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The automotive powertrain testing services market size is forecast to increase by USD 2.75 billion at a CAGR of 8.22% between 2023 and 2028. The market is experiencing significant growth due to several key factors. The increasing demand for advanced and fuel-efficient powertrains in both passenger cars and commercial vehicles is driving the market. Additionally, governments worldwide are enforcing stricter emission norms, leading vehicle manufacturers to upgrade their powertrains, thereby increasing the need for powertrain testing services. Another trend in the market is the development of computer and IT-enabled powertrain testing systems. These systems enable efficient testing and analysis of engine performance, transmission functionality, and drive shafts, among other components. However, the capital-intensive nature of testing facilities and equipment for powertrain testing presents a challenge for market growth. Despite this, the market is expected to continue expanding as the importance of ensuring vehicle performance and compliance with emission norms becomes increasingly crucial.
The automotive industry is a critical sector that relies on the efficient and effective functioning of various powertrain components to meet the demands of passenger cars and commercial vehicles. Powertrain testing components include engines, transmissions, clutches, torque converters, drive shafts, propeller shafts, differentials, axles, and driving wheels. These components are essential for converting the energy stored in fossil fuels into motion, propelling vehicles forward. To ensure the optimal performance of these components, engine testing, transmission testing, drive shaft testing, differentials testing, and electric powertrain testing are crucial services. These tests help identify potential issues, improve fuel efficiency, reduce carbon footprints, and ensure compliance with regulatory standards.
Passenger cars and commercial vehicles, including commercial trucks, require different testing approaches due to their unique powertrain requirements. OEMs (Original Equipment Manufacturers) invest in advanced manufacturing units to produce powertrain components that meet the highest standards of quality and performance. Downsized engines, gasoline powertrains, and diesel powertrains are common powertrain configurations in the automotive industry. Hybrid powertrains, which combine an internal combustion engine with an electric motor, are gaining popularity due to their environmental benefits and improved fuel efficiency. Electric powertrains, which use batteries to store and release energy, are also becoming increasingly common in the commercial vehicle sector.
Testing services for these powertrains are essential to ensure their optimal performance and longevity. Engine testing focuses on assessing the engine's efficiency, power output, and emissions. Transmission testing evaluates the gearbox's ability to transmit power efficiently and smoothly. Drive shaft testing checks the shaft's structural integrity and its ability to transmit power from the transmission to the wheels. Differentials testing ensures the differential's ability to transmit power to the wheels while allowing them to rotate at different speeds. Electric powertrain testing is crucial for evaluating the performance and efficiency of electric motors, batteries, and other components. It includes testing the motor's power output, torque capability, and efficiency.
Battery testing assesses the battery's capacity, charge and discharge efficiency, and cycle life. In conclusion, powertrain testing services play a vital role in ensuring the optimal performance and efficiency of vehicles. These services cover various components, including engines, transmissions, drive shafts, differentials, and electric powertrains. They help OEMs meet regulatory standards, reduce carbon footprints, and improve fuel efficiency. By investing in advanced testing technologies and methodologies, OEMs can produce high-quality powertrain components that meet the evolving demands of the automotive industry.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The ice powertrain segment is estimated to witness significant growth during the forecast period.In response to stringent emission regulations set by governments worldwide, automotive original equipment manufacturers (OEMs) and tier-1 suppliers are compelled to innovate and enhance their internal combustion engine (ICE) powertrain systems. These advancements aim to minimize greenhouse gas (GHG) emissions and boost fuel efficiency in vehicles. Modern ICE powertrains incorporate complex technologies, including variable valve timing, variable valve lifting, engine downsizing, and turbocharging. The implementation of these technologies necessitates rigorous testing to ensure compliance with emission standards. Consequently, the demand for automotive powertrain testing services has surged, enabling OEMs and suppliers to validate their powertrain systems' performance and efficiency. This trend is expected to continue as the automotive industry focuses on reducing emissions and improving fuel economy.
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The ICE powertrain segment accounted for USD 3572.60 million in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 62% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is experiencing significant growth due to the increasing demand for passenger cars in emerging economies, particularly in Asia Pacific regions such as China, India, Japan, and South Korea. This economic expansion in these countries presents numerous business opportunities for global automobile manufacturers, leading them to invest in advanced technologies for engine and powertrain innovation. Additionally, these companies are expanding their production facilities and establishing new ones to meet the growing regional demand and beyond. This trend is fueling the need for sophisticated automotive test equipment, including powertrain testing systems, to ensure the quality and efficiency of these technologies.
China is currently the leading market for automotive powertrain testing services in APAC, making it an essential region for market players to focus on. Overall, the global automotive supply chain is undergoing a transformation, with a focus on sustainability through the adoption of downsized engines, automatic transmissions, and turbocharging technologies. This shift towards more efficient powertrains is driving the demand for advanced testing services to ensure the reliability and performance of these systems.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rise in demanding consumer base and government's enforcement to upgrade to newer emission norms is the key driver of the market. The automotive industry is experiencing intense competition, leading OEMs to prioritize fuel efficiency and emissions reduction to meet regulatory requirements. This drive for improved engine performance has resulted in the adoption of turbochargers and superchargers, as well as modifications to existing engines by body shops. These trends are propelling the demand for powertrain testing services, as carmakers experiment with new technologies to meet emission norms and customer demands. Strict government regulations mandating upgrades to emission-compliant vehicles and the introduction of new models further fuel the market growth for automotive powertrain testing.
Development of computer and IT-enabled powertrain testing systems is the upcoming trend in the market. The market is witnessing significant advancements due to the integration of technology and engineering expertise. One notable development is Ricardo's Global Test Environment (GTE), which sets the company apart from competitors. This innovative system utilizes cutting-edge secure networking and Internet technologies to create a remote access platform. Test and development engineers can access all necessary test parameters, modify test conditions, monitor results, troubleshoot issues, and examine individual components from a virtual perspective. This system's convenience and capabilities are revolutionizing powertrain testing for both commercial trucks and OEMs. Key services include Differentials Testing and Electric Powertrain Testing. These testing services ensure the optimal performance of powertrains in various applications.
Capital-intensive nature of testing facilities and equipment for powertrain testing is a key challenge affecting the market growth. Powertrain testing is an essential process for both passenger cars and commercial vehicles to ensure compliance with emission norms and power efficiency regulations. However, the high cost of powertrain testing machines and facilities poses a significant challenge for market growth. The average price range for a powertrain testing machine is between USD500,000 and USD1,000,000, making it a substantial investment for testing service providers. Furthermore, setting up a testing facility adds to the overall expense. The complexity of modern powertrain systems necessitates advanced instrumentation and testing equipment. As a result, testing service providers must continually update their technology to keep up with industry advancements.
Despite the high costs, powertrain testing is crucial for manufacturers to ensure the optimal performance and efficiency of engines, transmissions, and drive shafts. The testing process involves running the entire vehicle on a chassis dynamometer to evaluate emissions and power efficiency. The expensive nature of powertrain testing equipment may hinder market expansion but is necessary for maintaining vehicle quality and regulatory compliance.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
A and D HOLON Holdings Co. Ltd. - The company provides specialized Automotive Powertrain Testing Services to ensure the optimal performance and durability of engines and transmissions in vehicles. Our state-of-the-art testing facilities and advanced diagnostic tools enable US to identify and resolve powertrain issues, enhancing overall vehicle efficiency and reducing downtime for our clients. Our team of experienced engineers and technicians utilizes industry-standard procedures to deliver accurate and reliable results, ensuring compliance with regulatory requirements and maintaining the highest quality standards. Keywords: Automotive Powertrain Testing Services, optimal performance, durability, engines, transmissions, specialized testing facilities, advanced diagnostic tools, powertrain issues, vehicle efficiency, regulatory compliance, quality standards.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market caters to the testing needs of various components in a vehicle's powertrain system. This includes engines, transmissions, clutches, torque converters, drive shafts, propeller shafts, axles, and other related components. With the increasing focus on reducing fossil fuel consumption and carbon footprints, there is a growing demand for testing services for gasoline powertrains, diesel powertrains, and hybrid powertrains. Manufacturing units rely on these testing services to ensure the optimal performance of their powertrains. The global supply chain for automotive components is intricate, and economic trade plays a significant role in the market's growth. Downsized engines, automatic transmissions, turbocharging, and fuel efficiency are some of the trends driving the demand for powertrain testing services.
Regulations regarding emissions and frictional loss are stringent, making it essential for OEMs to adhere to these standards. Passenger cars and commercial vehicles, including commercial trucks, require engine testing, transmission testing, drive shafts testing, differentials testing, and driving wheels testing. The market also caters to electric powertrains, including hybrid and Ice powertrains, to ensure their efficiency and performance.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.22% |
Market growth 2024-2028 |
USD 2746.4 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.43 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 62% |
Key countries |
China, US, Japan, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A and D HOLON Holdings Co. Ltd., Akkodis, ATS Automation Tooling Systems Inc., AVL List GmbH, Cambustion Ltd., Cosworth Group Holdings Ltd., FEV Group GmbH, HORIBA Ltd., IAV GmbH, Industrieanlagen Betriebsgesellschaft mbH, Intertek Group Plc, IPG Automotive GmbH, MAHLE GmbH, Mtech UK Associates Ltd., Mustang Advanced Engineering, Ricardo Plc, SGS SA, TEOS Powertrain Engineering, and thyssenkrupp AG |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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