Market Overview
In 2019, the Global Automotive Transmission Market was valued at USD 236.4 billion and is estimated to grow at a 13.4% CAGR to reach USD 570.1 billion by 2026.
The automotive transmission framework comprises different gadgets, which ensure seamless gearshifts. High torque is transferred from the engine to the live axle of an automobile through the drive shaft. Each component, namely shafts, gears, and other useful components, takes pride in providing motion to the automobile. Different components such as gears, brakes, clutch, fluid drive, and other essential parts impart velocity to the car and are directly related to the vehicles' speed ratio. Torque is transmitted from the engine drive to the drive wheel's axle. The torque is transferred from a mesh of gears, which hinges on the gears' number of teeth.
Recent Developments:
During April 2016, Hyundai Motor India Ltd introduced its popular compact SUV model Creta, which is an automatic transmission variant that works with fuel option.
Market Drivers
The growing automotive industry and the increasing number of passenger and commercial vehicles drive the market's growth. The introduction of government norms regarding carbon emissions and growing concentration on achieving substantial fuel economy increases the demand for effective systems worldwide. The growing popularity of luxury vehicles and rising preference towards improved driving experience with better efficiency, enhanced fuel economy, and growing disposable incomes have accelerated this system's adoption. The growing demand for lightweight transmission systems further boosts the growth of the market. The increasing demand for automobiles from emerging economies and technological advancements also increase the demand for automotive transmission systems.
The future automotive transmission market looks promising with opportunities in the passenger car, light commercial vehicle, and electric vehicle markets.
Restraints
The high costs associated with the advanced transmission systems are the primary factor expected to hamper the global automotive transmission market's revenue growth during the forecast period.
Market Segmentation
By Transmission Type
In 2015, the manual transmission segment controlled the industry with a revenue share of over 60%. Nonetheless, the market is currently witnessing a rapid decline in manual sales due to the increasing adoption of the automatic vehicle segment. Drivers such as growing road congestion, the popularity of highly fuel-efficient vehicles have resulted in the growing adoption of electronic systems globally.
The high cost associated with the automatic transmission segment may challenge its growth in nations like India and Mexico. Nonetheless, increasing purchasing power and changing preferences of the countries' customers, including India, are supposed to drive the demand over the forecast period.
By Fuel Type
The diesel segment dominated the global automotive transmission market, with over 40% market share in terms of revenue. It is likely to rise further with a CAGR of approximately 7.6% during the forecast timeframe. Recent advancements in a diesel engine with emission control technologies and the introduction of ultra-low sulfur diesel are estimated to increase the segment demand globally for clean diesel vehicles.
The gasoline segment is predicted to witness substantial growth with a CAGR of over 7.0% from 2020 to 2026. Innovations and improvements in gasoline engines give better efficiency, high performance, and reduced noise and air pollution, which are expected to drive the segment growth.
By Vehicle Type
The passenger cars (PC) segment dominated the industry, with over 25% of the overall share in the review period. The major contributors to the demand for passenger vehicles are the countries in the Asia Pacific region, which will continue to dominate the worldwide market in the future. Innovation in the transmission technology in passenger cars segment from four-speed automatic transmissions to 8-speed and 9-speed enhances the vehicle's overall comfort, driving experience, and fuel efficiency.
The heavy commercial vehicle (HCV) segment captures a significant share with over 12% share in 2015. Advanced technologies such as autonomous driving, connected safety systems, and driver-related technologies are expected to offer massive growth opportunities.
Regional Analysis
The Asia-Pacific accounted for over 28% in the automotive transmission business, and likely to grow at a CAGR of around 8.5%. Stringent regulations across the Asia Pacific are expected to fuel the demand for efficient systems. For example, In China since 2010, new gasoline-fueled passenger vehicles have been designed to comply with requirements, i.e., based on the Euro 4 standard. Taiwan and Korea have adopted stringent U.S. and Europe-based standards for gasoline and diesel vehicles.
North America is expected to be the second-largest market during the forecast period. Increasing demand for automatic manual transmission (AMT) across the region is foreseen to boost industry growth. Besides, the sophisticated manufacturing hubs and markets in terms of technology are supposed to strengthen market boom further.
The European automotive industry spends a very high amount on R&D. According to the European Automobile Manufacturers Association, European companies spend around USD 60 billion annually on R&D, which is the highest across the globe. It also accounts for the highest number of patents for self-driving cars for nearly 33% of all applications. The European vehicles are well acclaimed for their class and comfort compared to those of Japanese and Chinese counterparts. Moreover, electric vehicle penetration in the region is deepening for the past few years. The rising call for electric vehicles is likely to augment the demand for multi-speed transmission in the European nations.
Key Players
The global automotive transmission market ecosystem consists of various automotive transmission manufacturers such as Aisen Seiki Company ltd. (Japan), ZF TRW (Germany), Borgwarner Inc. (U.S.), Continental AG (Germany), Magna International Inc. (Getrag) (U.S.), and Eaton Plc. (Republic of Ireland) among others and research institutes such as the Society of Indian Automobile Manufacturers (SIAM) and the China Association of Automobile Manufacturers (CAAM).
Impact of COVID-19 on Automotive Transmission Market
The automotive industry is one of the negatively affected industries by the COVID-19. The global automotive transmission market witnessed a decline in 2020 due to the economic recession led by coronavirus. But the automotive demand is anticipated to grow more rapidly once economies reopen. Increasing preference for private vehicles owing to the pandemic will accelerate the passenger vehicle demand. Instead of traveling on crowded public transport, people prefer to buy personal cars to travel due to safety concerns. Shortly, automotive transmission demand is projected to remain relatively low due to the coronavirus outbreak.
1. Introduction
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.1.1 Drivers
4.1.2 Restaints
4.1.3 Opportunities
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.2 Products/Service
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Automotive Transmission Market, By Transmission Type
6.1.1 Manual
6.1.2 Automatic
6.1.3 Market Size Estimations & Forecasts (2019-2024)
6.1.4 Y-o-Y Growth Rate Analysis
6.1.5 Market Attractiveness Index
6.2 Automotive Transmission Market, By Fuel Type
6.2.1 Diesel
6.2.2 Gasoline
6.2.3 Market Size Estimations & Forecasts (2019-2024)
6.2.4 Y-o-Y Growth Rate Analysis
6.2.5 Market Attractiveness Index
6.3 Automotive Transmission Market, By Vehicle Type
6.3.1 Passenger Cars
6.3.2 Commercial Vehicles
6.3.3 Electric Vehicles
6.3.4 Market Size Estimations & Forecasts (2019-2024)
6.3.5 Y-o-Y Growth Rate Analysis
6.3.6 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2018 - 2024)
7.2.1 By Country
7.2.1.1 USA
7.2.1.2 Canada
7.2.2 By Transmission Type
7.2.3 By Fuel Type
7.2.4 By Vehicle Type
7.3 Europe
7.3.1 By Country
7.3.1.1 UK
7.3.1.2 France
7.3.1.3 Germany
7.3.1.4 Spain
7.3.1.5 Italy
7.3.1.6 Rest of Europe
7.3.2 By Transmission Type
7.3.3 By Fuel Type
7.3.4 By Vehicle Type
7.4 Asia Pacific
7.4.1 By Country
7.4.1.1 China
7.4.1.2 India
7.4.1.3 Japan
7.4.1.4 South Korea
7.4.1.5 South East Asia
7.4.1.6 Australia & NZ
7.4.1.7 Rest of Asia-Pacific
7.4.2 By Transmission Type
7.4.3 By Fuel Type
7.4.4 By Vehicle Type
7.5 Latin America
7.5.1 By Country
7.5.1.1 Brazil
7.5.1.2 Argentina
7.5.1.3 Mexico
7.5.1.4 Rest of Latin America
7.5.2 By Transmission Type
7.5.3 By Fuel Type
7.5.4 By Vehicle Type
7.6 Middle East and Africa
7.6.1 By Country
7.6.1.1 Middle East
7.6.1.2 Africa
7.6.2 By Transmission Type
7.6.3 By Fuel Type
7.6.4 By Vehicle Type
8. Key Player Analysis
8.1 Aisen Seiki Company ltd.
8.1.1 Business Description
8.1.2 Products/Service
8.1.3 Financials
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 ZF TRW
8.3 Borgwarner Inc
8.4 Continental AG
8.5 Magna International Inc.
8.6 Eaton Plc
8.7 Society of Indian Automobile Manufacturers (SIAM)
8.8 China Association of Automobile Manufacturers (CAAM)
9. Market Outlook & Investment Opportunities
Appendix
List of Tables
List of Figures
