Advanced Gear Shifter System Market

Global Advanced Gear Shifter System Market Size (2024 to 2032)

The global advanced gear shifter system market was valued at USD 14.74 billion in 2023 and is anticipated to reach a valuation of USD 15.94 billion in 2024 from USD 29.86 billion by 2032, growing at a CAGR of 8.16% during the forecast period 2024 to 2032.

Market Overview

The advanced shifting system understands the operation of the arrangement and the trouble of the gears. Allows the car to operate with two-pedal technology. It does not include a clutch pedal and, therefore, reduces effort and tension. Offers the serviceability of an automatic transmission without compromising fuel efficiency. The advantages associated with the advanced shifting system are handling, affordable technology, more mileage, and smooth shifting. It is applicable to a variety of cars. Poor road conditions, along with improvements in technology and improved fuel efficiency of vehicles with semi-automatic and automatic transmissions, resulted in product penetration during the study period.

Vehicle users in emerging economies, including India, are adopting automatic vehicles due to the ease of movement and ease of driving in heavily congested areas. For example, in April 2018, Ford announced that up to 55% of Ford buyers in Indian cities, including Delhi, were opting for automatic transmission. This will support the growth of the Automotive Advanced Shifting Systems market during the study period. The increasing adoption of x-by-wire technologies in vehicles due to the requirement for precision in electronic engine controls is supporting the growth of the advanced automotive shifting systems market. The system removes mechanical linkages and utilizes electromechanical or electrical systems to develop fuel economy and provide superior ride comfort compared to manual transmission vehicles. In addition, several countries, including the United States, China, and India globally, are providing affiliates to promote the use of electric vehicles, which will further boost product penetration.

The advanced shifting system is an electronically controlled system that is responsible for engaging and disabling gear. It uses a lever and an electronic system to activate/deactivate or shift gears according to the driver's requirements. In a manual transmission system, shifting gears can be a tiring task; this is eliminated with the advanced shifting system. This system identifies when the driver changes gears and an electrical system operates the clutch and a solenoid actuator to actuate engagement, disengagement, and shifting. This has had a positive impact on the market for advanced shifting systems. The increased production of vehicles equipped with automatic and semi-automatic transmissions is likely to drive growth in this segment.

Market Drivers

Market drivers include the growing demand for semi-automatic and automatic transmission vehicles, the increased use of cable shifting, and the precise and rapid response technology of this system. Moreover, the factors limiting the growth of the advanced gear shifting systems market are the complexity and inferior reliability of the system and the high price compared to normal gear shifting. However, the growing preference for automatic and hybrid transmission in developing countries and haptic throttles in vehicles of the future are expected to create opportunities for the market in the years to come.

The global advanced automotive gear shifting systems market is primarily driven by the growing demand for vehicles with semi-automatic and automatic transmissions coupled with higher per capita income and increased electrification of vehicles. Another important factor in the automotive advanced shifting system is the increased use of x-by-wire technology, in which electrical or electromechanical systems are used to perform operations that were traditionally operated by mechanical links. Governments in several countries provide subsidies and implement strict emission standards to promote electric vehicles. The increased demand for electric vehicles in North America and Europe is likely to drive the advanced automotive shifting systems market during the forecast period. The growing demand for travel comfort is driving the market for advanced automotive gear-shifting systems at a rapid pace.

Market Restraints

However, the major limitations in the global automotive advanced shifting systems market are the complexity of the design and maintaining the required reliability. Customer satisfaction is the prime concern of manufacturers in the global Automotive Advanced Gear Shift System Market. Advanced shifting systems are less reliable and complex and, therefore more expensive than conventional shifting systems. This is a key factor limiting the global advanced automotive shifting systems market.

COVID–19 Impact On Advanced Gear Shifter System Market

The staggering ramifications of the COVID-19 pandemic have affected all of us. Global personal losses are nothing short of devastating and preventative measures such as widespread closures and physical distancing, while necessary, have completely transformed our daily reality into what may seem like a surreal nightmare. The vast economic effect of the coronavirus is not yet known and may not be fully considered for some time.

 REPORT COVERAGE

SEGMENT ANALYSIS 

Global Advanced Gear Shifter System Market Analysis By Technology

The automatic shifter will increase significantly with the development of economical automatic shifter solutions, ideal for small city cars. Industry players are introducing new advanced shifting technologies that offer cost-effective solutions for budget vehicles. For example, in March 2016, FEV launched its Compact Dual Clutch Transmission (DCT) for urban vehicles.

Global Advanced Gear Shifter System Market Analysis By Component

Based on the component, the automotive advanced shifting system market size is segmented into CAN modules, electronic control units (ECU), and solenoid actuators. The ECU will increase significantly due to the performance of its critical component in shifting operations. ISO 26262 guarantees the quality of the computers used in the systems and is correctly tested before marketing. The adoption of optimized ECU calibration enables automakers to improve fuel efficiency. For example, in February 2014, Maruti Suzuki launched Celerio with automatic gear-shifting technology that includes a new generation transmission and ECU.

Global Advanced Gear Shifter System Market Analysis By Vehicle

The market size for advanced automotive gear shifting systems is segmented into passenger vehicles, LCVs, and HCVs. Passenger vehicles will be a significant share due to the growing customer preference for vehicles with automatic transmissions. The increase in vehicle sales worldwide, coupled with the easier availability of financing alternatives, will further support business expansion. Car manufacturers frequently launch new vehicle models with advanced transmission alternatives to increase their reach in the market. For example, in May 2019, Hyundai launched its Venue compact SUV with Dual Clutch Transmission (DCT) technology.

REGIONAL ANALYSIS

The Asia-Pacific market is expected to hold the largest market share and is expected to grow at a significant CAGR during the forecast period. The growth of the market in the region can be attributed to the increase in vehicle production and the adoption of advanced technologies in vehicles. The expansion of the major OEMs and suppliers of automotive components in developing economies in China and India is also expected to drive growth in this region. The Indian government's “Make in India” initiative has gained momentum as some of the world's major automakers invest heavily in the region. For example, German automaker Volkswagen recently announced plans to invest around € 1 billion in the country over the next few years to develop six new models. Recently, Suzuki Motor Corp also announced investments of around $ 3 billion over the next three years to maintain its position in the Indian passenger car market.

North America has a high rate of adoption of advanced technologies. High per capita income and a higher standard of living are driving the demand for luxury vehicles in the region. North America comprises a considerable number of luxury vehicles and hence, the region represents a leading part of the global advanced automotive shifting systems market.

Leading Company

Kongsberg Automotive produces a wide range of parts with production plants around the world. The company is listed on the Oslo Stock Exchange under the symbol KOA.

KEY MARKET PLAYERS

The key players profiled in the report for the market include

Delta Kogyo Co., Ltd., Eissmann Group Automotive, Fujikiko Co. Ltd., GHSP, Kongsberg Automotive, Leopold Kostal GmbH & Co. KG, M&T ALLIED TECHNOLOGIES.CO.LTD, Orscheln Products, Sila Group are playing a dominant role in the global advanced gear shifter market.

 RECENT HAPPENINGS IN THE GLOBAL ADVANCED GEAR SHIFTER SYSTEM MARKET

• In February 2020, Hyundai and Kia are developing the world's first ICT-connected automatic transmission system. This new technology is said to be able to improve the driving comfort of automatic transmission cars and fuel efficiency by minimizing unnecessary gear changes through a predictive shift control system. In addition, Hyundai and Kia are considering future developments for this system to include consideration of driver preferences and the condition of traffic signs.
• In May 2018, Tata Motors announced the nationwide launch of TATA NEXON A.M.T. with HyprDrive automatic gears. With the introduction of the Tata NEXON Hyprdrive S-SG, Tata Motors has christened all of its 2-pedal drivetrain cars “HyprDrive,” while all of the company's AMT variants will now be referred to as Self-Shift Gears (S-SG).
• In September 2018, the Honda CR-V got the push-button gearshift. It is also larger and offers seven seats with the diesel variant. In addition, the company will not offer a conventional shifter with its latest SUV. Instead of the gear stick, you'll have buttons to switch between modes like D, S, and N.

DETAILED SEGMENTATION OF THE GLOBAL ADVANCED GEAR SHIFTER SYSTEM MARKET INCLUDED IN THIS REPORT

This market research report on the global advanced gear shifter system market is segmented and sub-segmented into the following categories.

By Technology

• Automatic Shifter
• Shift-By-Wire (SBW)

By Component

• Can Module
• Electronic Control Unit (ECU)
• Solenoid Actuator
• Others

By Region

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