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The automotive transmission electronics market size is forecast to increase by USD 6.36 billion, at a CAGR of 5.65% between 2023 and 2028. Several factors play a crucial role in the market's growth, such as the increasing penetration of shift-by-wire technology, the use of advanced electronics in Tiptronic transmission systems, and the rising demand for automatic transmission systems.
The report includes a comprehensive outlook on the Automotive Transmission Electronics Market, offering forecasts for the industry segmented by Application, which comprises passenger car, and commercial vehicle. Additionally, it categorizes Type into sensor, operating units, and electronic control units, and covers Regions, including APAC, Europe, North America, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing penetration of shift-by-wire technology is the key factor driving market growth. The shift-by-wire technology can replace conventional physical connections, such as cables and mechanical linkages, with a wire that transmits electronic signals. Furthermore, with the increase in the adoption of automatic transmission systems, the shift-by-wire market is expected to grow significantly during the forecast period. A shift-by-wire system uses an actuator for transmission. Instead of mechanical linkages with the gearbox, the transmission is done using actuators. The gear shift using a shift-by-wire system could be actuated using either lever buttons or rotary shifters.
Moreover, the increasing demand for automatic transmission across the world would be one of the major drivers for the consistent growth of the shift-by-wire system. The use of the shift-by-wire system has reduced the weight of vehicles, and it has improved the precision of the output to a larger extent. Shift-by-wires are made with integrated control software. Thus, the growth in the adoption of shift-by-wire technology will drive the growth of the automotive transmission electronics market during the forecast period.
Integration of transmission with other systems to form electric drive units is the primary trend shaping market growth. Many suppliers are developing electric drive units that integrate different components with hybrid and electric transmissions, allowing compactness in size and weight. For example, in 2021, Bosch designed a highly integrated, cost-effective electric drive solution, the Bosch eAxle, for sustainable, resource-saving mobility in densely populated areas; the eAxle has a scalable power output that ranges from 50-300 kW.
In addition, another example is the electric drive unit developed by BorgWarner, which accommodates the electric motor with its eGearDrive transmission. This offers high efficiency, weight reduction, and optimum use of space. Thus, the integration of transmission with other systems to form electric drive units is one of the trends that are expected to drive the growth of the market during the forecast period.
The high cost and complexity of electric vehicle transmission is a challenge that affects market growth. Electric and hybrid vehicle transmission systems account for almost 20% of the vehicle cost. OEMs face difficulties in maintaining their profitability as the cost of installing this system is high. In addition, the cost of components used in electric and hybrid vehicle transmission systems and design and quality control costs are high. All these add to the overall cost of production.
Furthermore, the competitive nature of the automotive industry further intensifies cost pressures. As manufacturers strive to incorporate the latest technologies into their vehicles to gain a competitive edge, there is a constant need to balance innovation with cost-effectiveness. This balancing act is particularly challenging when considering the demand for affordable vehicles in the market. Thus, such factors may impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Transmission Electronics Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The passenger car segment is estimated to witness significant growth during the forecast period. The passenger car segment contains a diverse range of vehicles designed for personal transportation, including sedans, hatchbacks, SUVs, and sports cars. In this segment, automotive transmission electronics play a key role in ensuring the efficient and optimized performance of transmissions. Components such as transmission control units (TCUs), electronic shift-by-wire systems, and sensors are tailored to meet the specific needs of passenger vehicles, contributing to smoother gear shifts, enhanced fuel efficiency, and improved overall driving dynamics.
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The passenger car segment was the largest segment and was valued at USD 10.13 billion in 2018. With the increasing concern about emissions, automakers are trying to meet the fuel efficiency demand set by different governments regarding Corporate Average Fuel Economy (CAFE) standards. Therefore, the performance of the engine has become a major purchase decision factor for automakers and customers. Improving the economic situation, evolving lifestyles, and rising income have resulted in higher demand for new, fuel-efficient, and technologically advanced cars equipped with more safety features. Thus, such factors will continue to drive the growth of the global automotive transmission electronics market in the passenger cars segment during the forecast period.
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APAC is estimated to contribute 63% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is relatively competitive because there are several local and regional firms along the value chain. Magna International, ZF Friedrichshafen AG, GKN PLC, BorgWarner Inc., Aisin Seiki Co., Allison Transmission Inc., and Eaton are some of the significant market players in the APAC sector.
Furthermore, the automotive vehicle market in APAC is largely dominated by China and India. In addition, rapid economic development in APAC has boosted per-capita income in recent years. This has increased the purchasing power of consumers, leading to increased disposable income. This is resulting in higher automobile sales in APAC countries. In addition, increased economic growth has boosted the sales of automatic transmission vehicles. Thus, such factors are contributing to the growth of the automotive transmission electronics market in APAC.
The automotive transmission electronics market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Automotive Transmission Electronics Market Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.65% |
Market Growth 2024-2028 |
USD 6.36 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.87 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 63% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aptiv Plc, AVL List GmbH, BorgWarner Inc., Continental AG, DENSO Corp., Eaton Corp. Plc, Hitachi Ltd., IAV GmbH, Infineon Technologies AG, Kongsberg Automotive ASA, Marelli Holdings Co. Ltd., Mitsubishi Electric Corp., Panasonic Holdings Corp., Ricardo Plc, Robert Bosch GmbH, Schaeffler AG, STMicroelectronics International N.V., Texas Instruments Inc., Valeo SA, and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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