Global Automotive Drive Shafts Market to Reach $7.5 Billion by 2026

A driveshaft is a rotating shaft that transmits drive to wheels. The drive shaft is also called propeller shaft or driveline shaft or Cardan shaft. The drive shaft is a spinning tube that connects to the rear of the transmission and transmits the spinning power to the back of the vehicle. Automotive drive shafts are witnessing increasing uptake on account of their numerous merits over conventional components. These drive shafts provide automakers with the opportunity to incorporate lightweight components to reduce vehicle weight, drive fuel efficiency, and comply with regulatory guidelines. The global market for automotive drive shafts is expected to move ahead swiftly supported by a recovering automotive industry and implementation of stringent regulations regarding fuel efficiency and environmental protection. The presence of several manufacturers and suppliers offering both OEM (original equipment manufacturers) and aftermarket products ensures continued supply of driveshafts and a growing business for these companies. The demand for driveshafts is also helped by the growing vehicular traffic, and increased vehicle production.

Amid the COVID-19 crisis, the global market for Automotive Drive Shafts estimated at US$5.5 Billion in the year 2020, is projected to reach a revised size of US$7.5 Billion by 2026, growing at a CAGR of 5.4% over the analysis period. Steel, one of the segments analyzed in the report, is projected to grow at a 4.9% CAGR to reach US$4 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Aluminum segment is readjusted to a revised 5.8% CAGR for the next 7-year period. This segment currently accounts for a 36.4% share of the global Automotive Drive Shafts market. The significant uptake of steel can be attributed to its superior strength, durability and machinability. Regulations to push efficiency and performance of vehicles are bolstering the adoption of cost-efficient materials and driving shift from steel towards aluminum. In addition, drive shafts based on steel are relatively heavier than aluminum-based components and add to vehicle weight, resulting in lower fuel efficiency.

The U.S. Market is Estimated at $1.1 Billion in 2021, While China is Forecast to Reach $1.8 Billion by 2026

The Automotive Drive Shafts market in the U.S. is estimated at US$1.1 Billion in the year 2021. The country currently accounts for a 19.12% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$1.8 Billion in the year 2026 trailing a CAGR of 7.8% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.9% and 3.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.2% CAGR while Rest of European market (as defined in the study) will reach US$2 Billion by the end of the analysis period. The North America and Europe region is estimated to post significant growth on account of increasing investment in the automotive industry and R&D projects to develop sophisticated high-end vehicles. These developed markets are bolstered by stringent emission regulations along with increasing production of all-wheel drive vehicles. The regional market is propelled by increasing production of automobiles, significant GDP, and high per person income. Supportive government policies and the presence of advanced automobile infrastructure are poised to further drive the market growth. The increasing popularity of rear wheel drive vehicles as a result of high per person spending on premium vehicles is expected to further spur the demand for automotive drive shafts in Europe. Growth in Asia-Pacific is attributed to enforcement of stringent fuel economy and environmental protection regulations coupled with continuing efforts by automakers to bring down vehicle weight and push the fuel efficiency. Factors such as favorable macroeconomic scenario and rising per person income are driving automobile demand and positively influencing the drive shaft market.

Carbon Fiber Segment to Reach $918.9 Million by 2026

New materials including carbon fiber have garnered considerable attention in the recent years. Various automakers are looking for vendors offering automotive drive shafts built on carbon fibers. Carbon fiber drive shafts offer benefits of lighter weight, higher torque capacity, better reliability, higher rpm, increased safety, and reduced noise, vibration and harmonics. In the global Carbon Fiber segment, USA, Canada, Japan, China and Europe will drive the 5.9% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$503.9 Million in the year 2020 will reach a projected size of US$750.6 Million by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$111.9 Million by the year 2026, while Latin America will expand at a 7.7% CAGR through the analysis period.