Global Automotive Drive Shaft Market Grows Steadily at a CAGR of 4.96%

Introduction

A drive shaft, also known as a propeller or Cardan shaft, is a mechanical part used to deliver torque and power to a vehicle's powertrain, more especially to the vehicle's back wheels. The main job of a drive shaft is to transmit torque from one or more car parts to other car parts. Automobile driveshafts are more dependable and require little upkeep. Low maintenance costs, slick operation, no oil leaks, dependability, and clean operation are further benefits of automotive drive shafts.

Market Dynamics

Increasing Demand for IC Engine Truck Drives the Global Market

Due to the government's commitments and the public's growing interest in electric vehicles, foreign automakers are opening plants in China. As the demand for electric vehicles rises, the driveshaft manufacturers are updating their product lineup to supply the best products to the OEMs to gain market share. This has caused vehicle manufacturers to concentrate all of their efforts on developing the most efficient electric vehicles. Even though green vehicle programs have increased truck sales globally, numerous emerging countries, including India, have not yet started producing electric trucks. The developing nations of the Asia-Pacific and African continents are increasingly dependent on IC engines. Even in markets for well-established electric trucks, such as those in North America and Europe, the demand for vehicles with IC engines has remained consistent.

Rising Demand for Eco-Friendly Drive Shaft Creates Tremendous Opportunities

The growing interest of the manufacturer in creating lightweight drive shafts is a result of the rise in consumer demand for green products brought on by environmental concerns. These shafts comply with the stringent requirements established by specialists in worldwide discharge control while meeting the demand for ecologically friendly cars. The rising demand for ecologically friendly drive shafts will lead to market growth over the forecast period.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global automotive drive shaft market and is expected to grow at a CAGR of 4.94% during the forecast period. Due to growing modernization and safety laws by international standards, the average age of vehicles in the nation is increasing, which will raise the demand for drive shafts in the aftermarket sector. Automobile manufacturers, especially those that make luxury brands like Mercedes-Benz, Audi, and BMW, have boosted their investments in the country. India is a sizable exporter of vehicles and expects a sharp export increase during the forecast period. The population's rising income level, several governments, significant carmaker efforts, and the cost advantage of domestic manufacture are all expected to contribute to the growth of the Indian automotive market. Many OEMs worldwide have production facilities, and most outsource their parts' production to Chinese manufacturers because of China's low labor and raw material prices. As a result, China is currently among the world's top producers of vehicle driveshaft systems and automobiles.

North America is expected to grow at a CAGR of 4.93%, generating USD 7.11 billion during the forecast period. Due to the substantial demand for AWD vehicles and SUVs in the US, as well as the presence of major foreign competitors, the US is the largest market for driveshafts. American Axle & Manufacturing (AAM) acquired the next-generation axle and driveshaft program for Ram's heavy-duty pickup vehicles through 2030. The company will provide axles and driveshafts for the 2500 and 3500 Heavy Duty pickup trucks. In addition, one of Canada's most critical industrial sectors is the automotive industry, which accounts for 23% of manufacturing trade and 10% of manufacturing GDP.

The automobile industry in the UK is currently making a substantial shift toward electric vehicles, primarily due to the government's ban on gasoline and electric vehicles, designed to improve air quality by 2040. For Instance, NSK Driveline, a significant player in the market with its headquarters in the country, is investing a sizable sum of money in the R&D of the most recent goods to enhance its market share. The company manufactures a range of cars and vans. Additionally, it has made airplanes and aviation engines. Luxury automakers like BMW and Audi reported increased sales in France despite a fall in passenger car sales. Due to increased vehicle demand and sales of electric vehicles, the French automotive driveshaft market is expected to grow at a decent rate over the projected period.

Key Highlights

• The global automotive drive shaft market was valued at USD 31.19 billion in 2021. It is projected to reach USD 48.22 billion by 2030, growing at a CAGR of 4.96% during the forecast period (2022-2030).
• Based on design type, the global automotive drive shaft market is bifurcated into hollow and solid shafts. The solid shaft segment is the highest contributor to the market and is expected to grow at a CAGR of 4.49% during the forecast period.
• Based on application type, the global automotive drive shaft market is bifurcated into the rear axle and front axle. The rear axle segment owns the highest market share and is expected to grow at a CAGR of 5.12% during the forecast period.
• Based on vehicle type, the global automotive drive shaft market is bifurcated into passenger cars and commercial vehicles. The passenger car segment is the highest contributor to the market and is expected to grow at a CAGR of 4.92% during the forecast period.
• Asia-Pacific is the most significant shareholder in the global automotive drive shaft market and is expected to grow at a CAGR of 4.94% during the forecast period.

Competitive Players

Competitive Players

The global automotive drive shaft market’s major key players are GKN PLC (Melrose Industries PLC), JTEKT Corporation, Dana Holding Corporation, Hyundai Wia Corporation, Nexteer Automotive Group Ltd, Showa Corporation, Yamada Manufacturing Co. Ltd, American Axle & Manufacturing Inc., Wanxiang Qianchao Co. Ltd, and NTN Corporation.

Recent Developments

Market News

• In February 2022, Dana Incorporated announced its innovative technologies featured on the 2022 Ford Maverick™ and Ford® Bronco®, the North American Truck and SUV of the year.
• In October 2022, JTEKT developed an automated steering control system, Pairdriver, that realizes safe driving by sharing the vehicle's steering between the driver and automation. Pairdriver makes seamless and continuous steering collaboration possible between automation and driver through control technology while ensuring safe automated lane tracing.

Segmentation

Global Automotive Drive Shaft Market: Segmentation

By Design Type

• Hollow Shaft
• Solid Shaft

By Application Type

• Rear Axle
• Front Axle

By Vehicle Type

• Passenger Car
• Commercial Vehicles

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA