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The automotive transmission systems market size is forecast to increase by USD 53.2 billion, at a CAGR of 6.08% between 2023 and 2028. The market's expansion is driven by several factors, notably the rising adoption of automatic transmission in vehicles, the heightened focus on fuel efficiency, and increasing investments in multi-speed transmission for electric vehicles (EVs). These trends are reshaping the automotive industry, with automatic transmissions becoming more prevalent across vehicle types. Additionally, the shift towards EVs is fueling the demand for advanced transmission systems capable of optimizing electric powertrains' performance and efficiency. This underscores the importance of transmission technology in meeting evolving automotive needs. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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In the industrial sector, there is a growing emphasis on reducing carbon emissions and transitioning to renewable energy sources. This shift is particularly relevant to industries such as food and beverage, petrochemical, power, and oil and gas, which often rely on heavy fuel usage and face stringent environmental laws. The installation and labor costs associated with renewable energy systems, as well as miscellaneous expenses and potential downtime due to damaged equipment, can be substantial. For instance, steam-powered industrial facilities may experience significant expenses from boiler repairs or replacement. Moreover, inflation and fluctuating oil prices can further impact the financial viability of these transitions. However, the long-term benefits of a positive environment and adherence to regulations far outweigh the initial heavy expenses. Industries must carefully consider the total cost of ownership when evaluating the adoption of renewable energy systems. Pipes and fuels play a crucial role in the transmission of energy, and their maintenance and efficiency are essential factors in the overall success of these transitions. Our researchers analyzed the market research and growth 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.
The growing adoption of automatic transmissions in vehicles is notably driving the market growth. Automotive transmission systems, a critical component in the efficient operation of vehicles, have witnessed significant advancements and expanding applications. Materials utilized in the manufacturing of these systems undergo deformation and experience stress corrosion during operation. Welding issues and hydrogen embrittlement are potential challenges in the production process. The market for automotive transmission systems encompasses various application segments, including distilleries, craft distilling, petrochemical plants, petroleum refineries, and steel mills, among others.
Moreover, in the fossil fuel sector, the demand for transmission systems is robust, particularly in the transportation of biomass fuel derived from sources such as bagasse, sugarcane, and sorghum stalks. In the agribusiness sector, Parker Boiler and equipment dealers, as well as brokers, play a vital role in the distribution and integration of these systems. The non-fossil fuel segment is also gaining traction, with increasing focus on sustainable energy sources and the reduction of greenhouse gas emissions. Despite the challenges, the future of the market looks promising, driven by advancements in technology and the growing demand for efficient and eco-friendly solutions. Hence, increasing penetration of automatic transmission systems can propel the market in terms of market value during the forecast period.
The development of auto-shift manual transmission systems with adaptive transmission control is a key trend influencing the market growth. The market experiences significant growth due to the integration of advanced technologies, such as continuous variable transmission (CVT) and dual-clutch transmission (DCT). Materials used in these systems undergo deformation and experience stress corrosion during operation. Welding issues and hydrogen embrittlement are critical concerns in the manufacturing process. The application segments of automotive transmission systems span various industries, including distilleries, craft distilling, petrochemical plants, petroleum refineries, and steel mills.
Furthermore, in the fossil fuel segment, the demand for transmission systems is high due to the extensive use of fuel in the transportation sector. Conversely, the non-fossil fuels segment, which includes biomass fuel derived from sources like bagasse, sugarcane, and sorghum stalks, is gaining traction due to the environmental benefits and fuel efficiency. Automotive transmission systems play a crucial role in the agribusiness sector, enabling the transportation of raw materials and finished products. Equipment dealers and brokers are essential stakeholders in the market, facilitating the sale and distribution of transmission systems to various industries. Parker Boiler, a leading manufacturer of industrial boilers, also contributes to the market by providing advanced transmission systems for diverse applications.
Technical problems such as erratic gear shifts resulting in whining and grinding noise due to wear and tear are challenging the market growth. In the automotive transmissions market, materials used in the manufacturing process play a significant role in the system's performance and longevity. However, these materials are susceptible to various forms of deformation and stress corrosion, leading to challenges in maintaining optimal transmission functionality. For instance, welding issues and hydrogen embrittlement can impact the durability of transmissions used in application segments such as distilleries, craft distilling, petrochemical plants, petroleum refineries, and steel mills. The fossil fuel segment, a major contributor to the automotive industry, relies heavily on transmissions made from steel and other metals. However, the use of non-fossil fuels, such as biomass fuel derived from bagasse, sugarcane, and sorghum stalks, necessitates the development of transmissions that can withstand the unique demands of these alternative energy sources. Automotive transmission systems, particularly those used in heavy-duty applications, face various challenges.
For example, DCT systems, which employ a set of planetary gears and a dual-clutch system, are more complex than manual transmissions. These systems use bands and clutches activated by DCT fluid, making them susceptible to wear and tear. Worn-out clutches or bands can lead to harder gear shifts and extended engine revving periods. Equipment dealers and brokers play a crucial role in the market by providing solutions to various industries, including those in the agribusiness sector. Companies like Parker Boiler and others are at the forefront of addressing these challenges by offering advanced transmission technologies and services. By focusing on materials science, manufacturing processes, and application-specific designs, these companies aim to improve transmission efficiency, reduce maintenance costs, and enhance overall system reliability. This is the challenge faced by the companies in the global automotive transmission system market, which is adversely affecting the high-profile market.
The market forecasting 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 market growth and forecasting strategies.
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 market share growth by the passenger cars segment will be significant during the forecast period. The market in the passenger cars segment experiences continuous expansion, driven by the escalating consumer preference for advanced transmission technologies. Electricity bills and industrial closures have instigated a shift towards more energy-efficient alternatives, such as automated gearboxes, including CVTs and DCTs. These systems offer advantages like superior fuel efficiency and swift, seamless gear shifts.
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The passenger cars segment was valued at USD 101.80 billion in 2018. Furthermore, the refinement of transmission boxes contributes to enhanced comfort and convenience in congested traffic conditions. The passenger cars segment has historically accounted for a significant portion of global automobile sales in terms of volume. Urbanization's rapid pace and increasing disposable income fuel the demand for passenger cars. However, stringent laws aimed at reducing harmful emissions and carbon neutrality have necessitated the adoption of non-fossil fuel-based transmission systems. Natural gas, biomass, and other renewable energy sources are increasingly being used as feedstocks in the production of steam generating boilers and other applications. The refinery, chemical, food processing, pulp & paper, primary metal, and multiple industries rely on these transmission systems to optimize their energy usage and reduce running costs. In the context of industrial plants, mega power projects, and oil and gas operations, electricity bills and fuel costs represent a substantial portion of overall expenses. As such, the focus on energy efficiency and the transition towards non-fossil fuel-based transmission systems is gaining momentum. Coal-based counterparts are being phased out due to their high carbon emissions and environmental impact. Metal manufacturing plants, chemicals, and the food and beverage industry are among the sectors that stand to benefit significantly from the adoption of these advanced transmission systems.
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APAC is estimated to contribute 57% 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 in the Asia Pacific (APAC) region is experiencing significant growth, driven by the region's industrialization and increasing purchasing power of consumers. This economic expansion has led to higher demand for automobiles in countries such as China, India, Indonesia, and Thailand. However, this growth comes with challenges, including the need for energy efficiency and stringent emission norms. Electricity bills and production costs are major concerns for commercial spaces and industries, including refineries, chemical, food processing, pulp & paper, primary metal, and fuel manufacturing plants. To promote carbon neutrality and reduce harmful emissions, many countries in the region have implemented stringent laws. For instance, India introduced BS-VI norms in April 2020, which are based on Euro 6 emission standards.
Further, the application of steam generating boilers and natural gas in various industries, such as power, pipes, fuels, oil and gas, fossil, non-fossil, biomass, textile, FMCG, and industrial plants, is essential for energy efficiency and reducing running costs. The production of boilers and steam generating systems is a significant contributor to the region's industrial growth. Rapid industrialization and mega power projects require adherence to boiler rules and environmental emissions regulations. The use of electricity and fuel in industrial processes contributes significantly to overall energy consumption and costs. Therefore, the focus on energy efficiency and the shift towards non-fossil fuels, such as natural gas and biomass, is crucial for reducing fuel costs and promoting sustainability. In conclusion, the Automotive Transmission Systems Market in the APAC region is experiencing significant growth due to rapid industrialization and increasing purchasing power. However, this growth comes with challenges, including the need for energy efficiency and stringent emission norms. The application of steam generating boilers and natural gas, along with adherence to boiler rules and environmental emissions regulations, is essential for promoting sustainability and reducing running costs in various industries. The high underlying growth potential of the featured markets in this region will continue to drive the market growth in APAC during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market encompasses the production and sales of various transmission systems for automobiles. These systems facilitate the transfer of power from the engine to the wheels, ensuring smooth and efficient operation. Key components include manual and automatic transmissions, continuously variable transmissions (CVT), and dual-clutch transmissions (DCT). Manufacturers focus on developing advanced technologies, such as electric and hybrid transmissions, to cater to the growing demand for eco-friendly vehicles. Fuel efficiency and reduced emissions are major factors driving market growth.
Additionally, the increasing popularity of electric and autonomous vehicles is expected to create significant opportunities in the market. Key players in the market invest in research and development to innovate and improve their offerings. They collaborate with automakers to integrate their transmission systems into new vehicle models. The market is expected to witness steady growth due to the increasing global automotive production and sales. In conclusion, the market is a dynamic and evolving industry, driven by advancements in technology, changing consumer preferences, and regulatory requirements. The demand for industrial boilers, including oil and gas-fired options, is influenced not only by their efficiency but also by factors such as installation costs and the potential risks associated with a damaged boiler.
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Market Scope |
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Report Coverage |
Details |
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Page number |
179 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.08% |
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Market Growth 2024-2028 |
USD 53.2 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.61 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 57% |
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Key countries |
China, US, Germany, Japan, and South Korea |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aichi Machine Industry Co. Ltd., AISIN CORP., Allison Transmission Holdings Inc., Bonfiglioli Riduttori Spa, BorgWarner Inc., Continental AG, Eaton Corp. Plc, General Motors Co., GKN Ltd., Honda Motor Co. Ltd., Hyundai Motor Co., Magna International Inc., Marelli Holdings Co. Ltd., Nissan Motor Co. Ltd., Renault SAS, Schaeffler AG, Volkswagen AG, WeiChai Holding Group Co. Ltd., Xtrac Ltd., and ZF Friedrichshafen AG |
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Market dynamics |
Parent market analysis, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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