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Automotive Powertrain Systems Market Size (2024 - 2029)

The automotive powertrain systems market is experiencing growth despite challenges posed by the Covid-19 pandemic, which temporarily reduced demand due to halted production and decreased vehicle usage. The market's expansion is driven by stringent government regulations, a rising demand for eco-friendly vehicles, and technological advancements aimed at enhancing efficiency. The shift towards electrification is expected to impact the market's value, as traditional powertrain systems may become less relevant. Key factors influencing the market's size include increased vehicle production and passenger car penetration, particularly in regions with strict emission regulations.

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Market Size of Automotive Powertrain Systems Industry

Automotive Powertrain Systems Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR > 5.00 %
Fastest Growing Market Europe
Largest Market Asia Pacific
Market Concentration Low

Major Players

Automotive Powertrain Systems Market Major Players

*Disclaimer: Major Players sorted in no particular order

Automotive Powertrain Market Analysis

Currently, the automotive powertrain systems market is valued at USD 713 billion. It is expected to reach USD 987 billion over the next five years, registering a CAGR of more than 5% during the forecast period.

  • The Covid-19 pandemic had a negative impact on the automotive powertrain systems market. With worldwide lockdown and social distancing norms implemented, there was a global halt for automotive production and transport. With minimal or emergency usage of vehicles, the need for powertrain systems in the aftermarket scenario has also decreased. Also, with the expected increase in electrification in the coming years, the present powertrain systems are expected to become obsolete and reduce market value.
  • A powertrain system is one of the main components of an automobile. A powertrain comprises all the components that produce power for the vehicle and transfer simultaneously to the wheels, enabling vehicle movement.
  • The components of the powertrain system include the engine, transmission, differentials, and driveshafts. The vehicle's overall performance and efficiency depend on the powertrain system's properties.
  • The market growth can be attributed to the firm government regulations, growing demand for eco-friendly vehicles, and the technological improvements in powertrain systems to enhance overall efficiency. The primary reasons contributing to the growth of the powertrain market in the region are the increasing vehicle production and the surge of passenger car penetration in the area.
  • The introduction of stringent emission regulations in European and North American countries has increased the demand for superior powertrains, which are lightweight, and hence, help in increasing fuel economy, decreasing emissions, and improving vehicle performance.

Automotive Powertrain Industry Segmentation

A powertrain is an assembly of every component that pushes a vehicle forward. A car's powertrain creates power from the engine and delivers it to the wheels on the ground. The key components of a powertrain include an engine, transmission, driveshaft, axles, and differential.

The automotive powertrain systems market is segmented by component type (engine, transmission, differentials, and driveshaft), by vehicle type (passenger cars and commercial vehicles), by drive type (front-wheel drive, rear-wheel drive, and all-wheel drive), and by geography (North America, Europe, Asia-Pacific, and Rest of the World). 

The report offers market size and forecasts for Automotive Powertrain Systems in terms of value (USD billion) for all the above segments.

Component Type
Engine
Transmission
Differentials
Driveshaft
Vehicle Type
Passenger Cars
Commercial Vehicles
Drive Type
Front-wheel Drive
Rear-wheel Drive
All-wheel Drive
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Russia
Rest of Europe
Asia-Pacific
India
China
Japan
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle-East and Africa
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Automotive Powertrain Systems Market Size Summary

The automotive powertrain market is experiencing a dynamic phase, driven by evolving consumer demands and regulatory pressures. Powertrain systems, integral to vehicle performance, encompass components like engines, transmissions, differentials, and driveshafts. The market is poised for significant growth, fueled by stringent government regulations, a rising demand for eco-friendly vehicles, and technological advancements aimed at enhancing efficiency. The shift towards electrification is reshaping the landscape, with traditional powertrain systems facing potential obsolescence. The Asia-Pacific region, particularly China, is a key player, witnessing increased vehicle production and a surge in passenger car penetration, which bolsters the market's expansion. However, the market's growth is tempered by the rising costs of powertrain systems and the fluctuating demand for luxury vehicles, especially in emerging markets.

The all-wheel-drive (AWD) system is gaining traction, previously limited to high-end vehicles, now being introduced in smaller passenger cars and hybrids. This expansion is supported by the growing purchasing power in regions like Asia-Pacific, where demand for luxury and high-end vehicles is on the rise. Despite challenges in the Chinese automobile market, factors such as improved safety, stability, and fuel efficiency are expected to drive the AWD market's growth. Major automotive players, including Audi, Honda, Mercedes-Benz, and BMW, are actively participating in this burgeoning segment. The market's future growth is anticipated to be influenced by upcoming regulations and the increasing demand for AWD-equipped vehicles, particularly in the Asia-Pacific region, which is also witnessing a rise in electric vehicles and powertrains due to stringent emission regulations.

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Automotive Powertrain Systems Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Component Type

      1. 2.1.1 Engine

      2. 2.1.2 Transmission

      3. 2.1.3 Differentials

      4. 2.1.4 Driveshaft

    2. 2.2 Vehicle Type

      1. 2.2.1 Passenger Cars

      2. 2.2.2 Commercial Vehicles

    3. 2.3 Drive Type

      1. 2.3.1 Front-wheel Drive

      2. 2.3.2 Rear-wheel Drive

      3. 2.3.3 All-wheel Drive

    4. 2.4 Geography

      1. 2.4.1 North America

        1. 2.4.1.1 United States

        2. 2.4.1.2 Canada

        3. 2.4.1.3 Rest of North America

      2. 2.4.2 Europe

        1. 2.4.2.1 Germany

        2. 2.4.2.2 United Kingdom

        3. 2.4.2.3 France

        4. 2.4.2.4 Russia

        5. 2.4.2.5 Rest of Europe

      3. 2.4.3 Asia-Pacific

        1. 2.4.3.1 India

        2. 2.4.3.2 China

        3. 2.4.3.3 Japan

        4. 2.4.3.4 South Korea

        5. 2.4.3.5 Rest of Asia-Pacific

      4. 2.4.4 Rest of the World

        1. 2.4.4.1 South America

        2. 2.4.4.2 Middle-East and Africa

Automotive Powertrain Systems Market Size FAQs

The Automotive Powertrain Systems Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

Toyota Motor Corporation, Hyundai Motor Company, JTEKT Corporation, ZF Friedrichshafen AG and Volkswagen AG are the major companies operating in the Automotive Powertrain Systems Market.

Automotive Powertrain Market Report Snapshots

Automotive Powertrain Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)