Middle East & Africa Automotive Transmission Market Outlook, 2029

Middle East & Africa Automotive Transmission Market Outlook, 2029

The Middle East & Africa (mea) automotive transmission market presents a unique landscape with promising growth potential. The region encompasses a diverse range of countries, each with varying economic realities, infrastructure development, and consumer preferences. Despite these disparities, a growing demand for passenger cars, light commercial vehicles (lcvs), and heavy commercial vehicles (hcvs) is fueling the MEA automotive transmission market. This increasing demand necessitates a robust ecosystem for supplying reliable and efficient transmission solutions. One defining aspect of the MEA automotive transmission market is the interplay between affordability, infrastructure limitations, and evolving consumer preferences. In several developing economies within the MEA region, cost remains a primary consideration when purchasing a vehicle. This factor often translates to a preference for manual transmissions, which are generally perceived as more affordable compared to automatic transmissions. However, a growing middle class with rising disposable incomes is starting to exhibit a shift towards automatics, particularly in urban areas with congested traffic conditions. The convenience and ease of driving offered by automatics are becoming increasingly attractive to these consumers. Furthermore, the state of infrastructure within the MEA region presents unique challenges for the automotive transmission market. Many regions lack well-maintained road networks, with a prevalence of rough and unpaved roads. This necessitates robust and durable transmission systems that can withstand these demanding conditions. Manual transmissions, known for their simplicity and potentially lower maintenance requirements, may be favored in some regions due to these infrastructure limitations. However, advancements in automatic transmission technology are leading to the development of more rugged and reliable automatics suitable for these challenging environments. The rise of the used car market within the MEA region presents another unique facet. A significant portion of the vehicle population in some MEA countries consists of used car imports, many equipped with automatic transmissions. This increased exposure to automatics, coupled with potentially lower maintenance costs compared to newer models, is influencing consumer preferences within the used car segment. As a result, workshops and service providers within the MEA region need to be equipped to handle the repair and maintenance of a wider range of transmission types, catering to both manual and automatic transmissions prevalent in the used car market.

According to the research report ""Middle East & Africa automotive transmission market outlook, 2029,"" published by Bonafide research, the Middle East & Africa automotive transmission market is expected to reach a market size of more than USD 4 billion by 2029. This upsurge can be attributed to several key factors. Firstly, a burgeoning automotive industry, particularly in countries like South Africa, egypt, and morocco, is driving demand for all automotive components, including transmissions. Rising disposable incomes and a growing middle class are fueling increased vehicle ownership within the region. Secondly, rapid urbanization and the expanding logistics sector necessitate a growing fleet of commercial vehicles, further boosting demand for robust and efficient transmissions. Furthermore, government initiatives promoting local vehicle production and import substitution policies are attracting investments in automotive component manufacturing, including transmissions. This trend, if successful, could lead to a more integrated and potentially cost-competitive supply chain for transmissions within the MEA region. One defining aspect of the MEA automotive transmission market is the heterogeneity of consumer preferences and infrastructure development across the region. In developed economies within the mea, like the united arab emirates (uae) and Saudi Arabia, a strong preference for automatic transmissions exists. Consumers in these regions often prioritize comfort, convenience, and the latest automotive technologies, leading to a higher adoption rate of automatics. Furthermore, well-established road networks and urban infrastructure in these areas favor the use of automatics, particularly in stop-and-go traffic conditions prevalent in major cities. The MEA automotive transmission market is characterized by a flourishing aftermarket for parts and service. This is due to several factors. Firstly, the presence of a large population of older vehicles on the road necessitates a steady supply of replacement parts for transmissions. Secondly, not all consumers can afford brand-new vehicles equipped with the latest transmission technologies. The availability of reliable and affordable aftermarket parts allows the m to maintain their existing vehicles with manual or automatic transmissions.
Market Drivers

• Rising urbanization and increasing demand for automatic transmissions: The MEA region is experiencing rapid urbanization, with a growing population shifting towards metropolitan areas. This trend is fueling a significant driver for the MEA automotive transmission market: the increasing demand for automatic transmissions (at). Urban environments are characterized by stop-and-go traffic, which can be tiring and cumbersome with manual transmissions. Automatic transmissions offer a smoother driving experience, particularly for daily commutes within congested cities. Furthermore, a growing middle class within the MEA region is leading to rising disposable incomes, allowing consumers to opt for the perceived convenience and comfort associated with automatic transmissions. This shift in consumer preference, coupled with increasing urbanization, is a key driver propelling the growth of the MEA automotive transmission market.
• Government initiatives promoting local manufacturing and parts production: several governments within the MEA region are implementing initiatives aimed at promoting local manufacturing and parts production within the automotive industry. This includes transmissions, which are a crucial component for vehicle assembly. These initiatives often involve tax breaks, subsidies, and the establishment of special economic zones to attract foreign investment and foster the development of a domestic automotive supply chain. The increased focus on local manufacturing can benefit the MEA automotive transmission market by creating shorter supply chains, potentially reducing costs, and improving lead times for vehicle production. Furthermore, local production can create jobs and contribute to the overall economic development of the region.

Market Challenges

• Fluctuating fuel prices and the perception of automatic transmissions as less fuel-efficient: fuel prices can be volatile within the MEA region. While advancements in automatic transmission technology have narrowed the fuel efficiency gap between automatics and manuals, a perception persists among some consumers that automatics are less fuel-efficient. This perception can be a significant challenge in a region where fuel costs are a major consideration for car ownership. Addressing this misconception through consumer education campaigns highlighting the advancements in automatic transmission technology and their potential fuel-saving capabilities is crucial. Furthermore, promoting the benefits of automatics in terms of reduced driver fatigue and improved safety, particularly in challenging driving conditions, can contribute to a more balanced consumer perception within the MEA market.
Skill gap in aftermarket transmission repair and maintenance: The increasing presence of automatic transmissions within the MEA region exposes a growing challenge: the skill gap in aftermarket repair and maintenance for these transmissions. While skilled mechanics are available in major cities, servicing complex automatic transmissions can be more challenging compared to manuals, especially in remote areas. This necessitates investment in training programs to equip mechanics with the necessary skills and knowledge to service modern automatic transmissions effectively. Furthermore, ensuring the availability of genuine spare parts and diagnostic tools is crucial for maintaining the longevity and performance of automatic transmissions within the MEA region. Addressing this skill gap is essential for fostering consumer confidence in automatic transmissions and supporting their long-term adoption within the MEA market.
Based on the report, the automotive transmission market is segmented into manual, automatic, automated manual transmission (amt) and others (cvt, dct).

Automatic Transmissions (at) currently hold the leading position within the MEA automotive transmission market. This dominance can be attributed to several factors. Firstly, a growing focus on comfort and convenience, particularly in urban environments with heavy traffic congestion, is driving demand for automatic transmissions. Secondly, advancements in automatic transmission technology have addressed concerns regarding fuel efficiency, making the m a more attractive option for cost-conscious consumers in the region. Furthermore, the increasing popularity of luxury and premium car segments, which predominantly feature automatic transmissions, is influencing the overall market share. However, the story doesn't end the re. Manual transmissions (mt) remain a significant player in the MEA automotive transmission market, particularly within budget-oriented segments. Affordability remains a prime concern for a large portion of car buyers in the region. Manual transmissions offer a lower initial purchase price compared to automatics, making the m an attractive option for cost-conscious consumers. Additionally, the prevalence of older vehicles with manual transmissions, coupled with a culture of do-it-yourself car maintenance in some MEA countries, contributes to the continued relevance of mts. However, it's important to note that the market share of manual transmissions is anticipated to decline gradually as automatic transmissions become more affordable and fuel-efficient. Emerging segments within the MEA automotive transmission market deserve mention. Automated manual transmissions (amts) are gaining some traction, particularly among budget-minded car buyers seeking a balance between affordability and a more automated driving experience. Amts offer a lower price point compared to traditional automatics while providing some level of automation in gear shifting. However, the technology is still evolving, and consumer perception regarding smoothness and driving experience can be a hurdle. Double-clutch transmissions (dcts) and continuously variable transmissions (cvts) are present in the MEA market but occupy a niche space. These technologies are typically found in high-performance or premium vehicles, which constitute a smaller market segment within the region. Limited availability of service infrastructure for these complex transmissions can also be a deterrent for wider adoption.

According to the report, the automotive transmission market is segmented into passenger vehicles, lcvs and hcvs.

Within the MEA automotive transmission market, segmentation by vehicle type reveals a distinct landscape shaped by regional factors and infrastructure development. While passenger vehicles (encompassing passenger cars, two-wheelers, and suvs) represent a significant segment globally, their dominance in the MEA market is tempered by several unique considerations. Firstly, urbanization and rising disposable incomes are driving growth in passenger car ownership, particularly in developed economies within the gcc. However, underdeveloped infrastructure and a preference for affordable transportation in many MEA countries lead to a substantial market share for two-wheelers, particularly motorcycles. Additionally, the popularity of suvs is rising due to their perceived ruggedness and ability to handle rough terrain, which can be prevalent in some regions. Looking at light commercial vehicles (lcvs), the MEA automotive transmission market exhibits a unique dynamic. The increasing demand for intra-city logistics and distribution services fueled by e-commerce growth is propelling the lcv segment forward. Vans and pickup trucks equipped with robust automotive transmissions are in high demand for navigating challenging road conditions and delivering goods across diverse terrains within the MEA region. Furthermore, government initiatives promoting local manufacturing and infrastructure development projects are expected to bolster lcv sales, consequently impacting the demand for durable and reliable automotive transmissions suited to these applications. Heavier duty applications come into play with the heavy commercial vehicles (hcv) segment, which holds strategic importance within the MEA automotive transmission market. The vast distances and substantial cargo loads necessitate powerful and efficient automotive transmissions for trucks operating across the region. Growth in the mining, construction, and oil & gas sectors further intensifies the demand for hcvs equipped with robust automotive transmissions capable of handling heavy payloads and demanding operating environments. However, the MEA hcv market faces challenges related to the quality of fuel and maintenance practices. This necessitates a focus on developing and supplying heavy-duty automotive transmissions that are not only powerful but also built to withstand the harsher operating conditions prevalent in some MEA countries.

Based on the report, the major countries covered include the uae, South Africa, Saudi Arabia, and the rest of the Middle East & Africa.

The Middle East & Africa (mea) region, South Africa emerges as the leading market for automotive transmissions. This leadership position can be attributed to a confluence of factors. Firstly, South Africa boasts a well-established automotive manufacturing industry, attracting significant foreign investment and housing production facilities for major global car manufacturers. This domestic production necessitates a robust supply chain for various automotive components, including transmissions. Secondly, South Africa enjoys a relatively developed infrastructure network compared to other countries within the MEA region. This facilitates the transportation of goods and people, driving demand for various vehicle types, including passenger cars, light commercial vehicles (lcvs), and even heavy-duty trucks. The presence of a diverse range of vehicle segments translates into a demand for a variety of transmission technologies, from cost-effective automatics for passenger cars to heavy-duty manual transmissions for commercial applications. Furthermore, South Africa's government policies play a role in shaping the automotive transmission market. The implementation of stricter fuel efficiency regulations is prompting a shift towards more advanced transmission technologies like automatics with multiple gears or cvts, which can potentially offer better fuel economy compared to traditional manual transmissions. Additionally, government initiatives promoting local content and import substitution incentivize domestic production of automotive components, including transmissions. This fosters a more self-sufficient automotive industry within South Africa and reduces reliance on imported transmission units. However, South Africa's leadership in the MEA automotive transmission market is not without its challenges. Limited domestic production capabilities for certain sophisticated transmission technologies necessitate dependence on imports, potentially impacting costs and lead times.


Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Automotive Transmission market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Transmission Type
• Manual
• Automatic
• Automated Manual Transmission (AMT)
• Others (CVT, DCT)

By Vehicle Type
• Passenger Vehicles (passenger cars, Two wheelers, Suv,..)
• LCVs
• HCVs

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Automotive Transmission industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


Keywords:
Automotive Transmission, Manual, Automatic, Automated Manual Transmission (AMT), Others (CVT, DCT), Passenger Vehicles (passenger cars, Two wheelers, Suv,..), LCVs, HCVs.
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