Automotive Powertrain Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type, By Drive Type, By Type, By Region & Competition, 2021-2031F

Description

The Global Automotive Powertrain Market is projected to expand from USD 883.64 Billion in 2025 to USD 2131.83 Billion by 2031, reflecting a compound annual growth rate of 15.81%. This market covers the essential mechanical assemblies required to generate and transfer power to the road surface, comprising components such as engines, transmissions, drive shafts, differentials, and axles. The sector's growth is primarily fueled by strict international emission regulations that mandate low-carbon technologies and a growing consumer demand for fuel efficiency, forcing manufacturers to expedite the shift from traditional internal combustion engines toward hybrid and electric propulsion systems.

Market Overview
Forecast Period	2027-2031
Market Size 2025	USD 883.64 Billion
Market Size 2031	USD 2131.83 Billion
CAGR 2026-2031	15.81%
Fastest Growing Segment	Diesel
Largest Market	North America

However, the industry faces substantial obstacles related to the high production costs of electrified parts and unstable raw material supply chains that threaten manufacturing consistency. Data from the China Association of Automobile Manufacturers indicates that sales of new energy vehicles reached 12.87 million units in 2024, accounting for 40.9 percent of total vehicle sales in that region. While this statistic highlights the massive scale of powertrain diversification, the market must still navigate complex infrastructure and cost barriers to ensure sustainable expansion on a global level.

Market Driver

The enforcement of rigorous global emission standards and carbon neutrality goals is fundamentally transforming the Global Automotive Powertrain Market. Governments are imposing strict exhaust regulations, compelling manufacturers to redesign propulsion systems and move away from conventional internal combustion engines to ensure fleet-wide compliance and avoid penalties. For example, the U.S. Environmental Protection Agency's '2024 Automotive Trends Report', released in January 2025, noted that the new light-duty vehicle fleet achieved a record low average CO2 emission rate of 319 grams per mile in 2023, a result largely attributed to the increased integration of electrification technologies.

Simultaneously, the market is experiencing a rapid adoption of electric and hybrid powertrain architectures, marking a dominant commercial trend where hybrid-electric vehicles (HEVs) are securing significant market share due to consumer efficiency demands. In November 2025, the European Automobile Manufacturers' Association reported that hybrid-electric car registrations comprised 34.6 percent of the EU market share. To support this transition, major OEMs are directing capital into expanding manufacturing capabilities for electrified components; for instance, Toyota Motor North America announced a 912 million USD investment in November 2025 to upgrade five U.S. plants specifically to increase hybrid-electric vehicle assembly.

Market Challenge

The expansion of the Global Automotive Powertrain Market is significantly hindered by the high manufacturing costs associated with electrified components and the volatility of raw material supply chains. As manufacturers attempt to scale up production of hybrid and electric systems, the elevated prices of critical minerals like lithium and nickel severely compress operating margins, while unpredictable supply chain disruptions prevent companies from maintaining the consistent output needed to meet global demand. These factors create severe liquidity challenges for automotive suppliers, often forcing them to delay essential research and development projects or reduce workforce capacity.

This financial instability is clearly reflected in recent industry performance metrics. In 2024, the European Association of Automotive Suppliers (CLEPA) reported that approximately 68 percent of automotive suppliers expected consistently low profit margins, while 38 percent anticipated operating at break-even levels or incurring losses due to these sustained operational pressures. Such financial fragility directly hampers market growth by limiting the capital available for innovation, thereby slowing the industry-wide transition from internal combustion engines to advanced electrified architectures.

Market Trends

The development of Hydrogen Fuel Cell Propulsion Systems is gaining momentum as a practical alternative to battery-electric architectures, particularly for applications requiring extended range and rapid refueling. Manufacturers are diversifying their propulsion strategies to incorporate hydrogen technologies, aiming to mitigate the limitations associated with heavy battery packs in larger vehicle segments. This strategic shift is evidenced by major automotive players committing to long-term fuel cell commercialization; for instance, the BMW Group confirmed in September 2024 plans to launch its first series-production hydrogen fuel cell electric vehicle (FCEV) in 2028, underscoring a significant industry pivot towards diversified zero-emission solutions.

Concurrently, the market is witnessing the widespread implementation of Integrated e-Axle Drive Units, where electric motors, transmissions, and power electronics are consolidated into compact, modular assemblies. This trend is further evolving with the introduction of magnet-free technologies designed to reduce reliance on volatile rare earth supply chains while enhancing system efficiency. A key advancement in this area occurred in October 2024, when MAHLE and Valeo announced a joint development agreement for a new magnet-free electric axle system capable of delivering peak power between 220 kW and 350 kW, aiming to lower the carbon footprint by over 40 percent compared to permanent magnet equivalents.

Key Market Players

Robert Bosch GmbH
ZF Friedrichshafen AG
Continental AG
Magna International Inc
Aisin Seiki Co Ltd
BorgWarner Inc
Schaeffler AG
Valeo SA
Denso Corporation
Hyundai Motor Group

Report Scope

In this report, the Global Automotive Powertrain Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Automotive Powertrain Market, By Vehicle Type

Passenger Cars
Light Commercial Vehicles
Heavy Commercial Vehicles

Automotive Powertrain Market, By Drive Type

Front-Wheel Drive Powertrain
Rear-Wheel Drive (Rwd) Powertrain
All-Wheel Drive (Awd) Powertrain

Automotive Powertrain Market, By Type

Gasoline
Diesel

Automotive Powertrain Market, By Region

North America
- United States
- Canada
- Mexico
Europe
- France
- United Kingdom
- Italy
- Germany
- Spain
Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
South America
- Brazil
- Argentina
- Colombia
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Powertrain Market.

Available Customizations:

Global Automotive Powertrain Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

1. Product Overview

1.1. Market Definition
1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market
3.2. Overview of Key Market Segmentations
3.3. Overview of Key Market Players
3.4. Overview of Key Regions/Countries
3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Automotive Powertrain Market Outlook

5.1. Market Size & Forecast
- 5.1.1. By Value
5.2. Market Share & Forecast
- 5.2.1. By Vehicle Type (Passenger Cars, Light Commercial Vehicles and Heavy Commercial Vehicles)
- 5.2.2. By Drive Type (Front-Wheel Drive Powertrain, Rear-Wheel Drive (Rwd) Powertrain and All-Wheel Drive (Awd) Powertrain)
- 5.2.3. By Type (Gasoline and Diesel)
- 5.2.4. By Region
- 5.2.5. By Company (2025)
5.3. Market Map

6. North America Automotive Powertrain Market Outlook

6.1. Market Size & Forecast
- 6.1.1. By Value
6.2. Market Share & Forecast
- 6.2.1. By Vehicle Type
- 6.2.2. By Drive Type
- 6.2.3. By Type
- 6.2.4. By Country
6.3. North America: Country Analysis
- 6.3.1. United States Automotive Powertrain Market Outlook
  - 6.3.1.1. Market Size & Forecast
    - 6.3.1.1.1. By Value
  - 6.3.1.2. Market Share & Forecast
    - 6.3.1.2.1. By Vehicle Type
    - 6.3.1.2.2. By Drive Type
    - 6.3.1.2.3. By Type
- 6.3.2. Canada Automotive Powertrain Market Outlook
  - 6.3.2.1. Market Size & Forecast
    - 6.3.2.1.1. By Value
  - 6.3.2.2. Market Share & Forecast
    - 6.3.2.2.1. By Vehicle Type
    - 6.3.2.2.2. By Drive Type
    - 6.3.2.2.3. By Type
- 6.3.3. Mexico Automotive Powertrain Market Outlook
  - 6.3.3.1. Market Size & Forecast
    - 6.3.3.1.1. By Value
  - 6.3.3.2. Market Share & Forecast
    - 6.3.3.2.1. By Vehicle Type
    - 6.3.3.2.2. By Drive Type
    - 6.3.3.2.3. By Type

7. Europe Automotive Powertrain Market Outlook

7.1. Market Size & Forecast
- 7.1.1. By Value
7.2. Market Share & Forecast
- 7.2.1. By Vehicle Type
- 7.2.2. By Drive Type
- 7.2.3. By Type
- 7.2.4. By Country
7.3. Europe: Country Analysis
- 7.3.1. Germany Automotive Powertrain Market Outlook
  - 7.3.1.1. Market Size & Forecast
    - 7.3.1.1.1. By Value
  - 7.3.1.2. Market Share & Forecast
    - 7.3.1.2.1. By Vehicle Type
    - 7.3.1.2.2. By Drive Type
    - 7.3.1.2.3. By Type
- 7.3.2. France Automotive Powertrain Market Outlook
  - 7.3.2.1. Market Size & Forecast
    - 7.3.2.1.1. By Value
  - 7.3.2.2. Market Share & Forecast
    - 7.3.2.2.1. By Vehicle Type
    - 7.3.2.2.2. By Drive Type
    - 7.3.2.2.3. By Type
- 7.3.3. United Kingdom Automotive Powertrain Market Outlook
  - 7.3.3.1. Market Size & Forecast
    - 7.3.3.1.1. By Value
  - 7.3.3.2. Market Share & Forecast
    - 7.3.3.2.1. By Vehicle Type
    - 7.3.3.2.2. By Drive Type
    - 7.3.3.2.3. By Type
- 7.3.4. Italy Automotive Powertrain Market Outlook
  - 7.3.4.1. Market Size & Forecast
    - 7.3.4.1.1. By Value
  - 7.3.4.2. Market Share & Forecast
    - 7.3.4.2.1. By Vehicle Type
    - 7.3.4.2.2. By Drive Type
    - 7.3.4.2.3. By Type
- 7.3.5. Spain Automotive Powertrain Market Outlook
  - 7.3.5.1. Market Size & Forecast
    - 7.3.5.1.1. By Value
  - 7.3.5.2. Market Share & Forecast
    - 7.3.5.2.1. By Vehicle Type
    - 7.3.5.2.2. By Drive Type
    - 7.3.5.2.3. By Type

8. Asia Pacific Automotive Powertrain Market Outlook

8.1. Market Size & Forecast
- 8.1.1. By Value
8.2. Market Share & Forecast
- 8.2.1. By Vehicle Type
- 8.2.2. By Drive Type
- 8.2.3. By Type
- 8.2.4. By Country
8.3. Asia Pacific: Country Analysis
- 8.3.1. China Automotive Powertrain Market Outlook
  - 8.3.1.1. Market Size & Forecast
    - 8.3.1.1.1. By Value
  - 8.3.1.2. Market Share & Forecast
    - 8.3.1.2.1. By Vehicle Type
    - 8.3.1.2.2. By Drive Type
    - 8.3.1.2.3. By Type
- 8.3.2. India Automotive Powertrain Market Outlook
  - 8.3.2.1. Market Size & Forecast
    - 8.3.2.1.1. By Value
  - 8.3.2.2. Market Share & Forecast
    - 8.3.2.2.1. By Vehicle Type
    - 8.3.2.2.2. By Drive Type
    - 8.3.2.2.3. By Type
- 8.3.3. Japan Automotive Powertrain Market Outlook
  - 8.3.3.1. Market Size & Forecast
    - 8.3.3.1.1. By Value
  - 8.3.3.2. Market Share & Forecast
    - 8.3.3.2.1. By Vehicle Type
    - 8.3.3.2.2. By Drive Type
    - 8.3.3.2.3. By Type
- 8.3.4. South Korea Automotive Powertrain Market Outlook
  - 8.3.4.1. Market Size & Forecast
    - 8.3.4.1.1. By Value
  - 8.3.4.2. Market Share & Forecast
    - 8.3.4.2.1. By Vehicle Type
    - 8.3.4.2.2. By Drive Type
    - 8.3.4.2.3. By Type
- 8.3.5. Australia Automotive Powertrain Market Outlook
  - 8.3.5.1. Market Size & Forecast
    - 8.3.5.1.1. By Value
  - 8.3.5.2. Market Share & Forecast
    - 8.3.5.2.1. By Vehicle Type
    - 8.3.5.2.2. By Drive Type
    - 8.3.5.2.3. By Type

9. Middle East & Africa Automotive Powertrain Market Outlook

9.1. Market Size & Forecast
- 9.1.1. By Value
9.2. Market Share & Forecast
- 9.2.1. By Vehicle Type
- 9.2.2. By Drive Type
- 9.2.3. By Type
- 9.2.4. By Country
9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Automotive Powertrain Market Outlook
  - 9.3.1.1. Market Size & Forecast
    - 9.3.1.1.1. By Value
  - 9.3.1.2. Market Share & Forecast
    - 9.3.1.2.1. By Vehicle Type
    - 9.3.1.2.2. By Drive Type
    - 9.3.1.2.3. By Type
- 9.3.2. UAE Automotive Powertrain Market Outlook
  - 9.3.2.1. Market Size & Forecast
    - 9.3.2.1.1. By Value
  - 9.3.2.2. Market Share & Forecast
    - 9.3.2.2.1. By Vehicle Type
    - 9.3.2.2.2. By Drive Type
    - 9.3.2.2.3. By Type
- 9.3.3. South Africa Automotive Powertrain Market Outlook
  - 9.3.3.1. Market Size & Forecast
    - 9.3.3.1.1. By Value
  - 9.3.3.2. Market Share & Forecast
    - 9.3.3.2.1. By Vehicle Type
    - 9.3.3.2.2. By Drive Type
    - 9.3.3.2.3. By Type

10. South America Automotive Powertrain Market Outlook

10.1. Market Size & Forecast
- 10.1.1. By Value
10.2. Market Share & Forecast
- 10.2.1. By Vehicle Type
- 10.2.2. By Drive Type
- 10.2.3. By Type
- 10.2.4. By Country
10.3. South America: Country Analysis
- 10.3.1. Brazil Automotive Powertrain Market Outlook
  - 10.3.1.1. Market Size & Forecast
    - 10.3.1.1.1. By Value
  - 10.3.1.2. Market Share & Forecast
    - 10.3.1.2.1. By Vehicle Type
    - 10.3.1.2.2. By Drive Type
    - 10.3.1.2.3. By Type
- 10.3.2. Colombia Automotive Powertrain Market Outlook
  - 10.3.2.1. Market Size & Forecast
    - 10.3.2.1.1. By Value
  - 10.3.2.2. Market Share & Forecast
    - 10.3.2.2.1. By Vehicle Type
    - 10.3.2.2.2. By Drive Type
    - 10.3.2.2.3. By Type
- 10.3.3. Argentina Automotive Powertrain Market Outlook
  - 10.3.3.1. Market Size & Forecast
    - 10.3.3.1.1. By Value
  - 10.3.3.2. Market Share & Forecast
    - 10.3.3.2.1. By Vehicle Type
    - 10.3.3.2.2. By Drive Type
    - 10.3.3.2.3. By Type

11. Market Dynamics

11.1. Drivers
11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)
12.2. Product Launches (If Any)
12.3. Recent Developments

13. Global Automotive Powertrain Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry
14.2. Potential of New Entrants
14.3. Power of Suppliers
14.4. Power of Customers
14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Robert Bosch GmbH
- 15.1.1. Business Overview
- 15.1.2. Products & Services
- 15.1.3. Recent Developments
- 15.1.4. Key Personnel
- 15.1.5. SWOT Analysis
15.2. ZF Friedrichshafen AG
15.3. Continental AG
15.4. Magna International Inc
15.5. Aisin Seiki Co Ltd
15.6. BorgWarner Inc
15.7. Schaeffler AG
15.8. Valeo SA
15.9. Denso Corporation
15.10. Hyundai Motor Group