Global Powertrain Market Analysis, Size, Share, Growth, Trends and Forecast to 2020

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Powertrain consists of all the main components of an automobile engine where the combustion of fuel takes place. These components include engine, transmission, drive shafts, differentials, and final drive. Powertrain can also be defined as the sum total of all the components which is required for the vehicle to convert stored energy into kinetic energy. This kinetic energy which is produced by the powertrain enables the vehicle to move.

Technologically upgraded advanced powertrain system which enables better fuel efficiency and stringent government norms for automobile are some of the factors which is driving the automotive powertrain market. Powertrain manufacturing companies are investing heavily in research and development activities to innovate more advanced powertrain systems. Companies are trying to decrease the size of engine and powertrain which are environment friendly without compromising on the performance of the vehicle. Due to reduction in the size of the vehicle the fuel efficiency of the vehicles are increasing. Now end users can run more miles by consuming the same amount of fuel. Thus encouraging the end users to upgrade their vehicles to ones with latest technology powertrain systems, thus creating more demand for automotive powertrain.

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Growing environmental awareness among consumers has led to the growth in demand in the powertrain market witnessing a trend towards eco-friendly and noiseless powertrains, with the automotive industry likely to expand substantially in the near future, there is an urgent need to create green powertrain technologies to reduce environmental pollution from vehicles. Additionally, companies are also keen on developing noise-free vehicles, which includes the production of more-efficient and noiseless powertrain systems.

The powertrain market is capital-intensive and hence new entrants are required to make huge capital investments to enter the market. The market is consolidated with the presence of a few large and experienced players, which act as a huge barrier to new entrants. Established market players have gained reputation and possess large market shares in all the major countries across the world. Furthermore, these companies are also looking to capture untapped opportunities by expanding their global reach. Thus, the saturation in the global powertrain market and the stable presence and dominance of key players such as Magna Powertrain Ltd, Denso Corporation, Delphi Automobile LLP, Ford Motor Company, and BorgWarner, Inc. have led to low threat from new entrants. The threat from new entrants is expected to remain low during the forecast period.

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The powertrain market is recognized for its performance and brand value. The market is consolidated by major players such as Stackpole International, Magna Powertrain Ltd, Denso Corporation, Delphi Automotive LLP, and BorgWarner, Inc., accounting for over 50% of the overall market share. Furthermore, key players are focusing on upgrading their powertrain technology, reducing emissions, and providing better power to wheels. The competitive rivalry is expected to be unaffected by the entry of emergent players, as the major players have already acquired the majority of market shares and gained brand reputation. However, established players would have to look out for technological up gradation that might increase the competition in the market. Thus, the degree of competition is expected to remain high throughout the forecast period.

The global powertrain market by geography has been segmented into North America, Europe, Asia Pacific and Rest of the World region. Europe dominated the global powertrain market, followed by Asia Pacific and North America as on 2013. Asia Pacific is the most attractive region in the global powertrain market, growing at a CAGR of 6.4% over the forecast period from 2013 to 2020. This region comprises of a vast array of markets. Japan dominates the luxury car segment, while India is a potential market in the small car, compact sedans and SUVs market and is developing gradually. The emerging business class in India and China along with the green revolution is expected to drive the powertrain market further.

Some of the major players in the global powertrain market are General Motors Company (GM) (U.S.), Denso Corporation (Japan), Magma International Inc. (Canada), Valeo (France), Ford Motor Company (U.S.), Delphi Automotive PLC (U.S.), BorgWarener Automotive Powertrain Systems Corp (U.S.), ZF Friedrichshafen AG (Germany), Hyundai Motor Company (South Korea), Continental AG (Germany).

This report provides strategic analysis of the global powertrain market and the growth forecast for the period 2013 to 2020. The report covers competitive analysis of various market segments based on components and types of vehicles and an in-depth cross sectional analysis of the automated fare collection market across different geographic segments.

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