Automotive Powertrain Market

Global Automotive Powertrain Market Outlook

The global automotive powertrain market is estimated at USD 435.3 Million in 2022 and is forecast to surpass USD 719.3 Million by 2032, growing at a CAGR of 5.2% from 2022 to 2032.

The global automotive powertrain market holds around 21% market share in the total market valuation of global car and automobile industry. It is projected to grow at the CAGR of 3.4% amid the assessment period of 2022 &2032.

Historically, the automotive powertrain market witnessed a growth of around 3.2% CAGR throughout 2017 and 2021. The market for automotive powertrain has generated an absolute $ opportunity of nearly USD 65.17 Million in the previous five years. It is expected to offer an absolute dollar opportunity of USD 117.6 Million and USD 283.9 Million in medium term (2022 & 2027) and long-term (2022 & 2032) individually.

The European automotive powertrain market is projected to grow at a CAGR of 4.6% and lose 76 BPS. Besides, the German automotive powertrain market is the protuberant consumer as well as leading producer of automotive powertrain with the 1/3rd market share followed by the Spain automotive powertrain market.

The Spain automotive powertrain market is projected to grow at a CAGR of 5.4% and lose 29 BPS throughout the assessment period and offer substantial growth opportunities.

Further, the North American automotive powertrain market has observed growth of 3.9% CAGR in the last half-decade. It has acquired nearly 33% market share in the automotive powertrain market. It is projected to grow at a CAGR of 5.3% and lose 24 BPS throughout the assessment period.

Based on powertrain position type, the front wheel drive segment holds 1/3rd market share in global market and is projected to grow at 4.8% during the forecast period.

Fact.MR projects the automotive powertrain market is projected to observe growth of 5.2% CAGR throughout the 2022 & 2032 in distinction to a CAGR of 3.2% with which it showed from 2017 to 2021.

Report Attributes	Details
Base Year Value (2021A)	USD 416.2 Million
Estimated Year Value (2022E)	USD 435.3 Million
Projected Year Value (2032F)	USD 719.3 Million
Global Growth Rate (2022-2032)	CAGR 5.2%
North America  Market Share in 2021	~33%
North America Growth Rate (2022-2032)	CAGR 5.3%
Collective Value Share (USA, China,  Germany, Japan and India) 2021: Top 5 Countries	~53%
Top 5 Companies Market Share in 2021	~41%
Key Companies Profiled	General Motors Ford Motors Volkswagen Group Hyundai Toyota BorgWarner Inc. JTEKT Corp. GKN plc. Magna Powertrain Ltd. Delphi Automobile LLP Other Key Players

Rising Automotive Production Continues to Support Sales of Powertrain

The global sales of automotive have remained favorable for the industry in recent years, with China and the United States topping the list both in terms of production and sales. As the U.S. economy steadily recovers, automotive industry in the country embraces an acceleration, particularly in the auto components vertical. Meanwhile, China prepares to enter a maturity phase with a higher sensitivity towards macroeconomic implications.

The emerging markets, including Brazil, India and Mexico are also coming under the spot light. Demand for commercial vehicles and passenger vehicles has grown significantly in these countries. In 2016, Toyota, Volkswagen, HYUNDAI, G.M., and Ford ranked among the top five manufacturers. Rising automotive production remains a major driver for the global automotive powertrain market.

Greater Efforts to Develop Clean Technology Remains a Major Industry Trend

The automotive industry has increased its efforts to adhere to an integrated approach that advocates the use of clean technology to reduce carbon emission. OEMs are actively focusing on development of more efficient engines, drive-trains, transmission and drive-shafts to reduce fuel consumption.

In fact, some manufacturers have already introduced sophisticated emissions-control technologies that are being used in next-gent automobiles. Moreover, global initiatives, such as the Paris climate accord have prompted various countries across the globe to enact stricter emission laws on new vehicles.

Therefore, the auto industry is beginning to show a greater interest in electric mobility space. Over the next decade, more number of people are likely to opt for vehicle models that have minimum or zero emission burdens.

New Automotive Regulations Driving New Technology & Innovation

Aggressive emissions and fuel economy standards are forcing manufacturers to redesign automotive powertrains with a more flexible and agile style. However, the task is not simple and requires a combination of technologies to meet targets. Some of the best automotive ingenuity goes into powertrain manufacturing.

Regional and (supra) national regulatory bodies are introducing guidelines that are intended to drive manufacturers towards adopting innovative manufacturing methods. These new manufacturing methods not only streamline powertrain assembly but provide intelligence that allow manufacturers to comply with the regulatory norms. In the near future, manufactures will need to improve powertrain systems in order to make them compatible with autonomous vehicle technologies.

The Need for More Fuel Efficient Cars Influencing Manufacturing Technique

Automotive powertrain manufacturing is undergoing massive changes. The need for more fuel-efficient vehicles is leading to rapid adoption of lightweight materials and downsizing of components wherever possible. Farsightedness will be important for manufacturers to understand the changing industrial landscape, highlighting the growing regulatory pressure and demand for fuel economy.

This also means that, a more complex machining and assembly process is likely to be used in order to stay at per with next-gen vehicle standard. Utilization of digital manufacturing solutions for powertrain manufacturing has been major trend, with automating taking the central stage. Both disruptive and evolutionary technologies are likely to be successful- manufacturing intelligence is crucial to achieve sustainability and viability.

Country-wise Insights

What is the North America Automotive Powertrain Business Scenario?

The automotive manufacturing industry in the region continues to evolve, although, its contribution to the overall economic output has dipped since its peak. The industry continues to be a driving force of growth, employment and innovation. Automakers in the U.S. and Canada are adopting technologies that are sustainable and future-ready.

The region, led by the U.S. automotive powertrain market remains powerhouse in the global automotive sector. Therefore, the region is considered a key market for automotive powertrain market during the forecast period. Being one of the largest manufacturers of automotive in the world, the growth of various vertical including powertrain manufacturing is directly proportional to the performance of the parent industry.

Which Region Expected to offer More Demand for Automotive Powertrain?

Over the years, the East Asia and South Asia & Oceania has cemented its place among the elites in the global auto sector. The region accounts for considerable share of the global vehicle sales and is touted to emerge as the most dominant market for automobile and it components in the long run, outperforming North America and Europe.

Further, factors such as bolstering GDP growth and growing aspirations in Asian consumers have been instrumental in driving the growth of the market in the region. Emerging countries such as China, India and Malaysia have continued to witness tremendous economic prosperity.

Besides, an expanding middle class is expected to support the growth of the Chinese and Indian auto markets in the forthcoming years. China being one of the largest automobile manufacturers has become is not only important for region but plays a role on a global level as well.

Further, The East Asia automotive powertrain market likely to show growth of 4.9% CAGR and acquire significant market share in global market by the end of assessment period.

Category-wise Insights

Which Position Type of Automotive Powertrain is the Significant Contributor of the Market?

To provide a thorough study into the pattern of sales for the automotive powertrain market, the market is bifurcated based on position type. It includes front wheel drive, rear wheel drive, all-wheel drive) etc. All-wheel drive type is having dominance the global automotive powertrain market with more than 45% market share.

Further, all-wheel drive segment is likely to continue its dominancy in the automotive powertrain market over the forecast period with the growth of 6.2% CAGR. Additionally, the segment is predicted to gain 340 BPS by the end of 2032. The high growth is attributed to the escalating demand for comfort and safety and rising need for better traction, acceleration, coupled with better towing capacity in vehicles.

Which Powertrain Type is poised to Show Remunerative Growth in Automotive Powertrain Market?

The gasoline powertrain segment is likely to witness CAGR of 3.9% and attain nearly 2/3rd of the overall automotive powertrain market during the forecast period. This is expected to offer an absolute dollar opportunity of nearly USD 76 Million to the market of automotive powertrain over the forecast period. This is attributed to their rising adoption and their replacement by diesel one as the prices of diesel is increasing.

Competitive Landscape: Top Companies in Automotive Powertrain Market

Despite the growing popularity of contemporary powertrain concepts, a majority of manufacturers are still focused on use of traditional technology. In addition, the existing manufacturing infrastructure acts as a serious drawback when it comes to integrating new concepts.

Further, they usually do not offer any cost benefits for new powertrain configurations. Because the conventional facilities leave very little room for new concepts to expedite, manufacturers are bound to invest on constructing new facilities, which may not be a feasible option for many. Technological diversification and ostensibly endless combinations of technical solutions with specific requirements continue to increase the level of complexity for market players.

Fact.MR has provided detailed information about price points of top manufacturers of automotive powertrain positioned across regions, sales growth, production capacity, and speculative technological expansion in the recently published report.

For instance:

1. In 2021, Ford Motors have launched All-electric Ford F-100 truck with eliminator concept and showed numerous benefits of electric propulsion by bringing Mustang Mach-E GT Performance Edition twin rear and front electric traction motors and battery electric powertrain that produce a combined 480 horsepower and 634 lb.-ft. of torque
2. In 2020, General Motors have invested nearly USD 2 Million in transition spring hill based Tennessee plant to manufacture electric vehicles

Global Automotive Powertrain Market Segments

• By Position Type

  • Front Wheel Drive
  • Rear Wheel Drive
  • All Wheel Drive

• By Powertrain Type

  • Gasoline Powertrain Type
  • Diesel Powertrain Type
  • Hybrid Powertrain Type
  • Battery Electric Vehicle Powertrain Type
  • Fuel Cell Powertrain Type

• By Vehicle Type

  • Compact Vehicles
  • Mid-Sized Vehicles
  • Premium Vehicles
  • Luxury Vehicles
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles

• By Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA