An automotive transmission system is an integral component that delivers torque and rotary power from the engine to the wheels. The system primarily includes the transmission and differential components in a vehicle. Automotive transmission systems provide smooth transmission of power from the engine to the wheels for enhanced driving experience. Common types of automotive transmission systems include manual transmission, automatic transmission, continuously variable transmission, dual-clutch transmission, and automated manual transmission. Automatic and continuously variable transmissions provide optimized balance of fuel efficiency and torque delivery compared to manual transmissions.
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.
Growing demand for fuel-efficient and high-performance vehicles represents a key opportunity for players in the automotive transmission systems market. Companies are developing advanced transmission technologies to capitalize on this opportunity.
Adoption of cutting-edge automatic transmission technologies such as continuously variable transmission (CVT) and dual-clutch transmission (DCT) is expected to drive the growth of automotive transmission systems market. These technologies provide optimized balance of superior drivability and fuel efficiency.
Market Drivers
Stringent government regulations pertaining to vehicular emissions are inducing automakers to focus on fuel-efficient transmission technologies. Regulatory bodies such as Euro 6 emissions standards are compelling manufacturers to improve drivetrain efficiencies. This, in turn, is generating demand for advanced automotive transmission systems.
Growing demand from emerging economies owing to rising disposable incomes is expected to propel the automotive transmission systems market. Rapid industrialization and expanding middle-class population are fueling vehicle sales, especially in Asia Pacific countries.
Current challenges in the Automotive Transmission Systems Market
The automotive transmission systems market is currently facing challenges due to the global shortage in semiconductor chips. This shortage has disrupted automotive production lines and delayed vehicle deliveries. Furthermore, transition towards electric vehicles poses a challenge for traditional transmission system manufacturers to adapt their product portfolio accordingly. Stringent emission norms worldwide is also forcing manufacturers to invest heavily in developing advanced fuel efficient transmission technologies.
SWOT Analysis
Strength: Advanced automatic transmission such as CVT and DCT offers better fuel efficiency. Wide range of products available to cater to different vehicle types and budgets.
Weakness: High investment required for R&D in electric powertrain technologies. Dependence on internal combustion engine vehicles still remains for revenues.
Opportunity: Growth of electric vehicles and hybrid vehicles presents an opportunity to supply newer transmission systems. Partnerships with EV manufacturers can be leveraged.
Threats: Stiff competition from existing and new players. Shift in consumer demand away from internal combustion engine vehicles poses a long term threat.
In terms of value, the automotive transmission systems market in North America currently holds the largest share owing to high vehicle production and presence of major OEMs in the region. Asia Pacific region is expected to witness the fastest CAGR during the forecast period due to increasing sales of passenger vehicles in China and India.
The automotive transmission systems market in China is projected to surpass the market in United States and emerge as the largest geographical region by 2027. Factors such rising disposable incomes, growth in luxury vehicles segment and Make in China initiative by auto manufacturers are likely to drive robust demand for advanced transmission systems in China.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
