Automotive Transmission System Market

Automotive Transmission System Market Outlook (2023 to 2033)

The global automotive transmission system market size reached US$ 40.83 billion in 2022, according to the latest market study by Fact.MR. Over the projection period (2023 to 2033), worldwide sales of automotive transmission systems are predicted to rise at 6.3% CAGR and climb to US$ 79.95 billion by 2033-end.

In comparison to manual transmission systems, automotive transmission systems also use less fuel. Vehicle gearboxes offer several advantages, such as precise performance during power take-off, efficient plowing drive, and the ability to achieve maximum speed at low engine speeds, leading to fuel efficiency.

Growth of the automotive transmission system market is driven by multiple factors. The increased production of light-duty and passenger cars contributes to this expansion. Demand for comfortable and fuel-efficient vehicles is growing, which further fuels the market growth. Rapid technological advancements in transmission production are anticipated to boost market growth in the coming years.

A car gearbox system serves a purpose beyond simply transmitting engine power to the wheels. Demand for automatic transmission vehicles has also exhibited significant growth in recent years, particularly in developing countries like India and China, primarily due to factors such as heavy traffic, congestion, and densely populated streets.

The most common automatic gearbox technologies found in automobiles are dual-clutch, continuously variable, and automated manual transmissions, among others.

Report Attributes	Details
Automotive Transmission System Market Size (2022)	US$ 40.83 Billion
Estimated Market Value (2023)	US$ 43.4 Billion
Forecasted Market Value (2033)	US$ 79.95 Billion
Global Market Growth Rate (2023 to 2033)	6.3% CAGR
China Market Value (2033)	US$ 17.43 Billion
China Market Growth Rate (2023 to 2033)	7% CAGR
Germany Market Value (2033)	US$ 8.23 Billion
Germany Market Growth Rate (2023 to 2033)	7.9% CAGR
Key Companies Profiled	Aisin Seiki Co. Ltd. Renault SA Continental AG Magna International Inc. Eaton Corporation PLC Hyundai Motor Company ZF Friedrichshafen AG Allison Transmission Inc. Aisin Seiki Co. Ltd. GKN PLC

What are the Factors Influencing the Sales of Automotive Transmission Systems?

"Ever-rising Demand for Fuel-efficient Automobiles"

Availability of cars with manual transmissions is projected to reduce due to rising environmental concerns and stricter fuel economy standards, leading to increased demand for automated transmission systems, according to General Motors. Governments across the world are promoting the adoption of alternative fuel vehicles through incentives and tax breaks, as well as fuel-efficient automobiles, which are anticipated to fuel the demand for automotive automatic transmissions.

Automotive component manufacturers are dedicated to providing cost-effective alternatives while ensuring optimal vehicle performance. To meet the growing demand for transmission systems in the automotive industry, these manufacturers are implementing various expansion strategies.

• For example, Aisin Seiki Co., Ltd. is focusing on integrating the production and development capabilities of Toyota Motor Corp.'s manual transmission products under Aisin AI. This collaboration enables companies to meet the increasing global demand more efficiently and enhance their competitive advantage.

"Growing Emphasis on Performance-driven Transmission Systems"

To meet the performance requirements of various types of vehicles, including passenger cars and heavy commercial vehicles (HCVs), manufacturers are focusing on the development of high-performance transmission systems. Automakers are incorporating advanced technologies, such as automated manual transmission (AMT), which not only enhance performance but also contribute to fuel efficiency and reduction of CO2 emissions.

Market expansion is expected to be further propelled by the rising adoption of dual-clutch transmission (DCT) and continuously variable transmission (CVT) technologies, which offer superior fuel efficiency and enhanced performance compared to traditional and automatic transmissions. The introduction of intelligent manual transmission (IMT) by many automakers allows drivers to shift gears without the need to depress the clutch, adding convenience and ease of operation to the driving experience.

What are the Hindrances to the Growth of the Automotive Transmission System Market?

"High Installation Cost Impeding Adoption of Advanced Transmission Systems for Small Cars"

Installation costs of the latest transmission systems, such as DCT and CVT, are higher than those of traditional transmission systems. These advanced transmission technologies have not yet gained widespread acceptance in the high-volume market for compact cars, which constitute a significant portion of the global passenger car market.

One of the main barriers to entry of manufacturers is the high cost of the transmission system. This is primarily a result of consumers favoring cost-effectiveness over performance.

Automotive transmission system manufacturers that prioritize the affordability of vehicles over convenience and effectiveness have faced hurdles due to the expensive price tag associated with these technologies. Companies must focus on their research and development (R&D) efforts to create enhanced transmission systems for the small car category at an affordable cost.

“Increased Prices and Complexity of Automotive Transmission Systems"

As car manufacturers and governments around the world make significant efforts to electrify automobiles, the adaptation of the transmission system to meet the needs of electric vehicles is becoming increasingly crucial. Automatic transmission systems are developed with advanced algorithms and intricate designs.

The price and complexity of vehicle transmission systems are increased by the use of several clutches, synchronized gear sets, and lightweight materials. Although these advancements have enhanced the drivability of vehicles, these technologies are prone to specific issues.

Due to shared responsibilities, suppliers and manufacturers face challenges in terms of dependability and cost. Some state-of-the-art transmission technologies rely heavily on onboard computers. These systems utilize advanced electronics and sensors to accurately and swiftly determine when and how to shift gears.

Country-wise Insights

What Makes South Korea a Lucrative Market for Manufacturers of Automotive Transmission Systems?

"High Demand for Commercial Vehicles with Automatic Manual Transmission"

Demand for automotive transmission systems in South Korea is anticipated to reach a market valuation of US$ 2.55 billion by 2033, increasing at a steady CAGR of 4.2%.

Due to the presence of several well-known automakers and related businesses in the country, the market is growing significantly. Stringent regulations governing vehicles have pushed businesses to implement efficient transmission systems. Rising vehicle sales in the country are anticipated to contribute to the expansion of the automotive transmission system market during the projection period.

Sales of commercial vehicles equipped with automatic manual transmission (AMT) are predicted to grow significantly in South Korea, which is expected to boost market growth.

What is the Demand Outlook for Automotive Transmission Systems in the United States?

“Growing Investments in Production of Commercial Vehicle Transmissions”

The automotive transmission system market in the United States is projected to reach US$ 17.03 billion by 2033, expanding at a robust CAGR of 6%.

The United States is a significant market for luxury and sports cars, and demand for these cars is anticipated to grow during the projection period. Rising sales of automotive transmission systems in the country can be attributed to the growing popularity of hybrid vehicles and their positive impact on emissions and fuel efficiency.

• In 2019, internal combustion engine (ICE) vehicles accounted for more than 91% of passenger car sales in the United States, while electric vehicles (EVs) made up the remaining 9%.
• In response to the rising demand for transmission systems in North America, ZF announced a significant investment of US$ 200 million in February 2021 for the production of commercial vehicle transmissions. As part of this initiative, ZF commenced production of its PowerLine 8-speed automated transmission in Gray Court, South Carolina, in 2023, creating approximately 500 job opportunities.

Category-wise Insights

Will Automotive Transmission System Manufacturers Benefit from Increasing Passenger Cars Sales?

"Investments by Passenger Car Manufacturers in Enhancing Product Design and Functionality”

Sales of passenger cars are anticipated to rise at a steady CAGR of 5.8% during the forecast period.

A sizable portion of the market for automobile transmission systems consists of passenger cars. The choice of a transmission system in passenger cars plays a crucial role in determining the driving experience, fuel efficiency, and overall performance of the vehicle. Passenger cars account for a major revenue share of the global market and are expected to maintain their position in the coming years.

Major investments are essential to ensure continuous advancements in various design elements such as functionality, materials, engineering, engines, and fuels, including electric power supply. These elements play a vital role in driving the growth of the market.

Which Automotive Transmission System is Most Extensively Deployed?

“Widespread Utilization of Automatic Automotive Transmission Systems Due to Their Convenience and Improved Fuel Efficiency"

Demand for automatic automotive transmission systems is expected to advance at a CAGR of 6.8% during the forecast period.

Automatic automotive transmission systems have gained significant popularity in the automotive industry due to their convenience, ease of use, and improved fuel efficiency. These systems offer seamless gear shifting and eliminate the need for manual clutch operation, providing a smooth driving experience for users. The market has been witnessing steady growth in recent years.

The market is anticipated to expand over the forecast period, driven by factors such as increasing vehicle production, growing demand for fuel-efficient vehicles, and technological advancements in transmission systems. Continuous advancements in transmission technologies, such as dual-clutch transmissions (DCT), continuously variable transmissions (CVT), and advanced electronic control systems, have enhanced the performance and efficiency of automatic automotive transmission systems, further driving market growth.

Competitive Landscape

The automotive transmission system market is highly competitive and characterized by the presence of several global and regional players. These companies strive to maintain their market positions by focusing on product development, technological advancements, strategic partnerships, and expansion into emerging markets.

• For instance, Magna started manufacturing a new 7-speed mild hybrid dual-clutch transversal transmission for the BMW Group in May 2022. Magna is the exclusive supplier of mild hybrid transmission for all front-transverse applications on the BMW Group platform. This technology of the moderate hybrid gearbox plays a crucial role in significantly reducing CO2 emissions from internal combustion engines.
• In May 2019, ATC Drivetrain, a prominent autonomous remanufacturer of automotive drivetrains, acquired ATP Automotive Transmission Remanufacturing Specialists Ltd. This company specializes in the remanufacturing of automatic transmissions.

Key Segments of Automotive Transmission System Industry Research

• By Transmission Type :

  • Manual
  • Automatic
  • Automated
  • Dual Clutch
  • Continuously Variable

• By Vehicle Type :

  • Passenger Cars
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles

• By Fuel Type :

  • Gasoline Vehicles
  • Diesel Vehicles

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa