Automotive Transmission Market Forecasts to 2028 – Global Analysis By Transmission Type (Automatic Transmission, Manual Transmission and others), Vehicle Type (Passenger Cars, Light Commercial Vehicles and other Vehicle Types), Fuel Type (Diesel, Gasoline

Automotive Transmission Market Forecasts to 2028 – Global Analysis By Transmission Type (Automatic Transmission, Manual Transmission and others), Vehicle Type (Passenger Cars, Light Commercial Vehicles and other Vehicle Types), Fuel Type (Diesel, Gasoline and Hybrid), Engine (Electric and IC Engine), Gear Type (Spur Gear, Planetary, Helical Gear and Other Gear Types), Gear Material and By Geography

According to Stratistics MRC, the Global Automotive Transmission Market is accounted for $59.9 billion in 2022 and is expected to reach $96.1 billion by 2028 growing at a CAGR of 8.2% during the forecast period. A device that provides different gear or drive ratios between an automobile's engine and its wheels, primarily with the purpose of allowing the vehicle can accelerate fast from a stop and keep its engine running efficiently at varying speeds. Automotive transmission systems have features like powerful engine brakes and easy infinite gear control. The transmission systems are the main parts of a car that affect fuel economy, and an AMT system is particularly adept at providing the driver with the optimal gear at the appropriate time. A computer-controlled input shaft, a transmission pump, a hydraulic system, and other components make up this transmission.

According to the German Association of the Automotive Industry (VDA), in Europe, 5.1 million passenger cars were registered in the first half of 2020, which was 39% lesser than in 2019.

Market Dynamics

Driver:

Increasing demand for light weight transmission systems

Government rules for safety, carbon emissions, and lightweight automobiles have forced OEMs to utilise parts that will help reduce the vehicle's overall weight. Manufacturers are under constant pressure to lower the pollution emissions of cars. Worldwide, buyers in industrialised nations are more likely to choose new, fuel-efficient, environmentally friendly cars with improved performance and lower pollution levels. These requirements can be met by lightweight vehicles. Manufacturers are mainly concentrating on lightening up different components of the car to further lighten up the whole thing.

Restraint

High cost of adoption

Installation costs for the most recent transmission systems, like DCT and CVT, are more than those for traditional transmission systems. The high-volume market for small cars, which makes up a significant portion of the worldwide passenger car market, has still not accepted these systems. One of the main barriers for manufacturers to access the Asia-Pacific market, which is additionally a key auto manufacturing region, is the massive cost of transmission systems. This is primarily a result of consumers favouring cost-effectiveness over performance. Companies must therefore focus on their R&D in order to create these enhanced transmission systems for the small car category at a lower cost.

Opportunity

Increasing adoption of automatic transmissions and development of hybrid drives

Automatic vehicles are becoming more and more common as AMT is being widely used. This tendency has been influenced by increased fuel efficiency, deteriorating traffic conditions, and the progressive debunking of myths regarding automatic vehicles. Reduced fuel consumption and soft, smooth gear changes are provided by automatic gearbox, adding to driving comfort. Automatic gearbox is a safer option than manual transmission since drivers may focus more on the road and less on driving. A sizable portion of the market for manual transmissions is also anticipated to be taken up by an increasing number of electric and hybrid vehicles.

Threat

Reduction in costs for light weight and efficient transmissions

Choosing between technological advancement and cost-cutting is a challenge for the automotive industry. The fuel efficiency of a vehicle is inversely related to its weight. To meet the goals established for the upcoming years, many OEMs are actively concentrating on reducing the overall weight of their vehicle models. Price swings for raw commodities could significantly reduce market competition. By proportionally reducing the weight of the car, lightweight transmission systems make sure the car complies with the strict emission and fuel economy standards. Yet, the expense of these lightweight materials and weight-reducing alloys adds to the overall cost of manufacture. Hence, developing transmissions that are both effective and inexpensive poses a difficulty.

Covid-19 Impact

The COVID-19 pandemic has revealed the drawbacks of concentrating so many resources in one place that is remote from Europe, North America, and Latin America's core economic sectors. Most car parts are exported from China, and well-known auto transmission manufacturers have manufacturing operations in the impacted areas. Production of vehicles has been halted due to a shortage of parts, particularly in brakes, electrical, lighting, engine, and interior parts, as a result of a global inventory network disruption. Furthermore, shipping delays brought on by congestion at ports are likely to have an impact on how cars are put together around the world. This is then anticipated to temporarily slow the market's expansion.

The automatic transmission segment is expected to be the largest during the forecast period

The automatic transmission segment is estimated to have a lucrative growth. The expansion can be attributed to advancements in automatic transmission technology and advancements in automotive manufacturing. The automatic categorization is precise, effective, more powerful, and simpler to use. These products exorbitant prices may make them less popular in some countries, such Mexico and India. In contrast, it is predicted that, these countries' changing inclinations and expanding consumer purchasing power will support the segment’s growth over the projected period.

The passenger cars segment is expected to have the highest CAGR during the forecast period

The passenger cars segment is anticipated to witness the fastest CAGR growth during the forecast period, due to an increase in the demand for such cars in developing nations. Due to this market's growing urbanisation, which will also lead to an increase in logistics operations, transportation, and mining activities, the light and heavy commercial vehicle segments are predicted to experience strong expansion. Due to the rising popularity of these vehicles due to their zero-emission and environmentally friendly features, the electric vehicle segment is also anticipated to experience exponential growth in this market throughout the forecast period.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to rising vehicle production and shifting adoption and consumer patterns. The market for transmissions is anticipated to expand along with the growth of the global automotive industry. Emissions from the transportation industry will rise as car demand rises. In order to ensure sustainable mobility, the players in the automotive sector are concentrating on improving vehicle performance to reduce emissions. Maximizing fuel efficiency and reducing emissions are the main priorities.

Region with highest CAGR

North America is projected to have the highest CAGR over the forecast period, owing to the presence of significant global automakers like Ford, Tesla, and General Motors, all of which are renowned for producing some of the most dependable vehicles. Both manual and automatic transmission production facilities are abundant in the area, which has resulted in a substantial penetration of these systems. The market has expanded in part because to the region's vast fleet of automobiles and strict emission laws.

Key players in the market

Some of the key players profiled in the Automotive Transmission Market include Eaton Corporation PLC, Aisin Seiki Co., Ltd., Allison Transmission, Inc., Continental AG, BorgWarner Inc., Magna International, Inc., Getrag, ZF Friedrichshafen AG, GKN PLC, Jatco Ltd., Hyundai Transys Inc., Schaeffler AG, Honda Motor Co., Ltd., Generac Holdings Inc., Yamaha Motor Co. Ltd., Champion Power Equipment Inc., Toshiba Corporation, Lifan Industry (Group) Co., Ltd, Briggs & Stratton Corporation and Ryobi Limited.

Key Developments

In September 2021, ZF announced that a volume order worth several billion euros covers the supply of conventional but primarily mild and plug-in hybrid variants of the fourth-generation 8-speed transmission (8HP).

In September 2021, Dongfeng Citroen, a brand of Dongfeng-Peugeot-Citroen Automobile Co., Ltd. (DPCA), launched its all-new C5 X luxury crossover paired with an Aisin 8-speed automated manual transmission (AMT)

In July 2021, Jatco Ltd. announced that it had developed the CVT-X, a new CVT for medium to large FWD vehicles that improve environmental performance and drivability. It has overcome the 90% transmission efficiency barrier that is considered a difficult feat for CVTs.

In February 2021, Eaton announced its Vehicle Group is developed gearing solutions for electrified vehicles (EVs). Leveraging its expertise in producing transmissions and contract manufactured gear-sets for passenger and commercial vehicles

Transmission Types Covered:
• Automatic Transmission
• Manual Transmission
• Continuous Variable Transmission (CVT)
• Dual Clutch Transmission (DCT)
• Automated Manual Transmission

Vehicle Types Covered:
• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Electric Vehicles

Fuel Types Covered:
• Diesel
• Gasoline
• Hybrid

Engines Covered:
• Electric
• IC Engine

Gear Types Covered:
• Spur Gear
• Planetary
• Helical Gear
• Other Gear Types

Gear Materials Covered:
• Composite Material
• Ferrous Metal
• Other Gear Materials

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements