+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

Automotive Drive Shaft Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

  • PDF Icon


  • 90 Pages
  • February 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 4515611
The automotive driveshaft market was valued at USD 31.19 billion in 2021, and it is expected to reach USD 41.62 billion by 2027, registering a CAGR of 4.93% during the forecast period (2022 - 2027).

The outbreak of COVID-19 impacted the whole supply chain for the market, as the demand-side (i.e., OEMs) plants were shut down. However, with the gradual opening of the economies, the demand is returning to the market.

Rising concern for fuel efficiency, the implementation of stringent regulations by the international emission control authorities, and the development of drive shafts by manufacturers without compromising on their performance and rigidness are the major factors driving the automotive drive shaft market.

Moreover, as the demand for electric vehicles is growing, vehicle manufacturers are putting all their efforts in manufacturing the most efficient electric vehicles, and the driveshaft manufacturers are updating their product list to supply the best products to the OEMs to gain the market share. Trends, such as the increasing sales of all-wheel-drive vehicles, growing sales of SUVs, and the increasing demand for lightweight components, are expected to drive the automotive driveshaft market in the coming years.

The automotive drive shaft market in Asia-Pacific is expected to hold the largest market share and is expected to register the highest growth rate in the global drive shaft market. Asia-Pacific is characterized by the presence of emerging economies and accounts for a share of global vehicle sales, which is expected to continue over the forecast period.

Countries, such as China, the United States, and Norway, are continuing to see stronger demand for electric vehicles. Automakers are planning to launch more electric vehicle models in the coming years. The majority of the present and upcoming electric vehicle models are all-wheel drives (AWD) or rear-wheel drives (RWD), which will generate the demand for lightweight driveshafts during the forecast period.

Key Market Trends

Increasing Demand for Electric Vehicles to Drive Growth of the Market

At the global level, the sales of electric vehicles have been growing positively over the past three years. The global sales of EVs in 2020 increased by 39% Y-o-Y to 3.1 million units, whereas the total passenger car market declined by 14%.

In 2020, many European countries witnessed double-digit growth in EV sales. The European region captured around 43% of global electric car sales in 2020 compared to 26% in 2019. The overall plug-in vehicle sales reached about 3.24 million units compared to 2.26 million in 2019. This spike in sales is mainly due to an increase in regulatory norms by various organizations and governments to control emission levels and propagate zero-emissions vehicles.

China is leading the electric vehicle market. The sales of electric vehicles in China are growing at a rapid pace. Approximately 1.3 million new energy vehicles were sold in 2020, which represents 41% of the global EV sales, just behind Europe, of global EV sales. China is still far ahead of the United States in EV share. In the United States, EV sales represented just 2.4% of sales in 2020.

As the demand for electric vehicles is growing, vehicle manufacturers are putting all their efforts into manufacturing the most efficient electric vehicles. Moreover, driveshaft manufacturers are updating their product list to supply the best products to the OEMs to gain market share.
  • In February 2021, Volta Trucks, the full-electric commercial vehicle manufacturer, confirmed the appointment of Meritor as the strategic drivetrain component supplier for Volta Zero. This major purchasing milestone will support the delivery of Volta Zero vehicles for customer trials during 2021 and the start of series production around 12 months later.
  • In March 2021, Nexteer Automotive, a leader in intuitive motion control, made an announcement that it continues expanding its Driveline portfolio with new Halfshaft technologies that are tailored to meet the unique demands of electric vehicles (EVs). Nexteer’s Halfshaft technologies solve EV challenges by enhancing durability and efficiency while optimizing noise, vibration, and harshness (NVH) performance and low mass.

These trends are likely to drive the demand for lightweight and high-performance driveshafts, as they are indispensable automobile parts for conventional IC engine vehicles and hybrid and electric vehicles.

The Asia-Pacific Region is Expected to Hold a Significant Share in the Market

The demand for automobiles in the region is growing at a high rate, as the region has big developing nations, like China and India, where the demand for both passenger cars and commercial vehicles is increasing yearly. For instance, China’s vehicle production and sales increased by 34.6% in January 2021. The country recovered from the impact of COVID-19, and there has been an increase in sales since 2020. China is the largest automobile market worldwide in terms of demand and supply.

However, many OEMs across the world have their production facilities across Asia-Pacific owing to its geographical advantage and easily available labor, and most of them outsource their parts to Chinese companies for production because of low raw material costs in China. This enabled Asia-Pacific to become one of the leading automotive driveshaft systems manufacturers in the world.

With recent changes in emission norms, the manufacturers were forced to launch new car models with upgraded engines. As part of this change, most manufacturers are investing heavily in the research and development of the latest technologies to reduce the weight of their vehicles and coming up with innovative technologies to use new materials for driveshafts to reduce the vehicle weight.

Competitive Landscape

The automotive drive shaft market is dominated by some of the key players, and they hold a major share of the market. The competition in the market is medium, as major players continue to crack high orders from major OEMs, and participation of small and new entrants is limited. However, major players focus on various growth strategies such as mergers and acquisitions to gain a competitive edge over others. For instance,
  • In January 2020, GKN Automotive announced a collaboration with Delta Electronics Inc. for the development of advanced eDrive technology.
  • In November 2020, American Axle Manufacturing (AAM) announced it is EcoTrac disconnecting all-wheel-drive for Chrysler’s new 2021 Chrysler Pacifica mini-van, along with AWD.

Some of the major players, like GKN PLC (Melrose Industries PLC), Yamada Manufacturing Co. Ltd, American Axle & Manufacturing Inc., JTEKT Corporation, and Dana Incorporated, captured significant shares in the market.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 By Design Type
5.1.1 Hollow Shaft
5.1.2 Solid Shaft
5.2 By Position Type
5.2.1 Rear Axle
5.2.2 Front Axle
5.3 By Vehicle Type
5.3.1 Passenger Cars
5.3.2 Commercial Vehicles
5.4 By Geography
5.4.1 North America United States Canada Rest of North America
5.4.2 Europe Germany United Kingdom France Rest of Europe
5.4.3 Asia-Pacific India China Japan South Korea Rest of Asia-Pacific
5.4.4 Rest of the World Brazil South Africa Other Countries
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 GKN PLC (Melrose Industries PLC)
6.2.2 JTEKT Corporation
6.2.3 Dana Holding Corporation
6.2.4 Hyundai Wia Corporation
6.2.5 Nexteer Automotive Group Ltd
6.2.6 Showa Corporation
6.2.7 Yamada Manufacturing Co. Ltd
6.2.8 American Axle & Manufacturing Co. Ltd
6.2.9 Wanxiang Qianchao Co. Ltd
6.2.10 NTN Corporation

Companies Mentioned

A selection of companies mentioned in this report includes:

  • 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 Co. Ltd
  • Wanxiang Qianchao Co. Ltd
  • NTN Corporation