The global automotive transmission market is expected to grow at a CAGR of around 6.0% from 2021 to 2028 and expected to reach the market value of around US$ 285.8 Bn by 2028.
An automobile's transmission system is critical to its dynamic performance, drivability and comfort, and fuel economy. A modern advanced transmission system is made up of mechanical, electrical, and electronic components.
Advancements in automotive transmission bolster the growth of global market
There has been significant progress in the development of automatic automotive transmissions by automakers from the past. Current developments made by the automakers include increasing preliminary focus on improving efficiency and shift quality. In addition, as a result of stringent emission regulatory framework and massive demand for improved fuel economy, automakers are shifting their focus for automotive transmissions development toward electrification. New transmission schemes are being developed in tandem with computer-aided program. For future automotive transmission development, automakers must first identify a competitive transmission scheme by assisting with a power density, high efficiency, and low R&D costs.
Automatic has gained a special place in the market in contrast to the traditional transmission
Automatic transmission systems, as the name implies, use sensors to determine automatic gear shifts and change them using internal oil pressure. These systems are based on manual transmission systems, but the switching and operation of the clutch is automated. The entire process of opening the clutch, shifting to new gear, and closing the clutch in automatic transmission systems is electronically controlled. Transmission fluids must be changed in automatic transmissions depending on their category and service intervals. Traditionally, shifting gears required temporarily disconnecting the transmission from the engine. In manual transmissions, the driver performs the function by pressing the clutch pedal, whereas, in automatic transmissions, the torque converter handles it. Such factors contribute to the expansion of the global automotive transmission market.
Future trends in global automotive transmission market
According to the ASAPP Info Global Services Pvt Ltd. report, the new automotive transmission is designed in such a way that it can be used as a modular system for hybrid and all-wheel applications without changing the basic transmission concept. In the past, there was an interesting development in the field of auto transmissions. For example, Hyundai developed a 6-speed unit that was only implemented by a few companies after Toyota, Ford, GM, and Volkswagen. The integration of three gear sets, as well as the simplicity of design and a super flat torque converter that shortens the unit length, distinguishes such transmissions. Hyundai later used such technology to obtain nearly 300 patents relating to the technology.
COVID-19 impact on the global automotive transmission market
Since the outbreak of the COVID-19 pandemic, the automotive industry has been hit with a slew of setbacks and surprises. The automotive industry has been impacted by lockdowns, travel restrictions, and the resulting fallout. Because of widespread job losses, consumers intend to save more instead of making large purchases such as vehicle purchases, which have lowered demand. As gasoline prices fell across North America, new vehicle sales in the United States fell by 23.9% in July 2021 compared to the previous year. During the same time period, sales in Europe fell by about 25.7%. As a result of the pandemic's persistence, some of the challenges do exist. Automakers and dealers must be creative, flexible, and innovative in their approaches in order to maintain sales figures. Because R&D was put on hold during this time, it paved the way for new ideas and research that would set new standards in the industry for years to come. With technology, increasing consumer interest in electric vehicles will drive systematic changes to the current supply chain model and the automotive industry as a whole.
The global automotive transmission market is segmented as transmission type, fuel type, and vehicle type. Transmission type is classified into manual and automatic. Further, fuel type is segmented as gasoline, diesel, and among others. Vehicle type is segregated as passenger cars, LCVs, and HCVs.
The manual transmission segment accounts for the largest revenue share of the global automotive transmission market. Because automatic transmission is more complicated than manual transmission, consumers prefer manual transmission systems at a higher rate. Because there are so many moving parts, it takes mechanics a long time to repair, which increases the cost to the consumer. Furthermore, a manual transmission will typically cost a thousand dollars less than an automatic transmission. Such factors have a positive impact on segmental growth, which ultimately benefits the global automotive transmission market.
The gasoline segment dominates the global automotive transmission market in terms of fuel type. Currently, gasoline offers lucrative benefits for high-tech vehicles. Because gasoline vehicles benefit from cutting-edge technology, they have risen to prominence in the global market. This is one of the prominent factors that have positive influence for the growth of global automotive transmission market.
Furthermore, the passenger car segment accounts for the largest revenue share of the global automotive transmission market by vehicle type. Passenger cars are the most widely used and common mode of transportation in the world. Furthermore, significant investments are required to ensure continuous improvement in all design factors such as performance, materials, mechanics, engines, and fuels (including electric power supply). Such factors contribute to the expansion of the global automotive transmission market.
According to the regional landscape, Asia Pacific has the highest maximum share of the automotive transmission market. This is due to technological advancements in vehicle development that promote and contribute to greater fuel efficiency and environmental friendliness. Furthermore, Asia Pacific has the largest global share of automatic transmission production and produces automatic transmission for both passenger and commercial vehicles; such notable developments fuel the growth of the APAC regional market for automotive transmission.
The automotive transmission markets in Europe and North America, on the other hand, are expected to grow significantly in the coming years. Because of the ease of operation, there is a significant shift in population demand from manual to automatic transmission. Furthermore, for comparable distances, the system causes less fatigue to the driver. These factors contribute to the growth of the automotive transmission market in North America and Europe.
The prominent players of the global automotive transmission market involve Aisin Corporation, Allison Transmission, BorgWarner Inc., Continental AG, Eaton Corporation plc, Magna PT (GETRAG), GKN Ltd, JATCO Ltd, Magna International Inc., and among others
Market By Transmission Type
Market By Fuel Type
Market By Vehicle Type
Automotive transmission market is expected to reach a market value of around US$ 285.8 Bn by 2028.
The automotive transmission market is expected to grow at a CAGR of around 6.0% from 2021-2028.
Based on transmission type, manual segment is the leading segment in the overall market.
Advancement in automotive transmission is one of the prominent factors that drive the demand for automotive transmission market.
Aisin Corporation, Allison Transmission, BorgWarner Inc., Continental AG, Eaton Corporation plc, Magna PT (GETRAG), GKN Ltd, JATCO Ltd, Magna International Inc., and among others.
Asia Pacific is anticipated to grab the highest market share in the regional market
North America is expected to be the fastest growing market in the forthcoming years