Automotive Powertrain Systems Market Size

Automotive Powertrain Market Analysis

Currently, the automotive powertrain systems market is valued at USD 713 billion. It is expected to reach USD 987 billion over the next five years, registering a CAGR of more than 5% during the forecast period.

• The Covid-19 pandemic had a negative impact on the automotive powertrain systems market. With worldwide lockdown and social distancing norms implemented, there was a global halt for automotive production and transport. With minimal or emergency usage of vehicles, the need for powertrain systems in the aftermarket scenario has also decreased. Also, with the expected increase in electrification in the coming years, the present powertrain systems are expected to become obsolete and reduce market value.
• A powertrain system is one of the main components of an automobile. A powertrain comprises all the components that produce power for the vehicle and transfer simultaneously to the wheels, enabling vehicle movement.
• The components of the powertrain system include the engine, transmission, differentials, and driveshafts. The vehicle's overall performance and efficiency depend on the powertrain system's properties.
• The market growth can be attributed to the firm government regulations, growing demand for eco-friendly vehicles, and the technological improvements in powertrain systems to enhance overall efficiency. The primary reasons contributing to the growth of the powertrain market in the region are the increasing vehicle production and the surge of passenger car penetration in the area.
• The introduction of stringent emission regulations in European and North American countries has increased the demand for superior powertrains, which are lightweight, and hence, help in increasing fuel economy, decreasing emissions, and improving vehicle performance.