High consumer demands for light, safe, fuel efficiency, and comfortable drive along with an increase of AWD vehicles to be the key factors in the rapid growth.
FREMONT, CA: The global leading automotive axle and propeller shaft market that is estimated to be at $29.5 billion in 2019, is projected to reach $35.0 billion by 2025, at a compound annual growth rate of 2.9 percent as per the latest global forecasts of the industry.
The growth of the market is anticipated to reach new heights due to the day-by-day increase of all-wheel drive vehicles (AWD), high consumer demand for light, safe, and comfortable drive along with rising demand for fuel efficiency.
The industry has witnessed the rapid growth of automotive in developing countries like China and India. The driveline system manufacturers, along with this trend, are expanding their footstep by establishing new state-of-the-art production capacities.
Rigid emission norms and the urge for fuel efficiency across the globe have driven the original equipment manufacturers (OEMs) and automotive manufacturers to develop fuel-efficient solutions.
In addition to this, the demand for All Wheel Drive (AWR), and Rear Wheel Drive (RWD) is increasing, regardless of which the companies are in pursuit of improving products thereby increasing their global hold, and OEM requirement.
Carbon fiber propeller shaft is the fast-growing segment with their high durability, and comfort factors while designing drive train components especially axle and propeller shafts.
Tier I collaborators like Meritor (US) and Dana Holding Corporation (US) have developed axles with axle ratios for HCV. While the companies like GKN Plc, United Kingdom and ZF AG, Germany, has developed axles, especially for electric vehicles named as e-axle.
Similarly, for the propeller shaft market, Tier I companies are developing two- or three-piece propeller shafts to offer for better flexibility and ensure higher-level comfort.