Report Overview

The global Automotive Powertrain Market was valued at USD 758,092.3 million in 2021 and is projected to expand at a CAGR of 9.1%, between 2023-2032.

The global automotive industry has suffered from low sales and increased requirements due to the onset of the COVID-19 pandemic. This has resulted in a slowdown in market growth. The growing demand for vehicle electricity solutions in the automotive sector and the increasing sales of electric vehicles have also contributed to a greater demand for automotive powertrains. This market is expected to grow rapidly due to the increasing demand for automated transmissions, and engine downsizing to improve vehicle fuel economy efficiency.

Global Automotive Powertrain Market Scope:

Propulsion Type Analysis

On the basis of ‘Propulsion Type’, the ‘Internal Combustion Engines (ICE) segment accounted for about 90% of the overall market in 2021. The ICE segment consists primarily from gasoline, diesel, or natural gas vehicles. Current gasoline engines are popular and are expected to be replaced soon by electric vehicles. This is due to increasing diesel and gasoline prices. The price difference between ICEs & EVs, as well as poor charging infrastructure are two major factors that help in the continued adoption of ICE vehicles. Component manufacturers have begun to use hybrid powertrains to cut down on fuel consumption.

A CAGR of more than 29.8% is expected to be indexed by the ‘Electric Vehicle’ segment over the forecast period. The decline in the sales of internal combustion engine vehicles as well as restrictions to meet on CO2 goals have helped to increase the demand for electric cars. The mass adoption and reduction of emissions is key to reducing cost of ownership. The demand for BEVs will increase due to advancements in battery technology, as well as a decrease in battery prices.

Application Analysis

In terms of ‘Application’, in 2021, 70% of ‘Passenger Vehicles’ accounted for the majority of this industry. This segment is expected to keep its lead over the forecast period. A lack of computer chips in the automotive market has caused a reduction in production volumes and hindered market growth in the process. Due to investments in EV infrastructure by various governments, as well as tax benefits, the transition from gasoline-based passenger vehicles to electric vehicles is being observed. The Clean Vehicle Rebate Project (CVRP) in the U.S., provides tax rebates to eligible candidates starting on April 23^rd, 2021.

The increasing demand for a connected supply chain network, which links multiple transportation modes such as air, rail and express, as well as truck and maritime transport, is driving the CAGR of the ‘Commercial Vehicle’ sector. The introduction of electrical vehicles into the commercial vehicle industry, and the decentralization of production activities are expected increase the global production of commercial vehicle segment volumes. Connected trucks and truck digitization are expected offer key factors for OEM’s new business opportunities. These include Volvo, Daimler AG, Volkswagen MAN & Scania, and Daimler AG. These OEMs are expected invest heavily on telematics solutions. This will help to accelerate growth in commercial vehicle sales.

Key Маrkеt Segments

By Propulsion Type

• ICE
• Gasoline
• Diesel
• Natural Gas Vehicles
• BEV
• PHEV
• Electric Vehicles

By Application

• Passenger Vehicles
• Commercial Vehicles

Market Dynamics:

Over the forecast period, market growth is likely to be driven by increasing carbon and nitrogen emission regulations around the world. The high demand for automobiles, increasing consumption expenditures, and upgrades to automobile systems will all be important market growth drivers. The increasing demand for electric vehicles and fluctuating fuel prices are expected to drive global vehicle electrification efforts. Vehicle electrification projects will be encouraged by stringent emission regulations and a growing awareness among customers regarding environmental issues. The Bosch Group and Renault Group are among the leading automotive players who are now focusing on electrified vehicle additions to their product portfolios. These factors will likely drive revenue growth for the automotive powertrain market over the forecast period.

The growth potential of advanced technologies such as combustion control improvement in internal combustion engines is expected to be triggered by their benefits. Manufacturers are responding to the growing demand for vehicles with improved driving dynamics by developing new systems. A lucrative market opportunity is expected to arise from the demand for cars with advanced features in emerging nations.

Production volumes worldwide fell on a year-on-year basis due to lower production in Europe and North America. Global car sales declined by 33.3% in 2020 between January and April, compared to 2019, when there were roughly 9 million more cars sold. The U.S. registered a decline in passenger car sales by 50% in 2020 compared to 2019. A dramatic dip in the sales of electric cars was also caused by COVID-19. In 2020, there were 296,000 sales of plug-in light-duty electric vehicles in America. This was an 8.5% decrease over the 331,000 units in 2019, which was also significantly lower than the 2019 total.

The market for automotive powertrains will grow in the coming years due to the increasing preference for high-performance cars that produce more torque output and have larger capacity engines. Market growth will be driven by greater adoption of automatic transmissions, which is due to the diversification of powertrain portfolios to include hybrid vehicles and electric powertrains. The automotive industry is shifting towards autonomous and electric cars, as automation is expected to assist in market growth.

Stringent mandates by governments in North America and Europe to lower carbon emissions have created a demand for powertrains with better quality that are increasingly lighter. This helps reduce emissions and improves overall vehicle performance.

The increase in electric vehicles is a key driver of the powertrain industry’s growth. The volatile prices of crude oil are forcing governments and car manufacturers to look for alternative fuel sources, such as hydrogen and electricity. The constant attempts by the automotive industry to lower the battery-reducing price, while improving the driving distance of EVs and reducing their total ownership cost are all elements supporting this projected growth.

Regional Analysis

The Asia-Pacific region will account for 55% of the world’s major market shares in 2021. India, China, and Japan are home to some of the world’s largest auto-manufacturing countries. Increasing disposable incomes, growing urbanization levels, as well as a highly competitive region that favors car ownership, are all factors driving the Asia Pacific region’s growth. Growing demand for powertrains is being fueled by the high performance and speed of luxury cars.

Europe is slated to register the highest expected CAGR of 13% over the forecast period. The growing demand for powertrains for cars in the region can be attributed to the adoption of carbon emissions laws by the European Union, as well as respective national governments. Research and development activities are also a major part of the automotive industry in the region. These activities aim to create high-performance powertrains that are efficient and fuel-efficient as well as low in carbon emissions.

Key Regions and Countries Covered in the Report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

Key market players offer a wide variety of automobile powertrains that can be used to drive ICE or electric vehicles. They are committed to providing innovative and technologically driven products that will enhance their products offerings. These vendors are also focused on strategic initiatives such regional expansions and acquisitions, mergers, partnerships, and collaborations to enhance their respective market positions.

Маrkеt Key Players:

• BorgWarner Inc.
• Continental AG
• Infineon technologies ag
• Magna International Inc.
• Aisin Seiki Co. Ltd.
• Marelli Holdings Co. Ltd.
• Mitsubishi electric corporation
• Nidec Corporation
• Robert Bosch GmbH
• Schaeffler AG
• Other Key Players

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For the Automotive Powertrain Market research study, the following years have been considered to estimate the market size: