Automotive Transmission Market Size - Global Industry, Share, Analysis, Trends and Forecast 2022 - 2030

The Global Automotive Transmission Market Size accounted for USD 149.2 Billion in 2021 and is estimated to achieve a market size of USD 243.6 Billion by 2030 growing at a CAGR of 5.8% from 2022 to 2030. Increases in the number of passenger cars and light-duty vehicles, as well as increased consumer demand for fuel-efficient automobiles and a desire for a comfortable driving experience, are all contributing to the automotive transmission market growth. Furthermore, rapid technological advancements in automobile transmission manufacturing are projected to propel the automotive transmission market value in the forthcoming years.

Automotive Transmission Market Report Key Highlights

• Global automotive transmission market revenue is expected to increase by USD 243.6 billion by 2030, with a 5.8% CAGR from 2022 to 2030
• Asia-Pacific region dominates with more than 36% automotive transmission market share in 2021
• According to the study, automatic vehicle sales in Asia-Pacific increased from 1.4% in 2011 to 17.3% in 2019
• By transmission type, the manual segment has accounted market share of over 58% in 2021
• By vehicle type, personal vehicle segment engaged more than 66% of the total market share in 2021
• Growing demand for lightweight transmission systems, drives the automotive transmission market size

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.

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 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.

Global Automotive Transmission Market Dynamics

Market Drivers

• Growing demand for lightweight transmission systems
• Increased demand for fuel-efficient vehicles
• Rising consumer desire for improved driving experience and seamless gear shift
• Increasing adoption of automatic transmission

Market Restraints

• Rising adoption of Electric vehicles
• Exorbitant prices of lightweight & efficient transmissions

Market Opportunities

• Increase in adoption of hybrid drive vehicles
• Wide acceptance of CVT as a core technology for fuel efficiency and reduced emission

Automotive Transmission Market Report Coverage

Automotive Transmission Market Dynamics

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 the stringent emission regulatory framework and massive demand for improved fuel economy, automakers are shifting their focus on automotive transmission development toward electrification. New transmission schemes are being developed in tandem with the computer-aided program. For future automotive transmission development, automakers must first identify a competitive transmission scheme by assisting with 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 are automated. The entire process of opening the clutch, shifting to a 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.

Global Automotive Transmission Market Trend

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.

Automotive Transmission Market Segmentation

The global automotive transmission market segmentation is based on transmission type, fuel type, vehicle type, and geography.

Automotive Transmission Market By Transmission Type

• Manual
• Automatic

According to an automotive transmission industry analysis, the manual transmission segment accounts for the largest revenue share of the global market. Because automatic transmission is more complicated than a 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

Automotive Transmission Market By Fuel Type

• Diesel
• Gasoline
• Others

In terms of fuel type, the gasoline segment dominates the worldwide automobile transmission market. 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 a positive influence on the growth of the global automotive transmission market.

Automotive Transmission Market By Vehicle Type

• Passenger Cars
• HCVs
• LCVs

According to an automotive transmission market forecast, the passenger vehicle sector accounts for the biggest revenue share of the global market and is likely to remain so in the coming years. 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.

Automotive Transmission Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)