Publishing: May 2021 | Report Code: AT11075 | Available Format: PDF
Automotive Drivetrain Market Overview
The global automotive drivetrain market is anticipated to witness a steady growth during the forecast period, mainly due to the increasing production and demand for vehicles, and need for high acceleration and towing capability in the vehicles. Additionally, the growing demand for electric vehicles across different countries, owing to emission reduction is another factor boosting the market growth.
A drivetrain is an assembly of components that conveys power to driving wheel of a vehicle. The drivetrain comprises driveshaft, transmission, wheels, and axles. Engine is not a segment of drivetrain although the function of the drivetrain is to combine the engine and driving wheels so as to provide power to vehicle. Development of new technologies in the production of all-wheel drive (AWD) for cars and sports-utility vehicles (SUVs) is the trend followed in the automotive drivetrain market.
Based on drive type, the automotive drivetrain market is categorized into front-wheel drive (FWD), rear-wheel drive (RWD), and AWD. Among these, in terms of value, the AWD market is expected to grow at the maximum growth rate during the forecast period. This is because the AWD systems offer better traction and control, and higher power; and are equipped in most of the sports utility vehicles (SUVs). Features including anti-slip and stability control work in combination with AWD. They also help in reducing fuel consumption, owing to the improved drag on the drivetrain.
On the basis of vehicle type, the automotive drivetrain market is categorized into passenger cars, light commercial vehicles, heavy commercial vehicles, and electric vehicles. Of these, the market for automotive drivetrain in electric vehicles is projected to grow significantly in terms of volume during the forecast period, owing to stringent emission norms.
On the basis of region, the automotive drivetrain market is classified into North America, Europe, Asia-Pacific (APAC), and Rest of the World. Among these, APAC is projected to lead the automotive drivetrain industry, due to increase in technological advancement and vehicle production in the region. APAC includes China, South Korea, Japan, and India, which are the uppermost nations in terms of production of vehicles. The expansion of new technologies in the manufacturing of AWD for passenger cars and SUVs so as to improve overall vehicle performance is the new trend observed in the market. The APAC market is currently dominated by FWD vehicles, but AWD and RWD categories are also rising at a stable rate.
Automotive Drivetrain Market Dynamics
The automotive drivetrain market is primarily driven by rising demand for lightweight materials in the manufacturing of automobiles, which result in improved fuel efficiency.
Therefore, manufacturers are coming up with lightweight drivetrains to improve the overall performance of the automobiles. The surges in the demand and manufacture of vehicles is another significant factor propelling the evolution of the automotive drivetrain industry during the forecast period. Since the economic downturn of 2007–2008, the automotive production across the globe was held captive. But from the year 2014, sales and production of automobiles have improved substantially. For instance, total motor vehicle production in 2014 was 89,700,000, which was increased to around 97,300,000 in 2017, an increase of 8.5%.
Shift toward electrification with increasing demand for electric vehicles is another major factor driving the automotive drivetrain market. As electric vehicles are zero- or low-emission vehicles, many countries are supporting the production and sales of these vehicles by implementing stringent regulations, and also offering tax credits, subsidies, and other incentives to customers at the time of purchasing these vehicles. For instance, the Internal Revenue Service (IRS) offers a tax credit of $2,500–7,500 per new electric vehicle purchased in the U.S. The up-surging demand for electric vehicles across the world is propelling the market growth.
Factors hindering the growth of the automotive drivetrain market are high initial and maintenance cost of vehicles equipped with AWD, and fluctuations in prices of raw materials. Additionally, the cost of AWD systems is higher than the traditional RWD and FWD systems.
Automotive Drivetrain Market Competitive Landscape
Some of the key players operating in the global automotive drivetrain market include ZF Friedrichshafen AG, GKN PLC, Borgwarner Inc., Showa Corporation, Schaeffler Group, Magna International Inc., Aisin Seki Co. Ltd., JTEKT Corporation, Dana Incorporated, and American Axle & Manufacturing Inc.
The report will also provide country-wise analysis of the market. Some of the major countries covered in the report are the U.S., Canada, Mexico, the U.K., Germany, France, Spain, Italy, the Netherlands, China, India, Japan, Thailand, the U.A.E., South Africa, Brazil, and Australia.
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