Automotive Powertrain Systems Market Size & Share 2023 to 2032
Market Size by Powertrain Type (Internal Combustion Engine, Hybrid Powertrain, Electric Powertrain), Vehicle Type (Passenger Cars, LCVS, HCVS, Off-Highway Vehicles), Sales Channels (OEMS, Aftermarket) & Forecast.
Report ID: GMI6878
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Published Date: October 2023
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Automotive Powertrain Systems Market Size
Automotive Powertrain Systems Market size was valued at USD 831 billion in 2022 and is estimated to expand at a CAGR of 8.2% between 2023 and 2032.
Automotive Powertrain Systems Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The market is undergoing significant transformation as it adapts to the evolving landscape of the automotive industry. These changes are led by various factors including technological advancements, regulatory shifts, and changing consumer preferences. Electrification is revolutionizing the market. Electric powertrains are gaining traction owing to the growing emphasis on reducing greenhouse gas emissions and increasing energy efficiency.
The high cost of powertrain systems remains a significant restraint in the automotive industry, affecting both electric & hybrid vehicles. For instance, in the case of EVs, the cost of the battery pack constitutes up to 30% of the total vehicle cost, presenting a substantial financial barrier for many potential consumers. Several factors drive up the cost of powertrain systems.
COVID-19 Impact
The COVID-19 pandemic significantly disrupted the automotive and transportation market, causing a sharp decline in vehicle sales, production halts, disrupted supply chains, and a shift towards remote work impacting commuter habits. Demand for electric and online vehicle sales surged, prompting a paradigm shift in the industry.
Automotive Powertrain Systems Market Trends
Transformational Trends in the automotive & transport industry electricity reached its crescendo following the growing adoption of electric vehicles which were spurred by environmental concerns and the improvements in battery technology. On the other hand, AI-based autonomy of vehicles also took off which in turn is positively impacting the market growth.
Automotive Powertrain Systems Market Analysis
The automotive powertrain systems market from Internal Combustion Engine (ICE) segment dominated around USD 654 billion revenue in 2022. The market is currently witnessing a dynamic shift in powertrain types, with the convergence of several key trends shaping the future of mobility. The Internal Combustion Engine (ICE) powertrain segment continues to evolve in response to stringent emissions regulations and the demand for increased fuel efficiency.
Passenger Cars segment held over 55% of the automotive powertrain systems market share in 2022, due to undergoing significant changes in response to the evolving consumer preferences, environmental concerns, and technological advancements, with distinct trends emerging across various vehicle types. In the realm of passenger cars, there is a notable shift toward electrification.
The Original Equipment Manufacturers (OEMs) segment accounted for 26% of the automotive powertrain systems market share in 2022. The OEM segment remains the primary distribution channel for powertrain systems. As automakers intensify their efforts to develop Electric Vehicles (EVs) and hybrid models, OEMs are increasingly integrating electric powertrains into their production lines.
U.S. automotive powertrain systems market size reached USD 97 billion in 2022. The U.S. plays a pivotal role in shaping the North American industry landscape. The market is characterized by a push for cleaner & more efficient powertrain systems. A key driver of this shift is stringent emission regulations, which have pushed automakers to invest heavily in electric & hybrid powertrain technologies.
Automotive Powertrain Systems Market Share
Some of the major companies operating in the automotive powertrain systems Industry are:
These companies focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these companies are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.
Automotive Powertrain Systems Industry News:
This automotive powertrain systems market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion & Thousand Units from 2018 to 2032, for the following segments:
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Market, By Powertrain Type
Market, By Vehicle Type
Market, By Sales Channel
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →