Automotive Powertrain Testing Services Market size is set to grow by USD 2.74 billion from 2024-2028, Rise in demanding consumer base and government's enforcement to upgrade to newer emission norms to boost the market growth, Technavio

NEW YORK, July 1, 2024 /PRNewswire/ -- The global automotive powertrain testing services market size is estimated to grow by USD 2.74 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 8.22% during the forecast period. Rise in demanding consumer base and government's enforcement to upgrade to newer emission norms is driving market growth, with a trend towards development of computer and it-enabled powertrain testing systems. However, capital-intensive nature of testing facilities and equipment for powertrain testing poses a challenge. Key market players include A and D HOLON Holdings Co. Ltd., Akkodis, ATS Automation Tooling Systems Inc., AVL List GmbH, Cambustion Ltd., Cosworth Group Holdings Ltd., FEV Group GmbH, HORIBA Ltd., IAV GmbH, Industrieanlagen Betriebsgesellschaft mbH, Intertek Group Plc, IPG Automotive GmbH, MAHLE GmbH, Mtech UK Associates Ltd., Mustang Advanced Engineering, Ricardo Plc, SGS SA, TEOS Powertrain Engineering, and thyssenkrupp AG.

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Key Market Trends Fueling Growth

The automotive powertrain testing services market is witnessing significant advancements with the integration of Internet-based technologies and IT skills into engineering expertise. Ricardo's Global Test Environment (GTE) is a prime example, offering remote access to powertrain test cells with secure networking technology. This system enables engineers to modify test conditions, monitor results, and investigate issues from any location. Early adopters like Aston Martin have reported reduced test development time and costs. Future upgrades will provide a comprehensive package including software, equipment, and support for OEMs and suppliers. 

The Automotive Powertrain Testing Services market is experiencing significant growth due to the increasing demand for efficient and eco-friendly powertrains. Globally, regulations are driving the need for rigorous testing of powertrains to meet emissions standards. Companies are investing in advanced technologies such as simulation, durability testing, and diagnostic tools to ensure optimal performance and longevity. The trend towards electric and hybrid vehicles is also fueling the market, as these powertrains require specialized testing to ensure safety and reliability. Additionally, the increasing adoption of autonomous vehicles is creating new testing requirements for powertrains to ensure seamless integration with other vehicle systems. Overall, the Automotive Powertrain Testing Services market is expected to continue growing as automakers and suppliers prioritize innovation and compliance. 

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Market Challenges

• The automotive powertrain testing services market faces significant challenges due to the high cost of powertrain testing machines and facilities. Priced between USD500,000 and USD1,000,000, these machines are a substantial investment. Setting up a testing facility adds to the expense. Modern powertrains require advanced testing equipment to accommodate various transmission types and keep up with rapid technology changes. The need for high-tech, reliable, and accurate dynamometers drives up costs, making the market's growth potentially restrained.
• The Automotive Powertrain Testing Services market faces several challenges. These include the need for driving dynamic and realistic testing conditions to ensure vehicle performance and efficiency. The complexity of modern powertrains, such as hybrid and electric vehicles, adds to the testing difficulty. Additionally, regulatory requirements for emissions and safety testing put pressure on testing facilities to provide accurate and reliable results. Cost-effectiveness and time efficiency are also crucial factors, as testing can be a significant expense for automotive manufacturers. Furthermore, the integration of various powertrain components, such as engines, transmissions, and fuel systems, requires comprehensive testing solutions. Overall, the automotive powertrain testing services market must address these challenges to meet the evolving needs of the industry.

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Segment Overview

This automotive powertrain testing services market report extensively covers market segmentation by

1. Type
• 1.1 ICE powertrain
• 1.2 Hybrid and electric powertrain
2. Vehicle Type
• 2.1 Passenger vehicle
• 2.2 Commercial vehicle
3. Geography
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 ICE powertrain- The global automotive powertrain testing services market is experiencing growth due to stricter emission regulations for Internal Combustion Engine (ICE) powertrains. OEMs and tier-1 suppliers are innovating to reduce greenhouse gas emissions and improve fuel efficiency, increasing the complexity of powertrain systems. This complexity, along with vehicle downsizing and light weighting, necessitates more testing facilities. In the US, CAFE regulation norms demand improved ICE powertrain performance, making it a significant purchase factor. These factors are driving the growth of the ICE powertrain segment in the automotive powertrain testing services market.

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Research Analysis

The Automotive Powertrain Testing Services Market encompasses the testing requirements of various components in Passenger Cars and Commercial Vehicles. These components include Engines, Transmissions, Clutches, Torque converters, Drive shafts, Propeller shafts, Differentials, Electric Powertrains, and Driving Wheels. OEMs specializing in ICE powertrains, Hybrid powertrains, and Electric powertrains rely on these testing services to ensure the optimal performance of their Fossil fuel-based Gasoline powertrains and Diesel powertrains, as well as their advanced Hybrid and Electric powertrains. Manufacturing units undertake extensive Engine Testing, Transmission Testing, Drive Shafts Testing, and Differentials Testing to minimize Carbon footprints and enhance overall efficiency. Electric Powertrain Testing is a critical aspect of the market, given the growing demand for Sustainable transportation solutions.

Market Research Overview

The Automotive Powertrain Testing Services market encompasses the testing of various powertrain components and systems in vehicles. These services ensure the efficient and effective performance of engines, transmissions, and other powertrain elements. The testing process involves the use of advanced technologies such as dynamometers, engine test benches, and diagnostic tools. The services cater to the needs of OEMs, Tier 1 suppliers, and independent testing laboratories. The market is driven by stringent regulations, increasing demand for fuel-efficient and eco-friendly vehicles, and the growing trend towards electric and hybrid powertrains. The market is expected to grow significantly in the coming years due to these factors and the continuous advancements in testing technologies.

Learn and explore more about Technavio's in-depth research reports

The Automotive Engineering Service Providers (ESP) Market is thriving, driven by advancements in vehicle technology and increased demand for engineering expertise. Parallelly, the Micromobility Market is expanding rapidly as urban areas seek sustainable transportation solutions. Additionally, the Automotive Digital Key Market is gaining momentum, offering enhanced security and convenience through smartphone-based vehicle access. These sectors collectively highlight the automotive industry's shift towards innovation, sustainability, and digital integration, reflecting broader trends in technology and urban mobility.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• ICE Powertrain
• Hybrid And Electric Powertrain
• Vehicle Type
• Passenger Vehicle
• Commercial Vehicle
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio