Automotive Powertrain Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The automotive powertrain systems market is anticipated to register a CAGR of over 5% during the forecast period, 2020-2025.

• 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, thereby, enabling vehicle movement.
• The components of the powertrain system include engine, transmission, differentials, and driveshafts. The overall performance of the vehicle and its efficiency depends on the properties of the powertrain system.
• 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 the 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 cars penetration in the region.
• The introduction of stringent emission regulations in the 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.

Scope of the report

The automotive powertrain systems market is segmented by component type (engine, transmission, differentials, and driveshaft), vehicle type (passenger cars and commercial vehicles), wheel drive (front-wheel drive, rear-wheel drive, and all-wheel drive), and geography.

The scope of the report includes:

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Key Market Trends

All-wheel Drive to Gain Traction

To boost the traction and control of the vehicle, power in the all-wheel-drive systems is transmitted to all the wheels. The system dispenses the torque equally to all the wheels, especially when turning, giving the automobile more grip and traction.

Currently, the AWD system is also introduced in small passenger cars and hybrid vehicles, which have been leading in the growth of the market studied. Earlier this system was only available in high-end cars. Emerging regions, like China and Japan, have been seeing an increase in the purchasing power of consumers, which has led to an increased demand for luxury and high-end vehicles with the automotive all-wheel-drive market in the Asia-Pacific region.

Although, one big constraint for the increase of the luxury automobiles and the AWD systems is the drop-off in the Chinese automobile market. Improved safety, stability, fuel efficiency, and drive control are some of the factors, which may accelerate the automotive all-wheel drive the market growth.

Many players, like Audi, Honda, Mercedes-Benz, Toyota, Hyundai, and BMW, have joined, and few other manufacturers are set to join this booming segment in India. Though the number of sport utility vehicles featuring all-wheel drive systems is limited in the emerging markets, their numbers may grow rapidly in the future. The all-wheel drive in sports utility vehicles segment may see a highest rate of growth in the segment, on account of higher sales and interest in the segment.

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