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The phrase "is driving demand" is correct and usable in written English.
You could use it when discussing economic trends or consumer demand for a product, for example: "An unprecedented increase in online shopping due to the COVID-19 pandemic is driving demand for delivery services."
Exact(38)
The growing popularity of smart phones, in particular, is driving demand for more cell sites.
Growing interest of institutional investors in Asian, and particularly Chinese, companies is driving demand, he says.
Other hotel officials also say evidence of eco-friendliness is driving demand.
Clayton says it is not just the Fits cut that is driving demand.
Two years ago, customers came to the spa to relax, she said, but now peer pressure is driving demand.
Yet if China is driving demand for 3D, and Apple sees possibilities there, then that might be the next step.
Similar(22)
Several factors are driving demand for more professors.
New jobs, especially for office-workers, are driving demand for space.
6Data from Statista shows that food allergies and intolerances are driving demand for gluten-free foods, particularly in the United States.
Who drinks most vodka, gin, whisky and rum ASIA'S growing middle classes are driving demand in the global spirits market.
Although Europe — where an appetite for beaver top hats helped push North American settlers west two centuries ago — remains a fashion leader, it is Russia and China that are driving demand.
More suggestions(1)
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com