Automotive Drive Shaft Market Size (2024 - 2029)

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).

Over the medium term, with the rising population and disposable income, the demand for automobiles, such as passenger cars and commercial vehicles, is expected to grow worldwide. The increasing production and manufacturing of automobiles are fueling the demand for drive shafts globally.

The market will likely be the focus of attention during the forecast period, driven by the growing demand for commercial vehicles and buses, both of which are expected to drive global vehicle production and sales. This trend 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 their demand grows. Driveshaft manufacturers are updating their product lines to meet the constantly shifting needs of OEMs and expand their market share.

Considering the future of electric vehicles, the major OEM companies, including Volkswagen and General Motors, are investing majorly in new technology, establishing supply chains, and increasing the production capacity of EVs and their components, such as battery packs and motors. For instance:

• In June 2023, Mercedes-Benz announced an investment of billions in its European assembly plants to equip them for the shift to electric cars by the end of the decade. This move involves the production of vehicles on the new electric platforms and their components to be introduced in 2025.

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 increasing sales of all-wheel-drive vehicles. One notable factor that is anticipated to impact the overall growth of the automotive drive shaft market in the coming years is the sharp increase in utility vehicle sales worldwide. Asia-Pacific is distinguished by the presence of emerging economies and accounts for about half of global vehicle sales.

The Asia-Pacific automotive drive shaft market is expected to hold the largest share and register the highest growth rate in the coming years. Asia-Pacific is characterized by the presence of emerging economies and accounts for a major share of global vehicle sales, which may 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 EV models in the coming years. The majority of the present and upcoming EV models are all-wheel drives (AWD) or rear-wheel drives (RWD), which may generate the demand for lightweight drive shafts during the forecast period.

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 rear axle and 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 Rest of the world.

The report offers market size and forecasts in value (USD) and volume (units) for all the above segments.