USD 232.84 Billion
Automotive Drivetrain Market Size, Share, and Growth Analysis
Automotive Drivetrain Market By Vehicle Type (Passenger Cars, Electric Vehicles), By Drive Type (Front Wheel Drive, Rear Wheel Drive), By Component (Transmission Systems, Differentials), By Region -Industry Forecast 2024-2032
Report ID:
SQMIG25A2111 |
Region:
Global |
Published Date: October, 2024
Pages:
157
|Tables:
63
|Figures:
65
Format -
Automotive Drivetrain Market Insights
Automotive Drivetrain Market size was valued at USD 232.84 Billion in 2023 and is poised to grow from USD 247.28 Billion in 2024 to USD 400.12 Billion by 2032, growing at a CAGR of 6.20% during the forecast period (2025-2032).
The global automotive drivetrain industry is experiencing significant growth, driven by technological advancements and increasing demand for fuel-efficient vehicles. Moreover, the rising demand for electric and hybrid vehicles among the masses is contributing to the global automotive drivetrain market growth. Several leading players are heavily investing in developing drivetrain systems for EVs, which is impacting the market favorably due to the implementation of strict emission regulations and incentives for electric vehicles (EVs). Along with this, numerous technological innovations, such as the development of all-wheel drive (AWD) for passenger cars and sports-utility vehicles (SUVs), are acting as other growth-inducing factors.
Additionally, several major companies are focusing on extensive research and development (R&D) activities to develop powertrains, fuel cell drivetrains, and autonomous vehicle technologies, which are providing a boost to the market. Besides, the growing consumer demand for vehicles with better fuel efficiency, improved performance, and reduced environmental impact is creating a positive market outlook. Additionally, the rising demand for comfort and safety in vehicles for better control under unfavorable terrain and weather conditions is supporting the overall growth of the automotive drivetrain market. Furthermore, the growing demand for lightweight driveshafts for enhanced fuel efficiencies is also contributing to the market. Other factors, such as advancements in battery technology, increasing awareness of the environmental impact, increasing focus on lightweight materials, and ongoing infrastructural development, are projected to propel the market further.
US Automotive Drivetrain Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Front Wheel Drive
Fastest Growth
Rear Wheel Drive
Growth Rate
6.20% CAGR
Global Automotive Drivetrain Market ($ Bn)
Country Share for North America Region (%)
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Automotive Drivetrain Market Segments Analysis
Global Automotive Drivetrain Market is segmented by Vehicle Type, Drive Type, Electric Vehicle Type, and Region. Based on Vehicle Type, the market is segmented into Passenger Car, Light Commercial Vehicles, Heavy Commercial Vehicles (Trucks, Buses). Based on Drive Type, the market is segmented into Front Wheel Drive, Rear Wheel Drive, All-Wheel Drive. Based on Electric Vehicle Type, the market is segmented into Battery Electric Vehicles, Plug-In Hybrid Electric Vehicles, Hybrid Electric Vehicles. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Drive Type
As per the global automotive drivetrain market forecast, the front wheel drive segment is anticipated to dominate owing to several factors that make it the preferred choice for a wide range of vehicles, especially passenger cars. FWD systems have fewer components compared to all-wheel drive (AWD) and rear-wheel drive (RWD) systems, reducing maintenance costs and manufacturing. The front wheel drive segment is anticipated to hold the largest market share during the forecast period. Front wheel drive is extremely efficient in terms of cost compared to other drive types and offers many benefits such as reduced mass, fuel consumption, efficient use of space, absence of friction from the driveshaft, and balanced weight distribution for better traction. Globally many passenger cars deploy these drives and manufacturers also prefer them owing to cheaper manufacturing cost and space efficiency.
As per the global automotive drivetrain market outlook, rear wheel drive is the fastest growing segment. RWD is majorly found in school buses, minivans, full-size pick-ups, truck-based SUVs, high-performance cars, sport & premium vehicles, sedans, and light commercial vehicles. Moreover, many sports cars and luxury vehicles prefer the RWD system that allows a better balance of weight. It was also majorly preferred in the early days of motoring, and it is capable of handling rear wheels in bad weather conditions. Furthermore, rising sales of luxury vehicles and growth in the trucking industry will propel the RWD drivetrain automotive supercenter in the future.
Analysis by Vehicle Type
The global market is dominated by the passenger cars segment which also holds the largest share. This is due to various factors, including rising industrialization, increasing urban population, and commuting needs. Moreover, the presence of a large number of vehicles, rising disposable incomes, and changing consumers' preference toward adopting advanced cars are altogether responsible for the rising market share with improved performance and fuel efficiency. Further, rising economic conditions, increasing disposable income of individuals, rapid urbanization, and expanding higher class population sections are boosting consumer spending on luxury items, further propelling growth of the passenger cars segment.
On the other hand, the fastest growing segment in the global automotive drivetrain market is the electric vehicles. Electric vehicles are becoming increasingly popular around the world with increasing emphasis on environmental sustainability and the shift towards cleaner mobility. Drivetrain systems for EVs are quite unique in the case of conventional electric vehicles, as conventional engines and fuel injectors are replaced by electric motors. Rapid advances in reliable battery technology, improvements in charging infrastructure and government incentives have dramatically increased the adoption of electric vehicles. Raising the demand for optimal drivetrain systems consumption of EVs has been increasing as the electric mobility segment expands and grows. In the coming years, it is expected to grow to be the fastest growing segment in the market.
Global Automotive Drivetrain Market By Drive Type (%)
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Automotive Drivetrain Market Regional Insights
As per the global automotive drivetrain market outlook, North America is projected to be dominate owing to rising sales of vehicles and increasing consumer preference for comfortable driving experiences and pollution-free commuting. Furthermore, the regional government is actively looking into the development relating to automotive components, which will support and promote manufacturing capabilities and contribute to the growth of the market. North America leads the way in technical breakthroughs and acceptance as compared to other regions. The latest innovations in hybrid and electronic automobiles, such as wheel hub motors and e-axle compatibility, are effectively propelling its demand in North America. Several automotive manufacturers are incorporating electric powertrain systems into their vehicles to decrease final product costs, balance loading capacity, and reduce final product weight.
Asia Pacific is anticipated to emerge as the fastest-growing region during the forecast period. A significant factor contributing to the growth of this region is the presence of automotive manufacturers, strong supply chain, and supportive government policies. Furthermore, high population and economically strong countries such as China and India, accounting for more than 45% of the global population are expected to promote market expansion. Favourable governmental measures aimed at reviving the auto industry post-COVID-19 further bolstered its growth. Moreover, rising sales of AWD vehicles and expected growth in EVs and ICE vehicle sales in South Asia drives market expansion. Growing urbanization and development of smart cities are anticipated to propel the automotive drivetrain market growth.
Global Automotive Drivetrain Market By Geography
- Largest
- Fastest
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Automotive Drivetrain Market Dynamics
Automotive Drivetrain Market Drivers
Increasing Adoption of Electric Vehicles
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Stringent emission regulations, government incentives, and growing consumer preference for sustainable transportation solutions are driving the shift toward EVs. This trend is reshaping the drivetrain market, which includes components such as transmission, driveshafts, and differentials that deliver power from the engine to the wheels. Many countries have set ambitious targets for reducing greenhouse gas emissions, prompting a transition from internal combustion engine (ICE) vehicles to EVs.
Rising Sales of Electric and Hybrid Vehicles
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The electric vehicle drivetrain system is constantly evolving. Manufacturers are focusing on the development of electric vehicles owing to the rise in fuel prices. The drivetrain system will become much more important as battery technology improves. More than 10 million electric cars were on the world's roads in 2020. According to the International Council on Clean Transportation, the sale of electric and hybrid vehicles increased significantly in Spain in 2019. Changing economic scenarios, as well as customers’ attitudes are driving an increase in the purchase of modern vehicles.
Automotive Drivetrain Market Restraints
High Costs and Fluctuating Raw Material Prices
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Limited availability and the high cost of raw materials required for electric vehicle (EV) batteries, particularly rare earth metals such as lithium, cobalt, and nickel, represent crucial restraints for the market. As of 2024, the demand for EVs continues to rise, driven by environmental regulations and consumer preferences for cleaner, more sustainable transportation options. However, the supply chain for raw materials used in EV batteries faces challenges such as geopolitical tensions, mining regulations, and labor disputes, leading to supply fluctuations and price volatility.
Infrastructure Challenges
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The widespread adoption of electric vehicles faces compensation challenges. The availability of charging stations and charging times for EVs can affect consumer adoption rates and hinder the growth of the automotive drivetrain market, especially in areas with limited charging infrastructure. This infrastructure gap poses a significant barrier to automotive drivetrain market growth.
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Automotive Drivetrain Market Competitive Landscape
The automotive drivetrain market is characterized by intense competition between several global players, all vying for leadership in the growing market for electric and hybrid drivetrains. The major players in the market are ZF Friedrichshafen AG, BorgWarner Inc., Aisin Corporation, and Schaeffler AG. These companies are using new products, strategic partnerships and acquisitions to strengthen their market presence and develop next-generation drivetrain technologies. ZF has made great strides in electric and hybrid power vehicles, has offered accessories for both conventional and electric vehicles.
Top Players in Automotive Drivetrain Market
- Aisin Seiki Co., Ltd.
- American Axle & Manufacturing, Inc.
- BorgWarner Inc.
- Melrose Industries
- ZF Friedrichshafen AG
- Magna International Inc.
- Dana Holding Corporation
- JTEKT Corporation
- Schaeffler Group
- Cummins Inc
- Hyundai WIA Corporation
- Valeo SA
- Linamar Corporation
- Hitachi
- Eaton Corporation
- NTN Corporation
Automotive Drivetrain Market Recent Developments
- March 2024-Subaru partnered with Toyota Group Aisin to develop next-generation EV drivetrains. The new EV drivetrains, developed with Toyota Group supplier Aisin, will be lighter, more compact and designed for Subaru's rugged, all-weather driving signature.
- February 2024- Magna received a contract from the North America-based OEM to supply the main background eDrive system for the company's high-end niche vehicle platforms.
- December 2023- ATC Drivetrain, which also developed automotive drivetrain technology, has invested approximately US$7.9 million to establish a new focused electric vehicle center in Holland.
Automotive Drivetrain Key Market Trends
- Rising Integration of AWD and 4WD Systems: The adoption of AWD and 4WD systems is expanding due to their benefits in enhancing vehicle stability, especially in adverse weather conditions. Traditionally associated with off-road and high-performance vehicles, these drivetrain configurations are now becoming more common in mainstream passenger cars and electric vehicles (EVs), driven by consumer demand for enhanced safety, traction, and driving dynamics. These systems distribute power to all four wheels, providing better traction and control compared to front-wheel drive (FWD) or rear-wheel drive (RWD) configurations.
- Acceleration of Electrification and Integration with Autonomous Technologies: The automotive drivetrain market is witnessing a rapid shift towards electrification, driven by the increasing adoption of electric vehicles (EVs). This surge is catalyzed by significant advancements in battery technology, which enhance EV range and performance, making electric models more appealing to a broader consumer base. Additionally, the expansion of charging infrastructure is crucially mitigating range anxiety, further facilitating the mainstream acceptance of electric vehicles.
Automotive Drivetrain Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the automotive drivetrain market is undergoing major changes due to the global shift towards electric vehicles (EVs) and hybrid powertrains. As the automotive industry increasingly focuses on fuel efficiency, performance and sustainability, market-leading companies expect significant growth in the market due to emission-free vehicles. This trend is coupled with increasing consumer adoption of hybrid electric vehicles with significant advances in electric motor transmission and battery integrations, shaping the future of the automotive drivetrain market. As the transition to EVs and hybrids continues, the market is poised for expansion, with new technologies playing a key role in meeting the future demands of the automotive drivetrain industry.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 232.84 Billion |
| Market size value in 2032 | USD 400.12 Billion |
| Growth Rate | 6.20% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Automotive Drivetrain Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Automotive Drivetrain Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Automotive Drivetrain Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Drivetrain Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Drivetrain Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Automotive Drivetrain Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Automotive Drivetrain Market Report Snapshots
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