Drive Assy Market size is anticipated to reach USD 2 Billion by the end of 2036, growing at a CAGR of 4% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of drive assy was over USD 1 Billion. Electric car drive assemblies are made to optimize performance, power, and economy while reducing emissions. It's a major factor in the growing acceptance of EVs as a greener mode of transportation. Also, the shift in preference towards electric vehicles is rapidly growing worldwide owing to the increasing concern for vehicular pollution. It's anticipated that EV sales will increase significantly through 2023. In the first quarter of this year, sales of electric automobiles exceeded 2.3 million, a 25% increase over the same period the previous year.
Furthermore, government rules and incentives are also a major factor in the drive assy market expansion. For instance, a firm commitment by the government to transition to 100% zero-emission cars in public procurement was made in 2022 with the launch of the Zero Emission Government Fleet Declaration under the EVI. Also, to encourage the use of electric vehicles, numerous nations offer grants, tax credits, and other financial aid. The demand for drive assemblies is rising as a result of manufacturers being forced to create more electric vehicles (EVs) in response to stricter emission laws. Thus, the market is predicted to witness growth in the upcoming years.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 4% |
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Base Year Market Size (2023) |
~ USD 1 Billion |
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Forecast Year Market Size (2036) |
~ USD 2 Billion |
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Regional Scope |
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Distribution Channel (OEM, Aftermarket)
The OEM segment in the drive assy market is poised to hold a share of 53% during the forecast period. OEMs play a vital role in ensuring quality control and adhering to industry standards. They are responsible for maintaining consistent production standards and delivering reliable drive assemblies to their customers. Also, OEMs work closely with vehicle manufacturers to design and develop drive assemblies that meet specific requirements, such as performance, durability, and cost-effectiveness. Furthermore, the expansion of the automotive industry is also propelling the growth of the segment. In 2021, the automotive manufacturing sector brought in over USD 2.86 trillion, with growth in this market predicted for 2022. Also, the growing technological advancements and the demand for customized solutions are escalating the growth of the market. OEMs strive to provide innovative drive assembly solutions that meet the changing needs of vehicle manufacturers.
Component (Chain & Sprocket, Gear & Pinion, Converters, Motors, Couplings)
The gear & pinion segment in the drive assy market is anticipated to hold a share of 34% during the forecast period. Gear and pinion drives offer a wide range of speed and torque for the same input power, with more precise timing than a chain system, less noise & friction loss, and other advantages over other parts. Since the gear provides positive drive, a high-velocity ratio can be achieved in the least amount of area. Because of the mechanical strength of gears, heavier loads may be lifted. Because of all the advantages, this market segment is widely favored in the drive assy market. Also, the growing demand for fuel-efficient vehicles, and the need for noise reduction. Manufacturers in this segment constantly innovate to develop gears and pinions with improved efficiency, reduced weight, and enhanced performance. Therefore, these factors are propelling the growth of the gear & pinion segment.
Our in-depth analysis of the global drive assy market includes the following segments:
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Component |
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Distribution Channel |
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End-user |
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APAC Market forecast
The drive assy market in the Asia Pacific region is expected to hold a share of 37% during the forecast period. One of the major factors is the rapid industrialization and economic development in countries like China, India, and Japan. These countries have seen a surge in manufacturing activities leading to increased demand for drive assemblies in sectors such as automotive, machinery, and construction. Also, the region has a large population, which has fuelled the demand for automobiles. As more people in this region can afford vehicles, the automotive industry has seen substantial growth, driving the need for drive assays. Moreover, advancements in technology and the availability of skilled labor in the region have also contributed to the growth of the market.
North American Market Statistics
North American drive assy market is expected to hold a share of 26% by the end of 2036. This is primarily caused by the fact that this is one of the most developed regions and is home to wealthy people. When compared to another region, this one's share of automobile sales is noteworthy. Furthermore, automated machinery and equipment are highly dependent on both customers and industries. One of the main applications with extremely high drive assembly consumption is automated machinery. Furthermore, there is a high level of sales and widespread usage of electric vehicles in this region.
Author Credits: Harshita Srivastava, Saima Khursheed
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