Automotive Drivetrain Sector: Growth Drivers and Challenges
Growth Drivers
- Domination of Internal Combustion Engine Powertrain – which makes it mandatory to ensure that the optimized drivetrain configuration is robust to different driving conditions as the drivetrain and shifting control strategy has an important role in the carbon monoxide CO, nitrogen oxide NOx, and hydrocarbons HC generated by the internal combustion engine (ICE). For Instance, out of 278 million vehicles registered in the United States in 2018, nearly 94% had a gasoline powertrain while 3.5% had a diesel powertrain.
- Rising Demand for Lightweight Components – as using high-efficiency engines and lightweight components enabled by advanced materials in at least 25% of fleets in United States could save over 5 billion gallons of fuel annually by 2030.
- Upsurge in the Demand for Luxury Cars – For instance, the share of new vehicles sold by luxury brands in United States was 17% in June 2022.
- Increasing Emissions Caused by the Transport Sector – where road transport accounts for 25% of transport emissions, and 15% of total CO2 emissions.
- Growing Demand for Vehicles with Automatic Transmission - according to the statistics, 96% of Americans drive automatics in 2022.
Challenges
- Volatility in Material Cost
- Requires Huge Investment
- High Cost of Various Components Required for a Drivetrain
Automotive Drivetrain Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
23.7% |
|
Base Year Market Size (2024) |
USD 33.72 billion |
|
Forecast Year Market Size (2037) |
USD 535.42 billion |
|
Regional Scope |
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Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2025, the industry size of automotive drivetrain is assessed at USD 47.72 billion.
The automotive drivetrain market size was over USD 33.72 billion in 2024 and is projected to reach USD 535.42 billion by 2037, witnessing around 23.7% CAGR during the forecast period i.e., between 2025-2037. Growing sales of automobiles as well as rising emissions from road transport along with a surge in the demand for luxury cars will propel the market growth.
Asia Pacific industry is estimated to account for largest revenue share of 39% by 2037, backed by rising demand amongst automobile users for E-axle electric vehicle transmission along with the growing sale of electric vehicles in the region.
The major players in the market are American Axle & Manufacturing, Inc., ZF Friedrichshafen AG, BorgWarner Inc., Aisin Corporation, Magna International Inc., Schaeffler Group, Volkswagen AG, Dana Limited, General Motors, Melrose Industries PLC
