The automotive powertrain systems market industry is projected to grow from USD 58.35 Billion in 2023 to USD 86.01 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.70% during the forecast period (2024 - 2032). Automotive Powertrain Systems Market Size was valued at USD 55.2 billion in 2021. Growing trend of downsized engines and rising demand for automatic transmissions are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Power from the all-wheel-drive system is sent to all the wheels in order to improve the traction and control of the car. Particularly while turning, the system distributes the torque evenly to all four wheels, providing the car with better traction and grip. The recent introduction of the all-wheel drive (AWD) system in compact passenger cars and hybrid vehicles has contributed to the expansion of the market under investigation. This technology was formerly exclusive to luxury cars. The demand for premium and high-end cars in the Asia-Pacific automotive all-wheel-drive market has expanded due to rising consumer spending in emerging markets like China and Japan. Improved safety, stability, fuel efficiency, and driving control are a few more advantages that may accelerate the automotive powertrain systems market's expansion for automobiles with all-wheel drive.
Additionally, many manufacturers are expected to enter this thriving market in India, including Audi, Honda, Mercedes-Benz, Toyota, Hyundai, and BMW. Although there are few sport utility vehicles with all-wheel drive systems on the road, that might change shortly. Due to increased sales and interest, the segment for all-wheel drive sports utility vehicles may see the fastest growth rate. Therefore, such all-wheel drive has enhanced the market CAGR across the globe in recent years.
Within the anticipated time frame, the market expansion for automotive power trains is anticipated to be supported by consumers' growing choice for high-performance automobiles with larger engines and better torque output. Given the diversification of the powertrain range to include electric and hybrid powertrains, the introduction of an automatic transmission is also anticipated to propel the growth of the entire market. The automobile industry is shifting its focus to developing electric and autonomous vehicles. Hence, the high demand for high-performance automobiles is another factor driving the growth of the automotive powertrain systems market revenue.
The global automotive powertrain systems market segmentation, based on component, includes engine, transmission, differentials, drive shafts, and others. The engine segment held the majority share in 2021 regarding the global automotive powertrain systems market revenue. A car's powertrain comprises the engine and its internal parts, including the transmission, driveshaft, and energy storage system. In a traditional internal combustion engine (ICE), the powertrain transforms the stored energy from gasoline or diesel into kinetic energy in the engine. It delivers torque to the vehicle's wheels through the gearbox, driveshaft, and differential. Further, the fastest-growing segment in the automotive powertrain systems industry is the transmission.
The global automotive powertrain systems market data has been bifurcated by engine type into gasoline and diesel. The gasoline segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024-2032. Instead of the compression-ignited engines used in diesel vehicles, gasoline cars generally use spark-ignited internal combustion engines. The fuel is fed into the combustion chamber and mixed with air in a spark-ignited mechanism. A spark from the spark plug ignites the combination of gasoline and air. Hence, the gasoline segment positively impacts the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on vehicle type, the global automotive powertrain systems industry has been segmented into passenger vehicles and commercial vehicles. Passenger vehicles held the largest segment share in 2021, owing to the due to growing government expenditures in EV infrastructure and tax incentives provided to customers, the market for passenger vehicles based on diesel, oil, and gasoline is transitioning away from these fuels and toward electric vehicles. Further, the fastest-growing segment in the automotive powertrain systems industry is commercial vehicles.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America automotive powertrain systems market accounted for USD 25.0056 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the adoption of stringent emission standards in North American nations, the demand for modern, lightweight powertrains that improve fuel economy, cut emissions, and enhance vehicle performance, and automakers' efforts to lower exhaust emissions from their vehicles.
Further, the major countries studied in the automotive powertrain systems market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe automotive powertrain systems market accounts for the second-largest market share due to the region's increasing demand for electric vehicles due to the carbon emissions regulations enacted by the European Union and the relevant national governments. The market for automotive powertrains in the region is expanding quickly. The region's main automakers also make significant investments in research and development to provide high-performance, fuel-efficient, and low-carbon-emitting powertrains. Further, the Germany automotive powertrain systems market held the largest market share, and the UK automotive powertrain systems market was the fastest growing market in the European region.
The Asia-Pacific automotive powertrain systems market is expected to grow at the fastest CAGR from 2024 to 2032. The expansion of the passenger car industry and rising vehicle manufacturing in the area are the main factors driving the growth of the automotive powertrain systems market. Moreover, China automotive powertrain systems market held the largest market share, and the India automotive powertrain systems market was the fastest-growing market in the Asia-Pacific region.
For instance, India automotive powertrain systems market is boosted by Rising disposable income, more urbanization, and a fiercely competitive market that encourages automobile ownership throughout the country.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the automotive powertrain systems market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the automotive powertrain systems industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global automotive powertrain systems industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, automotive powertrain systems industry has provided some of the most significant benefits. The automotive powertrain systems market major player such as Toyota Motor Corporation (Japan), General Motors Company (US), Hyundai Motor Company (South Korea), Aisin Seiki (Japan) ZF Friedrichshafen (Germany), and others are working to expand the market demand by investing in research and development activities.
Toyota Motor Corporation (Japan) produces and sells motor cars and their components. It comprises its three main business divisions, such as automotive, financial Services, and other sectors. The automotive business develops, produces, assembles, and markets trucks, minivans, and other related vehicles, as well as the components and accessories that go with them. In December 2022, the launch of the new Corolla's fifth-generation hybrid powertrains was announced by Toyota Motor Europe (TME).
Also, ZF Friedrichshafen (Germany) provides systems and automotive parts for a variety of mobility products, including vehicles, yachts, and anything from motorbikes to construction machinery. Among the products offered by the firm are front and rear axles, steering and braking systems, occupant safety systems, gearboxes and powertrain modules, and drive components. In November 2021, the newest generation of electric drives for automobiles and light trucks is offered by ZF. Due to its exceptional power density and energy efficiency, it establishes norms.
March 2024: Viritech has introduced their Ready-to-Run Vehicle Powertrain, which had 60 kW of power. The VPT60N Powertrain is a member of the Viritech Powertrain family and represents the culmination of a number of years of research and development conducted by Viritech.
It combines the various powertrain products and enabling technologies offered by Viritech into a comprehensive powertrain solution that can be utilized by original equipment manufacturers (OEMs), Tier-1 corporations, and research organizations. This solution enables the rapid deployment of hydrogen fuel cell electric vehicles.
The following components make up the powertrain:
Both the battery energy store and the hydrogen storage are offered in unique form factors to facilitate vehicle packing. Additionally, a standardized alternative is provided for both of these options to reduce lead times. All of the systems integration between the powertrain components is finished when the powertrain is delivered, and the vehicle control unit (VCU) is preconfigured so that the system may be started up inside the car.
Viritech's engineering section is able to enable vehicle integration and development (including human machine interface and functional safety case) in order to obtain a fully homologated end vehicle. The powertrain is available in a non-homologated version for use in prototypes and development vehicles.
| Report Attribute/Metric | Details |
| Market Size 2021 | USD 55.2 billion |
| Market Size 2023 | USD 58.35 billion |
| Market Size 2032 | USD 86.01 billion |
| Compound Annual Growth Rate (CAGR) | 5.70% (2024-2032) |
| Base Year | 2021 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Engine Type, Vehicle Type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Toyota Motor Corporation (Japan), General Motors Company (US), Hyundai Motor Company (South Korea), Aisin Seiki (Japan), Borgwarner (US), Ford Motor (US), Delphi Automobile (UK), Magna Powertrain (US), Denso Corporation (Japan), GKN PLC (UK), Jtekt Corporation (Japan), and ZF Friedrichshafen (Germany) |
| Key Market Opportunities | Surging car penetration in emerging countries |
| Key Market Dynamics | Growing trend of downsized engines Rising demand for automatic transmissions |
Frequently Asked Questions (FAQ) :
The global automotive powertrain systems market size was valued at USD 55.2 Billion in 2021.
The global automotive powertrain systems market is projected to grow at a CAGR of 5.70% during the forecast period, 2024-2032.
North America had the largest share in the global automotive powertrain systems market.
The key players in the automotive powertrain systems market are Toyota Motor Corporation (Japan), General Motors Company (US), Hyundai Motor Company (South Korea), Aisin Seiki (Japan), and ZF Friedrichshafen (Germany).
The engine category dominated the automotive powertrain systems market in 2021.
The gasoline had the largest share in the global automotive powertrain systems market.
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