Automotive Powertrain

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

The global market for Automotive Powertrain estimated at US$919.4 Billion in the year 2024, is expected to reach US$1.6 Trillion by 2030, growing at a CAGR of 9.2% over the analysis period 2024-2030. All-Wheel Drive (AWD), one of the segments analyzed in the report, is expected to record a 10.5% CAGR and reach US$351.3 Billion by the end of the analysis period. Growth in the Front-Wheel Drive (FWD) segment is estimated at 9.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$246.0 Billion While China is Forecast to Grow at 13.3% CAGR

The Automotive Powertrain market in the U.S. is estimated at US$246.0 Billion in the year 2024. 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 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 6.4% and 7.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.1% 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.

SCOPE OF STUDY:

The report analyzes the Automotive Powertrain market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Position Type (All-Wheel Drive (AWD), Front-Wheel Drive (FWD), Rear-Wheel Drive (RWD)); Propulsion Type (Internal Combustion Engine (ICE), Electric); End-Use (Passenger Cars, Commercial Vehicles)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

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

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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