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The automotive drivetrain market size is forecast to increase by USD 75.5 billion at a CAGR of 6.75% between 2023 and 2028. The global market is experiencing significant growth due to several key trends. The increasing demand for commercial vehicles, driven by the growth of the logistics and transportation sectors, is a major factor fueling market growth. Additionally, the rising preference for luxury vehicles, particularly in emerging economies, is boosting the market. However, the uncertainty in the automotive industry, including regulatory changes and economic instability, presents challenges for market participants. Despite these challenges, the market is expected to continue its growth trajectory, driven by advancements in technology and the increasing focus on fuel efficiency and emissions reduction. The market is also witnessing a shift towards electric and hybrid drivetrains, as governments and consumers push for more sustainable transportation solutions. Overall, the market is poised for strong growth in the coming years.
The global market is witnessing significant growth due to the increasing demand for electric and hybrid vehicles. The technology in drivetrain systems is evolving rapidly, with electric drive systems gaining popularity in various vehicle types. Electric vehicles (EVs) and hybrid vehicles (HEVs) are utilizing synchronous motors for power transmission, replacing traditional internal combustion engines in some applications. Automated transmissions, including continuously variable transmissions (CVT) and dual-clutch transmissions (DCT), are also gaining traction in the market. Rear-wheel drive vehicles with engine location at the front or rear are common in automobiles, requiring drive shafts, axles, CV joints, and U joints for power transmission to the wheels.
Heavy commercial vehicles (HCVs) require high power and torque for towing heavy loads, making the drivetrain system a critical component. Combustion control systems in internal combustion engines optimize fuel efficiency and reduce emissions, while traction control systems ensure optimal power distribution to the wheels for improved vehicle stability. Overall, the market is expected to grow due to the increasing demand for advanced powertrain systems in various vehicle types.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The forward wheel drive segment is estimated to witness significant growth during the forecast period. The market encompasses various components such as drive shafts, axles, CV joints, U joints, wheels, power transmission systems, and electric drive systems in automobiles. The market caters to various vehicle types, including electric vehicles (EVs) and hybrid vehicles, as well as heavy commercial vehicles and automobiles with rear-wheel drive, engine location at the front or rear, and automated transmission. The technology in the drivetrain system includes synchronous motors, electric drive systems, and internal combustion engines with turbochargers. Core application areas include traction systems, combustion control, and towing capacity. Government regulations on carbon dioxide emissions and disposable income levels influence the market's growth.
Electric vehicles, particularly luxury cars, SUVs, and all-wheel-drive systems, are increasingly adopting electronics and advanced scanner vehicles for diagnostics. The drivetrain system's efficiency, power, and torque are essential factors in determining a vehicle's performance and overall appeal to consumers.
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The forward wheel drive segment was valued at USD 93.20 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 55% 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 encompasses various components such as drive shafts, axles, CV joints, U joints, wheels, power transmission systems, and electric drive systems in automobiles. The market caters to different vehicle types, including electric vehicles (EVs) and hybrid vehicles, as well as heavy commercial vehicles. In the case of EVs, technology advances have led to the widespread adoption of synchronous motors and automated transmissions. Rear-wheel drive vehicles and those with internal combustion engines located at the front or rear continue to dominate the market. However, automobile manufacturers are increasingly focusing on reducing carbon dioxide emissions through the use of turbochargers, automated combustion control, and traction systems.
Government regulations play a significant role in driving market growth, particularly in the areas of towing capacity and fuel efficiency. Luxury cars, SUVs, and all-wheel drive systems are core application areas for advanced drivetrain technologies, with electronics and scanner vehicles also presenting significant opportunities. Disposable income levels and consumer preferences for power, torque, and vehicle performance continue to influence market trends.
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.
The increase in demand for commercial vehicles is the key driver of the market. The global market is experiencing significant growth due to the increasing demand for commercial vehicles, particularly medium- and heavy-duty trucks. In developed markets like North America, pickup trucks are popular for commercial applications, driving market expansion. The growing need for logistics, construction, mining, and other trade-related activities is fueling the demand for these vehicles. In developing and emerging economies in APAC, the demand for commercial vehicles is increasing, driven by improving socio-economic conditions, infrastructure development, and employment opportunities. The automotive drivetrain system comprises essential components such as engine location, transmission, drive shafts, axles, CV joints, U joints, wheels, power, torque, and traction.
Furthermore, the technology evolution in the automotive industry, including electric drive systems using synchronous motors, automated transmissions, and AWD systems, is influencing the market. The shift towards electric vehicles (EVs) and hybrid vehicles (HVs) is also impacting the market, with government regulations aimed at reducing carbon dioxide emissions and increasing disposable income playing a role. Turbochargers are another core application area for the market, particularly in luxury cars and SUVs, where power and towing capacity are essential. Electronics and scanner vehicles are also contributing to the market growth.
The increasing demand for luxury vehicles is the upcoming trend in the market. The market is witnessing significant growth due to the increasing demand for electric vehicles (EVs) and hybrid vehicles (HVs). The technology evolution in the automobile industry, particularly in the area of electric drive systems, is driving market growth. Electric vehicles utilize synchronous motors, while hybrid vehicles combine an internal combustion engine (ICE) with an electric motor and automated transmission. Heavy commercial vehicles and rear-wheel drive automobiles also use drivetrain systems, which include drive shafts, axles, CV joints, and U joints. The engine location and transmission design vary based on vehicle type. For instance, in a heavy commercial vehicle, the engine is typically located at the front, while the transmission is connected to the rear axles via drive shafts.
Moreover, government regulations aimed at reducing carbon dioxide emissions and improving fuel efficiency are also contributing to the market growth. Advanced technologies like turbochargers and electronics are being integrated into the automobile system to enhance power and torque. The luxury car segment, including SUVs and all-wheel-drive (AWD) systems, is a core application area for drivetrain systems due to their high traction and towing capacity. The rising disposable income in emerging markets like China and India is fueling the demand for luxury cars and SUVs, further boosting the market growth. In conclusion, the market is poised for significant growth due to the increasing demand for electric and hybrid vehicles, government regulations, and the rising preference for luxury cars and SUVs in emerging markets. The market is expected to witness continued innovation in the areas of powertrain technology, transmission design, and vehicle electronics.
The uncertainty in automotive industry is a key challenge affecting the market growth. The global market experienced significant challenges due to the COVID-19 pandemic in 2020 and early 2021. Various countries, including India and the US, enforced nationwide lockdowns to contain the spread of the virus, disrupting cross-border trade activities. This led to an increase in the price of raw materials and components essential for vehicle manufacturing. Moreover, the absence of customers in automobile showrooms due to stringent lockdowns resulted in the shutdown of production units worldwide. Electric Drive Systems, including Synchronous Motors, in Electric Vehicles (EVs) and Hybrid Vehicles, as well as Automated Transmissions, were significantly affected. The market for Drive Shafts, Axles, CV Joints, and U Joints also faced a downturn.
Furthermore, the automotive industry's growth was further hindered by Government Regulations focusing on Carbon Dioxide Emissions and the shift towards Renewable Energy. However, the market for Automobile Systems in Luxury Cars, SUVs, and All-Wheel Drive (AWD) Systems continued to show potential, driven by increasing Disposable Incomes and the desire for advanced Electronics. The Core Application Areas of the market include Rear-Wheel Drive, Engine Location, Transmission, and Traction. Technological advancements, such as Turbochargers, continue to influence the market, with a focus on improving Power and Torque while reducing Fuel Consumption. Despite these challenges, the market is expected to recover as the global economy recovers and consumer confidence returns.
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.
ZF Friedrichshafen AG: The company offers automotive drivetrains such as ADM 2 automatic drive train management and modular drive system for off road vehicles.
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 global the market is witnessing significant growth due to advancements in technology and the increasing popularity of electric and hybrid vehicles. The market consists of various components including engine location, transmission, drive shafts, axles, CV joints, u joints, wheels, and powertrain systems. Electric vehicles (EVs) and hybrid vehicles (HEVs) are major drivers for the market, with the adoption of electric drive systems using synchronous motors gaining popularity. Rear-wheel drive and all-wheel drive (AWD) systems are also driving market growth. Heavy commercial vehicles (HCVs) are another core application area for the market.
Furthermore, the market is witnessing the integration of electronics and automation in drivetrain systems, leading to the development of automated transmissions and advanced traction control systems. Government regulations on carbon dioxide emissions and the increasing disposable income of consumers are also contributing to the market growth. Internal combustion engines with turbochargers are still a significant part of the market, but the focus is shifting towards electric and hybrid powertrains. The automotive system market caters to various vehicle types such as automobiles, luxury cars, SUVs, and commercial vehicles.
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Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.75% |
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Market growth 2024-2028 |
USD 75.5 billion |
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Market structure |
Concentrated |
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YoY growth 2023-2024(%) |
6.09 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 55% |
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Key countries |
China, US, Japan, Germany, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
American Axle and Manufacturing Holdings Inc., BorgWarner Inc., Continental AG, Dana Inc., JTEKT Corp., Magna International Inc., Melrose Industries Plc, Mitsubishi Corp., Nidec Corp., Robert Bosch GmbH, Schaeffler AG, and ZF Friedrichshafen AG |
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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 |
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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 Application
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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