Global Automotive Powertrain Market Size, Share, Growth Analysis, By Vehicle Type(Passenger Vehicle and Commercial Vehicle), By Propulsion Type(ICE and BEV) - Industry Forecast 2024-2031

Global Automotive Powertrain Market size was valued at USD 863.87 billion in 2022 and is poised to grow from USD 963.22 billion in 2023 to USD 2301.03 billion by 2031, at a CAGR of 11.5% during the forecast period (2024- 2031).

The increasing utilization of electric power in automobiles is driven by the demand for innovative functionalities and higher standards aimed at enhancing the performance of traditional operations. Consequently, the regulation of automotive electronics, including current electric power steering, the primary inverter, the brake system, among others, heavily relies on powertrain electronics in automotive applications. Powertrain electronics in the vehicle's power generation system provide automotive alternators with significant temperature tolerance and high power, along with improved efficiency and high-power density. For instance, in March 2021, Bharat Forge, a supplier of automobile parts, announced the acquisition of a 100% stake in Kalyani Powertrain KPPL. KPPL will operate as a Special Purpose Vehicle (SPV) segment in the company's EV business, encompassing essential components such as converters, electric motors, inverters, battery management systems, among others. The advantages of transitioning from mechanical systems to mechatronic systems or enhancing existing systems have fueled the adoption of powertrain electronics. For example, Continental has developed a third-generation power module capable of supporting up to 650 amps of electricity, featuring new microchip technology and compatibility with various electric vehicles. The transition towards electric and hybrid vehicles is gaining momentum, driven by stringent emission regulations and increasing awareness of sustainability. Furthermore, ongoing innovations in powertrain components, such as engines and transmissions, are elevating overall vehicle performance. Moreover, the integration of smart technologies and connectivity features into powertrain systems represents a notable trend, reflecting the broader automotive industry's shift towards digitalization.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Automotive Powertrain Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Automotive Powertrain Market Segmental Analysis

Global Automotive Powertrain Market is segmented based on vehicle type, propulsion type and region. By vehicle type, the market is segmented into passenger vehicle and commercial vehicle. By propulsion type, the market is segmented into ICE and BEV. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Automotive Powertrain Market

As fuel prices escalate and environmental sustainability concerns mount, there is a surging demand for vehicles that prioritize fuel efficiency and emit fewer emissions. Powertrain technologies like hybrid powertrains, electric powertrains, and turbocharged engines are gaining popularity due to their ability to enhance fuel economy and lower emissions.

Restraints in the Global Automotive Powertrain Market

The development and manufacturing of powertrain systems necessitate substantial investments in research and development, as well as in production facilities and equipment. These costs pose a significant barrier to entry for new companies entering the market and can also constrain the capacity of existing companies to invest in new technology.

Market Trends of the Global Automotive Powertrain Market

The automotive powertrain market is witnessing a notable trend towards electrification of vehicles, which stands as one of the most significant developments. Automakers are making substantial investments in electric powertrain technologies to fulfill consumer preferences for environmentally friendly vehicles. Consequently, this trend has spurred the creation of innovative electric powertrains, encompassing battery-electric and plug-in hybrid systems.