to USD 18.71 Billion by 2031 at a 7.89% CAGR. The Global Medium and Heavy Commercial Vehicles Axle and Propeller Shaft market encompasses the critical drivetrain components responsible for transmitting torque from the engine to the wheels while bearing the structural load of the vehicle. The primary driver supporting growth in this sector is the escalating global demand for logistics and freight transportation, which necessitates the continuous expansion and renewal of commercial fleets. Furthermore, substantial government investments in infrastructure development across emerging economies are fueling the requirement for robust heavy commercial vehicles, thereby sustaining the demand for durable axles and propeller shafts.

However, the market faces a significant challenge in the form of macroeconomic instability and fluctuating raw material costs, which can dampen vehicle production and sales volumes. Economic downturns often lead to reduced capital expenditure by fleet operators, delaying the procurement of new vehicles and components. According to the 'European Automobile Manufacturers’ Association', in '2024', 'new truck registrations in the European Union decreased by 6.3 percent to 327,896 units due to a challenging economic environment'. This decline illustrates how regional economic headwinds can temporarily impede the broader expansion of the component market.

Key Market Drivers

The expansion of construction and infrastructure development activities serves as a primary catalyst for the market, driving the procurement of vocational trucks equipped with high-strength drivetrain components. Large-scale projects involving road connectivity, urban development, and mining operations necessitate heavy-duty tippers and concrete mixers that rely on reinforced axles and propeller shafts to withstand high torque and heavy payloads under strenuous operating conditions. This surge in infrastructure spending directly translates to increased component orders, particularly in developing economies prioritizing modernization. According to Invest India, February 2024, in the 'Interim Budget 2024-25', 'the capital expenditure outlay for infrastructure development was increased by 11.1 percent to ₹11,11,111 crore', signaling a sustained requirement for construction-specific commercial vehicles and their underlying mechanical systems.

Concurrently, the transition toward electric and hybrid commercial vehicle powertrains is fundamentally reshaping product specifications and manufacturing priorities. As manufacturers move away from internal combustion engines, there is a rising adoption of e-axles which integrate electric motors, transmissions, and differentials into a single compact unit, thereby increasing the value per unit of the drivetrain system. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', 'global sales of electric trucks increased by 35 percent in 2023 compared to the previous year', underscoring the rapid shift toward electrified transport solutions. This technological migration is supported by a broader recovery in production volumes across major Asian markets, which continues to stabilize the global supply chain. According to the China Association of Automobile Manufacturers, in 2024, 'cumulative sales of heavy trucks in China for the first quarter reached 272,700 units, representing a 13 percent year-on-year increase', indicating robust regional momentum that complements the evolving demand for advanced electric propulsion components.

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Key Market Challenges

Macroeconomic instability constitutes a formidable obstacle to the expansion of the axle and propeller shaft sector by directly suppressing the production and sale of new commercial vehicles. During periods of economic volatility or high inflation, logistics providers and fleet operators typically enact conservative financial measures to preserve liquidity. This reluctance to invest often results in the deferral of capital expenditures, specifically delaying the renewal of aging fleets and the acquisition of new trucks. As vehicle manufacturers scale back production to align with this weakened demand, orders for essential drivetrain components like axles and propeller shafts inevitably contract, disrupting the supply chain and hindering market revenue growth.

The impact of such economic headwinds is evident in recent industry statistics from major automotive hubs. According to the 'German Association of the Automotive Industry (VDA)', in '2024', 'registrations of heavy commercial vehicles over 16 tonnes in Germany declined by 11 percent during the first nine months compared to the same period in the previous year'. This substantial decrease in vehicle uptake highlights how regional economic challenges translate directly into reduced volume requirements for component suppliers, thereby stalling the broader momentum of the market.

Key Market Trends

The integration of smart sensors for predictive maintenance is becoming a pivotal trend as fleet operators prioritize minimizing vehicle downtime and total cost of ownership. Manufacturers are increasingly embedding intelligent sensors directly into axle and propeller shaft assemblies to monitor critical parameters such as bearing temperature, vibration, and brake wear in real-time. This digitalization allows for condition-based maintenance strategies, replacing traditional scheduled servicing and preventing catastrophic component failures. According to SAF-Holland, March 2025, in the 'Annual Report 2024', the group generated sales of EUR 1.88 billion, reflecting the continued market scale of major suppliers advancing these connected chassis technologies to ensure roadworthiness and operational efficiency.

Concurrently, there is a substantial market shift toward lightweight composite and aluminum materials to enhance vehicle payload capacity and fuel efficiency. Engineering innovations are focusing on replacing heavy steel components with high-strength, low-weight alternatives, which is particularly crucial for compensating for the battery weight in electric trucks and maximizing cargo allowance in conventional vehicles. This material optimization directly contributes to lower energy consumption and improved handling without compromising structural integrity. According to Volvo Trucks, May 2025, in the article 'Delivering both range and payload with the lightweight tag axle', their newly developed lightweight tag axle is around 300 kg lighter than a conventional axle, demonstrating the significant weight savings achievable through advanced component design.

Segmental Insights

The Tandem segment is currently emerging as the fastest-growing category within the Global Medium & Heavy Commercial Vehicles Axle & Propeller Shaft Market. This rapid expansion is primarily driven by the increasing global demand for high-capacity vehicles in the construction and logistics sectors. Stringent enforcement of axle load norms by transportation authorities has compelled fleet operators to transition towards tandem configurations to ensure compliance while maximizing payload. By effectively distributing weight across multiple points, tandem axles offer superior vehicle stability and traction, making them essential for heavy-duty applications that require both operational efficiency and adherence to strict road safety regulations.

Regional Insights

Asia Pacific maintains a dominant position in the global medium and heavy commercial vehicle axle and propeller shaft market, driven by rapid industrialization and robust construction activities in China and India. The region benefits from a high volume of freight transport and the presence of major vehicle manufacturers that support local production. Additionally, regulatory measures regarding axle load norms and fleet modernization from authorities like the Ministry of Road Transport and Highways in India further stimulate market activity. This combination of infrastructure investment and manufacturing capacity cements the region's status as a key commercial hub.

Recent Developments

• In December 2024, Dana Incorporated announced the launch of the Spicer AdvanTEK 40 Pro axle system, representing a significant evolution in its heavy-duty tandem axle offerings. Designed to meet the efficiency demands of modern commercial fleets, this new 40,000-pound 6x4 system features the market’s fastest axle ratio of 2.05 to support advanced engine downspeeding. The Senior Vice President of Commercial Vehicle Drive and Motion Systems at Dana stated that the system balances durability with efficiency, offering improved packaging flexibility. Key enhancements include a high-capacity bearing system and an inter-axle differential equipped with advanced coatings to extend drivetrain life.
• In December 2024, Cummins Inc. detailed the advancement of its drivetrain portfolio, announcing the development of next-generation tandem axles engineered for improved fuel efficiency and performance. The company revealed that these new axles feature gear ratios as fast as 1.95:1, designed to integrate seamlessly with advanced engines for downspeeding applications. A key focus of this development is the reduction of friction and power loss through innovations in lube management and high-efficiency bevel gearing. These improvements enable commercial fleet customers to achieve lower emissions and higher productivity in heavy-duty operations, aligning with the company's sustainability strategy.
• In September 2024, Volvo Trucks unveiled a breakthrough electric driveline technology featuring a new e-axle designed to significantly extend the range of its heavy-duty electric trucks. This innovation integrates the electric motors and transmission directly into the rear axle, creating additional space for increased battery capacity. The company confirmed that this advancement allows its next-generation electric flagship model to achieve a range of up to 600 kilometers on a single charge. The President of Volvo Trucks highlighted that this new e-axle is a critical enabler for decarbonizing long-distance transport, with serial production scheduled to commence in the second half of 2025.
• In August 2024, Allison Transmission expanded its electrification portfolio for commercial vehicles by presenting the eGen Power 85S electric axle ahead of the IAA Transportation exhibition. This new fully electric axle integrates a high-speed electric motor and a two-speed gearbox, delivering a continuous power output of 225 kilowatts and a peak power of 325 kilowatts. The system is designed as a drop-in solution to easily replace traditional powertrains in existing chassis, offering significant space savings for battery storage. The company positioned this launch to support diverse applications, including midi-buses and distribution vehicles, reinforcing its commitment to the medium and heavy-duty electric vehicle market.

Key Market Players

• 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

By Axle Type	By Propeller Shaft Type	By Demand Category	By Region
Live Dead Tandem	Single Piece Multi Piece	OEM Aftermarket	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Medium & Heavy Commercial Vehicles Axle & Propeller Shaft Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 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
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE