Automotive Powertrain

Automotive Powertrain

Global Automotive Powertrain Market to Reach US$1.6 Trillion by 2030

The global market for Automotive Powertrain estimated at US$834.5 Billion in the year 2023, is expected to reach US$1.6 Trillion by 2030, growing at a CAGR of 9.4% over the analysis period 2023-2030. All-Wheel Drive (AWD) Powertrain, one of the segments analyzed in the report, is expected to record a 10.6% CAGR and reach US$351.3 Billion by the end of the analysis period. Growth in the Front-Wheel Drive (FWD) Powertrain segment is estimated at 9.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$225.4 Billion While China is Forecast to Grow at 13.3% CAGR

The Automotive Powertrain market in the U.S. is estimated at US$225.4 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$348.4 Billion by the year 2030 trailing a CAGR of 13.3% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 6.6% and 7.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.3% CAGR.

Automotive Powertrain  - Key Trends and Drivers

The automotive powertrain system, which includes the engine, transmission, differentials, and driveshafts, is fundamental to a vehicle’s capability to generate and transmit power to the wheels, thereby enabling movement. Growth in the market is led by rising vehicle production and increased passenger car penetration, especially in emerging automotive markets.  Stricter emission regulations in regions such as Europe and North America are pushing the demand for advanced, lightweight powertrain systems that contribute to better fuel economy and reduced emissions. These systems are designed to improve fuel economy and reduce emissions, aligning with consumer and regulatory demands for higher performance and environmentally friendly vehicles. The preference for such vehicles is catalyzing the adoption of new technologies in powertrain systems, enhancing vehicle efficiency and performance.

Electrification is becoming a defining trend in the powertrain sector, with a significant shift towards electric and hybrid vehicles shaping market dynamics. This transformation is supported by technological advancements and a growing consumer interest in sustainable and energy-efficient vehicles, leading to a decline in traditional internal combustion engine vehicles. Automotive OEMs are adjusting strategies, moving from outsourcing to insourcing of e-powertrain systems and components to better control production and capitalize on technological innovations, preparing for a future dominated by electric mobility.

Technological innovations in powertrain systems, such as automated transmissions and engine downsizing, are critical in meeting consumer expectations and stringent emission standards. These advancements enhance fuel efficiency and overall vehicle performance, driving the industry`s transition towards more sustainable transportation options. Furthermore, the all-wheel drive (AWD) systems are gaining popularity, now extending beyond high-end vehicles to smaller passenger cars and hybrids, increasing market presence. This trend is complemented by the growth of the commercial vehicle segment, spurred by the demand for unified supply chains and the incorporation of electric models into commercial fleets, along with investments in telematics solutions that enhance vehicle connectivity and efficiency.

Select Competitors (Total 13 Featured) -

• Aisin Seiki Co., Ltd.
• BorgWarner, Inc.
• Ford Motor Company
• General Motors Company
• Hyundai Motor Company
• JTEKT Corporation
• Toyota Motor Corporation
• Volkswagen AG
• ZF Friedrichshafen AG

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