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Motor Vehicle Engine, Power Train & Parts Market Revenue Outlook: What CAGR Lies Ahead Through 2030?
The motor vehicle engine, power train & parts market size has grown strongly in recent years. It will grow from $877.47 billion in 2025 to $931.63 billion in 2026 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to growth of internal combustion engine vehicles, expansion of global vehicle production, demand for performance optimization, evolution of drivetrain technologies, aftermarket parts replacement demand.
The motor vehicle engine, power train & parts market size is expected to see strong growth in the next few years. It will grow to $1218.19 billion in 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to electrification of vehicle fleets, hybrid powertrain adoption, emission compliance requirements, demand for efficient drivetrains, growth of ev powertrain components. Major trends in the forecast period include growing shift toward electrified powertrains, increasing integration of advanced transmission systems, rising demand for lightweight engine components, expansion of modular powertrain architectures, higher focus on fuel efficiency optimization.
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Motor Vehicle Engine, Power Train & Parts Market Growth Momentum: What Factors Are Shaping Demand?
The increasing demand for electric vehicles (EVs) is expected to propel the growth of the motor vehicle engines, power trains, and parts market going forward. An electric vehicle (EV) is a type of vehicle that is powered by one or more electric motors, using electricity stored in batteries or other energy storage devices as its primary source of energy. Electric vehicles (EVs) are using advanced motor vehicle engines, electric powertrains, and specialized components to enhance performance, efficiency, and sustainability, marking a significant shift in the automotive industry. For instance, in July 2023, according to the International Energy Agency, a France-based intergovernmental organization, sales of electric vehicles were 10 million in 2022, and there will be an increase to 14 million sales of electric vehicles in 2023. Therefore, the increasing demand for electric vehicles (EVs) is driving the growth of motor vehicle engines, power trains, and parts market.
Motor Vehicle Engine, Power Train & Parts Market Driver: Rising Demand For Aftermarket Parts Fuels Growth In The Motor Vehicle Engine, Powertrain, And Parts Market
The growing demand for aftermarket parts is expected to propel the growth of the motor vehicle engine, power train, and parts market in the coming years. Aftermarket automotive parts are parts that are not manufactured by the original equipment manufacturer (OEM). These are used as replacements or to upgrade the original components of a vehicle. Aftermarket components in the motor vehicle engine, power train, and parts industry are utilized for replacement, performance enhancements, economical options, modification, and maintenance. Aftermarket components are frequently less expensive than OEM parts while providing comparable or superior performance. For instance, in June 2024, according to Auto Care Association, a US-based trade association, total United States light duty aftermarket sales grew by 8.6% in 2023 to $392 billion, surpassing the previous year’s projections of 8.1%. Light-vehicle growth in 2024 is expected to be 5.9%, with the total light-, medium- and heavy-duty automotive aftermarket projected to reach $617.3 billion in 2027. Therefore, the growing demand for aftermarket parts is driving the motor vehicle engine, power train, and parts market.
Motor Vehicle Engine, Power Train & Parts Market Segment Landscape: Which Areas Lead Development?
The motor vehicle engine, power train & parts market covered in this report is segmented –
1) By Type: Vehicle Engine And Engine Parts, Power Train And Power Train Parts
2) By Application: Passenger Vehicle, Commercial Vehicle
3) By End Use: OEM, Aftermarket
Subsegments:
1) By Vehicle Engine And Engine Parts: Internal Combustion Engines (ICE), Electric Vehicle Engines, Hybrid Vehicle Engines, Engine Parts (Pistons, Crankshafts, Cylinder Heads, Timing Belts)
2) By Power Train And Power Train Parts: Transmission Systems, Drivetrain Components (Axles, Differential, Drive Shafts), Clutch Systems, Gearboxes, Propeller Shafts, Couplings
Motor Vehicle Engine, Power Train & Parts Market Trends Redefining Industry Growth
Major companies operating in the motor vehicle engine, powertrain and parts market are developing innovative solutions such as integrated hybrid and range-extender powertrain systems to enhance fuel efficiency, flexible powertrain deployment, and low-emission performance. Integrated hybrid and range-extender powertrain systems combine an internal-combustion engine, electric motor, transmission, and power electronics into a single compact module that simplifies packaging and enables multiple propulsion configurations. For instance, in April 2025, Horse Powertrain, a China-based powertrain technology company, launched the “Future Hybrid Concept”, a next-generation integrated hybrid and range-extended electric vehicle (REEV) powertrain system designed to support flexible electrified mobility, featuring a compact unified layout, modular compatibility with existing battery electric vehicle (BEV) platforms, and fuel-agnostic capability for gasoline and alternative fuels. The Future Hybrid Concept improves vehicle packaging efficiency, reduces integration complexity, and enables OEMs to electrify or hybridize vehicles without needing entirely new powertrain architectures.
Motor Vehicle Engine, Power Train & Parts Market Industry Leaders And Competitive Landscape
Major companies operating in the motor vehicle engine, power train & parts market report include Robert Bosch GmbH, Aisin Seiki Co Ltd, Toyota Motor Corp, Denso Corp., Schaeffler Technologies AG & Co. KG, Continental AG, Tata Motor Group, Dana Incorporated, Magna International Inc., ZF Friedrichshafen AG, Hyundai Motor Company, GKN Ltd., BorgWarner Inc., Mahle GmbH, Hitachi Automotive Systems Ltd., American Axle & Manufacturing Holdings Inc., Linamar Corporation, Rheinmetall Automotive AG, Allison Transmission Holdings Inc., Cummins Inc.
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Motor Vehicle Engine, Power Train & Parts Market Geographic Landscape: Which Region Leads Industry Growth?
Asia-Pacific was the largest region in the motor vehicle engines, power trains, & parts market in 2025. Western Europe was the second largest market in motor vehicle engines, power trains, & parts market. The regions covered in the motor vehicle engine, power train & parts market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
