Market Trends of Automotive Drive Shaft Industry
Increasing Demand for Electric Vehicles to Drive Growth of the Market
- Electric vehicles have become an integral part of the automotive industry, and they represent a pathway toward achieving energy efficiency, along with reduced emissions of pollutants and other greenhouse gases. The growing environmental concerns and favorable government initiatives are the major factors driving this growth.
- Emission laws at the governmental and regional levels have been one of the key causes propelling the electric vehicle industry in general. Road transport is commonly acknowledged as the single-largest source of air pollution in Europe. To combat air pollution, the EU Council adopted "Directive 96/62/EC on ambient air quality assessment and management," which establishes emission targets for a variety of harmful compounds in the atmosphere. The most important pollutants produced by cars are nitrogen oxides (NOx) and fine dust (particulate matter - PM), both of which are now capped at 40 g/ m3 per year.
- Europe has set a lofty target of being climate-neutral by 2050. To meet this goal, the European Commission would publish several new legislative proposals over the next few years. Many of them are aimed at improving mobility. By the end of this decade, the European Commission hopes to have at least 30 million electric vehicles on the road, a tremendous increase from the current 1.4 million EVs on European roads. To achieve this aim, a set of policies and targets must be in place to guide states, businesses, and consumers on the correct path.
- The European Union is now promoting the emergence of electric mobility in a variety of ways, ranging from pushing vehicle manufacturers to producing low-emission cars to assisting in the creation of comprehensive charging infrastructure.
- The drivetrains of electric and hybrid cars differ from those of regular gasoline-powered automobiles. Electric vehicles (EVs) employ electric motors that provide great torque at low speeds, whereas hybrid cars combine an electric motor and an internal combustion engine (ICE). These vehicles' drivetrains are more complicated, necessitating the use of specialist drive shafts to manage the particular features of their motors and gears.
- As the demand for electric and hybrid vehicles grows, so will the demand for sophisticated drive shafts. Manufacturers of drive shafts are researching novel materials and manufacturing procedures to build drive shafts that can handle the requirements of these vehicles. Some producers, for example, use carbon fiber instead of steel to minimize weight, while others use innovative composite materials that can withstand high torque levels.
- For instance, in November 2022, NTN Corporation (NTN) announced Many OEMs had placed volume production orders for "CFJ" high efficiency fixed type constant velocity joints, which may lower torque loss ratio by more than 50%. The firm is reacting to the increasing need for greater efficiency constant velocity joints, which are a component of drive shafts, to reduce vehicle CO2 emissions, increase fuel efficiency, and lower power costs. NTN's unique "Spherical Cross Groove Structure" is used in the CFJ product, in which adjacent raceway grooves for all routes in the inner and outer rings are inclined with each other. Even if the constant velocity joint working angle rises, this arrangement prevents an increase in the torque loss ratio.
- Owing to the growing demand for electric and hybrid vehicles is driving the development of specialized drive shafts that can handle the unique characteristics of these vehicles' motors and transmissions. As a result, the automotive drive shaft market is likely to continue to grow and evolve as the market for electric and hybrid vehicles expands.
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The Asia-Pacific Region is Expected to Hold a Significant Share in the Market
- China is one of the prominent countries in terms of vehicle manufacturing in the Asia-Pacific. China has a major presence of automotive manufacturers which is likely to create lucrative opportunities for the market during the forecast period.
- The government of China has introduced many incentive plans to bolster auto sales and has also offered subsidies on the purchase of electric vehicles to encourage the expansion of the automotive industry in the county. For instance,
- According to the China Association of Automobile Manufacturers (CAAM), China's auto sales surged 29.7% in July 2022, standing at 2.42 million units, compared to the previous year, and Sales of new energy vehicles, which include pure electric vehicles, plug-in hybrids, and hydrogen fuel-cell vehicles, increased 120% in July 2022 from the previous year. In 2021, approximately 505,000 busses and 4.3 million trucks were sold in China. This represented a 13 percent increase in bus sales .compared to the previous year.
- The Indian economy is expanding as there is a rise in the disposable income of middle-class consumers. This, in turn, has a favorable impact on the increasing demand for automobiles. Vehicle manufacturing has increased rapidly over the last five years as a result of the country's cheap production costs. The automotive sensor market is gaining traction as vehicle manufacturing increases.
- The vehicular fleet in Indian cities is much younger than in richer nations of the European Union and in the United States, where the average age of cars is 8 years and 11 years, respectively.
- Major automotive component manufacturers are expanding their manufacturing facilities and introducing new products across the region and are likely to witness major growth in the market during the forecast period. For instance,
- In December 2022, Xuchang Yuandong Drive Shaft Co., Ltd. announced that it plans to increase a CNY 50 million investment in Henan Sanjia Automotive Parts Co., Ltd. to acquire 60.98% of the company's equity and sign capital increase agreements with the company and other shareholders. The two companies will jointly develop auto parts such as universal joints and center bearings.
- In June 2022, Endurance Technologies developed drive shafts from Mahindra for the Alfa electric vehicle three-wheelers, and samples have been supplied for testing at Mahindra.
- In April 2022, KYB Corporation (KYB) planned to develop electric oil pumps for E-Axle drive motor systems in electric vehicles (EVs) by March 2023. The company aims to develop oil pumps for lubricating and cooling E-Axles and develop them as a new business for the era of electrification.
- Thus, considering such developments and trends in the market, the Asia-Pacific target market to have significant growth during the forecast period.
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