The automotive transmission systems market has been gaining significant traction over the recent past owing to the rising demand for passenger and commercial vehicles across the globe. Automotive transmission systems help transfer power from the engine to the wheels and allow the vehicle to travel at different speeds. Continuous technological advancements in the automotive industry have led to the development of advanced transmission systems such as automatic transmission systems, continuously variable transmission systems, and dual-clutch transmission systems among others. Automotive transmission systems offer various advantages to the end-users such as enhanced fuel efficiency, improved performance, steering and braking control, and safety. With growing urbanization and rising living standards particularly in developing nations, the demand for personal vehicles as well as commercial fleets has increased significantly which is augmenting the sales of automotive transmission systems globally.
The global automotive transmission systems market is estimated to be valued at US$ 43.40 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the automotive transmission systems market are ZF Friedrichshafen AG, Aisin Seiki Co., Ltd., BorgWarner Inc., and Eaton Corporation plc. Key players are focusing on new product developments and innovations to gain a competitive advantage in the market. For instance, in 2022, ZF Friedrichshafen AG introduced an eight-speed automatic transmission system Signature III for electric and hybrid vehicles to cater to the growing demand.
The growing sales of electric vehicles across major markets offer lucrative opportunities for players in the automotive transmission systems market. With stringent norms to reduce vehicular emissions, transmission system manufacturers are developing transmissions optimized for electric powertrains.
The automotive transmission systems market players are focusing on geographic expansions to strengthen their foothold globally. For example, in 2021, BorgWarner Inc. opened a new production plant in Poland to increase manufacturing capabilities and cater to European customers. Asia Pacific is expected to witness significant investment by transmission system manufacturers owing to the growing automotive industry in China and India.
Market drivers: The primary driver for the automotive transmission systems market is the growing sales of passenger and commercial vehicles across the globe. Stringent fuel-efficiency and emission norms by regulatory bodies are prompting OEMs to integrate advanced transmissions which is propelling the demand.
Market restraints: High costs associated with manufacturing and procurement of transmission components can hamper the growth of automotive transmission systems market particularly in price-sensitive developing nations. Regular technology upgrades also increase the costs for manufacturers.
Segment Analysis
The automotive transmission systems market can be segmented based on transmission type, vehicle type, and region. Based on transmission type, the automatic transmission segment dominates the market as they provide comfort in driving experience and require less effort to shift gears especially in heavy traffic conditions. Manual transmission is expected to lose market share to automatic transmission over the forecast period. In terms of vehicle type, the passenger cars segment holds the largest market share as passenger cars with automatic transmissions are becoming popular among consumers. The demand for automatic transmission in commercial vehicles is also increasing with growing demand for convivence.
Global Analysis
Geographically, the Asia Pacific region dominates the automotive transmission systems market and is expected to continue its dominance during the forecast period. Rapid economic and infrastructure development along with growing population and transportation needs in emerging countries like China and India are driving the automotive transmission systems market in the region. Within Asia Pacific, China holds the largest share of the market due to presence of large automotive industry and high vehicle production in the country. North America is another major region for automotive transmission systems market. Stringent fuel efficiency norms by governments are increasing demand for automatic transmission in the region. Technological advancements by key players will further support the growth.
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- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it