Passenger Cars Powertrain Market
Executive Summary and Global Market Analysis
The global passenger cars powertrain market is poised for substantial growth, projected to rise from US$ 789.4 billion in 2024 to US$ 1,456.27 billion by 2031, registering a CAGR of 9.14% from 2025 to 2031. This growth is driven by a fundamental transformation in the automotive sector, as manufacturers increasingly embrace electrification, sustainability, and advanced propulsion technologies.
📚Download Full PDF Sample Copy of Market Report @
https://www.businessmarketinsights.com/sample/BMIPUB00031702
With governments worldwide tightening emissions regulations and incentivizing clean mobility solutions, automakers are significantly investing in the development of electric and hybrid powertrains. Cutting-edge innovations—including high-voltage architectures, advanced battery management systems, and integrated smart technologies—are enhancing vehicle performance, energy efficiency, and connectivity, further accelerating this transition.
Although internal combustion engines (ICEs) remain relevant in markets with limited EV infrastructure, the long-term trajectory clearly favors electrified powertrains. Regional dynamics also play a critical role, with Asia-Pacific, led by China and India, emerging as key growth regions due to rapid urbanization and proactive government policies promoting sustainable transportation.
Industry leaders such as Toyota, Volkswagen, and Hyundai, along with major powertrain specialists like BorgWarner and ZF Friedrichshafen, are at the forefront of technological advancement and strategic market expansion. However, the market must navigate challenges such as high R&D costs, the need for widespread charging infrastructure, and global supply chain complexities.
Despite these headwinds, the outlook remains optimistic. The global passenger car powertrain market is set to grow rapidly, with electrification, hybridization, and smart mobility technologies driving the next generation of innovation and growth.
Passenger Cars Powertrain Market: Segmentation Analysis
The analysis of the passenger cars powertrain market is based on key segments: drive type, propulsion type, sales channel, and geography.
By Drive Type
The market is categorized into Front-Wheel Drive (FWD), Rear-Wheel Drive (RWD), and All-Wheel Drive (AWD). In 2024, the Front-Wheel Drive segment led the market, driven by its cost-effectiveness, fuel efficiency, and space-saving design. FWD remains the preferred choice for compact vehicles, hatchbacks, and sedans—especially in urban and family-focused markets.
By Propulsion Type
The market includes Internal Combustion Engine (ICE) and Electric powertrains. Despite the rising popularity of electric vehicles (EVs), the ICE segment continued to dominate in 2024, particularly across the Asia Pacific region. However, growing investments in electrification and supportive policies are accelerating the adoption of EVs globally.
By Sales Channel
The powertrain market is segmented into OEM (Original Equipment Manufacturer) and Aftermarket channels. The OEM segment holds the largest share, fueled by increasing global vehicle production and heightened consumer demand for factory-fitted electric and hybrid vehicles. Meanwhile, the Aftermarket segment is witnessing strong growth due to factors such as an aging vehicle fleet, increasing vehicle life spans, rising environmental awareness, and the growing interest in customization and EV upgrades.
By Geography
Regionally, the market is divided into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. In 2024, Asia Pacific emerged as the dominant region, led by China, India, and Japan. The region's growth is propelled by rapid urbanization, rising disposable incomes, and expanding automotive production. Emerging Southeast Asian markets like Indonesia, Vietnam, and the Philippines are also contributing significantly to regional growth.
Market Drivers and Opportunities
1. Stringent Emission Regulations and Government Incentives
Governments worldwide are enforcing tighter emission standards—such as Euro 7 in Europe and CAFE standards in the U.S.—pushing automakers to shift toward cleaner technologies. In parallel, many governments are offering tax breaks, purchase incentives, and infrastructure subsidies to promote electric vehicle adoption, creating a favorable environment for advanced powertrain technologies.
2. Technological Advancements and Declining Battery Costs
Ongoing innovations in powertrain systems—such as enhanced battery energy density, faster charging, and more efficient electric motors—are making EVs increasingly viable. The falling cost of lithium-ion batteries, which represent the largest portion of EV manufacturing costs, is narrowing the price gap between EVs and ICE vehicles, encouraging broader market adoption.
key company profiles
Toyota Motor Corporation
Honda Motor Co. Ltd.,
Ford Motor Company
Hyundai Motor Company
General Motors Company
Volkswagen Group
BMW AG
Daimler AG (Mercedes-Benz Group AG)
BorgWarner Inc.
ZF Friedrichshafen AG
Passenger Cars Powertrain Market Report Coverage and Deliverables
The "Passenger Cars Powertrain Market Outlook (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Passenger Cars Powertrain market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Passenger Cars Powertrain market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed Porter's Five Forces and SWOT analysis
- Passenger Cars Powertrain market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Passenger Cars Powertrain market
- Detailed company profiles
Geographical Scope of the Passenger Cars Powertrain Market
The Passenger Cars Powertrain market report is geographically segmented into five key regions:
- North America
- Asia Pacific
- Europe
- Middle East & Africa
- South & Central America
Among these, Asia Pacific (APAC) is anticipated to experience the most substantial growth during the forecast period.
Asia Pacific: Dominating Growth in Passenger Cars Powertrain Market
The Asia Pacific Passenger Cars Powertrain market encompasses a diverse range of countries including China, Japan, South Korea, India, Australia, New Zealand, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Taiwan, and Bangladesh.
This region is not only expected to dominate the global market in terms of volume but is also projected to achieve the fastest growth rate over the coming years. This surge is fueled by a powerful synergy of:
- Aggressive government policies and subsidies supporting electric and hybrid vehicles.
- Manufacturing and supply chain excellence, especially in China and Southeast Asia.
- Rising urbanization and economic expansion, leading to greater vehicle demand across all powertrain types.
Country Highlights:
- China continues to lead the market, driven by intense competition among domestic players like BYD, Nio, and XPeng, alongside international manufacturers. This environment has fostered rapid innovation and a vast array of electric vehicle (EV) models.
- India is emerging as the next major growth hub. While the market remains dominated by internal combustion engine (ICE) vehicles, the EV segment is expanding rapidly due to new model launches and rising consumer awareness.
- Japan and South Korea, with their mature automotive ecosystems, are spearheading advancements in hybrid technologies and battery electric vehicles (BEVs).
- ASEAN nations such as Thailand, Indonesia, and Vietnam are becoming key battlegrounds for affordable EVs. Government incentives and investments from major Chinese, Japanese, and Korean automakers are accelerating market penetration.
Passenger Cars Powertrain Market Report Structure
The report provides in-depth analysis, covering both qualitative and quantitative data across drive types, propulsion technologies, sales channels, and regional dynamics. Key components of the report include:
- Chapter 2: Key Takeaways – Summary of major trends and future outlook.
- Chapter 3: Research Methodology – Details on data sources and analytical methods.
- Chapter 4: Ecosystem and Porter’s Five Forces Analysis – Overview of industry forces and stakeholder relationships.
- Chapter 5: Market Dynamics – Examination of drivers, restraints, opportunities, and trends, along with their impact analysis.
- Chapter 6: Market Overview – Historical data and market forecasts up to 2031.
- Chapters 7–9: Segmentation Analysis – Market breakdown by product type, propulsion, technology, application, and region.
- Chapter 10: Competitive Landscape – Heatmap analysis and benchmarking of major players.
- Chapter 11: Industry Landscape – Insights into M&A activity, strategic initiatives, and market developments.
- Chapter 12: Company Profiles – In-depth profiles of key market players, including business descriptions, product portfolios, financial data, SWOT analysis, and recent developments.
- Chapter 13: Appendix – Glossary, abbreviations, and report disclaimers.
Recent Market Developments
- Tata Motors, on June 9, 2025, announced an investment of INR 35,000 crore (~US$ 4.2 billion) over five years in its passenger vehicle division. The funding aims to expand product offerings, integrate next-generation technologies, and enhance profitability.
- In July 2024, Stellantis expanded its hybrid powertrain portfolio across Europe, launching 30 hybrid models with six more expected by 2026, in response to growing consumer demand.
About Us:
Business Market Insights is a market research platform that provides subscription service for industry and company reports. Our research team has extensive professional expertise in domains such as Electronics & Semiconductor; Aerospace & Défense; Automotive & Transportation; Energy & Power; Healthcare; Manufacturing & Construction; Food & Beverages; Chemicals & Materials; and Technology, Media, & Telecommunications
Author's Bio
Akshay
Senior Market Research Expert at Business Market Insights
Comments
0 comment