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2019

Automotive Drivetrain Technology Market

Automotive Drivetrain Technology Market Size, Share, Competitive Landscape and Trend Analysis Report by Vehicle Type and Technology Type : Global Opportunity Analysis and Industry Forecast, 2019-2030

AT : Automotive systems and accessories

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Author's: Pranav Padalkar & Akshay Jadhav | Lalit Janardhan Katare
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Automotive Drivetrain Technology Market Outlook: 2030

The global automotive drivetrain technology market size was valued at $17.94 billion in 2018, and is projected to reach $269.28 billion by 2030, registering a CAGR of 24.8% from 2019 to 2030. By vehicle type, the passenger car segment was the highest revenue contributor in 2018, accounting for $15.88 billion, and is estimated to reach $230.61 billion by 2030, registering a CAGR of 24.5% during the forecast period. In 2018, the Asia-Pacific region is anticipated to occupy major chunk of the automotive drivetrain technology market share.

The drivetrain is a group of components that delivers power from the vehicle’s engine or motor to the vehicles’ wheel. It includes parts such as transmission, driveshaft, differentials, axles, wheels, and others. It can also be defined as the part of a motorized vehicle, which connects the engine/motor and transmission to the wheel axles.

Automotive Drivetrain Technology Market

The electric, fuel cell, and hybrid vehicles use electric drivetrain system. Moreover, the fuel cell electric vehicles (FCEV) are hybrids, powered by a hydrogen fuel cell with a small battery. The central motor is the electric motor that drives the transmission component, and an e-axle combines several elements such as electric motor, power inverter, transmission, and differential. The electric motor acts as a brain of the EV by enabling it to generate voltage and alternating currents from a power source of a different voltage of frequency. The companies are expecting to get mass production by placing the electric motor directly between the internal combustion engine and the transmission. In addition, various companies are focusing toward conducting R&D activities on drivetrain technology. For instance, NSK Ltd. has successfully demonstrated the first transmission-equipped wheel hub motor to improve the environmental performance, safety, and comfort of automobiles.

Automotive Drivetrain Technology Market
By Vehicle Type
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Trucks by vehicle type segment is projected as the most lucrative segments

In addition, the major factors that drive the automotive drivetrain technology market include rise in sales of electric & hybrid vehicles across the globe and increase in demand for energy efficient sources as an alternative to fuel.

Automakers along with the vendors are equally trying to improve electric powertrain of various systems implemented in automobiles. The automotive drivetrain technology market trends will be deciding on the basis of forecast from 2019 to 2030.

Automotive Drivetrain Technology Market
By Technology
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Wheel hub module by technology segment is projected as the most lucrative segments

The company named Sachaeffler’s started offering in-wheel hub drives that consist of electric motor, power electronics, brake, and cooling system installed directly in the wheel rim. This results in a direct transmission of force to the road and increased agility and safety. Moreover, Ricardo launched new “E-Axle” electric vehicle transmission.

Furthermore, it also has created a single-speed EV transmission that offers a balance of efficiency and performance along with low cost of ownership, owing to rise in demand for battery electric vehicles (EVs) and increase in range of electric machines available for selection by automakers. Such innovations are estimated to boost the growth of the automotive drivetrain technology market during the forecast period.

Automotive Drivetrain Technology Market
By Region
2030
Asia-pacific 
North America
Europe
LAMEA

LAMEA by region segment is projected as the most lucrative segments

Moreover, rise in pollution, development of the automobile industry, and decrease in fossil fuel reserves further fuel the growth of the global market. However, high cost of electric drive system is the key restraining factor for this market. Furthermore, increase in R&D activities for improvement in electric & hybrid vehicle, proactive government initiative & technological advancements, and adoption of smart marketing strategies are anticipated to offer lucrative opportunities for the automotive drivetrain technology market expansion.

The automotive drivetrain technology market forecasted from 2019 to 2030 by considering all the driving factors that influence equally to the automotive drivetrain technology market demand.

The automotive drivetrain technology market is segmented on the basis of technology, vehicle type, and region. Depending on technology, the market is divided into central motor, e-axle, and wheel hub module. On the basis of vehicle type, it is categorized into passenger car, trucks, and buses. Furthermore, the trucks segment is further fragmented into class 1 trucks to class 8 trucks. In addition, the buses segment is divided into city buses, intercity buses, and coaches. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The automotive drivetrain technology market outlook includes the macroeconomic concerns such as the government support for the adoption of electric vehicles, rise in interest rates among people, and others.

The key players operating in the automotive drivetrain technology market include Robert Bosch GmbH, Nidec Corporation, ZF Friedrichshafen AG, GKN Plc, Schaeffler Technologies AG & Co. KG, Continental AG, Borgwarner Inc., AVL List GmbH, Axletech International, and Dana Limited.

Rise in sale of electric and hybrid vehicles across the globe

With rise in concerns regarding the global emission, COP21 Paris agreement was formulated, wherein the target was set to reduce the impact of emission from different industries. Multiple leading players are following the automotive drivetrain technology market trends to grab the untapped regions. Moreover, many automotive production/sales driven countries have adopted or are on the verge of adopting stringent emission standards. For instance, in India, BS IV emission standards have been adopted post 2017-2018 and the BS VI is planed post 2020. Under the same, the manufacturers operating in Indian market have shifted their focus toward the product development and sales of electric vehicles. Similar situations has been adopted in different developing and developed countries wherein with the support and stringent emission norms the OEMS are shifting their focus toward adoption of electric and hybrid vehicles. This in turn is expected to escalate the need for component/systems/services required for electric or hybrid vehicles during the forecast period.

The automotive environment is changing at a rapid pace due to globalization. The use of electric vehicle has reduced the emissions to some extent, which is expected to be the key factor that contributes toward the growth in automotive drivetrain technology market share. In addition, the demand for electric vehicles is increasing at a significant rate due to the government benefits such as tax rebates, free parking, and different subsidies for the same. Moreover, high investment for infrastructure development in most of the emerging countries such as China, India, and Brazil boosts the sales of electric and hybrid vehicles. According to the World Economic Forum, in July 2017, the Government of UK announced that they will be discontinuing the production of new petrol and diesel cars from the year 2040.

This factor will not only boost the growth of the electric car market but will also drive the demand for electric vehicle related component such as in-wheel motors, e-axle, and other components. As the electric drivetrain system market is directly influenced by the demand for electric and hybrid vehicles, positive impact is estimated during the forecast period.

Increase in technological advancement

Automobile companies focus on the production of advanced electric vehicle systems that are expected to have low costs with the highest possible mileage. Companies have also started producing downsized engines to be implemented in vehicles as smaller engines help achieve the upcoming Bharat Stage VI emission norms. This is because they produce lesser emissions as compared to heavier and larger engines. Moreover, the drivetrain system in fuel cell majorly act as a main power source as compared to electric vehicles. For instance, Allison has introduced new AXE series e-axle for MD, HD trucks is compatible with fuel cell range extender electric vehicles (FCEV) or turbine generator range extenders (REV). In addition, various companies are focusing toward conducting R&D activities on drivetrain technology. For instance, NSK Ltd. has successfully demonstrated the first transmission-equipped wheel hub motor to improve the environmental performance, safety, and comfort of automobiles. Such modern techniques are in the automotive drivetrain technology market for the commercial vehicle, passenger vehicle, and for three & two wheelers. The company named Sachaeffler’s started offering in-wheel hub drives that consist of the electric motor, power electronics, brake, and cooling system installed directly in the wheel rim. Thus, the development in wheel hub motor technology with their advanced features and e-axle compatibility is expected to fuel the growth of the automotive drivetrain technology market.

High cost of electric vehicles and low economy of scale

With the rise in concerns over the global emissions, there has been constant effort taken by the respective government of different countries and manufacturers to reduce the fleet level emissions. This has influenced the adoption of electric vehicles. Although due to lack of EV charging infrastructure and high price of the vehicles the sales volume is comparatively very low against the ICE vehicles. In addition, the high cost of electric vehicles components such as batteries and drivetrain, which constitute more than 60% is hindering the automotive drivetrain technology market growth.

The electric drivetrain system is widely used in different types of vehicles such as passenger cars, light commercial vehicles, heavy commercial vehicles, fuel-cell vehicles, and electric vehicles. Moreover, the efficient operation performed by drivetrain consists of multiple components that are equipped with the electronic motor (synchronous and asynchronous), power electronic components, and different transmission units depending on the system used in the vehicle. These parts are costlier, which in turn increases the overall cost of the electric drive system. High cost of drivetrain system is one of the reason responsible for the hike in car prices. Hence, upsurge in adoption of electric vehicles in countries other than China is limited by high costs. Hence, it is anticipated that high cost associated with overall electric vehicle may inhibit the automotive drivetrain technology market growth. However, the electric vehicle market is growing at a rapid rate, which may reduce the impact of this restraint in the near future with the manufacturers reaching economy of scale.

Stringent emission regulations to reduce vehicle weight and emission

Upsurge in the demand for electric vehicles has been witnessed due to their lightweight nature and increased efficiency. This has led to surge in installation of e-axles and in-wheel hub motor in all type of vehicles. Moreover, such installation helps reduce CO2 emissions and space required for engines. The conventional gas-powered vehicle makes use of an internal combustion engine to generate power.

In an ideal scenario, the combustion system fully incinerates the fuel and only creates carbon dioxide and water as waste; however, the combustion system generates various greenhouse gases, leading to environmental pollution. On the other hand, an electric vehicle uses an electric motor powered via a continuous supply of current, hence, it does not lead to emission of pollutants. In addition, the U.S., Germany, France, and China have implemented stringent government laws and regulations for vehicular emission, making it mandatory for the automobile manufacturers to use advanced technologies to combat & reduce emission and vehicle weight. Moreover, a program launched by the California Air Resources Board (CARB) includes guidelines for manufacturers to produce and deliver zero-emission vehicles (ZEVs), substantially creating a lucrative opportunity for the adoption of electric vehicles that directly lead the sale of automotive drivetrain system market.

Key Benefits for Automotive Drivetrain Technology Market:

  • This study presents analytical depiction of the automotive drivetrain technology market analysis along with the current trends and future estimations to depict the imminent investment pockets.
  • The overall market potential is determined to understand the profitable trends to gain a stronger foothold.
  • The report presents information related to key drivers, restraints, and opportunities of the market with a detailed impact analysis.
  • The current automotive drivetrain technology market size is quantitatively analyzed from 2018 to 2030 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the automotive drivetrain technology industry

Automotive Drivetrain Technology Market Report Highlights

Aspects Details
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By Vehicle Type
  • Passenger Car
  • Buses
  • Trucks
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By Technology
  • Central Motor
  • E-Axle
  • Wheel hub module
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Netherlands, Norway, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

SCHAEFFLER TECHNOLOGIES AG & CO. KG, NIDEC CORPORATION, ROBERT BOSCH GmbH, BORGWARNER INC., AXLETECH INTERNATIONAL, ZF FRIEDRICHSHAFEN AG, CONTINENTAL AG, GKN PLC, DANA INCORPORATED, AVL LIST GmbH

Analyst Review

The report incorporates the study of the automotive drivetrain technology market that focuses on the type of drives and type of component used in drivetrain unit. In addition, the type of vehicle equally matters for the use of such technologically advanced system for electric, hybrid, and fuel-cell vehicles. Moreover, the usage of alternative fuel and electricity in these vehicles leads to zero emission, making them ecofriendly. The adoption of electric drivetrain technology in vehicles serves to be a paradigm shift in the modern world. Furthermore, automobile manufacturers are inclined toward electric and alternative fuel vehicles due to implementation of stringent vehicle emission standards/regulations.

The automotive drivetrain technology market is driven by rise in sale of electric and hybrid vehicles across the globe and technological advancement in electric drives and increase in fuel costs. In addition, rise in pollution, growth in the automobile industry, and rise in trend for engine downsizing are propelling the growth of the global automotive drivetrain technology market.

However, high cost of electric drive system and a need for a cultural shift in the production away from the traditional assembly process, and making a compact size drivetrain system suitable for different vehicle type are the major factors that restrain the market growth. Furthermore, proactive government initiatives and improvement in R&D of electric and hybrid vehicles provide lucrative opportunities for the growth of the global market.

Among the analyzed regions, currently, Asia-Pacific is the highest revenue contributor and LAMEA is anticipated to create dominance during the forecast period, followed by Europe and North America. This growth is attributed to proactive development and research in drivetrain technology for various applications of vehicles.

Author Name(s) : Pranav Padalkar & Akshay Jadhav | Lalit Janardhan Katare
Frequently Asked Questions?

The global automotive drivetrain technology market was valued at $17,943.00 million in 2018, and is projected to reach $269,276.00 million by 2030, registering a CAGR of 24.8% from 2019 to 2030.

Automobile companies focus on the production of advanced electric vehicle systems that are expected to have low costs with the highest possible mileage. Companies have also started producing downsized engines to be implemented in vehicles as smaller engines help achieve the upcoming Bharat Stage VI emission norms. In addition, various companies are focusing toward conducting R&D activities on drivetrain technology. For instance, NSK Ltd. has successfully demonstrated the first transmission-equipped wheel hub motor to improve the environmental performance, safety, and comfort of automobiles. Such modern technique is in market for the commercial vehicle, passenger vehicle, and for three & two wheelers These factors includes increase in demand for fuel-efficient, high-performance, and low-emission vehicles as well as the stringent government rules and regulations toward vehicle emission are anticipated to drive the drivetrain technology market trend.

To get the latest version of sample report automotive drivetrain technology market.

The leading players in automotive drivetrain technology market includes Continental AG, Robert Bosch GmbH, Dana Corporation and GKN PLC. These players adopted different strategies so as to hold major market share in the automotive drivetrain technology market.

The value chain for automotive drivetrain technology market includes Original equipment manufacturers (OEMs), Tier 1 manufacturers, Tier 2 manufacturers and Tier 3 manufacturers. All the producers manufacturing component for drivetrain units, electric axle and for the wheel hub motors, the tier 1 players, and OEM would be the direct customers.

The statistical data of the top market players of automotive drivetrain technology industry can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the automotive drivetrain technology industry as well as their last three-year revenue, segmental revenue, product offerings, key strategies adopted, and geographical revenue generated.

Based on the automotive drivetrain technology market analysis, Asia-Pacific accounts to be highest revenue contributor in 2018 and provides more business opportunities during the forecast period whereas LAMEA is expected to see a lucrative growth during the forecast period which is also expected to provide more business opportunities for automotive drivetrain technology in near future.

The demand for different type of drivetrain system is at exponentially higher pace, although it’s still at initially stages of technological development. The drivetrain includes transmission, driveshaft, differentials, axles, wheels, and others. Key players in the automotive drivetrain technology business is adopting many strategies to expand the market. For instance, The BorgWarner has announced a partnership with one of China’s leading New Energy Vehicle (NEV) brands to supply the fully integrated drive module (iDM) for their pure electric vehicle. Moreover, the companies such as Dana Incorporated, GKN Limited, Schaeffler Technologies AG & CO. KG. and others provides services related to the drivetrain, e axle and wheel hub motor across the globe.

New product and technology developments are the significant strategies adopted by the key manufacturers. The emerging trends includes development for integrated units such as E-Axle, consolidated motors such as in Wheel Motor, for efficient battery performance battery management systems, whereas to achieve maximum miles in one charge EV range extenders are used. In addition, stringent emission regulations to reduce vehicle weight and emission are few factors and technologies which are gaining popularity among the manufactures to gain maximum market share during the forecast period.

Different countries have different growth % such as in Asia Pacific which accounts to have $ 8,609.1 million in 2018 and Africa, rest of Europe and Mexico to experience lucrative growth during the forecast period. In Europe, Netherlands and Norway will experience a fastest growth during the course of study. Asia-Pacific which accounts to hold approximately 45-50% of the global market share, has China and Japan which accounts to have major share in terms of revenue.

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Automotive Drivetrain Technology Market

Global Opportunity Analysis and Industry Forecast, 2019-2030