Motor Vehicle Engine, Power Train & Parts Market Report 2026

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 $1.21 trillion 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.

The growing demand for electric vehicles (EVs) is expected to drive the growth of the motor vehicle engines, powertrain, and parts market in the coming years. An electric vehicle (EV) is powered by one or more electric motors, using electricity stored in batteries or other energy storage devices as its primary energy source. EVs rely on advanced motor vehicle engines, electric powertrains, and specialized components to enhance performance, efficiency, and sustainability, representing a major shift in the automotive industry. For instance, in July 2023, according to the International Energy Agency, a France-based intergovernmental organization, global electric vehicle sales reached 10 million in 2022, with projections rising to 14 million in 2023. Therefore, the increasing adoption of EVs is boosting the motor vehicle engines, powertrain, and parts market.

The rising demand for aftermarket parts is also expected to propel growth in the motor vehicle engines, powertrain, and parts market. Aftermarket automotive parts are components not manufactured by the original equipment manufacturer (OEM) and are used as replacements or upgrades for original vehicle parts. These components serve purposes such as replacement, performance enhancement, cost-effective alternatives, modification, and maintenance. Aftermarket parts are often less expensive than OEM equivalents while delivering comparable or superior performance. For instance, in June 2024, according to the Auto Care Association, a US-based trade association, total light-duty aftermarket sales in the United States grew 8.6% in 2023 to $392 billion, exceeding the previous year’s projection of 8.1%. Light-vehicle growth in 2024 is expected at 5.9%, with the total light-, medium-, and heavy-duty automotive aftermarket projected to reach $617.3 billion by 2027. Therefore, the growing demand for aftermarket components is driving the motor vehicle engines, powertrain, and parts market.

Major companies in this market are focusing on innovative solutions such as integrated hybrid and range-extender powertrain systems to improve fuel efficiency, enable flexible powertrain deployment, and achieve 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, simplifying packaging and supporting 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. It features 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 enhances vehicle packaging efficiency, reduces integration complexity, and enables OEMs to electrify or hybridize vehicles without developing entirely new powertrain architectures.

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.

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. The countries covered in the motor vehicle engine, power train & parts market report include China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The motor vehicle engine, power train, and parts market consist of sales of engine, transmission, driveshaft, axles, and differential. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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