Passenger Cars 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 17.42 Billion
CAGR (2026-2031)	7.82%
Fastest Growing Segment	Tandem
Largest Market	Asia Pacific
Market Size (2031)	USD 27.37 Billion

Market Overview

The Global Passenger Cars Axle & Propeller Shaft Market will grow from USD 17.42 Billion in 2025 to USD 27.37 Billion by 2031 at a 7.82% CAGR. Passenger car axles serve as central shafts that transfer torque from the differential to the wheels while supporting the vehicle weight, whereas propeller shafts transmit rotational power from the transmission to the differential in rear and all wheel drive architectures. The market expansion is primarily driven by the consistent growth in global automobile manufacturing volumes and the rising consumer demand for sports utility vehicles that require durable drivetrain systems. Furthermore, the increasing need for enhanced vehicle stability and traction across various road conditions supports the continued adoption of robust driveline components in modern vehicle platforms.

However, the industry faces a notable challenge due to the rapid transition toward electric mobility which frequently utilizes integrated electric axles and eliminates the need for traditional propeller shafts. This technological shift in powertrain configuration poses a structural threat to the long term demand for mechanical drive shafts. To contextualize the market scale, according to the China Association of Automobile Manufacturers, in 2024, the production of passenger vehicles in China reached approximately 27.5 million units. This substantial figure highlights the immense ongoing requirement for axle assemblies despite the evolving propulsion technologies.

Key Market Drivers

The expanding volume of global passenger vehicle manufacturing acts as a primary catalyst for the axle and propeller shaft sector. As automakers ramp up output to meet post-pandemic demand recovery, the requirement for standard drivetrain components scales proportionally to support new vehicle assembly. This trend is particularly evident in mature markets where production stability directly correlates with component procurement orders, ensuring steady revenue streams for manufacturers of front and rear axle assemblies. According to the European Automobile Manufacturers’ Association, February 2024, in the 'Economic and Market Report', EU passenger car production grew by 11.3 percent to reach 12.1 million units in 2023. Such increases in assembly rates necessitate 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, April 2024, in the 'Global EV Outlook 2024', global electric car sales surpassed 14 million units in 2023, representing a 35 percent year-on-year increase. This surge mandates the development of specialized lightweight axle systems to offset battery weight. Furthermore, emerging economies contribute significantly to this demand, with robust internal combustion engine vehicle sales sustaining traditional component lines. According to the Society of Indian Automobile Manufacturers, in 2024, passenger vehicle domestic sales in India touched a record high of 4.21 million units in the fiscal year ending March 31.

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Key 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. However, 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. This trend creates 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.

Key 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. This material evolution directly enhances vehicle handling and energy efficiency while maintaining the structural durability required for modern torque loads. According to American Axle & Manufacturing, February 2024, in the 'Annual Report 2023', 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. This approach significantly lowers development costs and accelerates the time-to-market for new vehicle models across different segments. According to Dana Incorporated, February 2024, in the 'Fourth-Quarter and Full-Year 2023 Financial Results', 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.

Segmental Insights

The Tandem segment is currently positioning itself as the fastest-growing category within the Global Passenger Cars Axle & Propeller Shaft Market. This upward trajectory is primarily attributed to the rising demand for high-performance and utility-focused passenger vehicles that require superior load-bearing capabilities. Manufacturers are increasingly utilizing tandem configurations to enhance vehicle stability and ensure optimal weight distribution, thereby meeting improved safety and transport regulations. This structural advantage allows for greater durability and handling precision in heavier vehicle applications, effectively driving the rapid expansion of the tandem segment across the global market.

Regional Insights

Asia Pacific holds the leading position in the global passenger cars axle and propeller shaft market, primarily driven by substantial automotive manufacturing output in China, India, and Japan. The region benefits from rising consumer demand for passenger vehicles resulting from increasing urbanization and economic development. Additionally, manufacturers are focusing on lightweight and efficient drivetrain components to comply with fuel efficiency standards set by authorities such as India's Ministry of Road Transport and Highways. This combination of large-scale production capabilities and evolving regulatory frameworks ensures that Asia Pacific remains the central hub for axle and propeller shaft procurement.

Recent Developments

• In January 2025, American Axle & Manufacturing announced a definitive agreement to combine with Dowlais Group plc, the parent company of GKN Automotive, in a transaction valued at approximately $1.44 billion. This strategic collaboration aims to create a leading global supplier in the automotive driveline and metal forming sectors, offering a comprehensive portfolio for internal combustion, hybrid, and electric vehicles. The merged entity is expected to generate significant annual revenues and cost synergies, positioning it to better serve a diverse customer base. By integrating their complementary technologies and geographic footprints, the companies intend to enhance their competitiveness in the evolving global mobility market.
• In October 2024, Hyundai WIA presented its Integrated Drive Axle (IDA) and a suite of other electric vehicle components at the International Suppliers Fair in Wolfsburg, Germany. The Integrated Drive Axle represents a technological breakthrough that unifies the drive shaft, which transmits power to the wheels, and the wheel bearing into a single, cohesive unit. This integration not only reduces the overall weight of the system but also significantly increases rigidity, which improves the handling and driving stability of passenger electric vehicles. Alongside this axle innovation, the company displayed an electric torque vectoring system, demonstrating its commitment to expanding its presence in the European market.
• In July 2024, BorgWarner announced that it had secured contracts to supply its electric cross differential (eXD) to three major global automotive manufacturers, including GAC Motor. This advanced technology will be incorporated into a range of battery electric passenger vehicles, from sports cars to premium sedans, across both front- and rear-wheel drive platforms. The eXD system serves as a key component of the company's electric torque management portfolio, intelligently modulating torque distribution between wheels to enhance traction, stability, and cornering performance. Production for the initial partner commenced immediately, with additional launches for the other manufacturers scheduled to begin in 2026.
• In January 2024, Magna International unveiled its next-generation 800V eDrive solution for the passenger car market at the CES trade show. This innovative drop-in system incorporates advanced technologies to deliver significant reductions in weight and size while maximizing power-to-weight ratio and torque density. A unique design feature allows the eDrive to rotate 90 degrees around the drive axis, facilitating seamless integration into various front and rear vehicle architectures. The product is engineered to achieve up to 93% efficiency in real-world driving conditions, thereby extending vehicle range and supporting the automotive industry’s acceleration toward sustainable, high-performance electric mobility.

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 Passenger Cars Axle & Propeller Shaft Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 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
• 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