Global Automotive Driveline Market Analysis By type (Front Wheel Drive (FWD), Rear Wheel Drive (RWD), All-Wheel Drive/ Four-Wheel Drive (AWD/4WD)), By vehicle type (Passenger Cars, Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs)) & Forecast
- PUBLISHED ON
- 2024-10-03
- NO OF PAGES
- 275
- CATEGORY
- Automotive & Transportation
The global automotive driveline market size was valued at around USD 260 billion in 2022 and expected to grow at a CAGR of 7.9% during the forecast period.
Report Scope
Report Attributes | Description |
Market Size in 2022 | USD 260 Billion |
Market Forecast in 2032 | USD 553 Billion |
CAGR % 2023-2031 | 7.9% |
Base Year | 2022 |
Historic Data | 2019-2021 |
Forecast Period | 2023-2031 |
Report USP | Production, Consumption, company share, company heatmap, company production capacity, growth factors and more |
Segments Covered | By type, By vehicle type |
Regional Scope | North America, Europe, APAC, South America and Middle East and Africa |
Country Scope | U.S.; Canada; U.K.; Germany; France; Italy; Spain; Benelux; Nordic Countries; Russia; China; India; Japan; South Korea; Australia; Indonesia; Thailand; Mexico; Brazil; Argentina; Saudi Arabia; UAE; Egypt; South Africa; Nigeria |
Key Companies | American Axle & Manufacturing Inc., ZF Friedrichshafen AG, GKN Automotive Limited, Dana Incorporated, BorgWarner Inc., Schaeffler AG, JTEKT Corporation, Showa Corporation, Hitachi Automotive Systems Ltd., and NSK Ltd. |
Covid-19 Impact:
The global automotive driveline market has been impacted by the COVID-19 pandemic. The pandemic caused a significant disruption in the global automotive industry, leading to factory closures, supply chain disruptions, and reduced demand for new vehicles. As a result, the demand for automotive driveline components has also been affected.
During the initial phase of the pandemic, the production and supply chain of driveline components were impacted due to lockdowns and restrictions on transportation. This led to a shortage of raw materials and components, which affected the production of driveline components. However, the market has witnessed a gradual recovery as the restrictions have eased and the demand for vehicles has picked up.
Moreover, the pandemic has also affected the consumer behavior and preferences towards vehicles. Due to the pandemic, people are preferring personal vehicles over public transport to avoid the risk of infection. This has led to an increase in demand for passenger cars and light commercial vehicles, which in turn, has positively impacted the demand for automotive driveline components.
However, the pandemic has also led to an economic downturn in many countries, leading to reduced purchasing power and lower demand for vehicles. The market has also been impacted by the shortage of semiconductors, which has affected the production of vehicles and automotive components, including driveline components.
Overall, while the COVID-19 pandemic has impacted the automotive driveline market, the market is expected to gradually recover as the global economy improves and the demand for vehicles increases.
Market Dynamics:
Drivers:
Growing demand for electric vehicles: The increasing demand for electric vehicles, which require different driveline components, such as electric motors and power electronics, is driving the growth of the driveline market.
Rising demand for fuel-efficient vehicles: The increasing demand for fuel-efficient vehicles is driving the demand for lightweight driveline components, which help reduce fuel consumption and emissions.
Increasing demand for SUVs and crossover vehicles: The rising popularity of SUVs and crossover vehicles, which require more advanced driveline systems, is also driving the growth of the driveline market.
Technological advancements: The continuous advancements in driveline technology, such as the development of all-wheel drive and hybrid drivelines, are also contributing to the growth of the market.
Government regulations: The stringent regulations set by governments to reduce emissions and improve fuel efficiency are pushing automakers to adopt advanced driveline technologies, thereby boosting the market growth.
Increasing demand for luxury vehicles: The growing demand for luxury vehicles, which require advanced driveline components such as high-performance differentials and driveshafts, is also driving the growth of the driveline market.
Restraints:
High cost: Automotive driveline systems require advanced technologies and sophisticated designs, which increase the overall cost of the vehicle. This high cost can be a deterrent for budget-conscious consumers, which may limit the market growth.
Maintenance and repair costs: Driveline systems require regular maintenance and repairs, which can add to the cost of ownership. This can be a challenge for some consumers who may opt for vehicles with less complex driveline systems.
Government regulations: Stringent regulations regarding emissions and fuel economy may require automakers to invest heavily in research and development to meet these requirements. This can increase the cost of driveline systems and make it difficult for smaller players to compete.
Regional Analysis:
North America: The North American automotive driveline market is driven by the increasing demand for fuel-efficient and lightweight driveline systems. The United States is the major contributor to the North American market, owing to the presence of major automotive manufacturers in the country.
Europe: The European automotive driveline market is driven by the increasing demand for electric and hybrid vehicles, which require high-performance and efficient driveline systems. Germany is the major contributor to the European market, owing to the presence of major automotive manufacturers in the country.
Asia-Pacific: The Asia-Pacific automotive driveline market is driven by the increasing demand for vehicles, rising disposable income, and growing awareness about fuel efficiency. China is the major contributor to the Asia-Pacific market, owing to the large automotive manufacturing industry in the country.
Middle East & Africa: The Middle East & Africa automotive driveline market is driven by the increasing demand for commercial vehicles and off-road vehicles. The market in the region is expected to grow at a moderate pace during the forecast period.
South America: The South American automotive driveline market is driven by the increasing demand for passenger and commercial vehicles in the region. Brazil is the major contributor to the South American market, owing to the large automotive manufacturing industry in the country.
Market Segmentation:
By type, the market can be segmented into:
• Front Wheel Drive (FWD)
• Rear Wheel Drive (RWD)
• All-Wheel Drive/ Four-Wheel Drive (AWD/4WD)
By vehicle type, the market can be segmented into:
• Passenger Cars
• Light Commercial Vehicles (LCVs)
• Heavy Commercial Vehicles (HCVs)
By region, the market can be segmented into:
• North America
• Europe
• Asia-Pacific
• Middle East & Africa
• South America
Competitive Landscape:
The global automotive driveline market is highly competitive and fragmented, with several major players operating in the market. These players include American Axle & Manufacturing Inc., ZF Friedrichshafen AG, GKN Automotive Limited, Dana Incorporated, BorgWarner Inc., Schaeffler AG, JTEKT Corporation, Showa Corporation, Hitachi Automotive Systems Ltd., and NSK Ltd., among others.
These companies compete on the basis of various factors such as product portfolio, quality, innovation, price, and distribution network. In addition, companies are also focusing on strategic collaborations, mergers and acquisitions, and partnerships to expand their market presence and increase their customer base. For instance, in February 2021, BorgWarner Inc. completed its acquisition of AKASOL AG, a leading German developer and manufacturer of high-performance battery systems for commercial vehicles, thus expanding its portfolio in the EV market.
Furthermore, players in the market are also investing in R&D activities to develop advanced driveline systems that can improve fuel efficiency, reduce emissions, and enhance vehicle performance. For instance, in November 2020, Dana Incorporated launched a new series of Spicer Electrified e-Axles, which are designed to deliver improved vehicle efficiency and performance, while reducing emissions.
Why to buy this Report?
The report provides quantitative and qualitative aspect for the market in terms of value and volume, along with supporting market trends, challenges, restraints.
The report provides an in depth analysis from both production and consumption point of view at the regional and country level. Key Factors considered within the report scope are Production capacity by countries/regions, average price, consumption ratio, revenue earned and gross margin.
The report provides competitive analysis of around 30-50 companies operated in the market, these companies are bifurcated into niche players, the leaders and major contenders. The companies are analyzed in terms of following factors such as:
• Business Model
• Production Capacity, Revenue, Sales, Gross Margin
• Key Business Strategy
• SWOT Analysis
In terms of competitive landscape, the report provides distinctive factors that would help the end user in taking a key decision within the business:
• Company Share Analysis from 2018-2022
• Company Analysis by Revenue and Sales
• Company Production Capacity, Gross Margin
• Company Share Analysis by Application/End Use
• Company Share Analysis by Product/Specification
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One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).
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The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research
The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.
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Conclusion
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