Automotive driveline market seen more than doubling by 2031

Allied Market Research projects the global automotive driveline market will grow from $257.4 billion in 2021 to $545.8 billion by 2031, driven by EV adoption, driveline innovation and rising vehicle production. The report also flags raw-material volatility and shared mobility as headwinds while naming AWD, electric propulsion and light commercial vehicles as key growth segments. Why it matters: - The automotive driveline market is expanding as automakers push for more efficient power transfer systems and electric vehicle-ready architectures. - The report projects the market will more than double by 2031, signaling sustained demand for driveline components across vehicle platforms. - Growth in electric driveline systems can improve vehicle range, performance and competitiveness versus conventional internal combustion engine vehicles. What happened: - Allied Market Research said the global automotive driveline market was valued at $257.40 billion in 2021 and is projected to reach $545.8 billion by 2031. - The market is forecast to grow at a 7.7% CAGR from 2022 to 2031. - The report defines a driveline as the component assembly that conveys power to a vehicle’s driving wheels. - The driveline includes drive shafts, axles, CV joints, U joints, wheels and the transmission. - A sample report page is available More information . - The full report is available for purchase the company’s purchase options page . The details: - Schaeffler AG introduced 800-volt power electronics and a thermal management system for its electric axle in August 2021. - Allied Market Research said those improvements increased electric-drive efficiency and extended electric vehicle range. - ZF Friedrichshafen AG partnered with Mahindra Racing in February 2021 to supply driveline technology for the team’s championship vehicles. - The Mahindra Racing package included the electric motor, transmission and silicon carbide-based power electronics. - The report says rising automobile production, drivetrain and chassis technology advances, and growing EV sales are supporting market growth. - The report says partnerships, investments and product launches are helping companies expand market share and geographic reach. - The report identifies raw-material price swings and lower vehicle ownership tied to shared mobility as factors that could slow growth. - The report also points to EV manufacturing buildout, more all-wheel-drive adoption and continued technology advances as opportunities for market players. Between the lines: - The report’s growth thesis is heavily tied to electrification, not just overall vehicle demand. - AWD, electric propulsion and light commercial vehicles are emerging as the strongest growth areas, which suggests driveline suppliers are following performance, utility and electrified-use-case demand. - The COVID-19 shock showed how dependent driveline production is on automotive output and supply-chain continuity, with the report citing a 17% to 19% sales decline among market companies. - The report expects government recovery incentives and improving regional conditions in North America and Europe to support normalization. What’s next: - The report expects the market to recover as production and sales conditions normalize after the pandemic disruption. - Future demand is likely to track EV deployment, all-wheel-drive integration and continued investment in driveline efficiency. - Market competition is expected to stay active as major suppliers and automakers pursue partnerships and product upgrades. The bottom line: - The automotive driveline market is on a steep growth path, with electrification and performance upgrades doing most of the heavy lifting.