Automotive Drive Shaft Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 74.26 Billion |
| Market Size (2029) | USD 101.94 Billion |
| CAGR (2024 - 2029) | 6.54 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive Drive Shaft Market Analysis
The Automotive Drive Shaft Market size is estimated at USD 74.26 billion in 2024, and is expected to reach USD 101.94 billion by 2029, growing at a CAGR of 6.54% during the forecast period (2024-2029).
The outbreak of COVID-19 impacted the whole supply chain for the market. Several manufacturing industries were closed. The supply chain management and distribution channels were disrupted due to a shortage of raw materials. However, the automotive industry is now recovering from the losses and paving the way to introduce quality products to cater to the rising demand from consumers across the country. The automotive industry witnessed significant growth in terms of production in 2022, which is likely to increase the demand for drive shafts across the globe.
Over the medium term, with the rise in population and disposable income, the demand for automobiles, such as passenger cars and commercial vehicles, is rising across the globe. The increase in the production and manufacturing of automobiles is fueling the demand for drive shafts globally.
The market will be the focus of attention during the forecast period and will be driven by the growing demand for commercial vehicles and buses, both of which are expected to drive global vehicle production and sales. This is primarily due to the growing demand for electric vehicles. In addition, automakers are putting all their efforts into making the most energy-efficient electric vehicles as the demand for them grows. Driveshaft manufacturers are updating their product lines to meet the constantly shifting needs of original equipment manufacturers (OEMs) and expand their market share.
The automotive drive shaft market is anticipated to grow in the coming years, driven by trends such as the rising demand for lightweight components and the rising sales of all-wheel-drive vehicles. One notable factor that is anticipated to have an impact on the overall growth of the automotive drive shaft market in the coming years is the sharp increase in utility vehicle sales around the world. Asia-Pacific is distinguished by the presence of emerging economies and accounts for about half of global vehicle sales.
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.
Automotive Drive Shaft Market Trends
Increasing Demand for Electric Vehicles to Drive Growth of the Market
- Electric vehicles have become an integral part of the automotive industry, and they represent a pathway toward achieving energy efficiency, along with reduced emissions of pollutants and other greenhouse gases. The growing environmental concerns and favorable government initiatives are the major factors driving this growth.
- Emission laws at the governmental and regional levels have been one of the key causes propelling the electric vehicle industry in general. Road transport is commonly acknowledged as the single-largest source of air pollution in Europe. To combat air pollution, the EU Council adopted "Directive 96/62/EC on ambient air quality assessment and management," which establishes emission targets for a variety of harmful compounds in the atmosphere. The most important pollutants produced by cars are nitrogen oxides (NOx) and fine dust (particulate matter - PM), both of which are now capped at 40 g/ m3 per year.
- Europe has set a lofty target of being climate-neutral by 2050. To meet this goal, the European Commission would publish several new legislative proposals over the next few years. Many of them are aimed at improving mobility. By the end of this decade, the European Commission hopes to have at least 30 million electric vehicles on the road, a tremendous increase from the current 1.4 million EVs on European roads. To achieve this aim, a set of policies and targets must be in place to guide states, businesses, and consumers on the correct path.
- The European Union is now promoting the emergence of electric mobility in a variety of ways, ranging from pushing vehicle manufacturers to producing low-emission cars to assisting in the creation of comprehensive charging infrastructure.
- The drivetrains of electric and hybrid cars differ from those of regular gasoline-powered automobiles. Electric vehicles (EVs) employ electric motors that provide great torque at low speeds, whereas hybrid cars combine an electric motor and an internal combustion engine (ICE). These vehicles' drivetrains are more complicated, necessitating the use of specialist drive shafts to manage the particular features of their motors and gears.
- As the demand for electric and hybrid vehicles grows, so will the demand for sophisticated drive shafts. Manufacturers of drive shafts are researching novel materials and manufacturing procedures to build drive shafts that can handle the requirements of these vehicles. Some producers, for example, use carbon fiber instead of steel to minimize weight, while others use innovative composite materials that can withstand high torque levels.
- For instance, in November 2022, NTN Corporation (NTN) announced Many OEMs had placed volume production orders for "CFJ" high efficiency fixed type constant velocity joints, which may lower torque loss ratio by more than 50%. The firm is reacting to the increasing need for greater efficiency constant velocity joints, which are a component of drive shafts, to reduce vehicle CO2 emissions, increase fuel efficiency, and lower power costs. NTN's unique "Spherical Cross Groove Structure" is used in the CFJ product, in which adjacent raceway grooves for all routes in the inner and outer rings are inclined with each other. Even if the constant velocity joint working angle rises, this arrangement prevents an increase in the torque loss ratio.
- Owing to the growing demand for electric and hybrid vehicles is driving the development of specialized drive shafts that can handle the unique characteristics of these vehicles' motors and transmissions. As a result, the automotive drive shaft market is likely to continue to grow and evolve as the market for electric and hybrid vehicles expands.
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The Asia-Pacific Region is Expected to Hold a Significant Share in the Market
- China is one of the prominent countries in terms of vehicle manufacturing in the Asia-Pacific. China has a major presence of automotive manufacturers which is likely to create lucrative opportunities for the market during the forecast period.
- The government of China has introduced many incentive plans to bolster auto sales and has also offered subsidies on the purchase of electric vehicles to encourage the expansion of the automotive industry in the county. For instance,
- According to the China Association of Automobile Manufacturers (CAAM), China's auto sales surged 29.7% in July 2022, standing at 2.42 million units, compared to the previous year, and Sales of new energy vehicles, which include pure electric vehicles, plug-in hybrids, and hydrogen fuel-cell vehicles, increased 120% in July 2022 from the previous year. In 2021, approximately 505,000 busses and 4.3 million trucks were sold in China. This represented a 13 percent increase in bus sales .compared to the previous year.
- The Indian economy is expanding as there is a rise in the disposable income of middle-class consumers. This, in turn, has a favorable impact on the increasing demand for automobiles. Vehicle manufacturing has increased rapidly over the last five years as a result of the country's cheap production costs. The automotive sensor market is gaining traction as vehicle manufacturing increases.
- The vehicular fleet in Indian cities is much younger than in richer nations of the European Union and in the United States, where the average age of cars is 8 years and 11 years, respectively.
- Major automotive component manufacturers are expanding their manufacturing facilities and introducing new products across the region and are likely to witness major growth in the market during the forecast period. For instance,
- In December 2022, Xuchang Yuandong Drive Shaft Co., Ltd. announced that it plans to increase a CNY 50 million investment in Henan Sanjia Automotive Parts Co., Ltd. to acquire 60.98% of the company's equity and sign capital increase agreements with the company and other shareholders. The two companies will jointly develop auto parts such as universal joints and center bearings.
- In June 2022, Endurance Technologies developed drive shafts from Mahindra for the Alfa electric vehicle three-wheelers, and samples have been supplied for testing at Mahindra.
- In April 2022, KYB Corporation (KYB) planned to develop electric oil pumps for E-Axle drive motor systems in electric vehicles (EVs) by March 2023. The company aims to develop oil pumps for lubricating and cooling E-Axles and develop them as a new business for the era of electrification.
- Thus, considering such developments and trends in the market, the Asia-Pacific target market to have significant growth during the forecast period.
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Automotive Drive Shaft Industry Overview
The automotive drive shaft market is dominated by several key players, such as GKN PLC (Melrose Industries PLC), Yamada Manufacturing Co. Ltd, American Axle & Manufacturing Inc., JTEKT Corporation, Dana Incorporated, and others. The competition in the market is medium, as major players continue to crack high orders from major OEMs, and the 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 August 2022, Schaeffler AG expanded its manufacturing facility in Buhl, Germany. The new manufacturing facility has a total area of 15,000m2, which manufactures new systems for electric powertrains.
In May 2022, Dana announced its strategic supply arrangement with Lion Electric Co. to support its array of electric buses as well as medium- and heavy-duty trucks, emphasizing its commitment to electrification. The agreement involves the provision of electric drive systems for all Lion Electric platforms, including LionA, LionC, LionD, LionM, Lion6, and Lion8.
In February 2022, Endurance Technologies announced that it had added a new product vertical, which is the drive shaft. The driveshaft is a high-technology proprietary product in an automotive application. The application is for three-wheelers and four-wheelers, including some light commercial vehicles. The driveshaft is a product required for EVs also.
Automotive Drive Shaft Market Leaders
Dana Incorporated
GKN PLC (Melrose Industries PLC)
JTEKT Corporation
American Axle & Manufacturing Co. Ltd
Hyundai Wia Corporation
*Disclaimer: Major Players sorted in no particular order
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Automotive Drive Shaft Market News
- January 2023: Dana Cardenas opened a new USD 21 million plant in Querétaro, Mexico, with a production line that will make Toyota components. The first production line, which already began with 110 employees, will be joined by two more lines later in 2023 for a total annual production of 545,000 units with 300 employees. Alejandro Sánchez Alvarado, Operations Director at Dana Cardanes, explained that three production lines are being installed in the new 917-square-meter facility, where cardan shafts (drive shafts) will be manufactured for use in Toyota trucks.
- December 2022: JTEKT Corporation (JTEKT) announced the adoption of their "low-vibration drive shaft" for Toyota Motor Corporation's Lexus RX front-wheel drive. The low-vibration drive shaft uses an "opposite groove construction," in which 6 balls are incorporated in the ball joint on the tire side, and the pushing loads of the opposing three balls cancel each other out, reducing internal friction by half. This lowers engine vibration transmission to the vehicle body and enhances fuel economy.
- October 2022: JTEKT and its group firm Koyo sealing techno developed JTEKT Ultra Small Seal as a compact diff. Side oil seal for BEV eAxle in response to the rapid growth of the battery electric vehicle (BEV) industry. A differential side seal is an oil seal affixed to the connection between the differential and the drive shaft that prevents oil leakage from the inside and pollution from the outside.
Automotive Drive Shaft Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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. MARKET SEGMENTATION (Market Size in Value - USD Billion)
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 Sales Channel
5.4.1 OEM
5.4.2 Aftermarket
5.5 By Geography
5.5.1 North America
5.5.1.1 United States
5.5.1.2 Canada
5.5.1.3 Rest of North America
5.5.2 Europe
5.5.2.1 Germany
5.5.2.2 United Kingdom
5.5.2.3 France
5.5.2.4 Rest of Europe
5.5.3 Asia-Pacific
5.5.3.1 India
5.5.3.2 China
5.5.3.3 Japan
5.5.3.4 South Korea
5.5.3.5 Rest of Asia-Pacific
5.5.4 Rest of the World
5.5.4.1 Brazil
5.5.4.2 South Africa
5.5.4.3 Other Countries
6. COMPETITIVE LANDSCAPE
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
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Automotive Drive Shaft Industry Segmentation
An automotive drive shaft or propeller shaft transfers the power produced by the engine from the transmission to the rear axle or front axle. The application of extruded aluminum in drive shafts has been the most notable for rear-wheel or all-wheel drive vehicles, both for the tubes and the Cardan links.
The automotive drive shaft market is segmented into design type, position type, vehicle type, sales channel, and geography. By design type, the market is segmented into hollow shafts and solid shafts. By position type, the market is segmented into the rear axle and the front axle. By Vehicle Type, the market is segmented into passenger cars and commercial vehicles. By Sales Channel, the market is segmented into OEM and Aftermarket. By geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the world.
For each segment, the market sizing and forecast have been done based on the value (in USD).
| By Design Type | |
| Hollow Shaft | |
| Solid Shaft |
| By Position Type | |
| Rear Axle | |
| Front Axle |
| By Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| By Sales Channel | |
| OEM | |
| Aftermarket |
| By Geography | |||||||
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Automotive Drive Shaft Market Research FAQs
How big is the Automotive Drive Shaft Market?
The Automotive Drive Shaft Market size is expected to reach USD 74.26 billion in 2024 and grow at a CAGR of 6.54% to reach USD 101.94 billion by 2029.
What is the current Automotive Drive Shaft Market size?
In 2024, the Automotive Drive Shaft Market size is expected to reach USD 74.26 billion.
Who are the key players in Automotive Drive Shaft Market?
Dana Incorporated, GKN PLC (Melrose Industries PLC), JTEKT Corporation, American Axle & Manufacturing Co. Ltd and Hyundai Wia Corporation are the major companies operating in the Automotive Drive Shaft Market.
Which is the fastest growing region in Automotive Drive Shaft Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Automotive Drive Shaft Market?
In 2024, the Asia-Pacific accounts for the largest market share in Automotive Drive Shaft Market.
What years does this Automotive Drive Shaft Market cover, and what was the market size in 2023?
In 2023, the Automotive Drive Shaft Market size was estimated at USD 69.40 billion. The report covers the Automotive Drive Shaft Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Automotive Drive Shaft Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Automotive Drive Shaft Industry Report
Statistics for the 2024 Automotive Drive Shaft market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Drive Shaft analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Automotive Drive Shaft Market Report Snapshots
