The automotive driveshaft market is valued at USD 29. 15 billion in 2020 and is expected to reach USD 39. 67 billion in 2026 and is anticipated to register a CAGR of about 4. 93% during the forecast period (2021-2026).
New York, March 29, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Automotive Drive Shaft Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06039475/?utm_source=GNW
The outbreak of pandemic COVID-19, impacted the whole supplychain for the market as demand side (i.e. OEMs) plants were shut down as the new vehicles sales were almost zero during the imposed lockdown as movement of people was not allowed in order to contain the spread of the virus. Yet, with the gradual opening of the economies the demand is returning back to the market.
Trends, such as 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.
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 drive (RWD), which will generate demand for lightweight driveshaft in the forecast period.
Increasing driveshaft recalls and demands from the aftermarket channel due to increasing vehicles in use is driving the market growth. For instance, In December 2020, American Honda will conduct two recalls for around 430,000 Acura and Honda vehicles in the United States. If needed, the company will be replacing their drive shafts for free.
Key Market Trends
Increasing Demand for Electric Vehicles Driving Growth
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% year on year to 3.1 million units, where the total passenger car market declined by 14%. 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 with 42% of global EV sales. China is still far ahead of the United States for EV share – in the United States, EV sales represented just 2.4% of sales in 2020.
As the demand for electric vehicle 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. For instance,
- In February 2021, Volta Trucks, the full-electric commercial vehicle manufacturer, confirmed the appointment of Meritor as the strategic drivetrain component supplier for the 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 afterward.
- 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.
Asia Pacific Dominates the Market
The demand for automobiles in the region is growing with a high rate as the region has big developing nations like China, India, where the demand for both passenger cars and commercial vehicles are increasing yearly.
China’s vehicle production and sales increased by 34.6% in January 2021. The country has recovered from the impact of COVID-19 and has seen an increase in sales since 2020. China is the largest automobile market worldwide, both in terms of demand and supply.
The automotive sales in India declined in 2019 because of the transition to BS6 engine norms. The growth further decreased due to the economic slowdown and lockdowns caused by COVID-19. However, India became the fourth-largest auto market in 2019, displacing Germany with about 3.99 million units sold in the passenger and commercial vehicles categories. India is expected to displace Japan as the third-largest auto market by the end of 2021.
The sales of passenger vehicles were slowed down during the economic slowdown caused by COVID-19. But the demand for luxury vehicles in the region had minimal effect. For instance,
- In Australia, Audi sales were increased by 1.4% in 2020, as compared to 2019.
- During the year 2020, the luxury vehicles sales in China witnessed a growth of about 9% as compared to previous year.
The rising demand of vehicles and growing electrification of vehicles is expected to drive the market during forecast period.
Some of the major players, like GKN PLC (Melrose Industries PLC), Yamada Manufacturing Co. Ltd., American Axle & Manufacturing Inc., JTEKT Corporation, and Dana Incorporated, have captured significant shares in the market.
The competition in the market is medium, as major players continue to crack high orders from major OEMs. For instance, in August 2018, Dana Incorporated announced that it has been selected by Daimler AG to supply front and rear propeller shafts to the all-new Mercedes-Benz X-Class pickup truck and latest generation Sprinter van.
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