Automotive Powertrain Market (By Vehicle Type: Passenger Vehicle, Commercial Vehicle; By Propulsion Type: ICE, BEV) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook 2022 – 2030

The global Automotive Powertrain market gathered revenue around USD 696.86 billion in 2021 and market is set to grow USD 2.1 trillion by the end of 2030 and is estimated to expand at a modest CAGR of 12.6% during the prediction period 2022 to 2030.

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Growth Factors:

The increasing demand for environment-friendly vehicles and increasingly stringent government regulations regarding vehicular emission are expected to favor the demand for automotive powertrains in the market. Moreover, technological advancements in powertrain systems to enhance the vehicle's efficiency are anticipated to boost market growth prospects over the forecast period.

The adoption rate and pace of evolution of automotive powertrain vary across regions according to purchase subsidies, regulatory differences, road pricing, fuel taxation policy, state support, and consumer preferences. In Europe and countries such as China, South Korea, and Japan, stringent regulations are expected to make OEMs shift their focus on electrified powertrain options. Other significant factors that constitute the evolution of powertrain include developing charging infrastructure in different regions globally.

Increasing vehicle sales and the growing adoption of automated transmission vehicles in emerging countries such as India, China, Indonesia, Japan, and Brazil, are expected to drive the market. The substantial rise in the purchasing power of consumers has increased the demand for state-of-the-art motor vehicles, driving the demand for upgraded systems. The rising use of All Wheel Drive in SUVs in emerging regions is also expected to support the growth of the powertrain market. The growing demand for AWD-equipped vehicles in the Asia Pacific region is expected to boost the growth of the all-wheel-drive system market.

Report Coverage

Report Scope Details
Market Size USD 42.1 trillion by 2030
Growth Rate CAGR of 12.6% From 2022 to 2030
Base Year 2021
Forecast Period 2022 to 2030
Report coverage Growth Factors, Revenue Status, Competitive Landscape,  and Future Trends
Segments Covered Vehicle type, propulsion type, Region
Regional Scope North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)
Companies Mentioned  BorgWarner; Continental AG; Magna International Inc.; Marelli Holdings Co., Ltd.; Mitsubishi Electric Corp; Nidec Corporation; Robert Bosch GmbH; Schaeffler AG; Valeo; ZF Friedrichshafen AG.

Vehicle Type analysis

The passenger vehicle segment accounted for the largest share of around 79.2% in 2021 and is anticipated to maintain its dominance over the forecast period as well. The shortage of computer chips in the automotive industry has affected production volumes and hindered market growth. Moreover, diesel, oil, and gasoline-based passenger vehicle markets are witnessing a shift toward electric passenger vehicles owing to increasing investments by governments in EV infrastructure and tax benefits offered to consumers. For instance, in the U.S., under the Clean Vehicle Rebate Project (CVRP), eligible candidates are provided a tax rebate from the State of California from April 23, 2021, onwards.

The commercial vehicle segment is projected to register a CAGR of over 12.7% over the forecast period owing to the increasing demand for a unified supply chain network connecting multiple transportation modes, including freight rail, air, and express delivery services, maritime transport, and truck transport. The introduction of electric vehicles in the commercial vehicle sector and the decentralization of production activities are expected to increase the production volumes of commercial vehicles globally. Moreover, truck digitization or connected trucks is expected to offer new business opportunities for key OEMs in the region, including Volkswagen (MAN & Scania), Daimler AG, and Volvo. These OEMs are expected to invest heavily in telematics solutions, which is anticipated to propel the growth of the commercial vehicle market.

Propulsion Type analysis

The Internal Combustion Engine (ICE) segment accounted for the largest share of around 91% of the overall market in 2020. The ICE segment consists of gasoline, diesel, and natural gas vehicles. Currently, gasoline engines are adopted widely and are projected to be replaced by diesel engines owing to the increasing difference between diesel and gasoline prices. However, the price difference between ICEs and EVs and improper charging infrastructure are the major factors that benefit the adoption of ICE vehicles. Due to these factors, component manufacturers are adopting hybrid powertrains to reduce fuel usage in vehicles.

The electric vehicle segment is projected to register a CAGR of over 29.8% over the forecast period. The slowdown in the sales of internal combustion engine vehicles and restrictions on CO2 targets have helped increase the demand for electric vehicles. The mass adoption of BEVs is an effective solution to cutting down emissions and reducing the total cost of ownership in the long run. Moreover, advancements in battery technology and reduction in Lithium-ion battery prices are also expected to boost the demand for BEVs over the forecast period.

Regional analysis:

The Asia Pacific regional market accounted for the largest revenue share of more than 60% in 2020. It is anticipated to continue leading with a CAGR exceeding 13.7% over the forecast period. China remains the world’s largest manufacturer of automobiles as well as the leading automotive market. In 2020, China ranked first in terms of the production of passenger cars and recorded a production volume of nearly 21 million passenger cars. In India, the growing popularity of SUVs among customers is expected to drive the passenger vehicle segment. Furthermore, the electrification of vehicles, especially small passenger cars, is expected to influence market growth in the future. 

Europe is estimated to expand at the highest CAGR of over 13.2% over the forecast period. The rapidly growing demand for hybrid and electric vehicles is expected to favor the growth of the electric powertrain market. The EV sector in Europe also experienced substantial growth in 2019. Germany has been at the forefront of reducing fossil fuel dependency and lowering the environmental impact of the automotive industry, among other initiatives.

Competitive Rivalry

Foremost players in the market are attentive on adopting corporation strategies to enhance their market share. Some of the prominent tactics undertaken by leading market participants in order to sustain the fierce market completion include collaborations, acquisitions, substantial spending in R&D and the improvement of new-fangled products or reforms among others.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

  • Company Overview
  • Company Market Share/Positioning Analysis
  • Product Offerings
  • Financial Performance
  • Recent Initiatives
  • Key Strategies Adopted by Players
  • Vendor Landscape
  • List of Suppliers
  • List of Buyers

Some of the prominent players in the Automotive Powertrain Market include:

  • BorgWarner
  • Continental AG
  • Magna International Inc.
  • Marelli Holdings Co., Ltd.
  • Mitsubishi Electric Corp
  • Nidec Corporation
  • Robert Bosch GmbH
  • Schaeffler AG
  • Valeo
  • ZF Friedrichshafen AG

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:

  • By Vehicle Type
    • Passenger Vehicle
    • Commercial Vehicle
  • By Propulsion Type
    • ICE
      • Gasoline
      • Diesel
      • Natural Gas Vehicle
    • BEV
      • PHEV
      • Electric Vehicle

By Geography

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • United Kingdom
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific

Latin America

  • Brazil
  • Rest of Latin America

Middle East & Africa (MEA)

  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa

Highlights of the Report:

  • Market Penetration: Comprehensive information on the product portfolios of the top players in the market.
  • Product Development/Innovation: Detailed insights on the upcoming technologies, R&D activities, and product launches in the market
  • Competitive Assessment: In-depth assessment of the market strategies, geographic and business segments of the leading players in the market
  • Market Development: Comprehensive information about emerging markets. This report analyzes the market for various segments across geographies
  • Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the market

Research Methodology

In the study, a unique research methodology is utilized to conduct extensive research on the growth of the Automotive Powertrain market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the conclusions.

Secondary resources referred to by analysts during the production of the Automotive Powertrain market study are as follows - statistics from government organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of this report as a primary resource.

Comprehensive information acquired from primary and secondary resources acts as a validation from companies in the market, and makes the projections on the growth prospects of the Automotive Powertrain markets more accurate and reliable.

Secondary Research

It involves company databases such as Hoover's: This assists us recognize financial information, structure of the market participants and industry competitive landscape.

The secondary research sources referred in the process are as follows:

  • Governmental bodies, and organizations creating economic policies
  • National and international social welfare institutions
  • Company websites, financial reports and SEC filings, broker and investor reports
  • Related patent and regulatory databases
  • Statistical databases and market reports
  • Corporate Presentations, news, press release, and specification sheet of Manufacturers

Primary Research

Primary research includes face-to face interviews, online surveys, and telephonic interviews.

  • Means of primary research: Email interactions, telephonic discussions and Questionnaire based research etc.
  • In order to validate our research findings and analysis we conduct primary interviews of key industry participants. Insights from primary respondents help in validating the secondary research findings. It also develops Research Team’s expertise and market understanding.

Industry participants involved in this research study include:

  • CEOs, VPs, market intelligence managers
  • Procuring and national sales managers technical personnel, distributors and resellers
  • Research analysts and key opinion leaders from various domains

Key Points Covered in Automotive Powertrain Market Study:

  • Growth of Automotive Powertrain in 2022
  • Market Estimates and Forecasts (2017-2030)
  •  Brand Share and Market Share Analysis
  •  Key Drivers and Restraints Shaping Market Growth
  •  Segment-wise, Country-wise, and Region-wise Analysis
  •  Competition Mapping and Benchmarking
  •  Recommendation on Key Winning Strategies
  •  COVID-19 Impact on Demand for Automotive Powertrain and How to Navigate
  •  Key Product Innovations and Regulatory Climate
  •  Automotive Powertrain Consumption Analysis
  •  Automotive Powertrain Production Analysis
  •  Automotive Powertrain and Management