Automotive Driveline Market Expected to Reach $545.8 Billion by 2031

According to a new report published by Allied Market Research, titled, “Automotive Driveline Market," The automotive driveline market was valued at $257.40 billion in 2021, and is estimated to reach $545.8 billion by 2031, growing at a CAGR of 7.7% from 2022 to 2031.

The concept of automotive driveline is typically attributed to the assembly of components that conveys power to driving wheel of a vehicle. It consists of components such as drive shafts, the axles, the CV joints, the U joints, the wheels, and the transmission of vehicle which transfer power or torque to the driving wheels of the vehicle to move it forward. The U joints transmit power to the wheels allowing different angles, CV joints can bend in any direction letting the wheels move at constant velocity, axles deliver power from the final drive assembly to the wheels and transmissions transmit power from the engine to the drive shaft and the rear wheels. Currently, innovations in driveline technologies with the rise in popularity of electric vehicles (EVs) have made EVs more competitive than conventional ICE vehicles. For instance, in August 2021, Schaeffler AG bought in further development in its electric axle by introducing the 800-volt power electronics and thermal management system. These improvements increased the efficiency of the electric drive, which further increased the effective range of electric vehicles.

In addition, the automotive driveline market has witnessed significant growth in recent years, owing to the increased demand for improved vehicle performance and the inclination of consumers towards environment-friendly vehicles. Furthermore, the companies operating in the market have adopted partnerships, investments, and product launches to increase their market share and expand their geographical presence. For instance, in February 2021, ZF Friedrichshafen AG partnered with Mahindra Racing, a motor racing team based in Banbury, UK, to offer its driveline technology for the championship. This included the electric motor, transmission and silicon carbide-based power electronics for the racing vehicles of Mahindra racing.

The factors such as rise in automobile production, innovations and technological advancements in chassis systems, and increase in the sales of electric vehicles (EVs) supplement the growth of the automotive driveline market. However, fluctuation in prices of raw material and decrease in vehicle ownership owing to increase in shared mobility are the factors expected to hamper the growth of the market. In addition, increase in infrastructural developments in EV manufacturing enhancement of all-wheel drive for future vehicles and advancements in technology create market opportunities for the key players operating in the market.

COVID-19 Impact Analysis:

The COVID-19 outbreak severely impacted the automotive sector on a global level, which in turn leads to considerable drop in automotive sales, insufficiency of raw material, and others. As a result, the production of driveline components witnessed decline due to the world's economic ecosystems. Moreover, for instance, the raw material required to produce components was facing severe challenges. Moreover, companies operating in the automotive driveline technology market have seen a 17-19% decline in sales. However, government support in recovery incentives is expected to return the sales to normal. In addition, companies accelerating growth in e drive development focus on strengthening a strong supply chain and maintaining contact with customers & suppliers. These measures allow the business to respond dynamically to rebound. The market is expected to recover in the second half of 2021 owing to government affairs of some regions such as North America and Europe returning to normal. Similarly, the fastest recovery rates in some regions are also expected to boost the demand for the product in the near period.

KEY FINDINGS OF THE STUDY

• By drive type, the all-wheel drive (AWD) segment dominates the global automotive driveline market in terms of growth rate.
• By vehicle class, the luxury segment dominates the global automotive driveline market in terms of growth rate.
• By propulsion type, the electric segment dominates the global automotive driveline market in terms of growth rate.
• By application, the light commercial vehicle segment dominates the global automotive driveline market in terms of growth rate.

The leading players operating in the automotive driveline market are BorgWarner Inc., Continental AG, DENSO Corporation, Ford Motor Company, GKN Automotive Limited, Hitachi Ltd, Mahindra & Mahindra Ltd, Marelli Holdings Co., Ltd, Melrose industries PLC, MSL Driveline Systems Limited, Robert Bosch GmbH, Schaeffler AG, Toyota Motor Corporation, Valeo, Volkswagen AG, Xlerate Driveline India Ltd., and ZF Friedrichshafen AG.