Global Driveline Market Size study & Forecast, by Type, Vehicle Type, Transmission Type and Regional Forecasts 2025-2035

The Global Driveline Market is poised to grow robustly, expanding from an estimated USD 45.13 billion in 2024 to a staggering USD 181.73 billion by 2035, registering a notable CAGR of 13.50% over the forecast period 2025 to 2035. Drivelines serve as the critical backbone of a vehicle's powertrain, channeling torque and motion from the engine to the wheels while ensuring optimized performance and fuel efficiency. As the global mobility sector races toward electrification, automation, and enhanced safety, the evolution of driveline technology is playing a pivotal role in redefining vehicle architecture and operational dynamics.

The surging demand for high-performance vehicles across both passenger and commercial categories, coupled with regulatory pressure for reduced emissions, has prompted automakers to pivot toward advanced driveline configurations. All-Wheel Drive (AWD) and Rear-Wheel Drive (RWD) systems are increasingly favored for their ability to enhance vehicle stability, acceleration, and off-road capabilities. At the same time, advancements in automatic and hybrid transmission systems are unlocking new efficiency thresholds. The growing adoption of electric drivetrains-particularly in hybrid and battery electric vehicles-has further revolutionized traditional driveline components, fostering integration with smart control units and e-axles to improve energy management.

From a regional standpoint, North America continues to lead in technological innovation, propelled by a strong presence of global automakers, Tier 1 suppliers, and a high concentration of premium vehicle consumers. Meanwhile, Europe is aligning its automotive manufacturing blueprint with green mobility goals, thereby boosting investment in electric AWD and high-efficiency driveline platforms. The Asia Pacific region is anticipated to record the fastest growth rate, largely driven by China's aggressive EV deployment strategies, India's growing automotive production ecosystem, and Japan and South Korea's innovation in compact driveline solutions. Latin America and the Middle East & Africa are also witnessing gradual adoption owing to infrastructure development and rising vehicle ownership.

Major market player included in this report are:

• Magna International Inc.
• Dana Incorporated
• ZF Friedrichshafen AG
• GKN Automotive
• BorgWarner Inc.
• American Axle & Manufacturing, Inc.
• Continental AG
• Schaeffler AG
• Hitachi Astemo Ltd.
• AVL List GmbH
• Hyundai WIA Corporation
• Meritor Inc.
• JTEKT Corporation
• Valeo S.A.
• Toyota Motor Corporation

Global Driveline Market Report Scope:

• Historical Data - 2023, 2024
• Base Year for Estimation - 2024
• Forecast period - 2025-2035
• Report Coverage - Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
• Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa
• Customization Scope - Free report customization (equivalent up to 8 analysts' working hours) with purchase. Addition or alteration to country, regional & segment scope*

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained below:

By Type:

• All-Wheel Drive
• Front-Wheel Drive
• Rear-Wheel Drive

By Vehicle Type:

• Passenger Vehicles
• Commercial Vehicles
• Off-Highway Vehicles

By Transmission Type:

• Manual Transmission
• Automatic Transmission

By Region:

• North America
• U.S.
• Canada
• Europe
• UK
• Germany
• France
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia Pacific
• Latin America
• Brazil
• Mexico
• Middle East & Africa
• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Key Takeaways:

• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional level analysis for each market segment.
• Detailed analysis of geographical landscape with Country level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of competitive structure of the market.
• Demand side and supply side analysis of the market.