Automotive Drivetrain Market Sales, Revenue, Price and Gross Margin - 2030

Automotive Drivetrain Market Summary

The global automotive drivetrain market size was estimated at USD 234.77 billion in 2024 and is projected to reach USD 339.89 billion by 2030, growing at a CAGR of 6.9% from 2025 to 2030. The market is driven by several key factors, including the rising prevalence of infectious diseases among companion and livestock animals, increasing pet ownership, and growing awareness of animal health.

As global fuel prices continue to fluctuate and environmental concerns intensify, automotive manufacturers and consumers alike are focusing on drivetrain technologies that deliver better fuel economy without sacrificing power or reliability. Innovations such as all-wheel drive (AWD) systems and hybrid drivetrains are enhancing vehicle performance, traction, and safety, especially in adverse road and weather conditions. These advanced systems are increasingly being adopted across both passenger and commercial vehicle segments due to their added value in terms of control and efficiency.

Key Market Trends & Insights

• The internal combustion engine (ICE) segment accounted for the largest revenue share of 76.1% in 2024, maintaining its dominance despite the global shift toward vehicle electrification. ICE-powered vehicles still lead the market due to existing fueling infrastructure, lower costs, and a mature technological base that continues to evolve with incremental advancements in efficiency and emissions control.
• In 2024, the front-wheel drive (FWD) segment held a leading revenue share of 50.9% in the global automotive drivetrain market. This dominance is attributed to FWD systems' cost-effectiveness, compact construction, and better fuel efficiency. These systems are widely implemented in passenger and compact vehicles as they offer a streamlined drivetrain layout, help reduce overall vehicle weight, and lower production costs.
• Passenger cars led the global market in 2024, accounting for more than 73.0% of total revenue. This segment’s dominance stems from the high production and sales volumes of passenger vehicles worldwide, especially in urban and densely populated areas where private vehicle usage is on the rise. Rising disposable incomes and evolving lifestyle trends are also contributing factors.
• The Asia Pacific region held the largest share in the global automotive drivetrain market in 2024, contributing 43.2% of total revenue. This is mainly due to the presence of automotive manufacturing powerhouses such as China, Japan, South Korea, and India. These countries serve as global production hubs, driven by urbanization, economic growth, and increasing demand for both passenger and commercial vehicles.
• Europe’s automotive drivetrain market is expected to grow significantly, recording a CAGR of 6.8% from 2025 to 2030. European consumers are increasingly opting for vehicles that combine performance with energy efficiency. Additionally, stricter environmental regulations and emission standards are prompting the adoption of efficient drivetrain systems and hybrid technologies.
• The North American drivetrain market is evolving under the influence of regulatory frameworks, consumer preferences, and innovations. The implementation of stricter emission regulations, including Corporate Average Fuel Economy (CAFE) standards, is encouraging manufacturers to invest in lighter, more efficient drivetrain systems. In the U.S., efforts are being made to reduce vehicle weight as a method to enhance fuel economy and meet regulatory requirements, driving the demand for lightweight drivetrain components.

Order a free sample PDF of the Automotive Drivetrain Market Intelligence Study, published by Grand View Research.

Market Size & Forecast

• 2024 Market Size: USD 234.77 Billion
• 2030 Projected Market Size: USD 339.89 Billion
• CAGR (2025-2030): 6.9%
• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights

Key players in the electric vehicle (EV) power inverter segment include Mitsubishi Electric Corporation, Denso Corporation, Tesla, Inc., and Toyota Industries Corporation. These companies are making significant R&D investments to improve inverter performance, including thermal management and energy efficiency. They are also focusing on next-generation power electronics by integrating wide-bandgap semiconductors such as silicon carbide (SiC) and gallium nitride (GaN), which offer improved power density and lower energy losses. To meet growing EV demand, these companies are also expanding global production capacity and forming strategic alliances.

• Toyota Motor Corporation, headquartered in Toyota City, Aichi, Japan, is a global leader in automotive manufacturing. Its operations include the design, development, production, and sale of various vehicles, including passenger cars, minivans, and commercial models. Toyota is organized into multiple segments, spanning automotive operations, financial services, and emerging sectors such as intelligent transportation systems and housing. It operates manufacturing facilities in 26 countries and maintains a robust global presence across North America, Asia Pacific, Europe, the Middle East and Africa, and Latin America.
• Stellantis N.V. was formed through the merger of Fiat Chrysler Automobiles (FCA) and the PSA Group on January 16, 2021. The company provides a broad range of drivetrain solutions, including conventional ICE engines, hybrid electric vehicles (HEV and PHEV), full electric drivetrains (EV), and is exploring hydrogen fuel cell technologies for future applications. Stellantis is actively prioritizing electrification strategies to meet its environmental sustainability targets. With manufacturing facilities in 30 countries and commercial activities spanning over 130 markets, the company is well-positioned to meet global drivetrain demands.

Key Players

• TOYOTA MOTOR CORPORATION
• Volkswagen Group
• General Motors
• Stellantis NV
• Aisin Seki Co., Ltd.
• BorgWarner Inc.
• American Axle & Manufacturing, Inc.
• Schaeffler AG
• ZF Friedrichshafen AG
• Hyundai Motor Company

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

Conclusion

In conclusion, the global automotive drivetrain market is undergoing a transformative shift fueled by advancements in efficiency, electrification, and regulatory pressures. Despite the continued dominance of internal combustion engines and front-wheel drive systems, technological innovation and growing consumer preference for performance and sustainability are reshaping the market landscape. Asia Pacific remains a pivotal region due to its manufacturing capacity, while North America and Europe are witnessing drivetrain evolution driven by emissions policies and changing mobility needs. With key players focusing on lightweight materials, hybrid systems, and electrification, the automotive drivetrain sector is expected to continue its upward trajectory in the coming years.