New Delhi: The automotive drive shafts market across the globe is anticipated to witness a healthy growth during the forecast period from 2021 to 2026, according to a new research report.
Amid the COVID-19 crisis, the global market for Automotive Drive Shafts estimated at USD 5.5 billion in the year 2020, is projected to reach a revised size of USD 7.5 Billion by 2026, growing at a CAGR of 5.4% over the analysis period, Global Industry Analysts (GIA) report highlighted.
Automotive drive shafts are mechanical components used for transferring torque from the engine to the other end of the vehicle before it reaches the wheels. These components are automotive drive shafts made up of steel, aluminum and carbon fiber.
Steel, one of the segments analyzed in the report, is projected to grow at a 4.9% CAGR to reach USD 4 Billion by the end of the analysis period, the report noted.
“After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Aluminum segment is readjusted to a revised 5.8% CAGR for the next 7-year period. This segment currently accounts for a 36.4% share of the global Automotive Drive Shafts market,” GIA report said.
It further mentioned that the significant uptake of steel can be attributed to its superior strength, durability and machinability.
“Regulations to push efficiency and performance of vehicles are bolstering the adoption of cost-efficient materials and driving shift from steel towards aluminum,” the report highlighted.
Carbon fiber have garnered considerable attention in the recent years and various automakers are looking for vendors offering automotive drive shafts built on this new material.GIA report
In addition, the California-based market research firm said, drive shafts based on steel are relatively heavier than aluminum-based components and add to vehicle weight, resulting in lower fuel efficiency.
The GIA report also predicts that the Automotive Drive Shafts market in the US, which currently accounts for a 19.12% share in the global market, is estimated at US$1.1 Billion in the year 2021. The study mentiond that China, the world’s second largest economy, is forecast to reach an estimated market size of US$1.8 Billion in the year 2026 trailing a CAGR of 7.8% through the analysis period.
“Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.9% and 3.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.2% CAGR while Rest of European market (as defined in the study) will reach US$2 Billion by the end of the analysis period,” the report added.
Growth in Asia-Pacific is attributed to enforcement of stringent fuel economy and environmental protection regulations coupled with continuing efforts by automakers to bring down vehicle weight and push the fuel efficiency, the study said. Factors such as favorable macroeconomic scenario and rising per person income are driving automobile demand and positively influencing the drive shaft market.
According to the report, carbon fiber have garnered considerable attention in the recent years and various automakers are looking for vendors offering automotive drive shafts built on this new material.
“Carbon fiber drive shafts offer benefits of lighter weight, higher torque capacity, better reliability, higher rpm, increased safety, and reduced noise, vibration and harmonics,” the report underlined.
In the global Carbon Fiber segment, USA, Canada, Japan, China and Europe will drive the 5.9% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$503.9 Million in the year 2020 will reach a projected size of US$750.6 Million by the close of the analysis period, added the GIA report.