The automotive drivetrain industry is being fundamentally reshaped, fueled by the move toward electrification and the insatiable demand for efficiency. From conventional internal combustion engine (ICE) drivetrains to sophisticated electric and hybrid drivetrains, the industry is responding to changing consumer needs and tough environmental mandates.

One of the key drivers for this market to evolve is the growing adoption of electric vehicles (EVs). The demand for electric drivetrain components such as electric motors, inverters, and battery systems is growing at an exponential rate.

While electric vehicles are taking off, hybrid powertrains remain important for the journey toward full electrification. Hybrid technology, integrating ICEs with electric motors, presents a compromise of fuel efficiency and range, while also resolving the issues of range anxiety and charging infrastructure. The industry is experiencing a growth of plug-in hybrid electric vehicles (PHEVs), which present extended electric range and lower emissions.

In spite of the emergence of electric and hybrid powertrains, ICE powertrains continue to command a strong market share, especially in emerging economies and commercial vehicle markets. But manufacturers are looking to optimize the efficiency of ICEs by employing advanced technologies like turbocharging, direct injection, and variable valve timing.

The industry is also experiencing a shift toward integrated drivetrains. Producers are packaging different drivetrain elements, like motors, transmissions, and inverters, into one optimized piece. This results in less weight, better efficiency, and less complexity in integrating the vehicle.

Geographically, Asia-Pacific is the leading region in the automotive drivetrain market due to its matured automotive manufacturing base and growing demand for hybrid and electric vehicles. China, Japan, and South Korea are at the forefront in the development and manufacturing of electric drivetrain. Europe and North America are also experiencing growth, propelled by severe emission regulations and government incentives.

Yet the market is challenged. The expense of electric drivetrains, especially battery systems, is still a deterrent to mass adoption. The necessity of creating strong and reliable charging infrastructure is another challenge. The shift to electric drivetrains also calls for major investment in research and development and manufacturing plants.

In the future, the automotive drivetrain industry is set to continue growing, fueled by the growing need for electric and hybrid cars. The emphasis on advancing battery technology, lowering costs, and increasing efficiency will be among the top trends influencing the market. Companies that can provide innovative, efficient, and cost-saving drivetrain solutions will be best placed to take advantage of this fast-changing industry. Greater use of software defined drivetrains will be a significant disruptor.

Author's Bio:

Nilesh Shinde

Senior Market Research expert at The Insight Partners