Automotive powertrain systems market seen growing to $102.76 billion by 2030

The automotive powertrain systems market is projected to rise from $76.18 billion in 2025 to $102.76 billion by 2030, according to The Business Research Company. Growth is being driven by EV adoption, hybrid systems, fuel-efficiency upgrades and tighter emissions rules.

Why it matters: - Automotive powertrain systems sit at the center of vehicle propulsion, so growth in this market tracks broader shifts in how cars and commercial vehicles are built. - Demand is rising as automakers adapt to electric vehicles, hybrid platforms and emissions rules. - The market outlook signals continued investment in drivetrains, batteries, transmissions and control systems through 2030.

What happened: - The Business Research Company projected the global automotive powertrain systems market will grow from $76.18 billion in 2025 to $81.14 billion in 2026. - The market is forecast to reach $102.76 billion by 2030. - The report was published Sept. 15, 2026, in London. - The forecast implies a 6.5% CAGR from 2025 to 2026 and a 6.1% CAGR from 2026 to 2030. - The company also released a free sample report and the full market report online: Download a free sample and View the full report.

The details: - Automotive powertrain systems include the engine or motor, transmission, driveshaft, differential and related parts that deliver power to the wheels. - The market’s recent growth has been driven by global vehicle production, demand for better fuel efficiency, transmission technology upgrades, expansion in passenger and commercial vehicles, and investment in new powertrain solutions. - Future growth is expected to come from electric vehicle platforms, hybrid systems, stricter emissions compliance, next-generation battery technologies and demand for higher-performance mobility. - Key trends include lightweight components, fuel-efficient systems, multi-speed transmissions, high-performance drivetrains and modular powertrain platforms. - Environmental policies and emission-reduction targets are pushing manufacturers toward battery technologies and hybrid vehicle systems. - Electric vehicles rely on motors, inverters, transmissions and control units to convert electrical energy into motion efficiently. - Cox Automotive reported that US electric vehicle sales reached 1.3 million units in 2024, up 7.3% from 2023. - In 2025, Asia-Pacific was the largest regional market and is expected to remain the largest while also posting the fastest growth. - The market analysis also covers South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa.

Between the lines: - The forecast suggests the powertrain market is shifting from a legacy internal-combustion focus toward a mixed future shaped by electrification and efficiency. - The strongest growth drivers are regulation and technology, not just unit vehicle sales. - The regional lead from Asia-Pacific points to where much of the manufacturing and adoption momentum is concentrated. - The report’s emphasis on modular platforms and lightweight components suggests automakers want flexibility as powertrain architectures diversify.

What's next: - Automakers and suppliers are likely to keep investing in EV and hybrid powertrain components as regulations tighten and battery technology advances. - The market’s next phase will likely be shaped by how quickly manufacturers scale electric platforms while maintaining performance and efficiency. - The Business Research Company said its 2026 reports include deeper market intelligence, TAM analysis, scoring matrices, forecasting dashboards, hotspot infographics and updated graphics and tables.

The bottom line: - Automotive powertrain systems remain a growth market, but the growth story is increasingly being written by electrification, hybridization and emissions compliance.