Driveline market forecast points to $244 billion by 2030

The Business Research Company projects the global driveline market will rise from $164.52 billion in 2026 to $244.25 billion by 2030, fueled by vehicle production, EV adoption and demand for advanced all-wheel-drive systems. Asia-Pacific led the market in 2025, while North America is expected to grow fastest over the forecast period.

Why it matters: - The driveline market is tied directly to global vehicle production, making it a key gauge of broader automotive demand. - Forecast growth suggests more spending on power transfer systems as automakers push for efficiency, performance and electrification. - The shift toward lightweight parts, torque control and all-wheel-drive systems points to a deeper redesign of drivetrain technology.

What happened: - The Business Research Company released its Driveline Global Market Report 2026 covering market size, trends and a forecast through 2035. - The report estimates the global driveline market will grow from $148.47 billion in 2025 to $164.52 billion in 2026. - The report projects the market will reach $244.25 billion by 2030. - The report says the market’s 2025-2026 growth rate is 10.8%, and the 2026-2030 forecast CAGR is 10.4%. - The report says Asia-Pacific was the largest regional market in 2025. - The report says North America is expected to be the fastest-growing region during the forecast period. - The report includes coverage of South East Asia, Western Europe, Eastern Europe, South America, the Middle East and Africa. - The report is available as a free sample and as the full market report.

The details: - A driveline is the mechanical assembly that transfers power from a vehicle’s engine or motor to its driving wheels. - The system manages torque transfer, rotational motion and vehicle stability across driving conditions. - The report links recent growth to higher global vehicle production, more passenger-vehicle demand, expanding commercial fleets, greater output of off-highway equipment and stronger demand for four-wheel-drive vehicles. - The report says future growth will be driven by electric vehicle adoption, advanced all-wheel-drive systems, higher vehicle performance standards, lightweight driveline parts and investment in next-generation drivetrain technologies. - Emerging trends identified in the report include wider use of all-wheel-drive configurations, better driveline efficiency and torque control, more high-strength materials and more durable low-maintenance systems. - The report cites March 2025 data from the European Automobile Manufacturers' Association showing global bus production reached 362,005 units in 2024, up 10.3% from 2023. - The market report also includes market attractiveness scoring, total addressable market analysis, company scoring matrices, Excel dashboards, market hotspot infographics, key technologies and updated graphics and tables.

Between the lines: - The forecast suggests drivelines are becoming more strategically important as vehicle platforms adapt to electrification and performance demands. - The regional split points to a manufacturing-heavy Asia-Pacific base today and a technology-led growth opportunity in North America. - The emphasis on lighter, stronger and lower-maintenance systems signals pressure on suppliers to improve durability while cutting weight and complexity.

What's next: - Automakers and suppliers are likely to keep investing in driveline efficiency, torque management and AWD systems as vehicle architectures evolve. - The market’s growth through 2030 will depend heavily on electric vehicle adoption and continued expansion in vehicle output worldwide. - The report positions future opportunities around drivetrain technology upgrades rather than basic component demand alone.

The bottom line: - The driveline market is set for sustained double-digit growth, with electrification, vehicle output and performance upgrades driving demand through the end of the decade.