Automotive Powertrain Market: Mid-Sized Vehicles to Generate Significant Revenues

As the need for enhanced automotive transmission system increases, demand for automotive powertrain is projected to increase significantly. In addition, imposition of various government regulation regarding reduction of the emission level will continue to impact the global market growth of automotive transmission positively. Fact.MR states that the global market of automotive powertrain is projected to reflect a CAGR of 5.2% over the forecast period, 2017-2026.

Factors Fuelling Global Market Growth

Growth of the global automotive powertrain market is mainly bound to various macro-economic and micro-economic factors. With the increasing demand for optimize fuel ignition and ignition, sales of the automotive powertrain will continue to increase significantly. In order to improve the efficiency of the automotive engine, manufacturers are mainly focusing on integrating engine management sensors. Growing demand for increasing acceleration, high towing capacity, gaining traction and generate power in the engine is projected to rev up sales of the automotive powertrain significantly.

In addition, government in various countries are focusing on developing smart city globally. Imposition of regulations regarding clean and healthy environment has led the automotive manufacturers to focus on developing electronic vehicles for public transportation purposes. Surge in production of the electronic vehicles is projected to fuel demand for automotive powertrains globally. In addition, manufacturers in the automotive industry are significantly focusing on developing automotive powertrains equipped with sensor clusters and smart actuators that enhance the functioning of the transmission. Companies operating in the automotive industry are also focusing on developing vehicles that are equipped with leading technological features such as combustion control system. These factors are projected to contribute towards growth of the global automotive transmission market significantly during the forecast period.

Demand for the mid-sized vehicles continue to remain high attributed to comparatively cheaper prices. Manufacturers are significantly focusing on incorporating advanced technological features such as engine downsizing to offer improved fuel delivery system and control system, which improves the efficiency and power of the vehicles. Surge in demand for mid-sized vehicles is projected to rev up sales of the automotive powertrains. In addition, increase in harshness, noise and vibration due to cylinder deactivation, stop-start system, turbocharging technology along with plug-in hybrid and hybrid technology has led the manufacturers to integrate leading technological developments in the engine. The automotive manufacturers are integrating various features such as noise cancellation technologies and engine mount to eliminate noise produced due to engine. These factors are projected to contribute towards the global market growth of automotive powertrain significantly throughout the forecast period.

Sales for Mid-Sized Vehicles to Remain High

As the need to power all wheels of the vehicles increases, demand for all wheel drive vehicles is projected to remain high in the global market. In terms of revenue, the all wheel drive position type segment is projected to witness the highest growth, representing more than US$ 80 Mn by 2026-end. During the forecast period, the all wheel drive position type segment is projected to reflect a healthy CAGR during the forecast period.

On the basis of vehicle type, the mid-sized vehicle type segment is projected to reflect a robust CAGR through 2026. However, the light commercial vehicle type segment is projected to witness robust revenue growth, accounting for more than US$ 30 Mn by 2017-end.

Based on powertrain type, the battery electric vehicle segment is projected to reflect the fastest growth in the global automotive powertrain segment throughout the forecast period. On the contrary, the gasoline powertrain type segment is projected to generate significant revenues, recording for more than US$ 100 Mn by 2026-end.

Market Players

Major players in the global market of automotive transmission include Ford Motors, General Motors, Hyundai, Volkswagen Group, BorgWarner Inc., Toyota, GKN plc., JTEKT Corp., Delphi Automobile LLP and Magna Powertrain Ltd.

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