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Automotive Drivetrain Industry Set to Achieve $337.16 Billion Milestone by 2029 | Steady 7.8% CAGR

09-08-2025 08:18 AM CET | Logistics & Transport

Press release from: The Business Research Company

Automotive Drivetrain

Automotive Drivetrain

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What Is the Long-Term Growth Forecast for the Automotive Drivetrain Market Size 2025?
The market size of automotive drivetrains has seen significant growth over the past few years. It is projected to expand from being worth $235.82 billion in 2024 to being valued at $249.81 billion in 2025, with a compound annual growth rate (CAGR) of 5.9%. This surge in the historical period is due to various factors such as early motorcar advancements, transition from equine-driven to engine-powered vehicles, the industrialisation of automotive manufacturing processes, the launch of four-wheel drive systems, and the advancement in transmission technologies.

What CAGR is Forecasted for the Automotive Drivetrain Market Through 2029?
In the upcoming years, the automotive drivetrain market is projected to witness substantial growth, with expectations to reach $337.16 billion by 2029, growing at a Compound Annual Growth Rate (CAGR) of 7.8%. This surge during the forecast period can be associated with factors such as vehicle electrification, incorporation of advanced sensors in drivetrain, usage of lightweight and high-efficiency materials, advancements in autonomous vehicles, and an ongoing focus on fuel efficiency. Key trends anticipated during this period involve hybrid and electric drivetrains, smart and adaptive drivetrain systems, modular drivetrain models, integration of predictive maintenance technologies, and the production of all-wheel-drive (AWD) systems for high-performance vehicles.

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What Are the Critical Factors Driving Automotive Drivetrain Market Development?
With the rise in the acceptance and use of electric vehicles, there is an anticipated surge in the growth of the automotive drivetrain market. These vehicles, either fully or semi-electric, contribute to escalating demand for automotive drivetrains. A feature of electric drivetrains is their single-speed transmission, which transmits power from the engine to the wheels. As an illustration, in October 2022, data from the World Economic Forum, a Swiss-based international non-profit and advocacy body, revealed that roughly 4.3 million new battery-powered electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold worldwide in the initial half of 2022. Sales in BEVs saw a rise of 75% compared to the previous year, and PHEVs experienced a hike of 37%. As such, the mounting adoption of electric vehicles is poised to stimulate greater need and further growth in the automotive drivetrain market sector.

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How Does the Automotive Drivetrain Market Break Down Across Major Segments?
The automotive drivetrain market covered in this report is segmented -

1) By Drive Type: Front-Wheel Drive, Rear-Wheel Drive, All-Wheel Drive
2) By Vehicle Type: Passenger Cars, Light Commercial Vehicle(LCV), Heavy Commercial Vehicle(HCV), Electric Vehicle
3) By Transmission: Manual Transmission, Automatic Transmission, Continuous Variable Transmission, Automated Manual Transmission, Dual-Clutch Transmission
4) By Technology: Central Motor, E-Axle, Wheel Hub Module

Subsegments:
1) By Front-Wheel Drive (FWD): Compact Cars, Sedans, Crossover SUVs
2) By Rear-Wheel Drive (RWD): Sports Cars, Luxury Vehicles, Trucks
3) By All-Wheel Drive (AWD): Full-Time AWD, Part-Time AWD, Performance AWD

What Are the Major Trends Transforming the Automotive Drivetrain Industry?
The driving force behind the automotive drivetrain market's rising popularity is technological innovation. To strengthen their standing in the market, companies are concentrating on advancing new technologies. For instance, in May 2022, Amsted Automotive, a US-based manufacturer, unveiled the Dynamic Controllable Clutch (DCC), an Electro-Mechanical E-axle Disconnect system. This offers dependable, swift shifts and seamless transition between all-wheel drive (AWD) and 4WD disconnect. The DCC technology has the advantage of enabling the driveline system to engage and disengage the drive axles, resulting in energy conservation and maintaining on-road and off-road abilities.

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Which Players Are Driving Innovation in the Automotive Drivetrain Market?
Major companies operating in the automotive drivetrain market include Aisin Seiki Co Ltd., BorgWarner Inc., ZF Friedrichshafen AG, Showa Corporation, Schaeffler Group, American Axle & Manufacturing Inc., Magna International Inc., JTEKT Corporation, Axletech International, Continental AG, Nidec Corporation, AVL List GmbH, Marelli Holdings Co. Ltd., Mitsubishi Electric Corporation, Robert Bosch GmbH, Valeo SA, Toyota Motor Corporation, Hyundai Motor Company, Volkswagen AG, Dana Incorporated, GKN Ltd., General Motors Company, Ford Motor Company, Daimler AG, Allison Transmission Inc., Eaton Corporation plc, Meritor Inc., Dana Limited, Linamar Corporation, Miba AG

Which Regions Are Driving Global Automotive Drivetrain Market Expansion?
Asia-Pacific was the largest region in the automotive drivetrain market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive drivetrain market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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Saumya Sahay
Americas +1 310-496-7795,
Asia +44 7882 955267 & +91 8897263534,
Europe +44 7882 955267
Email:saumyas@tbrc.info
The Business Research Company -www.thebusinessresearchcompany.com
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Learn More About The Business Research Company
With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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