Top 5 Firms in the Global Automotive Drivetrain Market, 2025

Automotive drivetrain is an integral part of the vehicle that delivers raw engine power into forward motion. It consists of constant velocity joints (CV joints), universal joints (U joints), transmission, driveshaft, axles, differentials, and tires/wheels. The main function of this system is to adjust torque and speed through the transmission system for smooth driving. Moreover, it also manages traction and wheel rotation for better stability and handling. There are four main types of drivetrains:  Front-Wheel Drive (FWD), Rear-Wheel Drive (RWD), All-Wheel Drive (AWD), and Four-Wheel Drive (4WD), each tailored for different thrills. RWD gives balanced handling and classic driving dynamics, making it preferred for performance vehicles and sports cars. AWD provides tight control in corners and delivery conditions and is ideal for SUVs and crossovers used in varying environments. 4WD is ideal for traction on slippery or off-road terrain and is mostly used in trucks. In FWD, power goes directly to the front wheels, and this setup is fuel-efficient, lightweight, and ideal for everyday driving, particularly in hatchback or compact cars.

The market is expected to ramp up owing to the shifting consumer preference for electric vehicles, government incentives, and stringent emission norms for reducing greenhouse gas releases. The regulatory pressures forced makers to speed up production and development of EVs, which, in turn, accelerates the need for cutting-edge drivetrain technologies. Additionally, research aimed at lowering costs and enhancing battery efficiency is complementing drivetrain improvements. One of the key trends fueling the market forward is the growing uptake of 4WD and AWD systems owing to their advantages in improving vehicle stability, particularly in adverse weather circumstances. In 2024, the Asia Pacific region reached USD 96.39 billion and is poised to be the fastest-growing region throughout the study period.  

As per a report by Fortune Business Insights™, the market for automotive drivetrain was valued at USD 252.16 billion in 2024 and is expected to reach USD 430.37 billion by 2032, with a CAGR of 6.7% during the 2025-2032 period.

Fortune Business Insights™ Profiles Top 5 Key Companies in the Automotive Drivetrain Market

1. Magna International Inc.

Magna International Inc. is a global automotive drivetrain leader, offering advanced solutions such as transmission systems, AWD, and electric drive units. With operations in 28% countries and a history of innovation since 1957, Magna is at the forefront of electrification and autonomous technologies. The company is focusing on investments to meet the diverse need of automotive industry. In February 2024, the company won a contract from a North American OEM to deliver its cutting-edge 800V eDS Duo rear eDrive system. The unit delivers 725kW and 8,000 Nm of torque, combining two motors, gearboxes, and inverters into one integrated package, tailored for a high-end niche electric vehicle platform.

2. Aisin Seki Co., Ltd.

Aisin Seki Co., Ltd., a key leader amongst the top automotive drivetrain manufacturers, has a diverse portfolio spanning transmissions and engine components. Headquartered in Japan with operations across North America, Europe, and Asia, the company has supported major automakers since 1949. The company emphasizes innovation in hybrid and electric technologies to align with global sustainability trends. In May 2024, Aisin invested USD 150 million in Indian EV maker Omega Seiki Mobility (OSM), aiming to enter the fast-growing Indian electric vehicle market. The partnership reflects the company’s strategy to promote electrification and contribute to carbon neutrality through global collaboration and local market integration.     

3. ZF Friedrichshafen AG

ZF Friedrichshafen AG is one of the top automotive drivetrain manufacturers, offering transmissions, axles, and electronics. Operating across 40% countries, ZF combines innovation with over a century of industry experience. The company invests heavily in electrification and automation to shape future mobility. Strategic partnerships and acquisitions boost its global competitiveness. In February 2024, ZF revealed plans to expand in India’s automotive sector. A new manufacturing plant is set to launch in Chennai, reinforcing its presence in Asia.

4. Schaeffler AG

Schaeffler AG delivers advanced automotive drivetrain technologies, including hybrid modules and electric drive systems. With a presence in 50+ countries, it maintains a vast global footprint. Established in 1946, the company is known for its engineering excellence and reliability. Schaeffler is heavily investing in R&D focused on electrification and digital innovation. Its sustainability goals align with future industry demands. In January 2024, it launched development of an integrated electric drivetrain system for Class 8 commercial vehicles in North America.

5. Dana Limited

Established in 1904, Dana Limited is a major player in the global automotive drivetrain industry, offering products such as sealing, axles, and driveshaft solutions. With presence in 33+ countries, Dana supports a wide array of OEMs with reliable and efficient technologies. The company is focused on sustainability and innovation, especially in the area of electrified mobility. In May 2023, the company expanded its Spicer Electrified e-powertrain line with the Zero-6 e-Transmission. This advanced system is ideal for central drive EV configurations and targets medium-duty vehicles such as platform trucks, straight trucks, walk-in vans, and refuse trucks, enhancing Dana’s electrification footprint.

Smarter and More Efficient Drivetrains in The Electric Age

The automotive drivetrain, a crucial component of vehicle, may not obtain the same attention as a car’s engine or exterior design, but it is essential for handling wheel rotation, traction, and torque, shaping how a vehicle performs on the road. From Front-wheel drive systems ideal for daily commuting to rugged for-wheel drives built for off-road terrain, each drivetrain type serves a unique purpose. As the automotive industry is inclined more towards electric mobility, automotive drivetrain technologies are also evolving, becoming more efficient, compact, and smarter.  The rise of EVs, driven by stricter emissions regulations and government incentives, is accelerating innovations in drivetrain design, especially in areas such as torque vectoring and all-wheel control. As vehicles become more advanced and energy-efficient, the drivetrain is expected to remain fundamental in ensuring a smoother, safer, and more responsive driving experience, regardless of what powers the wheels.