Automotive Drivetrain Market: Opportunities, Demand and Forecasts, COVID-19 2025


An automotive drivetrain is a group of components which provides power to the driving wheels. An important function of the drivetrain is to couple the engine that produces power or torque to the driving wheels that consume this mechanical power. Some of the types of automotive drivetrain vehicles are all-wheel drive (AWD), front-wheel drive (FWD) and rear-wheel drive (RWD) vehicles.

Demand Scenario

The global automotive drivetrain market was USD 268.6 billion in 2018 and is estimated to reach USD 404.08 billion by 2025 at a CAGR of 6.01% during the forecast period.

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Growth by Region

Asia-Pacific region leads the market with almost 51 % market share in 2018 owing to the surging demand for automobiles as well as rising disposable income in the region. North America and Europe, on the other hand, are also expected to grow due to the presence of major automobile manufacturers, increasing investments and high disposable income in the regions.

Drivers vs Constraints

The market is mainly driven by increasing demand and production of vehicles. Also, increasing demand for the lightweight driveshaft along with strict government regulations is also propelling the growth of the market. However, the growth is hindered by the high initial and maintenance cost of vehicles which are equipped with all-wheel drive (AWD) coupled with fluctuations in raw material prices

Industry Trends and Updates

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ZF Friedrichshafen, a German-based company who is a global leader in driveline and chassis technology had officially opened its new plant in Iran known as ZF Pars SSK to improve its competitive demand globally and also to meet the increased demand for commercial vehicle transmission systems especially in the Middle Eastern region.

American Axle and Manufacturing Holdings, Inc., a global leader in manufacturing automobile driveline and drivetrain components as well as systems, announced the launch of its new driveline technologies e-AAM hybrid and electric driveline systems as well as QUANTUM lightweight axles and drive units focused on decreasing carbon dioxide emissions and increase the fuel economy of vehicles.

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