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Automotive Powertrain Market To Witness Huge Growth By 2025

Automotive Powertrain Industry Overview

The global automotive powertrain market size was valued at USD 694.86 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 11.6% from 2021 to 2025.

Low automotive sales and new requirements amid the COVID-19 pandemic have affected the overall automotive industry, leading to a subsequent decline in the growth of the market. The growing demand for vehicle electrification in the automotive industry and the increasing sales of electric vehicles are also contributing to the demand for automotive powertrains. Moreover, the increasing demand for automated transmission and engine downsizing to improve the fuel efficiency of vehicles is projected to accelerate the growth of the market.

Gather more insights about the market drivers, restrains and growth of the Global Automotive Powertrain Market

Increasingly stringent carbon and nitrogen emissions regulations globally are also likely to drive market growth over the forecast period. Furthermore, high demand for automobiles, increasing consumption expenditure, and upgrades of automobile systems are projected to be significant market growth drivers. The fluctuating prices of conventional fuel and the rising sales of electric vehicles are expected to drive vehicle electrification initiatives globally. Stringent emission norms and growing awareness about environmental issues among customers are also expected to favor vehicle electrification initiatives. Leading automotive players such as Bosch and Renault Group are focusing on adding electrified vehicles to their product portfolios. These factors are expected to drive the growth of the automotive powertrain market over the forecast period.

Benefits offered by advanced technologies, such as combustion control improvements in internal combustion engines, are expected to trigger growth. Furthermore, the increased preference for vehicles offering improved driving dynamics is encouraging manufacturers to develop new systems catering to this demand in the current environment. Moreover, the high demand for vehicles with advanced features in emerging countries is expected to offer lucrative growth opportunities to the market.

The COVID-19 pandemic changed the business dynamics in 2020 and is anticipated to affect the overall business scenario over the next few years. Lockdowns imposed worldwide to reduce the spread of the virus have led to supply chain disruptions and temporary closures of numerous production facilities. As a result, shipments were delayed and production volumes plummeted. The dwindling sales of passenger and commercial vehicles also had an impact on the automotive powertrain industry. Manufacturers of automotive powertrains continued to face issues with supplies of raw materials over the second half of 2020 owing to delays in international shipments and reported production delays.

Decreased production volumes in North America and Europe led to an overall decline in production volumes globally on a year-on-year basis. Global car sales between January and April in 2020 dropped by about 33.3% compared to the same period in 2019, with around 9 million fewer cars sold. In the U.S., the sales of passenger cars were down by roughly 50% year-on-year in 2020 compared to 2019. The COVID-19 pandemic also caused a dramatic decline in electric car sales. The sales of plug-in light-duty electric vehicles in the U.S. in 2020 totaled 296,000 units, which was significantly lesser than the 331,000 units sold in 2019, a year-on-year decline of over 8.5%.

Browse through Grand View Research’s Automotive & Transportation Industry Research Reports.

  • Commercial Vehicles Market – The global commercial vehicles market size was estimated at USD 1,274.50 billion in 2021 and is projected to register a compound annual growth rate (CAGR) of 4.0% from 2022 to 2030. The COVID-19 pandemic affected the automotive industry, with the market witnessing a decline in growth as a result of low automotive sales or new requirements.
  • Electric Vehicle Market – The global electric vehicle market demand was estimated at 2,373.5 thousand units in 2019 and is expected to witness a CAGR of 41.5% 2020 to 2027. The market is driven by initiatives taken by governments of various countries to promote the manufacturing of electric vehicles (EVs).

Automotive Powertrain Market Segmentation

Grand View Research has segmented the global automotive powertrain market based on vehicle type, propulsion type, and region:

Automotive Powertrain Vehicle Type Outlook (Volume, Thousand Units; Revenue, USD Billion, 2015 – 2025)

  • Passenger Vehicle
  • Commercial Vehicle

Automotive Powertrain Propulsion Type Outlook (Volume, Thousand Units; Revenue, USD Billion, 2015 – 2025)

  • ICE
    1. Gasoline
    2. Diesel
    3. Natural Gas Vehicle
  • BEV
    1. PHEV
    2. Electric Vehicle

Automotive Powertrain Regional Outlook (Volume, Thousand Units; Revenue, USD Billion, 2015 – 2025)

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Market Share Insights

  • June 2021: Mercedes-Benz, a German automaker, announced the acquisition of Yasa. Yasa is engaged in the development of next-generation electric drive technology. 
  • March 2021: Bharat Forge, an automotive component supplier, announced that it had purchased a 100% stake in Kalyani Powertrain KPPL. KPPL will act as a Special Purpose Vehicle (SPV) segment on the company’s EV business. 

Key Companies profiled:

Some prominent players in the global 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

Order a free sample PDF of the Automotive Powertrain Market Intelligence Study, published by Grand View Research. 

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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