Driveline Market Expected to Reach USD 573.05 Billion by 2030 with Strong Demand Across Vehicle Segments - Mordor Intelligence

Introduction

The driveline market size stands at USD 432 billion in 2025 and is projected to reach USD 573.05 billion by 2030, advancing at a 5.66% CAGR, driven by shifting vehicle preferences, continued relevance of internal combustion platforms in emerging economies, and increasing integration of electrified systems in developed regions.

The driveline market remains integral to automotive powertrain architectures, serving essential functions in transferring engine or motor torque to wheels. Traditional front-wheel and rear-wheel drive systems still constitute the majority of market share in conventional vehicles, while all-wheel drive and electrified driveline assemblies are gaining traction in light commercial and passenger vehicles.

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Key Market Trends

Rising Adoption of All-Wheel Drive (AWD): AWD systems are growing faster than other driveline types, driven by strong SUV demand and increased consumer preference for improved traction, stability, and performance across varied driving conditions.

Shift Toward Electrified Drivelines: Electrification is reshaping driveline architectures, with electric systems such as e-axles supporting simpler integration, reduced component complexity, and alignment with expanding EV platforms (Mordor Intelligence).

Focus on Lightweight Materials: Automakers are increasingly adopting advanced aluminum alloys and carbon fiber in driveline components to reduce vehicle weight while maintaining durability and meeting fuel-efficiency and performance expectations (Mordor Intelligence).

Asia-Pacific as a Key Growth Region: Asia-Pacific leads in both production and demand, supported by expanding automotive manufacturing in China, India, and Southeast Asia, alongside rising adoption of conventional and electrified driveline systems (Mordor Intelligence).

Market Segmentation
By Driveline Type
-Front-Wheel Drive (FWD)
-Rear-Wheel Drive (RWD)
-All-Wheel Drive (AWD)
-Four-Wheel Drive (4WD)

By Vehicle Type
-Passenger Vehicles
-Light Commercial Vehicles
-Medium and Heavy Commercial Vehicles

By Propulsion System
-Internal Combustion Engine (ICE)
-Electric Drivetrain
-Hybrid Drivetrain

By Transmission Type
-Manual Transmission
-Automatic Transmission
-Continuously Variable Transmission (CVT)
-Dual-Clutch Transmission (DCT)

By Component Type
-Drive Shafts
-Differentials
-Axles
-Transfer Cases
-Transmission Units

By Material
-Steel
-Aluminum
-Carbon Fiber

By Distribution Channel
-OEM
-Aftermarket

By Geography
-North America
-South America
-Middle east Africa
-Europe
-Asia pacific

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Key Players

GKN Automotive

Dana Incorporated

ZF Friedrichshafen AG

American Axle and Manufacturing

BorgWarner Inc.

Conclusion

The driveline market remains a fundamental element of the global automotive industry. With the driveline market size expected to grow from its current valuation toward a higher projected value by 2030, the industry shows resilience across multiple vehicle types and regional demand centers.

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