Automotive Transmission Systems Market Growth by Vehicle Type, Type, and Geography - Forecast and Analysis 2023-2027

Automotive Transmission Systems Market Analysis Report 2023-2027:

The automotive transmission systems market is estimated to grow at a CAGR of 6.28% between 2022 and 2027. The size of the market is forecast to increase by USD 52.34 billion. The growth of the market depends on several factors, including the growing adoption of automatic transmission in vehicles, increasing focus on fuel efficiency, and growing investments in multi-speed transmission for EVs.

This report extensively covers market segmentation by vehicle type (passenger cars and commercial vehicles), type (manual and automatic), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Automotive Transmission Systems Market During the Forecast Period?

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Automotive Transmission Systems Market: Key Drivers, Trends, Challenges, and Customer Landscape

The increasing adoption of automatic transmission in vehicles is notably driving the market growth, although technical problems such as erratic gear shifts resulting in whining and grinding noise due to wear and tear may impede the market growth.  Our researchers analyzed the data with 2022 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.

Key Automotive Transmission Systems Market Driver

The growing adoption of automatic transmission in vehicles is notably driving the automotive transmission systems market growth.  Automatic transmission vehicles, especially passenger cars, are gaining importance in many parts of the world. The prevalence of automatic transmission systems has expanded from the luxury and premium car segment to the budget car segment. Automatic transmissions in cars make driving effortless. Congested stop-and-go traffic conditions in urban areas around the world are driving customers to opt for automatic transmission vehicles. This technology eliminates the use of clutches and shifters, reducing ride fatigue. A major reason for the preference for vehicles with automatic transmissions is the increasing purchasing power of customers in many countries around the world.  Automatic transmissions are also gaining momentum in the truck industry, which has gone through several stages of evolution regarding transmission systems. Heavy trucks are equipped with automatic transmission systems to provide higher levels of comfort and efficiency.  

Concerns related to durability, poor performance, and functionality (such as uneven gear changes) of automatic transmission systems have limited the popularity of this type of transmission to some extent, but the number of robust and efficient electronic control modules has increased. Manufacturers should consider automation to fit transmission systems on heavy-duty vehicles. Hence, increasing penetration of automatic transmission systems can propel the global automotive transmission systems market in terms of market value during the forecast period. 

Significant Automotive Transmission Systems Market Trend

The development of auto-shift manual transmission systems with adaptive transmission control is a key trend influencing the automotive transmission systems market growth. The automotive market has evolved with the advent of several disruptive technologies. Continuously variable transmissions (CVTs) replace hydraulic automatic transmission systems. Dual-clutch transmissions (DCTs) have gained popularity and are penetrating the market. Therefore, the demand for such systems is increasing. Advances in technology have allowed automatic transmission systems to change gears more smoothly and use less fuel. The global automotive industry is witnessing innovative developments such as automatic shifting manual transmission systems. Such a system not only offers the same advantages as an automatic transmission but is also flexible and economical in terms of fuel consumption. They work on the principle of electronic shift-by-wire control, which completely eliminates manual shifting of the gear lever. Such systems use a clutch to start and stop the vehicle. A continued flow of investment in the research and development of these advanced transmission systems is expected to contribute to the growth of the market during the forecast period. 

EV manufacturers are focused on increasing the miles per charge of vehicles. This is a major obstacle to the popularization of EVs. The need to reduce vehicle weight without compromising efficiency is forcing electric vehicle manufacturers to look for solutions that extend range, independent of battery-related developments. Suppliers, therefore, use lightweight aluminum components in electric vehicle transmission systems.  The adoption of lightweight transmissions is expected to increase significantly during the forecast period as the demand for electric vehicles increases due to stringent regulations for their use worldwide. 

Major Automotive Transmission Systems Challenge

Technical problems such as erratic gear shifts resulting in whining and grinding noise due to wear and tear are challenging the automotive transmission systems market growth. AMT systems such as DCT are more complex in terms of design and function as compared to MT, so diagnosing them remains a challenge. Contaminated transmission oil is one of the leading causes of failed AT systems leading to transmission slippage. A DCT system uses a series of planetary gears to shift gears where the gears are coupled to the input and output shafts. Gear changes are made with the help of a double clutch system and bands that work with the help of DCT fluid. So when the clutch or band wears out, the gear changes become harder. Contaminated transmission oil can cause excessive wear and premature failure of the clutch discs. Low levels of DCT fluid can make gear changes difficult and change the system's optimal operating pressure. This is due to less lubrication between the clutch disc and band, increasing optimal transmission pressure. Burning, contaminated, or leaking gear oil can also lead to slipping gears. 

Automatic transmission systems have complex designs and sophisticated algorithms. Multiple clutches, synchronous gear sets, and the use of lightweight materials increase the cost and complexity of automotive transmission systems. While these developments have improved vehicle drivability, such systems are prone to certain problems. This is a challenge for suppliers and automakers because of cost and reliability concerns with shared responsibility. Some advanced transmission systems rely heavily on onboard computers. Such systems use advanced electronics and sensors that accurately and accurately determine when and how fast gears need to be changed. Failure of any of these components can result in expensive repair bills and vehicle recalls. This is the challenge faced by the vendors in the global automotive transmission system market, which is adversely affecting the high-profile market. 

Key Automotive Transmission Systems Market Customer Landscape

The 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 Systems Market Customer Landscape

Who are the Major Automotive transmission Systems Market Vendors?

Vendors 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.

Aichi Machine Industry Co. Ltd: The company manufactures different automobile parts such as manual transmissions, engines, crankshafts, and conrods. It also offers F30 B series automatic transmission system.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Aisin Corp.
• Allison Transmission Holdings Inc.
• Bonfiglioli Riduttori Spa
• Continental AG
• Eaton Corp. Plc
• General Motors Co.
• GKN Ltd.
• Honda Motor Co. Ltd.
• Hyundai Motor Co.
• Magna International Inc.
• Nissan Motor Co. Ltd.
• Renault SAS
• Schaeffler AG
• Volkswagen AG
• WeiChai Holding Group Co. Ltd.

Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segments in the Automotive Transmission Systems Market?

The market share growth by the passenger cars segment will be significant during the forecast period. The global market for automotive transmission systems in the passenger car segment is expected to grow steadily during the forecast period. This is due to the increasing consumer demand for automotive transmissions. Automatic transmissions such as CVTs and DCTs offer benefits such as better fuel efficiency and smoother, faster gear changes. Additionally, transmission improvements, along with the comfort and convenience offered in bumper-to-bumper traffic conditions, are driving acceptance in the passenger car market. 

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The passenger cars segment was valued at USD 98.68 billion in 2017 and continued to grow until 2021. An increase in the number of vehicles on the road leads to an increase in pollutants and emission levels, forcing government agencies in several countries to implement regulations to reduce vehicle emissions. Vehicle light weighting is one of the major changes that OEMs are adopting by reducing the number of components and lightweight materials used in their vehicles. This not only improves vehicle performance, but also reduces vehicle emissions. These changes will be incorporated into many automotive parts, including transmission systems. Incorporating advanced transmission systems can help improve vehicle fuel economy. This is one of the main reasons for the increasing adoption of vehicle transmission systems in the passenger car segment. 

Which are the Key Regions for the Automotive Transmission Systems Market?

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APAC is estimated to contribute 58% 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.

APAC region includes some of the fastest-growing economies in the world, primarily China and India. The per capita income has improved since 2016, along with rapid economic growth in the region. This has increased the purchasing power of consumers, driving up car sales not only in China and India but also in other countries such as Indonesia and Thailand. Most countries in the region have introduced strict emission standards derived from the Euro standards. For example, in April 2020, the Indian government introduced BS-VI standards based on Euro 6 emission standards. Hence, the high need to reduce emissions among automotive OEMs is driving the demand for advanced emissions control systems,  driving the growth of the featured market in the region. 

Industrial activities in the Asia-Pacific region will be severely impacted in 2020 by the rapid spread of the COVID-19 pandemic, causing concern across the region. Strict lockdowns and social distancing rules have forced many business owners to temporarily close their facilities. Vehicle production was also sluggish throughout the year. This negatively impacted the demand for vehicle transmission systems in the region. Capital expenditures are expected to increase, driving demand for commercial vehicles during the forecast period. This will have a positive impact on the growth of the automotive transmission systems market in the region. 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.  

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Vehicle Type Outlook (USD Billion, 2017 - 2027)
  • Passenger cars
  • Commercial vehicles

• Type Outlook (USD Billion, 2017 - 2027)
  • Manual
  • Automatic

• Region Outlook (USD Billion, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Parent Market Analysis

Technavio categorizes the global automotive transmission systems market as part of the global automotive parts and accessories market within the global automotive parts market. Markets include companies that manufacture automotive parts and accessories for passenger cars (PC), electric vehicles (EV), commercial vehicles (CV), heavy duty vehicles, ATVs, motorcycles, scooters,  and automobiles. 

Automotive Transmission Systems Market Scope
Report Coverage	Details
Page number	170
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.28%
Market growth 2023-2027	USD 52.34 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	5.42
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 58%
Key countries	US, China, Japan, South Korea, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Aichi Machine Industry Co. Ltd., Aisin Corp., Allison Transmission Holdings Inc., Bonfiglioli Riduttori Spa, Continental AG, Eaton Corp. Plc, General Motors Co., GKN Ltd., Honda Motor Co. Ltd., Hyundai Motor Co., Magna International Inc., Nissan Motor Co. Ltd., Renault SAS, Schaeffler AG, Volkswagen AG, WeiChai Holding Group Co. Ltd., Xtrac Ltd., ZF Friedrichshafen AG, Marelli Holdings Co. Ltd., and BorgWarner Inc.
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, Market condition analysis for 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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What are the Key Data Covered in this Automotive Transmission Systems Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the automotive transmission systems market between 2023 and 2027
• Precise estimation of the size of the automotive transmission systems market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of automotive transmission systems market vendors

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