Automotive Powertrain Market Forecasts to 2028 – Global Analysis By Vehicle Type (Commercial Vehicle, Passenger Vehicle, Mid-Sized Vehicles, Compact Vehicles, Luxury Vehicles, Premium Vehicles), Component Type (Differentials, Engine, Driveshaft, Transmiss

Automotive Powertrain Market Forecasts to 2028 – Global Analysis By Vehicle Type (Commercial Vehicle, Passenger Vehicle, Mid-Sized Vehicles, Compact Vehicles, Luxury Vehicles, Premium Vehicles), Component Type (Differentials, Engine, Driveshaft, Transmission), Position (Rear-wheel Drive (RWD), All-wheel Drive (AWD), Front-wheel Drive (FWD)) and others

According to Stratistics MRC, the Global Automotive Powertrain Market is accounted for $896.71 billion in 2022 and is expected to reach $1927.1 billion by 2028 growing at a CAGR of 13.6% during the forecast period. The term automotive powertrain refers to a group of systems that include everything from the vehicle's tyre to the engine's source of power. A typical vehicle's powertrain is made up of a number of parts, including an engine, transmission, differential, and shaft.

In accordance to The Federal Reserve, general industrial manufacturing elevated 0.9% in March 2022. Further, Mexican automotive manufacturing went up 31% in August as per Administrative Registry of the Light Vehicle Automotive Industry.

Market Dynamics:

Driver:

High demand for four-wheel drive vehicles

As four-wheel drive vehicles have a higher number of components in their powertrain units, such as power differentials and transfer cases, the high demand for four-wheel drive vehicles aids in the growth of the automotive powertrain market.

Restraint:

Stringent government regulations

The government's strict requirements to engrave vehicle emissions for a carbon-free environment are features in the market's uninterrupted development.

Opportunity:

Rising inclination toward electric vehicles

Rising interest in electric vehicles is anticipated to present a sizable opportunity for market participants who are engaged in the production of electric vehicle drive trains over the course of the forecast period, so the development and production of components for hybrid and electric vehicles is anticipated to strengthen the position of that specific manufacturer in the automotive powertrain market.

Threat:

Adoption of public transport

Local governments in the majority of densely populated urban regions throughout the world are promoting the use of public transportation, which is predicted to hurt the market for car powertrains.

Covid-19 impact

The COVID-19 pandemic altered the nature of business and is expected to have an impact on the general business environment over the coming years. Lockdowns implemented globally to stop the virus's spread have caused supply chain delays and the temporary shutdown of many production sites. Shipments were delayed as a result, and output levels fell sharply. The automotive powertrain business was similarly impacted by the decline in sales of cars and trucks. This in turn had an effect on the expansion of the vehicle transmission market during the difficult COVID-19 period.

The commercial vehicle segment is expected to be the largest during the forecast period

Based on vehicle type market is classified into Commercial Vehicle, Passenger Vehicle, Mid-Sized Vehicles, Compact Vehicles, Luxury Vehicles and Premium Vehicles. The commercial vehicle segment is projected to register a largest share over the forecast period due to the rising demand for an integrated supply chain network linking various modes of transportation, including trucking, freight train, air, and express delivery services. Global production volumes of commercial vehicles are anticipated to rise as a result of the introduction of electric vehicles in the commercial vehicle market and the decentralisation of production activities.

The Internal Combustion Engine electric vehicle segment is expected to have the highest CAGR during the forecast period

The Internal Combustion Engine power vehicle segment is projected to register a CAGR of over the forecast period. Demand for power vehicles has risen as a result of declining sales of automobiles with internal combustion engines and CO2 target constraints. The widespread use of BEVs is a practical way to reduce emissions and, in the long term, the total cost of ownership. Additionally, during the course of the forecast period, improvements in battery technology and declining Lithium-ion battery prices are anticipated to increase demand for BEVs.

Region with highest share:

The region that generates the majority of income is expected to continue on its current trajectory during the analysis period. This is mostly explained by the rise in vehicle sales and automatic transmission demand in Asian nations. Additionally, the growing purchasing power of customers in emerging countries is probably going to increase demand for cutting-edge vehicles, which in turn will drive demand for updated powertrains in such vehicles. The need for cutting-edge automobiles has been fueled by a significant increase in consumer spending power, which has also significantly increased demand for improved technologies.

Region with highest CAGR:

Due to the vast number of automakers that are top producers of luxury vehicles with strong, cutting-edge powertrain units, Europe is a significant market for automotive powertrain. Major industrial firms' presence in the area has clearly fueled industry expansion. The region's fast expanding automotive powertrain market can be ascribed to the region's rising demand for electric vehicles as a result of the European Union and individual national governments' adoption of carbon emissions regulations. Research and development projects focused at creating high-performance, fuel-efficient, and low-carbon-emitting powertrains are also heavily funded by the region's main automakers.

Key players in the market

Some of the key players profiled in the Automotive Powertrain Market include Mercedes-Benz, BMW , Ford Motors, Bharat Forge, Mitsubishi Electric Corp, CNH Industries, General Motors, Robert Bosch GmbH, Volkswagen AG, Tata Motors, Toyota Motor Corporation, Borgwarner Inc., Hitachi Automotive, Continental AG, Hyundai, Valeo, Nidec Corporation, Magna International Inc.

Key Developments:

In June 2021, Mercedes-Benz, a German automaker, announced the acquisition of Yasa. Yasa is engaged in the development of next-generation electric drive technology.

In March 2021, Bharat Forge, an automotive component supplier, announced that it had purchased a 100% stake in Kalyani Powertrain KPPL. KPPL will act as a Special Purpose Vehicle (SPV) segment on the company’s EV business.

In January 2020, CNH Industries announced that it would split in two and list its truck, bus, and engine division. It has been aiming to create one company to run agriculture and construction brands, such as Case and New Holland, and lists a separate unit to manage Iveco trucks, Iveco and Heuliez buses, and FPT powertrains. It expects to complete the separation by early 2021.

In February 2018, BMW showcased its new i-lineup, including a Roadster edition of the i8, along with the i3s powered by plug-in hybrid, as well as electric powertrain.

Vehicle Types Covered:
• Commercial Vehicle
• Passenger Vehicle
• Mid-Sized Vehicles
• Compact Vehicles
• Luxury Vehicles
• Premium Vehicles

Component Types Covered:
• Differentials
• Engine
• Driveshaft
• Transmission

Positions Covered:
• Rear-wheel Drive (RWD)
• All-wheel Drive (AWD)
• Front-wheel Drive (FWD)

Engine Types Covered:
• Gasoline
• Diesel
• Other Engine Types

Powertrains Covered:
• Hybrid Electric Vehicle
• Battery Electric Vehicle
• ICE Powered Vehicle

Sales Channels Covered:
• Aftermarket
• Original Equipment Manufacturer (OEM)

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 2020, 2021, 2022, 2025, and 2028
- 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