The global automotive powertrain market is projected to exceed over USD 650 billion by 2022 owing to increasing vehicle production combined with growing awareness regarding environmental pollution.
The automotive powertrain market is estimated to grow at a CAGR of over 5% from 2014 to 2022. The powertrain of any vehicle defines its safety, performance and comfort. The transmissions and engine are the prime components of a powertrain along with other key components such as torque/clutch converter, propeller/drive shaft, axles and differential.
Increasing demand for automated transmission and rising trend for engine downsizing which reduces fuel emission and consumption is projected to accentuate automotive powertrain market growth. Growing need for enhanced traction, high towing capacity and increased acceleration in vehicles for safe driving in order to pass through unfavorable terrain and poor weather conditions is expected to drive demand over the forecast period.
Stringent government regulations regarding the reduction of carbon dioxide emissions for preventing global warming are projected to boost sales. Owing to stringent fuel economy and emission norms, vehicle manufacturers are diverting towards engine downsizing with the assistance of turbochargers. Additionally, increasing consumption expenditure, high demand for automobiles and up-gradation of automobile system is expected to be the substantial drivers for industry growth.
Advanced technologies such as combustion control improvements applied to internal combustion engine are anticipated to trigger growth. Further, need for enhanced driving dynamics has pushed the manufacturers to introduce systems catering to this demand in the present environment. Increasing development of advanced automobile features in emerging countries is anticipated to offer lucrative opportunities for the market growth.
However, low customer willingness to pay extra for sustainable powertrain system and high investment cost associated with the system is projected to hamper the automotive powertrain market. Further, stringent emission norms across various countries can act as a challenge for the demand.
The automotive powertrain industry can be segmented on the basis of vehicle type into Light Commercial Vehicle (LCV), passenger car and Heavy Commercial Vehicle (HCV). On the basis of position the industry can be categorized into, All-wheel drive (AWD), Front-wheel drive (FWD) and Rear-wheel drive (RWD). The AWD vehicles industry is expected to proliferate owing to the varied benefits provided by AWD over FWD and RWD.
On the basis of engine type the industry can be bifurcated into gasoline and diesel. Currently, gasoline engines have been adopted widely and are projected to be replaced by diesel engines owing to the increasing difference between the diesel and gasoline prices. Owing to these factors, component manufacturers are adopting hybrid powertrains in order to reduce fuel usage in vehicles.
North America is projected to be the dominant region for the industry as the region is focused on luxury and comfort leading to the adoption of AWD vehicles over FWD and RWD in this region.
Asia Pacific is expected to be an emerging region owing to increasing vehicle sale coupled with growing demand for automated transmission in countries such as China and India. Substantial rise in the purchasing power of consumers has augmented the demand for state-of-the-art motor vehicles, leading to a considerate demand for upgraded systems. Additionally, extensive industrial and infrastructural development in these regions is projected to drive the industry.
The Chinese government launched the new energy vehicle development program combined with several other programs in order to transform the Chinese automotive manufacturing industry.
Europe is expected to witness stable growth rate over the forecast period after the economic downturn in 2009. Germany is estimated to be the fastest growing market in this region. The presence of major industry players in the region has significantly fueled industry growth.
The key industry vendors include Ford Motor Company, GKN PLC, Toyota Motor Corporation, Jtekt Corporation, Aisin Seiki Co. Ltd, General Motors Company, Volkswagen AG, Hyundai Motor Corporation, Borgwarner Inc and ZF Friedrichshafen AG. The industry players are adopting new product launches, mergers and acquisitions and agreements to expand their industry presence.
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