Impact of COVID-19 on the Global Drive Shaft Market
The propagation of the COVID-19 pandemic has substantially impacted the growth of the global drive shaft market. The government organizations of numerous countries have imposed lockdowns that have obliged people to stay at home, which, in turn, has minimized the physical interaction among people. Most companies have allowed their employees to work from their homes to ensure business continuity during the COVID-19 pandemic, which is expected to hamper the growth of the global drive shaft market over the forecast timeframe. The increasing focus on remote working will restrict the growth of the automotive industry, which, in turn, will limit the growth of the global drive shaft market.
Manufacturing and supply chain operations in the automotive sector have been interrupted due to the COVID-19 crisis worldwide. The shift in consumer preference towards essential products is likely to highly effect the global drive shaft market over the projected period. Furthermore, the COVID-19 outbreak has resulted in the sealing of international boundaries, which has caused a severe decline in the demand for global drive shaft across the globe. Government authorities worldwide have imposed stringent restrictions on travel. Hence, the market is also expected to be affected due to the lowered vehicle usage. Additionally, the restrictions on public gatherings and travel bans in numerous countries are expected to hinder the growth of the global drive shaft market.
Exports of Automotive Parts from the US (Units IN million)
The figure above shows the exports statistics of automobile parts from the US for 2016 to 2019. The drive shaft is an important component in the automotive drivetrain that supports in improved vehicle efficiency and operations. Moreover, the decline demand of new vehicles and auto parts in the covid-19 period will majorly affect the demand for drive shaft in the automotive industry. The increased focus on personal care and safety is likely to affect the demand for vehicles and automotive components in the coming months. Thus, there is an uncertainty regarding the steady growth of the drive shaft market over the forecast timeframe.
Source: United States Department of Commerce, Bureau of the Census, Foreign Trade Division