Automotive Drivetrain Market Technology to Achieve $269.28 Billion Globally by 2030 with a 24.8% CAGR, Reports AMR
The global automotive drivetrain technology market is experiencing significant growth, with a recent report by Allied Market Research projecting a value of $269.28 billion by 2030. This market has seen a CAGR of 24.8% from 2019 to 2030, indicating a strong upward trend. The passenger car segment has been a major contributor to this growth, with a value of $15.88 billion in 2018 and an estimated reach of $230.61 billion by 2030.
One of the key drivers of this market growth is the increasing focus on electric vehicles by automobile companies. The rise in fuel costs has prompted a shift towards electric and hybrid cars, with Spain seeing a significant increase in sales from 2016 to 2018. This changing economic landscape, along with consumer preferences for modern vehicles, has led to a surge in the purchase of electric taxis and other electric vehicles. Manufacturers are now prioritizing the adoption of electric drive systems and other electric vehicle components to cater to this growing demand.
Prominent players in the automotive drivetrain technology market are also investing in the production of electric motors and e-axle systems. For example, Continental has introduced a compact and lightweight e-axle drive with impressive specifications. This innovation is allowing Chinese vehicle manufacturers to expand their range of electric vehicles, particularly in the mid-size class.
The market is segmented based on technology, vehicle type, and region. The passenger car segment currently holds the largest share, while the truck segment is projected to grow at the fastest CAGR of 28.3%. In terms of technology, the wheel hub module segment is expected to manifest the fastest CAGR of 29.2%. Regionally, the LAMEA region is poised to see the fastest growth, with Asia-Pacific leading the market in 2018.
Factors such as the rise in pollution, development of the automobile industry, and depletion of fossil fuel reserves are further driving the growth of the global automotive drivetrain technology market. However, the high cost of electric drive systems remains a key challenge. Nevertheless, increased R&D activities, government initiatives, and technological advancements are expected to create lucrative opportunities for market expansion.
In conclusion, the automotive drivetrain technology market is on a growth trajectory, fueled by the shift towards electric vehicles and innovative technologies. With key players investing in electric drive systems and a strong focus on sustainability, the market is set to continue its upward trend in the coming years.