Automotive Drivetrain Market: Industry Analysis and Size, Share, Growth Opportunity, Forecast to 2023 to 2029

Automotive Drivetrain Market size was valuded at USD 199.26 billion in 2022 and is expected to reach USD 330.58 billion by 2029, growing at a CAGR of 7.5 % during the forecast period.

An Automotive Drivetrain is a combination of various components that provide power to the vehicle's wheel. It is made up of a driveshaft, transmission or gearbox, universal joints, constant velocity joints, wheels, and axles. It allows the driver to control the power flow and multiplies the engine torque for controlling the engine speed. Developed countries like China and India are planning to increase the production of electric cars through legislation and subsidies. Automotive drivetrain performance is improving owing to the technological advancements and growing popularity of electric cars, which is expected to increase the Automotive Drivetrain Market growth during the forecast period.

Better vehicle control in unfavorable terrain is expected to drive the demand for automotive drivetrains. In countries such as the United States, Canada, and Germany, the roads are regularly covered with snow; as a result, the vehicle requires extra grip and better traction to be sufficiently under the driver's control. The key factors driving Automotive drivetrain market growth are growing vehicle production and a surge in passenger car penetration. The introduction of stringent emission regulations in European and North American countries has boosted demand for improved Automotive drivetrains that are lightweight and hence assist in increasing fuel efficiency, reducing emissions, and improving vehicle performance.To know about the Research Methodology:-Request Free Sample Report
Automotive Drivetrain Market Dynamics:
Rise in the sale of electric and hybrid vehicles all over the world to boost the Automotive Drivetrain market growth

The electric vehicle drivetrain system is constantly evolving. Manufacturers are focusing on the development of electric vehicles owing to the rise in fuel prices. The drivetrain system will become much more important as battery technology improves. More than 10 million electric cars were on the world's roads in 2020. According to the International Council on Clean Transportation, the sale of electric and hybrid vehicles increased significantly in Spain in 2019.

Changing economic scenarios, as well as customers ’ attitudes are driving an increase in the purchase of modern vehicles. The growing usage of electric taxis as transportation vehicles is fueling the growth of automobile parts, especially in the drivetrain system market. Manufacturers are focusing on the adoption of electric drive systems and other electric automotive parts due to their high compatibility with these vehicles.

Stricter government regulations regarding carbon dioxide emissions are accelerating the adoption of electric vehicles. The usage of electric vehicles has reduced emissions to some extent, which is expected to be a significant element contributing to the growth of the worldwide market. Furthermore, demand for electric vehicles is growing rapidly as a result of state subsidies such as tax relief, free parking, and various subsidies. Hexagon has considerable experience in the development of powertrain components in both the automotive and aerospace industries and is well-prepared to support manufacturers throughout the development of electric vehicle drivetrains.

Stringent emission regulations to reduce vehicle emission drive the growth of Automotive Drivetrain Market

Stringent emission standards and increasing awareness about environmental issues among customers will additionally increase the sale of the automotive drivetrain. Electric cars have seen an increase in demand due to their lightweight nature and better economy. This has resulted in an increase in the use of e-axles and in-wheel hub motors in all types of cars. Furthermore, such installation reduces CO2 emissions and engine space requirements. Leading key players such as Bosch and Renault Group are focusing on improving their product portfolios to include electric cars.

New technologies, such as better ignition control in internal combustion engines, are expected to drive market growth. Furthermore, the growing preference for automobiles with advanced driving dynamics is allowing manufacturers to build new technologies to meet this demand all over the world. These factors will fuel the growth of the automotive drivetrain market over the forecast period.

The United States, Germany, France, and China have all adopted stringent government rules and regulations for vehicular emissions, making it mandatory for Automobile manufacturers to use advanced technologies to combat & reduce emissions and vehicle weight. Furthermore, a program launched by the California Air Resources Board (CARB) includes guidelines for manufacturers to produce and deliver zero-emission vehicles, substantially creating a lucrative opportunity for the adoption of electric vehicles that directly lead to the sale of the automotive drivetrain system market.

Increase in technological advancement to boost the Automotive Drivetrain Market

Automobile manufacturers are focusing on the development of advanced electric vehicle systems that are low in cost and provide maximum mileage. Companies have also started producing downsized engines. Smaller engines are being used in vehicles to achieve the Bharat Stage VI pollution standards. Allison has produced a new AXE series e-axle for medium and heavy-duty trucks that is compatible with fuel cell range extender electric vehicles. Furthermore, a number of companies are focusing their R&D efforts on Automotive drivetrains to maintain their market position.

The companies are started offering in-wheel hub drives that consist of the electric motor, power electronics, brake, and cooling system installed directly in the wheel rim. The development in wheel hub motor technology with its advanced features and e-axle compatibility is expected to fuel the growth of the Automotive drivetrain market during the forecast period.

The high cost of EVs and low economy of scale are hindering the Automotive Drivetrain market

The electric drivetrain system is widely utilized in a variety of vehicles including passenger cars, light commercial vehicles, heavy commercial vehicles, fuel-cell vehicles, and electric vehicles. Furthermore, the efficient operation of the drivetrain comprises many components that are fitted with the electronic motor (synchronous and asynchronous), power electronic components, and different transmission units depending on the system utilized in the vehicle. These components are more expensive, which increases the entire cost of the electric drive system.

The high cost of drivetrain systems is one of the reasons behind the increase in automobile prices. As a result, the adoption of electric cars in countries other than China is hindered by high costs. The high cost of an entirely electric car is expected to hamper the growth of the automotive drivetrain technology industry. The electric vehicle market, on the other hand, is growing rapidly, which may reduce the impact of this restraint in the near future as manufacturers achieve economies of scale.
Automotive Drivetrain Market Segment Analysis:
Based on Vehicle Type, the passenger vehicle segment dominated the Automotive Drivetrain Market with a 78% share in 2022 and it is expected to continue to grow during the forecast period as well. In addition, diesel, oil, and fuel-based traveler vehicle markets are seeing a shift toward electric passenger vehicles due to increasing investments by government administrations in EV infrastructure and tax breaks proposed to customers. The drivetrain system of a car is one of the most technologically advanced automobile tools. With the increase in the number of passenger automobiles and their numerous functions, consumers are demanding more powerful products at a lower cost.

The eaxle and freshly updated wheel hub module is important in various passenger automobiles to initiate efficient powertrain mechanisms in a smaller space. The upsurge in consumer demand for driving comfort in their vehicles is responsible for the increase in demand for the automotive drivetrain for passenger cars.

The commercial vehicle segment is expected to grow at a CAGR of more than 12.7% during the forecast period, thanks to rising interest in a unified supply chain network associating various transportation modes, including cargo rail, air, and express shipment administrations, sea transport, and truck transport. The introduction of electric vehicles into the commercial vehicle market, as well as the decentralization of production activity, will increase commercial vehicle production volumes. Furthermore, truck digitization or connected trucks are expected to open up new business opportunities for regional OEMs such as Volkswagen, Daimler AG, and Volvo. These OEMs would invest in telematics agreements, which would indirectly drive the automotive drivetrain industry.Based on the Drive type, the Front wheel drive segment is relatively cost-efficient when compared to other drive systems and has many advantages related to mass, space, fuel consumption, minimal friction from the driveshaft, and weight adjusted for traction. Many passenger vehicles in the world now have front-wheel drive, and manufacturers favor them due to the lower production costs and dynamic performance of each vehicle. The segment is expected to hold the largets Automotive Drivetrain Market share of xx% by 2029.

The RWD segment is generally found in school buses, minivans, truck-based SUVs, high-performance vehicles, and sports vehicles. Many sport and luxury vehicles also prefer RWD systems, which allow for better weight balance. It has also been popular in motoring, and it is capable of dealing with rear wheels in difficult situations. Allison Transmission has introduced an electric axle powertrain system for electric buses in the North American market. At the Advanced Clean Technology Expo in Long Beach, California, the business also presented the new ABE series e-axle range. In addition, increased luxury car sales and the shipping industry will fuel RWD drivetrain development throughout the forecast period.
Automotive Drivetrain Market Regional Insights
In North America, Automotive Drivetrain Market is expected to experience strong revenue growth during the forecast period. The technological advancements and adoption of the latest technology are higher in North America as compared to other regions. North America leads the way in technical breakthroughs and acceptance as compared to other regions. The latest innovations in hybrid and electronic automobiles, such as wheel hub motors and e-axle compatibility, are effectively propelling its demand in North America. Several automotive manufacturers are incorporating electric powertrain systems into their vehicles to decrease final product costs, balance loading capacity, and reduce final product weight.

Furthermore, the increased use of drivetrain and wheel hub module in vehicles improves product aesthetic appeal and boost the efficiency of the product using minimal space. Customers' relatively high spending power and fast technological improvement in this region are expected to promote demand for e-cars and vehicles, which is expected to drive demand for Automotive drivetrain market growth.

American Axle & Manufacturing, Inc is one of the key electronic axle product developers in the United States, contributing to the growth of the automobile drivetrain technology industry by producing EcoTrac AWD products and prototypes. Alternatively, high demand for Tesla, Inc. electronic cars in this region has motivated other companies to produce more hybrid and electronic automobiles to compete and capture a larger consumer base, which is expected to increase demand for the Automotive Drivetrain Market growth during the forecast period.

The Asia-Pacific region held the largest Automotive Drivetrain market share in 2022. Higher adoption rates of smart mobility services, more government restrictions, a jump in fuel costs, and an increase in the trend toward adopting non-fossil fuel-based cars are likely to fuel the Automotive Drivetrain market growth in this region. Nidec Corporation, located in Japan is conducting extensive research and development on drivetrain products, notably in in-wheel modules and e-axles. The Japanese government has undertaken a number of initiatives to improve logistics and building pace in this region. This factor has increased demand for heavy-duty vehicles with improved load balancing and fuel efficiency, which has led to an increase in the use of the automotive drivetrain market in Japan.

The Automotive Drivetrain Market report forecasts revenue growth at global, and country levels and provides an analysis of the latest industry trends in each of the sub-segments during the forecast period. MMR has segmented the global Automotive Drivetrain Market report based on Vehicle Type, Drive Type, and region. The report contains strategic profiling of top key players in the market, a wide-ranging analysis of their core competencies, and their strategies like new product launches, growths, agreements, joint ventures, partnerships, and acquisitions that apply to the businesses. Our team of analysts can also provide you with data in excel files and pivot tables or can assist you in creating presentations from the data sets available in the report.
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Automotive Drivetrain Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 199.26 Bn.


Forecast Period 2023 to 2029 CAGR:
7.5%
Market Size in 2029:
US $ 330.58 Bn.


 Segments Covered:
by Vehicle Type
Passenger Vehicle
Commercial Vehicle
Electric Vehicle


by Drive Type
Front Wheel Drive
Rear Wheel Drive
All-Wheel Drive


by Electric Vehicle Type
BEV
HEV
PHEV



Automotive Drivetrain Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina, Columbia and Rest of South America)
Automotive Drivetrain Market, Key Players are
1. BorgWarner
2. Aisin Seiki Co. Ltd.
3. American Axle & Manufacturing
4. Continental AG
5. Magna International Inc.
6. Marelli Holdings Co., Ltd.
7. Mitsubishi Electric Corp
8. Nidec Corporation
9. Robert Bosch GmbH
10. Schaeffler AG
11. Valeo
12. ZF Friedrichshafen AG
13. Toyota Motor Corporation
14. Hyundai Motor Company
15. Volkswagen AG
16. JTEKT Corporation
17. AxleTech Corporation
18. Dana Incorporated
19. GKN PLC
20. AVL List GmbH
21. General Motors
22. Ford
23. Daimler Chrysler

FAQs:

1. Who are the key players in the Automotive Drivetrain market?
Ans. Aisin Seiki Co. Ltd., American Axle & Manufacturing, Inc., BorgWarner Inc., GKN PLC, Magna International Inc., Dana Holding Corporation, and JTEKT Corporation are some of the market players in the Automotive Drivetrain industry.

2. Which Vehicle Type segment dominates the Automotive Drivetrain market?
Ans. The Passenger Vehicle segment accounted for the largest share of the global Automotive Drivetrain market in 2022.

3. How big is the Automotive Drivetrain market?
Ans. The global Automotive Drivetrain market size reached USD 199.26 billion in 2022 and is expected to reach USD 330.58 billion by 2029 Automotive Drivetrain, growing at a CAGR of 7.5 % during the forecast period.

4. What are the key regions in the global Automotive Drivetrain market?
Ans. Based On the region, the market has been classified into North America, Europe, Asia Pacific, Middle, East and Africa, and Latin America. North America dominates the global Automotive Drivetrain market.