The global automotive transmission market was valued at USD 58.79 billion in 2023 and is anticipated to reach a valuation of USD 62.96 billion in 2024 from USD 109.00 billion by 2032, growing at a CAGR of 7.10% from 2024 to 2032.
The automotive transmission framework comprises different gadgets, which ensure seamless gearshifts. High torque is transferred from the engine to the live axle of an automobile through the drive shaft. Each component, namely shafts, gears, and other useful components, takes pride in providing motion to the automobile. Different components such as gears, brakes, clutch, fluid drive, and other essential parts impart velocity to the car and are directly related to the vehicle's speed ratio. Torque is transmitted from the engine drive to the drive wheel's axle. The torque is transferred from a mesh of gears, which hinges on the gears' number of teeth.
The growing automotive industry and the increasing number of passenger and commercial vehicles drive the market's growth. The introduction of government norms regarding carbon emissions and growing concentration on achieving substantial fuel economy increases the demand for effective systems worldwide. The growing popularity of luxury vehicles and rising preference towards improved driving experience with better efficiency, enhanced fuel economy, and growing disposable incomes have accelerated this system's adoption. The growing demand for lightweight transmission systems further boosts the growth of the market. The increasing demand for automobiles from emerging economies and technological advancements also increase the demand for automotive transmission systems.
The future automotive transmission market looks promising with opportunities in the passenger car, light commercial vehicle, and electric vehicle markets.
The high costs associated with advanced transmission systems are the primary factor expected to hamper the global automotive transmission market's revenue growth during the forecast period.
The automotive industry is one of the negatively affected industries by the COVID-19. The global automotive transmission market witnessed a decline in 2020 due to the economic recession led by the coronavirus. However, the automotive demand is anticipated to grow more rapidly once economies reopen. Increasing preference for private vehicles owing to the pandemic will accelerate the passenger vehicle demand. Instead of travelling on crowded public transport, people prefer to buy personal cars to travel due to safety concerns. Shortly, automotive transmission demand is projected to remain relatively low due to the coronavirus outbreak.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2032 |
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Base Year |
2032 |
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Forecast Period |
2024 to 2032 |
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CAGR |
7.10% |
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Segments Covered |
By Transmission Type, Fuel Type, Vehicle Type, and Region. |
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Various Analyses Covered |
Global, Regional and Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Aisen Seiki Company Ltd. (Japan), ZF TRW (Germany), Borgwarner Inc. (U.S.), Continental AG (Germany), Magna International Inc. (Getrag) (U.S.), Eaton Plc., Society of Indian Automobile Manufacturers (SIAM), China Association of Automobile Manufacturers (CAAM)., and Others. |
In 2015, the manual transmission segment controlled the industry with a revenue share of over 60%. Nonetheless, the market is currently witnessing a rapid decline in manual sales due to the increasing adoption of the automatic vehicle segment. Drivers such as growing road congestion, and the popularity of highly fuel-efficient vehicles have resulted in the growing adoption of electronic systems globally.
The high cost associated with the automatic transmission segment may challenge its growth in nations like India and Mexico. Nonetheless, increasing purchasing power and changing preferences of the countries' customers, including India, are supposed to drive the demand over the forecast period.
The diesel segment dominated the global automotive transmission market, with over 40% market share in terms of revenue. It is likely to rise further with a CAGR of approximately 7.6% during the forecast timeframe. Recent advancements in diesel engines with emission control technologies and the introduction of ultra-low sulfur diesel are estimated to increase the segment demand globally for clean diesel vehicles.
The gasoline segment is predicted to witness substantial growth with a CAGR of over 7.0% from 2020 to 2026. Innovations and improvements in gasoline engines give better efficiency, high performance, and reduced noise and air pollution, which are expected to drive the segment growth.
The passenger cars (PC) segment dominated the industry, with over 25% of the overall share in the review period. The major contributors to the demand for passenger vehicles are the countries in the Asia Pacific region, which will continue to dominate the worldwide market in the future. Innovation in the transmission technology in passenger cars segment from four-speed automatic transmissions to 8-speed and 9-speed enhances the vehicle's overall comfort, driving experience, and fuel efficiency.
The heavy commercial vehicle (HCV) segment captured a significant share with over 12% share in 2015. Advanced technologies such as autonomous driving, connected safety systems, and driver-related technologies are expected to offer massive growth opportunities.
The Asia-Pacific accounted for over 28% of the automotive transmission business and is likely to grow at a CAGR of around 8.5%. Stringent regulations across the Asia Pacific are expected to fuel the demand for efficient systems. For example, In China since 2010, new gasoline-fueled passenger vehicles have been designed to comply with requirements, i.e., based on the Euro 4 standard. Taiwan and Korea have adopted stringent U.S. and Europe-based standards for gasoline and diesel vehicles.
North America is expected to be the second-largest market during the forecast period. Increasing demand for automatic manual transmission (AMT) across the region is foreseen to boost industry growth. Besides, the sophisticated manufacturing hubs and markets in terms of technology are supposed to strengthen the market boom further.
The European automotive industry spends a very high amount on R&D According to the European Automobile Manufacturers Association, European companies spend around USD 60 billion annually on R&D, which is the highest across the globe. It also accounts for the highest number of patents for self-driving cars for nearly 33% of all applications. The European vehicles are well acclaimed for their class and comfort compared to those of Japanese and Chinese counterparts. Moreover, electric vehicle penetration in the region has been deepening for the past few years. The rising call for electric vehicles is likely to augment the demand for multi-speed transmission in the European nations.
Aisen Seiki Company ltd. (Japan), ZF TRW (Germany), Borgwarner Inc. (U.S.), Continental AG (Germany), Magna International Inc. (Getrag) (U.S.), Eaton Plc., Society of Indian Automobile Manufacturers (SIAM), China Association of Automobile Manufacturers (CAAM). These are the market players that are dominating the global automotive transmission market.
By Transmission Type
By Fuel Type
By Vehicle Type
By Region
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