AUTOMOTIVE DRIVE SHAFT MARKET ANALYSIS

The global automotive drive shaft market size was valued at USD 31.19 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 6.10% from 2022 to 2030. Increasing demand for flexible, lightweight, and flexible vehicle components is also contributing to the growth of the global automotive drive shaft market. Global demand for drive shafts is increasing due to strict fuel efficiency regulations and government efforts to reduce emissions. Increasing consumer demand has led to considerable changes and improvements in the drive shaft industry. Stringent carbon emission legislation and fuel efficiency regulations are driving the industry to innovate.

Global Automotive Drive Shaft Market: Regional Insights

The global automotive drive shaft market is regionally divided into North America, Europe, Latin America, Asia Pacific, and Rest of the World

Among regions, North America is anticipated to account for highest share in the global automotive drive shaft market over the forecast period. This growth can be attributed to increasing sales of vehicles, rise in cost and interest rates leading buyers to new market. For instance, according to Coherent Market Insights, in 2018, the number of vehicles sold in the U.S. was 40.2 million. Furthermore, growing income levels, presence of production facilities in Mexico, and demand for automotive drive shaft is driving the market growth in the region.

Furthermore, Asia Pacific is also anticipated to witness substantial growth in the global automotive drive shaft market over the forecast period, owing to rise in modernization in vehicles in countries such as India, increasing standards of safety lining with international standards, growing average age of vehicles leading to rising demand for drive shafts in the aftermarket, across the region.

Figure 1. Global Automotive Drive Shaft Market Share (%), By Region, 2021

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Global Automotive Drive Shaft Market Drivers:

Rise in demand for electric vehicles is expected to propel growth of the global automotive drive shaft market over the forecast period. The number of electric vehicles being sold is growing all over the world. For instance, as per the Coherent Market Insights, the sales of electric vehicles across the globe increased in 2020 by 39% year on year to 3.1 million units, and the sales of passenger cars showed a 14% decline. Moreover, in 2020, in China, the sales of new energy vehicles was nearly 1.3 million, representing 41% of the worldwide sales of EVs. Thus, increasing demand for EVs is driving the market growth.

Moreover, increasing government initiatives towards use of EVs leading to opening of EV manufacturing plants by automakers across the globe is expected to fuel growth of the global automotive drive shaft market over the forecast period. For instance, in September 2020, the state government of California announced an executive order to ban all in-state sales of gasoline-fueled vehicles by 2035 to meet the zero-carbon goal of the state. Furthermore, in January 2019, one of the biggest EV manufacturer, Tesla announced that it will be opening manufacturing facility in Shanghai, China. The company began construction of Gigafactory 3, for production of half a million vehicles per year. This in turn is expected to fuel the market growth.

Global Automotive Drive shaft Market Opportunities:

Rise in number of vehicles in operation/use is expected to create various growth opportunities in the global automotive drive shaft market over the forecast period. As the sales of used as well as new vehicles is increasing around the world along with the average age of vehicles, the number of operating vehicles in also growing globally. For instance, according to Coherent Market Insights, the number of passenger cars and commercial vehicles in operation around the world was 1,220.25 million and 438.53 million respectively, in 2019. This further is supporting growth of the market.

The demand for remanufactured parts and components in automotive industry is growing around the world, which is expected to provide market players with growth opportunities in the global automotive drive shaft market over the forecast period. Various sustainable tools, strategies and techniques developed until now aim at improvement of productivity as well as economic longevity of manufacturing businesses, and remanufacturing has an important role in this. Over the years, remanufacturing has led to rise in market shares and profits of manufacturers in regions such as North America and Europe. This is creating various opportunities for market players around the world, which in turn is driving the market growth.

Global Automotive Drive Shaft Market Trends:

Growing demand for drive shafts around the world is a major trend in the global automotive drive shaft market, which is driving the market growth. As the average age of passenger cars along with commercial vehicles is increasing, the demand for drive shaft is rising in the aftermarket segment. The number of commercial vehicles has ramped up in past five years. For instance, as per Coherent Market Insights, in 2015, nearly 335 million commercial vehicles were in operation around the world and by end of 2019, the number grew to 439 million units. Thus, this trend is likely to continue in the market over the forecast period.

Continuous technological development and changing interests of consumers is another trend in the global automotive drive shaft market, which is expected to support the market growth during the forecast period. Remanufacturing has become a major part of creating more environment-friendly economies with more sustainable supply chains, by reclaiming and recovering used parts and their restoration to better conditions. With increasing development in technology and changing interests of consumers, the demand for remanufactured automotive components and parts has increased slowly in countries such as Japan and China. This in turn is expected to fuel the growth of market in the near future.

Global Automotive Drive Shaft Market Restraints:

Unfavorable conditions arising due to the Covid-19 pandemic are expected to hamper growth of the global automotive drive shaft market over the forecast period. The pandemic created new economic conditions for global automotive industry, specifically for product manufacturers. During this period, the demand for parts went down as the production in automotive industry was disrupted. Several governments imposed stringent regulations to curb the virus spread, due to which several manufacturing plants were closed down temporarily. This further led to major loss for drive shaft manufacturers, and this in turn is hampering the market growth.

Furthermore, fluctuating prices of raw materials is another factor expected to impede growth of the global automotive driveshaft market over the forecast period. The prices of raw materials continue to exhibit fluctuation as the economic situations continue to change in several countries around the world. High cost of raw materials impacts the production and demand of drive shafts and other automotive parts. This affects the automotive industry adversely, which in turn limits growth of the automotive drive shaft market.

Figure 2. Global Automotive Drive Shaft Market Share (%), By Design Type, 2021

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Global Automotive Drive Shaft Market Segmentation:

The global automotive drive shaft market report is segmented into Design Type, Position Type, Vehicle Type and Region.

Based on Design, the market is segmented into Hollow Shaft and Solid Shaft. Out of which, Hollow Shaft is expected to dominate the global market over the forecast period and this is attributed to the increasing demand from consumer for enhanced vehicle performance, fuel economy and improved driving experience. Moreover, along with increasing stringent regulations and norms regarding carbon emission is leading to significant changes as well as developments, and this is driving growth of the segment.

Solid Shaft segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for last-mile delivery vehicles for e-commerce companies leading to rise in production volumes of commercial vehicles.

Based on Position Type, the market is segmented into Rear Axle, Front Axle. Out of which, Rear Axle is expected to dominate the global market over the forecast period and this is attributed to the recovery in sales of new vehicles all over the world, rise in demand for maintaining high-capacity lifting applications, as this equipment is majorly used in heavy-duty vehicles.

Front Axle segment is also expected to witness significant growth in the near future and this is owing to the demand for reduced vehicle weight and increasing EV sales. In passenger cars, from axles are major components, as they can carry the load of vehicle’s front-end and it can absorb shock that occur from irregular surface.

Based on Vehicle Type, the market is segmented into Passenger Car, Commercial Vehicles. Out of which, Passenger Car is expected to dominate the global market over the forecast period and this is attributed to the increasing launch of novel products and business expansion by market players functioning in the aftermarket drive shaft segment.

Commercial Vehicles segment is also expected to witness significant growth in the near future and this is owing to the focus of market players on updating offerings of aftermarket products. For instance, in January 2019, Dana Incorporated launched new driveline products for commercial vehicle applications, which include the SPL 250 Lite drive shaft.

Global Automotive Drive Shaft Market: Key Developments

In January 2021, Dana Holdings Corporation announced to supply Dana 60 AdvanTEK solid rear axle with Spricer PerfromaTrak electronic locking differential to the RAM 1500 TRX pickup truck.

In January 2020, GKN Automotive collaborated with Delta Electronics Inc. to develop advanced eDrive technology.

Global Automotive Drive Shaft Market: Key Companies Insights

The global automotive drive shaft market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global automotive drive shaft market are Wanxiang Qianchao Co. Ltd., GKN PLC (Melrose Industries PLC), American Axle Manufacturing Holdings Inc., JTEKT Corporation, Yamada Manufacturing Co. Ltd., NTN Corporation, Dana Holding Corporation, Showa Corporation, Hyundai Wia Corporation, and Nexteer Automotive Group Ltd.

*Definition:

A vehicle's drive shaft is a crucial component of the car's drive train. It transfers torque from the engine to the transaxle and wheels, and it needs to be perfectly balanced to function properly. This shaft should spin at a rate equal to the torque generated by the engine to ensure a smooth driveline. The drive shaft is found in both front and rear wheel drive vehicles.