Drivetrain Technology Global automotive drivetrain technology market to garner $269.28 billion by 2030
A rise in the sale of electric and hybrid vehicles across the globe and an increase in technological advancement are driving the growth of the global automotive drivetrain technology market.
In recent years, a surge in the sale of electric hybrid vehicles across the globe and a rise in technological advancements have boosted the growth of the global automotive drivetrain technology market. More stringent emission regulations to reduce vehicle weight and emission are expected to increase the industry's growth further in the third decade of the 21st century.
The global automotive drivetrain technology market was pegged at $17.94 billion in 2018 and is projected to reach $269.27 billion by 2030, registering a CAGR of 24.8 percent from 2019 to 2030, according to a new report by Allied Market Research titled, "Automotive Drivetrain Technology Market by Vehicle Type (Passenger Car, Buses, and Trucks) and Technology Type (Central Motor, E-axle, and Wheel Hub Module): Global Opportunity Analysis and Industry Forecast, 2019–2030."
The market does, however, still have hurdles to overcome before reaching its full potential. The high cost of electric vehicles and the low economy of scale is hindering the automotive drivetrain market's growth.
Passenger car segment held the largest share
The passenger car segment held the largest share in 2018, contributing to nearly 88 percent of the global automotive drivetrain technology market, owing to an increase in demand for passenger vehicles and upsurge in consumer demand for driving comfort in their vehicles.
However, in the next ten years, the truck segment is projected to register the fastest growth with a CAGR of over 28 percent. The main reason for the truck segment's anticipated augmentation is the expected increase in government initiatives to reduce tailpipe emissions, increase in electrification of trucks, and rise in the introduction of electric trucks by key players.
LAMEA region to replace Asia Pacific as market leader
The market across Asia-Pacific held the largest share in 2018, contributing to nearly half of the global automotive drivetrain market. The region's market dominance in 2018 could be traced back to the higher adoption rates of smart mobility services, an increase in government regulations, a surge in fuel prices, and a rise in trend toward adopting non-fossil fuel-based vehicles that year.
Moreover, an increase in automotive manufacturing plants and a rise in demand for electric vehicles further boost the growth of the automotive drivetrain technology market in the region during the second decade of the 21st century.
The global automotive drivetrain technology market across Latin America, the Middle East, and Africa (LAMEA) region is expected to manifest the fastest CAGR of almost 28 percent during the next ten years.
The economic development and developing automobile industrial scenario and the rise in the use of super, hybrid, and premium cars in emerging countries of this region have boosted the growth.
The LAMEA region is expected to be followed by North America. North America is expected to portray a growth rate of over 26 percent from 2019 to 2030.