Rising demand for eco-friendly vehicles, stringent government regulations, and highly developed powertrain systems leading to fuel economy are factors which will drive the global powertrain market to expand at a 5.3% CAGR between 2014 and 2020. As a result, this market will reach an estimated value of US$524.60 billion in 2020 from US$365.67 billion in 2013. The automotive sector being a highly flourishing industry, is anticipated to grow considerably in the years to come.
The primary rationale of the powertrain industry is to incorporate fuel economy by way of reducing the sizes of engines and as a result manage the problem of harmful emissions. The powertrain system, for any vehicle is a very fundamental component. It is this system that generates the power that is essential for vehicles to move. Therefore, it can be said that the performance of a vehicle depends immensely on its powertrain system.
Browse Market Research Report of Global Powertrain Market:
On What Basis is the Global Powertrain Market Segmented?
Vehicle type, component, and geography are the three parameters based on which the global powertrain market is categorized. In terms of components, the market is segmented into differentials, engine, final drive, transmission, and drive shafts. The segment for engines holds the largest share in the global market, since it is a primary component that carries out fuel combustion.
On the basis of vehicle type, the global powertrain market is segmented into construction equipment vehicles, cars, off road vehicles, LCVs, HCVs, ICVs, defense vehicles, and farm tractors. The segment for cars holds the largest share in the overall powertrain market.
Some of the prominent companies operating in the global powertrain market are Magna Powertrain, Denso Corporation, Hyundai Motor Co. Ltd., Continental AG, Delphi Automotive plc, and General Motors Company.
In order to retain a fair share in the market, companies should seize some of the market opportunities such as the adoption and application of noiseless and eco-friendly technology and developing powertrain systems that run on non-conventional energy sources.
A glaring challenge faced by the global powertrain market is the rising costs of powertrain systems.
What Makes Asia Pacific a Potential Leader in the Global Powertrain Market?
Geographically, the global powertrain market is segmented into Asia Pacific, North America, Europe, and Rest of the World. With a booming automotive market, the Asia Pacific powertrain market is anticipated to expand significantly during the forecast period. Owing to high demand for automobiles, the demand for powertrains will surge substantially in Asia Pacific. The two main markets for automobiles in the Asia Pacific are China and India. Moreover, government standards and regulations pertaining to cleaner environment will further give a big boost to the demand for powertrains in these countries in Asia Pacific.
Browse Market Research Press Release of Global Powertrain Market:
The presence of a large pool of popular automobile brands such as Volkswagen, Mercedes, and BMW makes Europe the largest regional market in the global market for powertrains. However, it is the Asia Pacific market that will record the highest rate of growth in the forthcoming years. Another noteworthy factor that will drive the demand for powertrain in this region is the growing awareness about environmental sustainability.