The car powertrain market is estimated to expand at a CAGR of 3.68% till 2031 as the prospects of the increasing popularity of electric vehicles are anticipated to create opportunities in the car powertrain market.
According to the latest report by Transparency Market Research, the car powertrain market is set to cross the $1 trillion mark by 2031.
The report said that some large automakers' role in engaging in innovations to align the production of electric vehicles in the assembly of conventional automobiles is likely to stimulate the car powertrain market. This is facilitated by the deployment of AI in engineering simulation and design software to improve powertrains in electric vehicles.
Some of the key players operating in the car powertrain market are Mahle, Tenneco, ThyssenKrupp, Sanjo Machine Works, Bharat Forge, Continental AG, Denso, Magna, American Axle & Manufacturing, Linamar, Rheinmetall, Yasunaga, Robert Bosch and ZF.
Emission Regulations
Stringent emission regulations in some developed countries compel automakers to adopt fuel-efficient technologies in new vehicle models. The manufacture of lightweight vehicles and lightweight components that help improve fuel efficiency is undertaken by automakers, which requires lightweight automotive components. This will likely create demand for improved car powertrain components for new vehicle models.
Europe is the leading region in the car powertrain market. The presence of a highly developed auto industry in the region, with a high rate of adoption of advanced automotive technologies for the design and development of new vehicle models, is creating the demand for powertrain components. In addition, stringent emission regulations in some countries of the region that have set permissible levels of CO2 emissions and a strict ban on internal combustion technology are paving the way for the popularity of electric vehicles. This, in turn, is creating opportunities in the car powertrain market of the region.
Key Findings
The report stated that manufacturers leverage next-gen technologies to develop powertrains for electric vehicles.
The development of next-gen e-powertrains eliminates the need for internal combustion engines in vehicles. Next-gen e-powertrains are lightweight and compact systems that lead to extremely low vibrations and generate instant torque.
Manufacturers' role in developing e-powertrain for electric vehicles is favourable for the growth of the car powertrain market. This includes the development of e-powertrains with motors that generate power for moving and regenerative braking power during the deceleration of vehicles.
Novel Materials
The use of novel materials, such as aluminium alloys, magnesium alloys, titanium alloys, and hybrid materials to reduce the weight of powertrain components to reduce the weight of vehicles is a phenomenon that has come to the fore. This has opened lucrative opportunities for raw material suppliers in the car powertrain market.
EV Battery Technology
The long-term value of electric vehicles, in terms of cost savings, is leading to their increasing popularity, the research firm said. This is driving manufacturers of car powertrains to engage in R&D in new battery chemistries and other technologies to be in line with the increasing popularity of electric vehicles. As a result, car powertrains will adapt to a range of environments and, at the same time, display high performance and durability. This collectively will favour the growth of the car powertrain market.
Growth Drivers
Digitisation of the automotive industry and adoption of ML and Big Data analysis tools in the automotive industry's supply chain provide impetus to the car powertrain market.
The rising popularity of electric vehicles for long-term cost savings and to curb CO2 emissions offer significant opportunities for manufacturers of drivetrains of electric vehicles, the global market intelligence company said.
Courtesy: Transparency Market Research. NB: Photo is representational; courtesy: Chevrolet-BoltEV