The global Automotive Drive Shaft Market is estimated to be valued at US$ 75.68 Bn in 2024, exhibiting a CAGR of 6.1% over the forecast period (2024-2031). The increase in the production of passenger and commercial vehicles along with growing demand for efficient all-wheel and four-wheel drive vehicles are key factors driving the growth of the automotive drive shaft market. Furthermore, rise in sales of premium and luxury vehicles which are usually equipped with advanced all-wheel or four-wheel drive systems is also anticipated to fuel the market growth during the forecast period.
Market Dynamics:
The Global Automotive Drive Shaft Market is primarily driven by two key factors:
Rising vehicle production - With increasing disposable income and growing living standards, the production and sales of passenger and commercial vehicles have witnessed steady rise globally over the past few years. This is expected to positively impact the demand for automotive drive shafts.
Increasing demand for efficient four-wheel and all-wheel drive vehicles - Consumer preference for vehicles with enhanced traction, handling and safety has increased the adoption of four-wheel drive and all-wheel drive vehicles. This has propelled the need for robust and reliable drive shafts that can efficiently transmit power to all the wheels. Growing sales of
Increased Demand for Fuel Efficiency and Lower Carbon Emission Vehicles
One of the major drivers for the global automotive drive shaft market is the increased demand for fuel efficient and lower carbon emission vehicles across the world. Drive shafts play an important role in improving fuel economy as they help in transferring power from the engine or transmission to the wheels effectively without any loss. The modern lightweight yet durable drive shafts improve the torque delivery and power transfer, thereby enhancing the performance and mileage of the vehicles. With stringent emission norms and rising environmental concerns, automakers are focusing on developing more efficient powertrain components including drive shafts to meet the new emission standards and consumer demand for greener vehicles.
Growing Production and Sales of Passenger and Commercial Vehicles
Another key factor fueling the growth of drive shaft market is the steady rise in the global production and sales of passenger and commercial vehicles. Drive shafts are an integral component used in almost all conventional automobile models. With rising income levels and improving living standards, the demand for personal vehicles is surging significantly in developing nations. Similarly, increasing industrial and infrastructure development activities are propelling the sales of commercial vehicles for transportation and logistics worldwide. As automotive manufacturers ramp up their vehicle assembly plants to meet this escalating demand, the requirement for drive shafts is also rising consistently each year.
Threat from All-Electric and Hybrid Powertrains
A major challenge faced by the automotive drive shaft market is the threat posed by the growing adoption of all-electric and hybrid powertrains in vehicles. Electric vehicles do not require a conventional drivetrain with drive shafts to transmit torque from the ICE engine to wheels. Similarly, hybrid models have significantly reduced dependence on drive shafts due to the integration of electric motors. As EV and hybrid sales continue to rise globally, driven by supportive government policies and subsidies, the demand for gasoline-based automobiles is declining gradually. This is negatively impacting the sales of traditional drive shafts used in combustion engine cars over the long-run.
Fluctuations in Raw Material Prices
Fluctuating prices of primary raw materials used in manufacturing drive shafts pose another key restraint for market players. Steel and aluminum are the most widely used materials for making lightweight yet durable drive shafts. However, the prices of these metals exhibit volatility depending on various global economic and political factors. Any increase in raw material costs leads to a corresponding rise in the overall production cost of drive shafts. This pressures the margins of drive shaft manufacturers and sometimes also forces them to transfer part of additional expenses to customers. Unpredictable raw material price trends make efficient inventory and supply chain management challenging for automotive component suppliers.
Adoption of 3D Printing Technologies
One of the major opportunities for drive shaft manufacturers is the growing adoption of 3D printing and additive manufacturing technologies. These advanced fabrication methods allow designing and manufacturing complex yet lightweight drive shafts with optimized strength-to-weight ratios. 3D printed drive shafts offer several advantages like part consolidation using fewer components, complex internal channels for airflow/lubrication, and customizable designs. Leading OEMs have started exploring the potential of 3D printing to produce complex drivetrain components. This presents an opportunity for drive shaft suppliers to collaborate with 3D printing hardware and material companies to develop customized greener production solutions.
Development of E-Axles
Another key growth opportunity is the evolution of electric or e-axles that combine the functionality of a drive shaft with an electric motor. As automakers transition towards electrification, they are developing more advanced electric drivetrains with e-axles at the core. E-Axles help eliminate the need for a traditional transmission system and long propeller shafts. This simplifies the overall vehicle design. Drive shaft manufacturers can tap into this opportunity by offering e-axle system integration solutions utilizing their existing drivetrain expertise. Many tier-1 suppliers are already partnering with EV startups to develop and supply e-axle systems.
In conclusion, while the automotive drive shaft market will face certain challenges due to emerging EV technologies, factors like growing vehicle production, rising demand for fuel-efficient ICE cars and new opportunities in 3D printing and e-axles will continue to drive its growth in the coming years. Market players need to actively invest in R&D and strategic collaborations to capitalize on these growth prospects.
Link - https://www.coherentmarketinsights.com/market-insight/automotive-drive-shaft-market-5375
Key Developments:
- In February 2024, JTEKT Corporation, a leading provider of automotive components and systems, unveiled a new ultra-compact product series designed for eAxle applications. This series includes Differential (JUCD), Ball Bearing (JUCB), Conductive Ball Bearing (JUEB), and Oil Seal (JUCS) components, all engineered to reduce size and weight.
- In September 2023, JTEKT North America, a leading manufacturer of automotive systems, bearings, and machine tools, expanded its production capabilities by adding seven new machine lines, two new assembly lines, and new internal processes. This enhancement under the JTEKT Automotive Systems, Koyo Bearings, and Toyoda Machine Tools brands significantly increased its ability to produce front drive shafts.
- In January 2023, Kalyani Mobility Drivelines (KMD), a prominent manufacturer of driveline components, launched a new range of constant-velocity (CV) driveshafts designed for electric vehicles (EVs) and other specialty vehicles.
- In January 2023, DANA Cardanes, a prominent manufacturer of driveline components, inaugurated a new $21 million plant in Querétaro, Mexico, dedicated to producing Toyota components. The initial production line, which began operations with 110 employees, is set to be joined by two additional lines later in 2023, bringing total annual production to 545,000 units with a workforce of 300. Alejandro Sánchez Alvarado, Operations Director at DANA Cardanes, noted that the 917-square-meter facility will house three production lines for manufacturing Cardan shafts (drive shafts) specifically for Toyota trucks.
Key Players:
American Axle & Manufacturing, Inc., BorgWarner Inc., GKN Automotive, JTEKT Corporation, Magna International Inc., NTN Corporation, Rheinmetall Automotive AG, Schaeffler AG, SeAH Changwon Integrated Steel, SKF Group, Stellantis, The Timken Company, Tower International, Inc., Trelleborg AB, and ZF Friedrichshafen AG
