A powertrain system is one of the essential parts of an automobile. A powertrain is made up of all the components that generate power for the vehicle and transfer it to the wheels at the same time, allowing the vehicle to move. The powertrain system includes the transmission, engine, driveshafts, and differentials. The attributes of the powertrain system determine the entire efficiency and performance of the vehicle.
As per a study by Transparency Market Research, the global automotive powertrain market is anticipated to witness significant growth during the forecast period (2019 to 2027).
In past years, global automobile sales have remained advantageous for the global automotive powertrain market, with the United States and China dominating in terms of both production and sales. As the U.S. economy gradually improves, the country’s automotive industry is expected to accelerate, especially in the auto components vertical.
Developing economies such as Brazil, Mexico, and India are also receiving attention. In these countries, demand for passenger and commercial automobiles has increased dramatically. Volkswagen, Toyota, G.M., HYUNDAI, and Ford were among the top five manufacturers in 2019. Rising automotive manufacturing continues to boost the worldwide automotive powertrain market.
China’s car production increased by 5.7% in 2020, hitting 2.84 million units. Likewise, other Asian countries such as India, South Korea, and Japan are experiencing a spike in passenger car production due to exponential demand. Such factors are expected to boost the global automotive powertrain market.
Strict Government Rules on Automotive Emissions to Support Market Growth
Globally tightening carbon and nitrogen emissions laws are anticipated to drive the global automotive powertrain market during the forecast period.
The alarming pace of pollution increase has compelled governments in various regions to enforce stringent emission rules, which has increased the demand for high power engines and more sophisticated powertrain systems in order to enhance fuel efficiency and decrease total carbon emissions. Moreover, the rising demand for automobile upgrades to satisfy government standards is expected to propel the global automotive powertrain market in the coming years.
The implementation of pollution control requirements and other strict government regulations for pollution control have compelled vehicle manufacturers to enhance powertrain effectiveness. As a result, modern technology incorporation, such as combustion control enhancements applied to current engines, such as internal combustion engines, is projected to fuel the expansion of the automotive powertrain market in the future years.
Furthermore, some automakers have already introduced advanced emissions-control technology employed in next-generation vehicles. Additionally, global initiatives such as the Paris Climate Agreement have encouraged numerous nations around the world to establish higher emission regulations for new automobiles.
As a result, the auto industry is becoming more interested in the electric mobility sector. Over the coming decade, an increasing number of consumers are anticipated to choose vehicle models with low or no emissions. This is anticipated to bolster the growth of the global automotive powertrain market during the forecast period.
Asia Pacific to Lead Automotive Powertrain Market
Asia Pacific is projected to lead the global automotive powertrain market. The key factors driving the growth of the regional market are rising vehicle production and a jump in passenger car penetration.
Moreover, the automotive powertrain market is anticipated to be driven by rising demand for luxury vehicles in places such as Europe and Asia Pacific. Upcoming legislation in many nations is projected to have a significant impact on the market for all-wheel-drive systems. The Asia-Pacific region’s growing demand for AWD-equipped vehicles is expected to drive demand for the all-wheel-drive system market. Asia Pacific has witnessed a significant rise in sales of new automobiles fitted with in-demand powertrain systems. The increased use of all-wheel drive in SUVs from this region has aided market expansion. Such aspects are estimated to propel the automotive powertrain market in Asia Pacific during the forecast period.