Escalating sales of electric vehicles globally along with increasing uptake of premium automotive with demand for advanced torque transmission and fuel efficiency are key factors leveraged by global driveline market
In the absence of a driveline, the power generated by the engine will be ceased in the transmission ending up with no rotation in wheels. Hence, the driveline is a very imperative and critical constituent of the automotive sector to make a vehicle function appropriately. Considering the bourgeoning sales of vehicles globally, the global Driveline Market Demand is rampantly progressing at a robust CAGR of 15.88% during the forecast period of 2019-2025. Owing to developments in the automotive sector such as the transition from front-wheel drive (FWD) towards all-wheel drive (AWD) with abundant integration of ECU (electronic control unit), innovation in the form E-CVT E-axle (electronically-controlled continuously variable transmission) for enhanced fuel efficiency is adding substantial impetus to the driveline market growth. Instructions and enforcements for enhanced fuel efficiency amalgamated with strict emission regulations by governments across the globe have enforced automotive OEMs (original equipment manufacturers) to implement the hybrid and electric vehicle technology. As a consequence, technological developments in the spectrum of electric and hybrid drivelines that includes automatic start-stop, regenerative braking, E-CVT, and E-axle are the major driving forces for the driveline market demand. The arrangement of driveline equipment varies for a Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), or Battery Electric Vehicle (BEV) as the prime source of power differ from internal combustion engine (fuel combustion) to batteries, hence the market is witnessing rampant developments in terms of variants as well. As of 2018, the global driveline market was evaluated to be $19.45 billion. Apart from ICE (internal combustion vehicle) and EVs (electric vehicles), advancements towards autonomous vehicles are also creating additional scope of opportunities for the application of driveline. For instance, in 2018, HARMAN International, a subsidiary of Samsung dedicated towards connected technologies for automotive, showcased HARMAN’s and Samsung’s accumulated approach for establishing a network of associates and solutions to develop Samsung’s DRIVELine further, it's novel open platform for automated driving solutions.
Falling Prices Aluminum– A Major Factor Assisting to Overcome the Expensiveness of Electric and Hybrid Driveline:
Lightweighting conquers the apex spot among the list of approaches car manufacturers are employing to encounter the set objective of enhanced vehicle fuel economy. As a consequence, significant amounts of lightweight aluminum are not only applied in crafting the engine but also in the rest of the powertrain that is in the transmission and the various driveline components. As the high cost of driveline technology for EVs as compared to conventional IC engine-powered driveline is a major factor hindering driveline market share for EVs, recent circumstances indicating the falling prices of aluminium, the most preferred automotive material, is a major disruptive force in the market. A survey conducted by the WardsAuto and DuPont Automotive in 2018 confirmed aluminium to be the most preferred material by automotive engineers and designers to content the targeted fuel economy and emissions standards by 2025. Higher aluminium demand comes from the electric vehicles (EVs) revolution that is witnessing unprecedented growth in 2018. Hence, the falling prices of aluminium in some of the major automotive making nations such as India, and its inevitable application in conventional vehicles driveline, as well as expensive EVs driveline, is a major factor augmenting its economic manufacturing and increasing the range of profits.
E-axle and Motor with a power output of 45–100 kW – Leading Segment in Final Drive and Motor Output Verticals:
· Motor output differs from 12 kW to more than 250kW that is provisional of the vehicle specification. The motor with output capacity in between 45kW and 100kW is gaining substantial traction as it generally used in small electric and hybrid cars. According to the International Energy Agency, in 2018, the global electric car fleet witnessed unprecedented growth and exceeded 5.1 million units that were almost double the fleet that existed in 2017. Considering the increasing sales of EVs globally, motor output with a capacity of 45–100 kW will dominate the global driveline market.
· E-axles and differentials are imperative constituents of final drive unit as end components to transmit the motor power to the wheels. As it helps in reducing the weight and improving the efficiency of electric vehicles along with supporting high power architectures exceeding 48 V, E-axles are likely to gain the market share over differentials as final drive unit components during the forecast period due to their assistance towards improving the range covered and noise reduction.
APAC Dominates Global Driveline Market Size with Penetrating Array of Automotive OEMs and Rampantly Bourgeoning EVs Sales
The future of the automotive sector rightfully belongs to its electronic front, and any region with substantial uptake of EVs is eventually a volatile market for driveline as the conventional fleet of vehicles running on gasoline is witnessing a slump in terms of sales. However, EVs are still at the nascent stage in some developing economies such as India, where the majority of driveline market size is dominated by demand from traditional automotive. After an acute analysis of the regional driveline markets, APAC is reckoned to be the most lucrative marketplace with a share of 42.88% in the global market as of 2018. Robust presence of automotive OEMs centers in India, China and Japan amalgamated with the sheer affluence of China as an extensive market of electric vehicles extending from cars and buses to heavy commercial vehicles is creating opportunities for driveline market in APAC. Moreover, with 5 out of top 10 global car manufacturers are situated in APAC, automotive sector of countries such as India, Indonesia, and Malaysia are growing at an impeccable rate with 7.98%, 10.31%, and 12.18% respectively as of 2018 (OICA). Similarly, China in 2018 sustained its apex spot in the global electric car market with sales recorded to be approximately 1.1 million, and with 2.3 million units, it held the largest stock of electric cars. Electric two/three-wheelers on the road surpassed 300 million by the end of 2018.
Government Initiatives in India and China for the adoption of EVs:
Unprecedented Government Funds Allocation-
Government of India in 2019 sanctioned the application for the enactment of scheme titled 'Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II)' for endorsing electric mobility in the nation. Followed by FAME India1 that was launched in 2015 and gathered central investments worth $128 million, Phase II witnessed exuberant funding worth $1.4 billion in 2019.
Tax Exemption on Electric Vehicles:
Globally, economies are supporting electric vehicles consumers with incentives and tax exemption policies to promote the sales of EVs. For instance, in 2016, the Chinese government provided strong financial and non-financial incentives to EV adoption, such as exemptions from acquisition and excise taxes ranged $ 5000 to $ 8,500.
Driveline Market Companies:
Some of the key players operating in the global driveline market are ZF Friedrichshafen AG (Germany), Schaeffler Technologies AG & Co. KG (Germany), GKN plc (UK), BorgWarner Inc. (US), and Robert Bosch GmbH (Germany). The market is also constituted of several automotive OEMs such as Volkswagen AG (Germany), Ford Motor Company (US), Toyota Motor Corporation (Japan), Mahindra & Mahindra Limited (India); Hitachi, Ltd. (Japan), Continental AG (Germany), Delphi Automotive (Ireland), DENSO Corporation (Japan), and Valeo (France).
Companies are expanding geographically as well as expanding their end-user verticals to gain ground over their competitor. For instance, GKN Driveline is helping to facilitate the introduction of emissions-free parcel delivery in Germany through a partnership with StreetScooter, the electric vehicle company owned by Deutsche Post DHL Group. “This is another example of GKN supporting electric vehicle innovation with essential driveline technologies,” Peter Moelgg - CEO of GKN Driveline’s all-wheel and electric drive division. Considering the global electric scooters market size that is evaluated to $17.23 billion as of 2018, this intervention is deemed to be a lucrative undertaking for GKN plc, the leading driveline market player.
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