Automotive Axle & Propeller Shaft Market Expected to Reach $45.3 Billion by 2030

According to a new report published by Allied Market Research, titled, “Automotive Axle & Propeller Shaft Market," The automotive axle & propeller shaft market was valued at $29.3 billion in 2020, and is estimated to reach $45.3 billion by 2030, growing at a CAGR of 4.6% from 2021 to 2030.

Asia-Pacific is expected to dominate the automotive axle & propeller shaft market owing to increase in demand for passenger vehicles from China, Japan, and India. In January 2021, vehicle sales in China experienced rise of 29.5% as compared to the previous year. Greater vehicle production in the emerging economies of China, Japan, Taiwan, and India, coupled with increased adoption of fuel efficient vehicles contribute to the market growth in Asia-Pacific.

The adoption of electric vehicles has been observed across the world. Several manufacturers are developing lightweight parts axles in order to improve performance of electric vehicle. Moreover, manufacturers are also developing & integrating aluminum based parts in automobiles as it aids in reduction in weight of vehicle. Henceforth, rise in adoption of electric vehicle is one of the factors that drive the growth of the market.

By type, the automotive axle & propeller shaft market is segregated into live axle, dead axle, tandem axle, single piece propeller shaft, multi piece propeller shaft, and slip in tube propeller shaft. Single piece propeller is widely utilized due to its low weight as compared to other propeller shaft and high torsional strength. Generally, single piece propeller shaft finds application in passenger cars where distance between engine and differential is less.

By vehicle type, the market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger car segment dominated the market in 2020. Increase in demand for passenger vehicles from emerging economies, enhanced need for high performing & fuel-efficient vehicles, and introduction of stringent emission regulations drive the growth of this segment.

The significant factors that impact the growth of the automotive axle & propeller shaft market comprises growth in production & sale of vehicles across the globe, increase in adoption of electric vehicle, greater aftermarket demand for axle and propeller shaft from emerging economies, and surge in demand for comfortable & fuel efficient vehicles. Moreover, fluctuating prices of raw materials and vehicle recall & regulatory concerns are the factors that hamper the market growth. Surge in demand for all wheel drive vehicles, and increase in use of lightweight material for manufacturing of axles and propeller shafts are expected to offer growth opportunities during the forecast period.

COVID-19 Impact Analysis

The COVID-19 crisis has created uncertainty in the market, massive slowing of supply chain, falling business confidence, and increased panic among the customer segments. Governments of different regions have already announced total lockdown and temporary shutdown of industries, thereby adversely affecting the overall production and sales.

The impact of the COVID-19 pandemic has resulted in supply-chain disruptions causing shortage of automotive parts & temporary suspension of production of vehicles across the globe, which in turn, resulted in decline in the demand for automotive axle & propeller shaft. For instance, in March 2020, in India, Hyundai suspended manufacturing operations at Chennai facility due to COVID-19 pandemic.

However, with the removal of lockdown restrictions, growth in sales of electric cars has been observed. For instance, global sales for electric car has recorded a growth of 109% in 2021. This rise in sales of electric vehicle is expected to contribute in the growth of automotive axle and propeller shaft market.

KEY FINDINGS OF THE STUDY

• By type, the single piece propeller shaft segment is anticipated to exhibit significant growth in the near future.
• By vehicle type, the passenger vehicle segment is anticipated to exhibit significant growth in the near future.
• By sales channel, the aftermarket segment is anticipated to exhibit significant growth in the near future.
• By region, Europe is anticipated to register the highest CAGR during the forecast period.

Key players operating in the global automotive axle & propeller shaft market comprises American Axle & Manufacturing, Inc., Dana Incorporated, Gestamp Automocion, S.A., Hitachi, Ltd., Hyundai Wia Corporation, IFA Group, JTEKT Corporation, Melrose Industries Plc, Meritor, Inc., and ZF Friedrichshafen AG.