Enjoy complimentary customisation on priority with our Enterprise License!
The automotive drivetrain market size is estimated to grow at a CAGR of 5.89% between 2022 and 2027. The market size is forecast to increase by USD 68.89 billion. The growth of the market depends on several factors including an increase in demand for commercial vehicles, increasing demand for passenger cars, and increasing demand for comfort and safety for vehicles.
This automotive drivetrain market report extensively covers market segmentation by application (forward wheel drive, rear wheel drive, and all wheel drive), vehicle type (passenger car and commercial vehicle), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
Our researchers analyzed the data with 2022 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 increasing demand for commercial vehicles is driving the global automotive drivetrain market. Developed auto markets in North America such as the US and Canada are seeing huge popularity and sales of vehicles such as pickup trucks for commercial purposes. The growing demand for medium and heavy-duty trucks is one of the major contributing factors to the growth of the global automotive gearboxes market. Medium and heavy-duty trucks are the backbone of business operations, including logistics, construction, mining, and all trade-related activities.
Moreover, in developing and emerging economies in APAC, demand for the commercial vehicle segment is increasing due to improved socioeconomic conditions, as well as infrastructure, employment, and improved production opportunities. This is expected to drive demand for various vehicles such as medium and heavy-duty trucks across all regions. Hence, the growing demand for commercial vehicles is expected to drive the global automotive drivetrain market during the forecast period.
Increasing demand for luxury vehicles is the primary trend in the market. Sales of high-performance luxury vehicles are expected to increase, with customer preference indicating a shift. Customer preferences for premium comfort and incentivizing functionality in vehicles will determine the design language of the market for the next decade. The SUV is designed for off-roading and has excellent traction control in a variety of terrains. An off-road vehicle can suffer severe road shock.
Furthermore, the demand for luxury vehicles is increasing in emerging markets such as China and India due to stable economic conditions and rising disposable incomes of consumers. Consumers in these countries are willing to spend money on luxury cars with premium safety and comfort features. The growing demand for high-end vehicles such as luxury cars will further increase the demand for automotive drivetrains. Hence, the growing demand for luxury vehicles will fuel the growth of the market during the forecast period.
Uncertainty in the automotive industry is the challenge that affects the growth of the market. Automakers around the world have been closing their production units as the COVID-19 pandemic has severely impacted the industry, especially during 2020 and early 2021. Furthermore, the lack of customers attending auto showrooms due to the implementation of strict containment measures has resulted in the closure of auto manufacturing units around the world.
Moreover, the automotive industry suffered many negative effects during the Russia-Ukrainian war. Due to the war, automakers in many parts of the world were unable to source spare parts from Russia and Ukraine. Rising energy prices and the unavailability of key components such as semiconductors used in car manufacturing are hampering vehicle production. Hence, these challenges are expected to impede the growth of the market during the forecast period.
The market research 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 growth strategies.
Global Automotive Drivetrain Market 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 12 market 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 forward wheel drive segment is estimated to witness significant growth during the forecast period. A front-wheel drive car transfers engine power exclusively to the front wheels. Front-wheel drive is lighter than rear- or four-wheel drive. This lighter weight results in better fuel efficiency. Growing demand for sport utility vehicles (SUVs) and crossovers will benefit from the adoption of front-wheel drive.
Get a glance at the market contribution of various segments View the PDF Sample
The forward wheel drive segment was the largest segment and was valued at USD 89.66 billion in 2017. Most SUVs are equipped with solid off-road capabilities and heavy-duty suspension that provide consumers with optimal comfort even on difficult terrain. Front-wheel drive for cars is offered by automakers on SUVs and crossovers as standard or optional equipment, with implementations varying by car manufacturer, model, and geographical area. Thus, such front-wheel drive applications will drive the segment during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 53% 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. Countries such as China, Japan, Korea, and India have strong demand for commercial vehicles which are contributing to the growth of the automotive drivetrain market in APAC. Besides, developed auto markets such as Japan, Korea, and Australia are the leading auto export markets in APAC.
Moreover, factors such as low wages, easily available materials and human resources, and related transportation services, as well as a low value of the local currency, are driving the automotive transmission industry in countries such as China and India. The passenger car segment in the region is expected to grow at a rapid pace, in line with the developing economies of China and India. An increase in a customer's disposable income leads to an increase in car ownership. As a result, the increasing production and sales of passenger cars in APAC will increase demand for the automotive drivetrain market in the region during the forecast period.
In 2020, the outbreak of COVID-19 negatively impacted the automotive drivetrain market in APAC. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown, which led to the reopening of international borders for trade activities. Besides, the demand for commercial and passenger vehicles has been rising in various countries, such as India. Hence, growing demand for vehicles coupled with rising production will fuel the regional automotive drivetrain market during the forecast period.
The automotive drivetrain market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Automotive Drivetrain Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.89% |
Market growth 2023-2027 |
USD 68.89 billion |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
5.57 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 53% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.