Market Overview
The automotive transmission systems market comprises products such as manual transmission, automatic transmission, continuously variable transmission (CVT), and dual-clutch transmission (DCT) used in automobiles. Transmission systems play a vital role in transmitting the engine’s power output to the wheels for motion. Automatic transmission systems provide ease-of-use and improved shift quality compared to manual transmission systems. Growing demand for comfort and convenience features in vehicles is propelling the adoption of automatic transmission globally. Moreover, strict fuel efficiency and emission norms are favoring the uptake of advanced transmissions like CVT and DCT.
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. ZF Friedrichshafen AG offers a wide range of automotive transmission systems including 6-speed automatic transmission, 8-speed automatic transmission, and 9-speed automatic transmission. Aisin Seiki Co., Ltd. provides automatic transmission, CVT, and hybrid transmission systems.
The key opportunities in the automotive transmission systems market include the increasing penetration of dual-clutch transmission systems in passenger vehicles, rising adoption of electric vehicles which employ single-speed transmission, and growing demand for Allison transmission systems in commercial vehicles.
The major players are focused on global expansion by enhancing their manufacturing footprints across emerging nations to tap the growing vehicle production in countries like China, India, Mexico, and Brazil. For instance, in 2022, ZF Friedrichshafen AG opened a new manufacturing plant in India to locally produce 8-speed automatic transmissions.
Market Drivers
The primary driver augmenting the automotive transmission systems market growth is the rising vehicle production globally owing to increasing disposable incomes and emerging middle-class population particularly in developing nations. As per industry estimates, over 90 million vehicles are manufactured annually. This substantial vehicle parc will propel the requirement for transmission systems in replacement as well as new vehicle segments.
Market Restrains
Volatility in raw material prices acts as a major challenge for market players and restrains the automotive transmission systems market growth. Key raw materials include steel, aluminum, and rare earth metals whose prices tend to fluctuate frequently depending on global trade dynamics and geopolitical factors. This exposes manufacturers to risks associated with unpredictable input costs.
Segment Analysis
The automotive transmission systems market can be segmented by transmission type into automatic transmission and manual transmission. The automatic transmission segment dominates the market and accounts for over 60% of the total sales. Growing demand for convenience and comfort while driving is driving the automatic transmission segment. Within automatic transmission, continuously variable transmission (CVT) and dual-clutch transmission (DCT) are witnessing high demand due to benefits like improved fuel-efficiency.
Global Analysis
North America accounts for the largest share in the global automotive transmission systems market currently. Presence of leading automakers and growing preference for vehicles with advanced transmission systems are boosting the regional market. Asia Pacific is projected to witness the fastest growth during the forecast period. Rapidly growing automotive industry, increasing disposable incomes, and rising sales of premium vehicles are fueling the demand for advanced transmission systems in Asia Pacific countries like China and India. Countries like Germany, UK, France, Italy have established automotive industries and are major markets for automotive transmission systems in Europe.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
