Automotive Drivetrain Market Forecasts to 2030 – Global Analysis By Vehicle Type (Passenger Car, Commercial Vehicles and Electric Vehicle), Drive Type (Front Wheel Drive, Rear Wheel Drive and All-Wheel Drive), Technology and By Geography

Automotive Drivetrain Market Forecasts to 2030 – Global Analysis By Vehicle Type (Passenger Car, Commercial Vehicles and Electric Vehicle), Drive Type (Front Wheel Drive, Rear Wheel Drive and All-Wheel Drive), Technology and By Geography

According to Stratistics MRC, the Global Automotive Drivetrain Market is accounted for $218.18 billion in 2023 and is expected to reach $411.84 billion by 2030 growing at a CAGR of 9.5% during the forecast period. The automotive drivetrain includes the components that transmit power to an automobile's steering wheel. It is frequently referred to as a driveline or a powertrain. It is in charge of how the wheels, engine, and movement of the vehicle all work. Features of this kind of technology include increased fuel efficiency and greater vehicle performance. The drive train system is made up of diverse parts such wheels, driving shafts, U joints, and CV joints.

According to the World Economic Forum, in July 2017, the Government of UK announced that they will be discontinuing the production of new petrol and diesel cars from the year 2040

Market Dynamics

Driver

Rise in the sale of electric and hybrid vehicles all over the world

The propulsion system for electric vehicles is continually changing. Due to the increase in fuel prices, manufacturers are concentrating on the creation of electric vehicles. The importance of the drivetrain system will increase significantly as battery technology advances. In 2020, there were more than 10 million electric vehicles on the road. Modern vehicle sales are rising as a result of shifting consumer attitudes and economic conditions. The market for automotive parts, particularly in the drivetrain system segment, is expanding as a result of the increasing use of electric taxis as transportation vehicles. Due to their high compatibility with these vehicles, manufacturers are concentrating on the adoption of electric drive systems and other electric automobile components.

Restraint

Associated high cost and fluctuating raw material prices

Depending on the specifications and design, the price of any drivetrain installed in a vehicle varies. It directly raises the price of the vehicle as a whole. Costs increase as a result of more advanced automobile features and powerful engines. The usage of expensive or advanced raw materials and their fluctuation rates is also a major contributor to this cost increase. Additionally, dependent on additional parts and components, clients who choose to upgrade to an advanced drive system require an additional USD 2,000–$3,500. Due to this, the cost of steel and powder processing to satisfy this demand as well as the increase in demand for powerful and luxurious automobiles would be constrained. As a result, these elements are impeding the expansion of the automobile drivetrain market.

Opportunity

Increased demand for luxury features and usage of advanced technology

Global automakers have been implementing consumer-centric requirements and altering regional patterns in response to client preferences. Consumers are more likely to employ luxury comfort features in cars, and in recent years, the pace of expansion of comfort and safety features in cars has sharply increased all over the world. In addition, customers were seen adopting electric vehicles due to the impact of carbon dioxide emissions and for environmental concerns, and the trend toward gasoline-powered vehicles began to decline in significant regions and nations. As a result, in industrialized nations, producers of e-drive components have the best profit margins.

Threat

Supply chain disruptions

The drivetrain industry relies on a complex global supply chain to source raw materials, components, and parts from various suppliers. Disruptions in the supply chain, such as natural disasters, political instability, or trade disputes, can lead to delays in production, increased costs, and shortages of critical components. This can impact the ability of drivetrain manufacturers to meet customer demand and fulfill orders in a timely manner. Additionally, supply chain disruptions can result in price volatility for raw materials, making cost forecasting and profitability challenging. To mitigate this threat, drivetrain companies need to diversify their supplier base, establish contingency plans, and invest in building more resilient and flexible supply chains.

Covid-19 Impact

The COVID-19 epidemic had significant adverse effects on the economy as a whole, including the car industry. The COVID-19 outbreak substantially impacted the volume drop, recovery rate variability, and many other aspects of the automobile sector. As a result, the global economic ecosystem caused a drop in the manufacturing of drivetrain components. Additionally, there were many difficulties with the raw materials needed to make components, for example, the entire auto industry, including participants in the value chain, experienced uncertainty in their individual industries. In the past year, numerous suppliers have encountered major resource constraints in the global supply and logistics chains, which have had a noticeably detrimental impact on their businesses.

The passenger car segment is expected to be the largest during the forecast period

The passenger car segment held the largest share in the market owing to the increasing demand among consumers, growing industrialization, an influx of urban residents, and commute requirements. The growing market share of automotive drive trains is also due to other elements like the prevalence of vehicles, rising disposable incomes, and shifting consumer preferences toward adopting technologically advanced vehicles. Additionally, improving economic conditions, rising disposable income, fast urbanization, and an increase in the number of people in higher socioeconomic classes have all increased consumer spending on luxury, which is what is driving the growth of the passenger automobile market.

The front wheel drive segment is expected to have the highest CAGR during the forecast period

During the projection period, the front wheel drive segment is expected to have the greatest CAGR. This due to various factors, as many of the recent new cars over the forecast period, started using this configuration. When compared to alternative drive systems, front wheel drive is incredibly cost-effective and offers numerous advantages in terms of mass, space, fuel consumption, lack of driveshaft friction, and weight distribution for traction. Front wheel drive is a common feature of passenger automobiles today, and manufacturers also like it since it has lower production costs, more space-efficient design, and sportier performance across the board, which are the factors propelling the growth of the front wheel drive segment.

Region with largest share

The North America region is estimated to witness the highest share market during the forecast period. North America has experienced more technological developments and acceptance of cutting-edge technologies than other regions. The most recent advancements in hybrid and electronic vehicles, like wheel hub motors and e-axle compatibility, are significantly increasing demand for them in North America. Electric powertrain systems are being included by a number of automakers in their cars in an effort to cut costs, balance loading capacity, and lighten finished products. Customers' comparatively high purchasing power and the rapid advancement of technology in this region are anticipated to boost demand for e-cars and other vehicles, which is anticipated to fuel demand for the expansion of the automotive drivetrain industry.

Region with highest CAGR

The Asia Pacific region is expected to have the highest growth rate over the forecast period. The existence of automotive manufacturers, a robust supply chain, and supporting government policies are important factors fostering the growth of this area. In addition, more than 45% of the world's population lives in high-population, economically developed nations like China, India, and South Korea. As a result, market expansion in these nations is anticipated to be aided by a number of supportive governmental initiatives aimed at reviving the auto industry, which was severely damaged by COVID-19.

Key players in the market

Some of the key players in Automotive Drivetrain market include Aisin Seiki Co. Ltd, AVL List GmbH, AxleTech Corporation, Borgwarner Inc., Continental AG, Daimler Chrysler, Dana Incorporated, Ford, Hyundai Motor Company, Magna International Inc., Marelli Holdings Co., Ltd., Mitsubishi Electric Corp, Nidec Corporation, Robert Bosch GmbH, Schaeffler AG, Toyota Motor Corporation, Valeo, Volkswagen AG and ZF Friedrichshafen AG.

Key Developments

In Sep 2022, Aisin Seiki announced plans to build a new office for its R&D affiliate Aisin (Nantong) Technical Center of China Co., Ltd in China. This would help Aisin Seiki to fully integrate different stages of product development such as design, development, and assessment, thereby improving the quality of the products and services offered to customers.

In March 2022, American Axle & Manufacturing Holdings, Inc. announced the launch of new driveline technologies at the 2016 Winter Test Activities event in Michigan (U.S.). The company is set to launch e-AAM hybrid and electric driveline systems and QUANTUM lightweight axles and drive units.

In Dec 2021, ZF Friedrichshafen has opened a new plant, ZF Pars SSK, in Iran to improve its competitive position and to meet the increased demand for commercial vehicle transmission systems in the Middle Eastern region

Vehicle Types Covered
• Passenger Car
• Commercial Vehicle
• Electric Vehicle

Drive Types Covered
• Front Wheel Drive
• Rear Wheel Drive
• All-Wheel Drive

Technologies Covered
• Central Motor
• E-Axle
• Wheel Hub Module

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances