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The Global Automotive Powertrain Testing Services Market size is estimated to grow by USD 2,434.53 million between 2022 and 2027 accelerating at a CAGR of 7.86%.
The automotive industry faces intense price competition, putting pressure on OEMs to use turbochargers and superchargers for more power output. This experimentation by carmakers is driving the powertrain testing market. Government regulations for emissions control, such as Bharat Stage and Euro VI, also drive the need for automotive powertrain testing services. Upgrading engines to comply with new standards may be necessary, leading to increased demand for testing services. The implementation of regulations such as RDE in Europe may also require engine component modifications and further testing for compliance, boosting the global powertrain testing services market.
This automotive powertrain testing services market report extensively covers market segmentation by Type (ice powertrain and hybrid and electric powertrain) and Geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
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Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The global automotive industry is seeing favorable conditions with expected growth in production from 97.05 million to 112.38 million units by 2022. APAC is the fastest-growing market for both production and consumption, making it a key target for automotive players. India and China are important markets due to high domestic consumption and emission standard regulations. China's push towards hybrid electric vehicles and expansion plans also contribute to the global automotive powertrain testing services market. Other emerging countries, such as Mexico and Brazil, are also experiencing high levels of investment and demand for hybrid vehicle.
Advanced systems that combine internet-based technologies, computer networking, and IT skills with engineering expertise are transforming the future of powertrain testing. Ricardo's Global Test Environment (GTE) is an example of such a system that differentiates the company from others in the market. The GTE is a remote access system that allows test and development engineers to cross-examine test parameters, monitor results, and examine components from any location. Aston Martin has successfully adopted this technology for powertrain testing, resulting in significant cost and time reductions. Ongoing developments aim to offer the GTE technology as a package for OEMs or suppliers' test facilities. This development is expected to drive the market during the forecast period.
To ensure accurate results, it's crucial to extract the right information from powertrain testing systems, as even the best setup won't help if incorrect data is obtained. Knowledge of powertrain testing procedures and system functions is vital for operators to control variables that may impact measurement accuracy. They must have strong mechanical, mathematical, and technical skills, as well as the ability to acquire and process data and make independent judgments. Inadequate skillsets among operators can lead to inaccurate measurements and impact customer requirements for emission, fuel consumption, and performance. The market is lacking such expertise despite equipment advancements, which may negatively affect the market during the forecast period.
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The market share growth by the ICE powertrain segment will be significant during the forecast period. Governments across the globe are implementing stringent emission regulations for powertrains in ICE vehicles. This has forced automotive OEMs and Tier-1 suppliers to continuously innovate and develop their powertrain systems, thereby increasing the need for testing services. In addition, owing to the increasing concerns about emissions in the US, automobile manufacturers are trying to meet the demand for fuel efficiency set by the Corporate Average Fuel Economy (CAFE) regulation norms. Hence, the performance of the ICE powertrain has become a major factor in purchase decisions for automobile manufacturers and customers. Therefore, all these factors are responsible for the growth of the ICE powertrain segment of the global automotive powertrain testing services market.
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The ICE powertrain segment shows a gradual increase in market share from USD 3236.76 million in 2017 and continued to grow until 2021. To comply with the stringent emission standards, automobile manufacturers are continuously innovating in terms of designs and technologies for ICE powertrains that reduce greenhouse gas (GHG) emissions and improve the fuel efficiency of the vehicle. Various technologies, such as variable valve timing, variable valve lifting, engine downsizing, and turbochargers, have been successfully implemented in ICE automobiles to comply with emission standards, which has increased the complexity of modern ICE powertrain systems. The increasing complexity of these powertrain systems due to the advances in technology, along with the trend of vehicle downsizing and lightweight, would increase the need for powertrain testing. The growing vehicle consumer base has given rise to the need for more automobile production facilities or expansion in such production facilities. This, in turn, is driving the need for the expansion of powertrain test facilities, thereby contributing to the growth of the market.
APAC is estimated to contribute 60% 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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Promising economic growth potential in emerging economies (such as China and India) is enhancing the number of market opportunities for passenger cars, thereby attracting global automobile manufacturers to this region. While market players are investing in technology to drive innovation in engines and powertrains, players are also expanding production facilities and setting up new facilities to cater to growing regional demand and beyond. These factors are expanding the demand for automotive test equipment, which includes powertrain testing systems. China, India, Japan, and South Korea are some of the key countries in the region, with China leading the automotive powertrain testing services market in APAC. This is attributed to the significantly large market for passenger cars in APAC, which also serves as a hub for the automobile and automotive components manufacturing. Furthermore, significant investments in infrastructure and industrialization have fueled the growth in the number of commercial vehicles, thereby significantly increasing the need to test vehicles.
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However, automobile manufacturing has been recovering since 2021 due to the initiation of large-scale vaccination drives and the resumption of normal operations in the region. Various automakers are focusing on increasing production and reducing supply chain disruptions as their paramount goal after the COVID-19 outbreak is contained. Thus, it is anticipated that the uncertainty in the automotive industry may lead to slow growth of the regional market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Automotive Powertrain Testing Services Market. One of the major vendor in the market include:
ATS Automation Tooling Systems Inc. - The company offers automotive powertrain testing services such as engine assembly and test, gear mesh test, and axel assembly and test. Also, under this segment, the company includes planning, resource allocation, capabilities building, and implementation of best practices on a global basis.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The 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 Powertrain Testing Services Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.86% |
Market growth 2023-2027 |
USD 2,434.53 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.1 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 60% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
A and D Co. Ltd., AKKA Technologies SE, 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, Shanghai W Ibeda High Tech. Group Co. Ltd., TEOS Powertrain Engineering, and thyssenkrupp 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. |
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