Drive Shaft Market

Increasing demand for electric vehicles to boost the market growth

Over the past three years, sales of electric vehicles have increased positively on a scale. For instance, in 2020, EV sales increased 39% year over year to 3.1 million units, while the overall passenger car market declined by 14%. EV sales are expected to increase by double digits in many European nations in 2020. In contrast to 26% in 2019, the European region accounted for roughly 43% of sales of electric cars in 2020. Approximately 3.24 million plug-in vehicles were sold globally, up from 2.26 million in 2019.

Sales have increased significantly due to stricter regulations by various organizations and governments to reduce emissions and promote zero-emission vehicles.

China is the market leader for electric vehicles. In China, the number of electric vehicle sales is rapidly increasing. For instance, in 2020, almost 1.3 million new energy vehicles were sold, accounting for 41% of all EV sales globally, only behind Europe. Regarding EV share, China continues to be far ahead of the US. In the US, only 2.4% of sales in 2020 were electric vehicles.

Furthermore, vehicle manufacturers are working tirelessly to create the most effective electric vehicles as the market for them expands. Additionally, driveshaft manufacturers are updating their product lines to offer the best products to OEMs to increase market share. For instance, in February 2021, the manufacturer of fully electric commercial vehicles, Volta Trucks, officially announced that Meritor had been chosen as the key supplier of drivetrain components for Volta Zero.

This significant purchasing milestone will support the delivery of Volta Zero vehicles for customer trials in 2021, and the start of series production around a year later has enhanced the drive shaft market CAGR across the globe in recent years.

However, due to the presence of significant developing nations in the region, such as China and India, where demand for both passenger and commercial vehicles is rising annually, the region's automobile market is expanding quickly. For instance, in January 2021, China's vehicle sales and manufacturing rose by 34.6%. Following the country's recovery from COVID-19's effects, sales have increased since 2020. According to supply and demand statistics, China is the largest automobile market, another factor driving the growth of the drive shaft industry revenue.

The Global Drive Shaft Market Industry is projected to experience substantial growth over the coming years. With a market value anticipated to reach 44.2 USD Billion in 2024 and further expand to 76.2 USD Billion by 2035, the industry is on a promising trajectory. The compound annual growth rate (CAGR) of 5.08% from 2025 to 2035 underscores the increasing demand for drive shafts across various automotive applications. This growth is driven by factors such as technological advancements, rising vehicle production, and a heightened focus on fuel efficiency. The market's expansion reflects the evolving landscape of the automotive industry and the critical role of drive shafts within it.

The Global Drive Shaft Market Industry is closely linked to the overall growth of the automotive sector. As global vehicle production continues to rise, the demand for drive shafts is expected to follow suit. Factors such as urbanization, increasing disposable incomes, and a growing middle-class population contribute to higher vehicle ownership rates. This trend is particularly evident in emerging markets, where automotive sales are surging. The market is projected to grow at a CAGR of 5.08% from 2025 to 2035, reflecting the robust demand for drive shafts in new vehicle models and aftermarket applications.

The Global Drive Shaft Market Industry is influenced by the increasing focus on fuel efficiency among consumers and manufacturers alike. As fuel prices fluctuate and environmental concerns rise, automotive companies are compelled to develop vehicles that maximize fuel economy. Drive shafts play a crucial role in enhancing vehicle efficiency by reducing weight and improving power transfer. This trend is expected to drive innovation in drive shaft design and materials, further propelling market growth. The emphasis on fuel efficiency aligns with global regulatory standards aimed at reducing emissions, thereby creating a favorable environment for the drive shaft market.

The Global Drive Shaft Market Industry is benefiting from the expansion of aftermarket services. As vehicle ownership increases, the demand for replacement and performance-enhancing drive shafts is also on the rise. Consumers are increasingly seeking high-quality aftermarket products to improve vehicle performance and longevity. This trend is particularly strong in regions with a growing automotive service sector. The aftermarket segment is expected to contribute significantly to the overall market growth, as more consumers opt for upgrades and replacements. This shift indicates a robust opportunity for manufacturers to innovate and cater to diverse consumer needs.

The Global Drive Shaft Market Industry is experiencing a notable shift due to the rising demand for electric vehicles (EVs). As automakers pivot towards sustainable mobility solutions, the need for lightweight and efficient drive shafts becomes paramount. Electric vehicles often require specialized drive shafts that can handle high torque and provide optimal performance. This trend is expected to contribute significantly to the market's growth, with projections indicating that the industry could reach 44.2 USD Billion in 2024. The transition to EVs not only enhances the demand for innovative drive shaft designs but also aligns with global sustainability goals.

Technological advancements in manufacturing processes are driving the Global Drive Shaft Market Industry forward. Innovations such as computer-aided design (CAD) and automated production techniques enhance precision and efficiency in drive shaft production. These advancements enable manufacturers to produce lightweight, durable, and high-performance drive shafts that meet the evolving demands of various automotive applications. As a result, the market is poised for growth, with an anticipated increase to 76.2 USD Billion by 2035. The integration of advanced materials and manufacturing technologies is likely to redefine industry standards and improve product offerings.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific Drive Shaft industry accounted for USD 2,543.96 million in 2021 and is expected to exhibit the fastest CAGR growth during the study period. Emerging Asian-Pacific economies contribute to a share of vehicle sales, which is anticipated to continue over the forecast period. Furthermore, significant GDP growth and rising per capita income are the main drivers of the automotive industry's expansion. They are anticipated to positively impact drive shaft demand in this region during the projected period.

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: DRIVE SHAFT MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe drive shaft market accounts for the second-largest market share due to its favorable government policies, the presence of leading OEMs, and its developed automobile infrastructure. Further, the Germany drive shaft market held the largest market share, and the UK drive shaft market was the fastest-growing market in the European region.

The North America drive shaft market accounts for a significant market share. The rising demand for electric and light commercial vehicles is majorly attributed to the drive shaft market's rapid expansion in the North American region. The market is expanding due to the rising vehicle production and the consequent increase in drive shafts use in these vehicles. Moreover, the US drive shaft market held the largest market share, and the Canada drive shaft market was the fastest-growing market in the North America region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the drive shaft market grow even more. Market participants are also taking various strategic initiatives to grow their footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the drive shaft industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the drive shaft industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. The drive shaft industry has provided vehicles with some of the most significant benefits in recent years. The drive shaft industry major players such as GKN PLC (UK), Advanced Composite Products & Technology Inc., ACPT Inc. (US), American Axle & Manufacturing Holdings Inc. (US), and others are working on expanding the market demand by investing in research and development activities.

GKN PLC (UK) is a British multinational company with its main office in Redditch, England, that manufactures automotive and aerospace components. It has a well-established company named Guest, Keen, and Nettlefolds. The initials of three early members of the company's history, John Guest, Arthur Keen, and Joseph Henry Nettlefold, are used as the name. All three were significant iron and steel industry figures during the Industrial Revolution. Although steel production remained the main focus of GKN for the bulk of the 20th century, it diversified into the production of tools and components.

Government policies during the second half of the 20th century, when Britain's steel industry was the target of numerous nationalization and privatization attempts, significantly impacted it. In January 2020, GKN PLC and Delta Electronics Inc. announced their collaboration to create cutting-edge eDrive technology.

Also, American Axle & Manufacturing Holdings Inc. (US) is a manufacturer of driveline and drivetrain systems and components for automobiles, with its corporate headquarters in Detroit, Michigan. AAM has expanded to serve numerous OEM manufacturers in passenger, light truck, and commercial vehicle segments. Some of its key products are axles, drive shafts, front axles, universal joints, sealing products, and thermal management items. In February 2021, Ram's heavy-duty pick-up truck axle and driveshaft program was secured by American Axle & Manufacturing (AAM) Holdings Inc. through 2030.