Commercial Vehicle Propeller Shaft Market

Commercial Vehicle Propeller Shaft Market Size

The global commercial vehicle propeller shaft market size was valued at USD 4.2 billion in 2024 and is projected to grow at a CAGR of 4% between 2025 and 2034. One of the drivers of growth in the commercial vehicle propeller shaft industry is the increasing prices of energy in cents per kilowatt-hour and the lower emissions allowed by legislation.

Automakers are also taking steps to shift chassis construction from heavy metals to lighter materials. Carbon fiber and aluminum can also weaken a vehicle's structure, but they enable it to be much more fuel-efficient. Other new power mechanisms, which include electric commercial vehicles and hybrids, too, require shafts with specially designed torque profiles at the crankshaft end. The automotive industry is also moving towards more environmentally friendly practices. All these factors are increasing the pro shaft R&D spending in material science and design to focus on stronger but lighter pro shafts that can conform to emission regulations.

For instance, according to GMI, the Commercial Vehicle Market size as of 2022 stood at USD 8.8 trillion and is expected to have a CAGR of above 6% from 2023 to 2032. Such a high growth rate is expected due to higher demand for propeller shafts for commercial vehicle production.

E-commerce and logistics growth, in turn, increases demand for trucks and light commercial vehicles globally, which propels the growth of the commercial vehicle propeller shaft market. The growth need for these online retail businesses entails a comprehensive delivery channel which in turns requires an efficient fleet of commercial vehicles. With the growth in fleet sizes, so does the unit requirements for propeller shafts which are necessary for any vehicle to have efficient performance and service life. Moreover, there has been a paradigm shift in the manufacturer focus towards commercial vehicles due to strategic investment in advanced propeller shaft technologies.

Commercial Vehicle Propeller Shaft Market Trends

As emission regulations become stricter and sustainability objectives are implemented, the world increase in the adoption of electric vehicles globally is compelling players in the global commercial vehicle propeller shaft industry to pivot towards the EV market. The innovation potential is greater for electric drive systems because EVs have narrower ranges of acceptability for components than traditional vehicles.

Furthermore, there is an increase in government incentives and the EV infrastructure, which makes products focused on EVs more profitable. This change enables stakeholders to gain access to new market segments, maintain market competitiveness, and assist in the advancement of carbon free transportation solutions.

As an illustration, GKN Automotive in June 2023 presented their new product 'eCrate' which is an electric drive shaft solution intended for the EV conversion market and small electric vehicles. GKN has come up with this modular product that is innovative to the industry because it is 'plug and play’. This means, for installation purposes, it can operate within a system or be added as two separate components. In this iteration, the components available are the 3-in-1 motor set with the inverter and the 2-in-1 motor with transmission set, which come with a power rating of 113kW to 185kW.

This technology is sufficiently advanced to provide enhanced support to smaller manufacturers to utilize eDrive technology which GKN has already created in the market. The outcome of this is that, by assisting new manufacturers to more easily and rapidly integrate different types of electric vehicles, it is going to accelerate the rate of transition towards electrification of the automotive industry, particularly among new start-up companies.

One of the difficulties faced in the business of commercial vehicles' propeller shafts is the sophisticated materials and engineering technology utilized for manufacturing during these times of heightened competition. With the increased emphasis on fuel quality and reducing expenses, the use of efficient designs is now a prerequisite. This has led to the common usage of advanced materials such as aluminum and carbon fiber, although these pose a serious problem because of their cost as compared to conventional steel.

The equipment for production also needs to be updated to these new materials, resulting in higher production costs. As a result, end-user prices are influenced most negatively, and demand is always low in price-elastic industries. Furthermore, these companies do not fall into the small or medium-sized manufacturer bracket that can afford such technologies, resulting in reduced competition in the market and little diversity.

Commercial Vehicle Propeller Shaft Market Analysis

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Based on the vehicle, the commercial vehicle propeller shaft market is segmented into light commercial vehicles (LCVs) and heavy commercial vehicles (HCVs). In 2024, the LCVs segment accounted for over 70% of the market share and is expected to exceed USD 4 billion by 2034.

• Light commercial vehicles (LCVs) have the highest share of the commercial vehicle propeller shaft industry as they are the most demanded vehicle in the e-commerce and last-mile urban logistics services.
  
• In consideration of these factors, the growth trend of LCVs in urban areas is leading to a strong demand for optimized propulsion shafts, which in turn makes LCVs the driving force for the acceleration of the propeller shaft market.
  
• Mid-size LCVs can carry loads while consuming little fuel, which helps businesses that make a lot of short trips. They are also easy to modify for different industries that need specialized logistics. In addition, emission targets have increased the demand for LCVs, which drives the need for efficient propeller shafts.
  

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Based on the type, the commercial vehicle propeller shaft market is divided into single piece, and multi piece. The single piece segment held around 67% of the market share in 2024.

• Single-piece propeller shafts are the most sought after especially in light commercial vehicles (LCVs) due to their affordability, durability, and ease of manufacture. It requires less components which in turn reduces the overall cost of production. Moreover, the single-piece design has less opportunities for failure which results in longer vehicle life.
  
• Moreover, single-piece shafts are preferred for vehicles with short wheelbases because such vehicles are less likely to experience alignment problems, which enhances performance. The worsening need for fuel-efficient automobiles is also imparting additional momentum to this development because single shafts minimize the weight of the vehicle.
  
• Their dominance is further supported by the large utilization in low and medium-duty commercial vehicles, which need effective and low-cost means of transport.
  

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In 2024, the China commercial vehicle propeller shaft market accounted for above 60% revenue share in Asia Pacific and is expected to exceed USD 1 billion by 2034.

• With China’s large and fast-growing automobile industry and robust governmental support, China emerges as the market leader for commercial vehicle propeller shafts. The country is the world’s largest commercial vehicle manufacturer, due in part to the country’s expanding e-commerce market and increasing demand for logistics and delivery vehicles.
  
• Moreover, the shift by China’s automotive industry towards electric vehicles (EVs) is accelerating the commercial vehicle propeller shaft market growth, as manufacturers of traditional vehicles make a switch to building EV components, including propeller shafts.
  
• In addition, the low cost of labor and easy access to raw materials and advanced production technology gives China a competitive edge. The country’s local supply chain also gives China an advantage by making production faster and cheaper.
  
• The growth of the commercial vehicle propeller shaft market in North America is getting impetus from increased light and heavy commercial vehicle demand from key logistics and transport centers like the U.S. and Canada.
  
• A transition to electric and hybrid commercial vehicles is driving innovation in propeller shafts and other drive components to achieve energy efficiency. Reduction in emission goals is driving technology changes, while improvement in infrastructure allows for fleet growth. Increasing focus on lightweight materials to improve fuel efficiency is also capturing attention. Increased focus on e-commerce is also increasing the demand for delivery vehicles, benefiting the market.
  
• The heavy-duty vehicle propeller shaft market is undergoing transformation due to strict emission rules and sustainable development policies. Such policies allow for electric and hybrid vehicles to be produced and sold.
  
• For example, the Green Deal set by the European Union has a positive impact on developing modern means of transport, hence the need for low-weight and high-performance propeller shafts is increasing. The commercial vehicle propeller shaft market is also very competitive and innovative as manufacturers are working towards achieving enhanced drive technology.
  
• Major firms in the automotive and heavy-duty vehicle manufacturing industries are increasing their R&D investments to cater to the increased market requirements for fuel-efficient vehicles. On the other hand, Europe’s well-established automotive industry serves as a strong foundation for the growth of the market.
  

Commercial Vehicle Propeller Shaft Market Share

Cummins Inc., BorgWarner Inc., and GKN Automotive collectively held a substantial market share of over 40% in the commercial vehicle propeller shaft industry in 2024.

• These companies are shifting their focus to the development of lightweight, affordable, and high-strength shafts, which are aimed at improving fuel efficiency and reducing emissions. The growth in electric and hybrid vehicles is prompting major manufacturers to integrate new technologies for the new drive systems.
  
• The market is competitive, and there is an increase in competition in the creation of modular, plug-and-play designs and new materials. There is also a trend toward greater fragmentation of the market alongside mergers and acquisitions of smaller companies, which allow bigger corporations to diversify and take advantage of the EV and hybrid growth opportunities.
  

Commercial Vehicle Propeller Shaft Market Companies

Major players operating in the commercial vehicle propeller shaft industry are:

• Aisin Seiki
• BorgWarner
• Cardan Shaft
• Cummins
• Eaton
• GKN Automotive
• Schaeffler
• ZF Friedrichshafen
  

The marketplace for commercial vehicles propeller shaft is very competitive since the players are competing for the significant commercial vehicle propeller shaft market share of the propeller shafts by conducting innovation, advanced materials, and technology improvements amongst others. The expansion in the production of commercial vehicles, the adoption of electric/powered commercial vehicles along with the ever-reliable fuel efficiency expectation have all increased the demand for durable, lightweight, and high-performing propeller shafts. With the changing market requirements from fleet operators and OEMs, the key developments focus on propeller shafts that can operate at higher torque, perform smoother, and reduce the noise, vibration, and harshness (NVH) levels.

Globally, the propeller shaft market is utilizing strategies such as mergers and acquisitions (M&A), new OEM partnerships to gain a larger market share, and putting more money into R&D. Leading companies are developing the new carbon fiber composite and high-strength steel materials that reduce weight and create better power efficiencies. In addition, new innovative manufacturing processes such as precision forging and automated assembly are going to be utilized to improve products and reduce expenses.

Commercial Vehicle Propeller Shaft Industry News

• In June 2023, GKN Automotive made an innovative leap by unveiling a groundbreaking electric drive shaft called ‘eCrate’ which is versatile and is intended for small niche electric vehicles and also caters the EV conversion market. This off-the-shelf product has a modular design which is ‘plug and play,’ which makes it easy to install. It offers a 2-in-1 system (engine and transmission) or a 3-in-1 system (engine, transmission, and inverter) with outputs of 113kW and 185kW.
  
• This innovation lets smaller manufacturers utilize GKN's eDrive technology which has been authenticated in the market greatly improving cost and performance for low-volume production. This will assist in the movement towards electrification, particularly for new entrants where there is a demand for effective solutions that aid in the production of different EV models.
  
• In August 2022, Cummins completed the purchase of Meritor, marking the company's entry as a major player in both internal combustion and electric powertrain integrated solutions. This acquisition strengthens Cummins’ capabilities in axle and brake technologies, which are essential in constructing environmentally friendly solutions. Through the utilization of Meritor’s investments in electrification, Cummins will be able to expand the adoption of hybrid and electric drivetrains. This transaction, which is worth 3.7 billion dollars, is expected to bring benefits worth 130 million dollars by the third year. This action is consistent with Cummins’ plan to achieve emission net zero and accelerate clean mobility solution adoption.
  

The commercial vehicle propeller shaft market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and volume (Units) from 2021 to 2034, for the following segments:

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Market, By Material

• Steel
• Aluminum
• Copper alloy
• Others

Market, By Vehicle

• Light Commercial Vehicle (LCV)
• Heavy Commercial Vehicle (HCV)

Market, By Type

• Single piece
• Multi piece

Market, By Drive

• Rear-Wheel Drive (RWD)
• Front-Wheel Drive (FWD)
• All-Wheel Drive (AWD)

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa