Global Automotive Driveshaft Market To Reach $ 7.5 Billion By 2026, Auto News, ET Auto
New Delhi: The automotive drive shafts market across the world is expected to experience healthy growth during the forecast period of 2021 to 2026, according to a new research report.
Amid the COVID-19 crisis, the global automotive drive shafts market estimated at USD 5.5 billion in 2020 is expected to reach a revised size of USD 7.5 billion by 2026, growing at a CAGR of 5.4% over the analysis period, The Global Industry Analysts (GIA) report is highlighted.
Automotive drive shafts are mechanical components used to transfer torque from the engine to the other end of the vehicle before it reaches the wheels. These components are automotive drive shafts made of steel, aluminum and carbon fiber.
Steel, one of the segments analyzed in the report, is expected to grow at a CAGR of 4.9% to $ 4 billion by the end of the analysis period, the report noted.
“After a thorough analysis of the business implications of the pandemic and the induced economic crisis, the growth of the aluminum segment is readjusted to a revised CAGR of 5.8% for the next 7 year period. This segment currently accounts for a 36.4% share of the global automotive drive shafts market, ”the GIA report said.
He further mentioned that the high absorption of steel can be attributed to its superior strength, durability and machinability.
“Regulations aimed at improving vehicle efficiency and performance are boosting the adoption of cost-effective materials and driving the shift from steel to aluminum,” the report said.
Carbon fiber has received considerable attention in recent years and various car manufacturers are looking for suppliers to offer automotive driveshafts constructed from this new material.GIA report
In addition, the California-based market research company said, steel-based driveshafts are relatively heavier than aluminum-based components and add weight to the vehicle, reducing fuel efficiency.
The GIA report also predicts that the automotive drive shafts market in the United States, which currently accounts for a 19.12% share of the global market, is estimated to be worth $ 1.1 billion in 2021. The study mentions that the China, the world’s second-largest economy, is expected to reach an estimated market size of US $ 1.8 billion in 2026, with a CAGR of 7.8% throughout the analysis period.
“Other geographic markets of interest include Japan and Canada, each forecasting growth of 2.9% and 3.3% respectively over the period of analysis. In Europe, Germany is expected to grow by around 4.2% CAGR while the rest of the European market (as defined in the study) will reach $ 2 billion by the end of the analysis period ”, adds the report.
Growth in Asia-Pacific is attributed to the enforcement of strict fuel economy and environmental protection regulations, as well as continued efforts by automakers to reduce vehicle weight and increase efficiency. energy, according to the study. Factors such as favorable macroeconomic scenario and increase in per capita income are boosting automotive demand and positively influencing the drive shafts market.
Carbon fiber has received considerable attention in recent years, according to the report, and various car manufacturers are looking for suppliers to offer automotive driveshafts constructed from this new material.
“Carbon fiber drive shafts offer the advantages of lighter weight, higher torque capacity, better reliability, higher rpm, increased safety and a reduction in noise, vibrations and harmonics ”, underlines the report.
In the global carbon fiber segment, the United States, Canada, Japan, China and Europe will lead the estimated 5.9% CAGR for this segment. These regional markets representing a combined market size of US $ 503.9 million in 2020 will reach a projected size of US $ 750.6 million by the end of the analysis period, the GIA report added.