Automotive Transmission System Market

Automotive Transmission System Market Outlook

Global demand for automotive transmission systems is likely to surpass US$ 38 Bn by the end of 2021. Furthermore, the market is anticipated to reach US$ 70.2 Bn by the end of the 2021-2031 assessment period, experiencing an incline of 1.8x. Preference for manual transmission systems will remain dominant, attributed to increasing fuel efficiency requirements.

Key Points Covered in Automotive Transmission System Industry Analysis

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Automotive Transmission System Market and How to Navigate
• Recommendation on Key Winning Strategies

Automotive Transmission System Revenue Analysis 2016-2020 in Comparison to Future Outlook 2021-2031

According to market research & competitive intelligence provider Fact.MR, sales of automotive transmission systems expanded at a CAGR of over 5% from 2016 to 2020. In the wake of escalating demand for the high-speed automotive transmission systems, several leading manufacturers in the global automotive transmission system landscape are investing in the R&D of new technological models.

Prospects experienced a decline amid H1 2020, attributed to restricted automotive output due to closure of factory operations to contain the spread of the novel coronavirus pandemic. With stringent lockdowns in place, manufacturers could not fulfil the ever increasing automotive demand, causing a disequilibrium in the demand-supply equation. Fortunately, as the incidence of the disease began fading, prospects rebounded.

Future growth is reliant on the ever toughening stance regarding fuel emission standards across major automotive production hubs. This is necessitating the incorporation of efficient braking and transmission systems. Thus, due to the reasons mentioned above, the sales of automotive transmission system is expected to experience a CAGR worth 6.3% across the 2021-2031 forecast period. 

How will Tightening Regulatory Frameworks Push Forward Uptake of Efficient Automotive Transmission Systems?

As automotive emissions become a cause of concern, countries across the world are implementing strict regulatory frameworks to curb these excessive emissions. These are largely directed towards improving vehicular performance by concentrating on vehicular shifts.

For instance, as per FMVSS 102, all multi-purpose vehicles (MPVs), trucks and buses are required to be equipped with a braking effects for automatic transmissions at speeds below 25 mph. This standard is applicable to trucks, buses and MPVs of 10,000 gross vehicle weight rating (GVWR) or more.

Also, in China, as per the New Energy Vehicle (NEV) Policy, post-2017, a dual credit system has been proposed, tying mandatory emission norms for increased NEV passenger car production, applicable to manufacturers or importers of over 30,000 units of conventional automobiles every year. Credits amounting to 10% of conventional car production were required until 2019, which included efficiency in gear-changing mechanisms as well.

Is Fuel Efficiency Paving Way for Design Innovation in Automotive Transmission System Industry?

As the focus on fuel efficiency is spiralling over time, the demand for electrification of vehicles is also elevating. With hybrid EVs, battery-powered vehicles, and fuel cell EVs estimated for decently growing demand with ascending sustainability quotient, new development, and design possibilities are likely to bring in a slew of innovations specific to automotive transmission systems.

As the automotive transmission system makes up the heaviest part of the entire powertrain system, it is most likely that the automotive transmission system space will witness design innovations targeting a reduced weight of the automotive transmission system suitable for lightweight and eventually fuel-efficient vehicles.

Region-wise Analysis

Why are Automotive Transmission Systems Sales Highest in Asia?

With an already massive share in the global automotive manufacturing industry across countries such as India and China, Asia will continue to encourage outsourcing of automotive transmission system production predominantly owing to the low price point of raw materials and labor – creating a favorable production cost scenario for manufacturers.

In addition, the region is currently the top-ranking regional space for the automotive transmission systems. Thus, according to Fact.MR, Asia will remain the largest automotive transmission system production hub throughout the assessment period by acquiring 35% of market share from 2021-2031.

What is the Growth Outlook across the North American Market?

Sales of passenger cars in U.S and Canada have been increasing by leaps and bounds. Passenger cars are widely used in the region. This, in turn, is spurring the demand for automotive transmission systems. In addition, constantly improving fuel efficiency is increasing the demand for automotive transmission system.

Thus, according to Fact.MR, automotive transmission systems is expected to accumulate more than 25% market share in the sales indicator period throughout North America.

Category-wise Insights

Why has Gasoline Gained Traction in Automotive Transmission Systems Industry?

Compared to diesel, gasoline emits lesser harmful toxins and is efficient. In addition, gasoline adheres to the regulations of emissions set by different government bodies. This, in turn, has made gasoline popular amongst people, especially passenger car users.

According to Fact.MR, automotive transmission systems for gasoline powered vehicles are expected to possess more than 55% market share in the upcoming forecast period 2021-2031.

Will Manual Automotive Transmission Systems Remain Dominant?

According to Fact.MR’s projections, preference for manual automotive transmission systems will remain dominant, capturing more than 50% market revenue throughout the 2021-2031 forecast period, amid increased ownership of manual transmission automobiles.

Manually driven cars are far more fuel efficient, resulting in increased cost savings. Moreover, manual automobiles incur less maintenance costs, as fluid deteriorates less quickly. Manual car users also find it easier to brake compared to automatic ones.

Competitive Landscape

Prominent manufacturers are leveraging such key expansion approaches, including the introduction of automotives equipped with the latest transmission systems. Besides, mergers, partnerships and collaborations are equally relied upon to extend operations and services outreach. Notable developments are as follows:

• In June 2020, Hyundai Motor Corp. introduced the 2020 Santa Fe 7-seater SUV, which utilizes a third-generation architecture, equipped with a plug-in hybrid powertrain. The vehicle is equipped with an 8-speed automatic transmission system, as well as a manual shift mode.
• In August 2021, Aisin Seiki Co. Ltd. equipped in the new Toyota Aqua an electric water pump for inverter cooling and a shift-by wire which can automatically shift gears. The integrated electromechanical, small-sized and highly responsive shift-by-wire will pave the way for future automated driving

Report Scope

Attribute	Details
Market Size Value in 2021	USD 38.1 Billion
Market Value Forecast in 2031	USD 70.2 Billion
Growth Rate	CAGR of 6.3% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania  Middle East & Africa
Key Countries Covered	U.S Canada Brazil Mexico Argentina Germany U.K Spain France Italy Nordic India China Japan Thailand Malaysia Singapore Australia GCC South Africa Nigeria Israel
Key Segments Covered	Transmission Type Vehicle Type Fuel Type Region
Key Companies Profiled	Aisin Seiki Co. Ltd. Renault SA Continental AG Magna International Inc. Eaton Corporation PLC Hyundai Motor Company
Pricing	Available upon Request

Key Segments Covered

• Transmission Type

  • Manual Automotive Transmission System
  • Automatic Automotive Transmission System
  • Automated Manual Automotive Transmission System
  • Dual Clutch Automotive Transmission System
  • Continuously Variable Automotive Transmission System

• Vehicle Type

  • PC Automotive Transmission System
  • LCV Automotive Transmission System
  • HCV Automotive Transmission System

• Fuel Type

  • Automotive Transmission System for Gasoline Vehicles
  • Automotive Transmission System for Diesel Vehicles