Automotive Transmission Market: Current Analysis and Forecast (2021-2027)

Automotive Transmission Market: Current Analysis and Forecast (2021-2027)

Global Automotive Transmission is anticipated to display a CAGR of around ~6% over the forecast period (2021-2027). The automotive transmission industry is expected to rise due to rapid technological advancements in automobiles occurring around the world, as well as an increase in consumer disposable income in developing economies. Another factor fueling the market's expansion is consumers' desire for more comfort and luxury. Consumer preference is shifting toward modern car transmission systems that offer a smooth driving experience due to increased traffic and vehicle congestion in urban areas. Furthermore, the automotive transmission market is fueled by a rise in vehicle production and sales around the world. In the APAC and North American areas, passenger automobile production and sales are increasing. Similarly, due to the expanding logistics industry and rising demand for public transit, the market for commercial vehicles has seen significant expansion in recent years. As a result, the expansion of the automobile sector has had a direct impact on the expansion of the automotive transmission industry.

Insights Presented in the Report
"Amongst Transmission Type, Manual segment dominated the market in 2020”

Based on transmission type, the market is segmented into Manual and Automatic. The Automatic segment is to see the fastest growth during the forecasted period. Advances in the automotive sector, as well as improvements in automatic gearboxes, can be credited for the development. Furthermore, automatic types are more powerful and accurate, as well as being easier to operate. The high cost of these items may prevent them from being adopted in nations like India and Mexico. Over the projected period, however, changing preferences and rising consumer purchasing power in these nations are expected to boost segment expansion. In 2020, the manual type segment had the highest revenue share. The price differential between vehicles with manual and automatic transmissions is to blame for this increase. Due to price sensitivity, consumers are more likely to choose manual transmissions. Furthermore, as compared to its automatic counterpart, the manual version delivers higher mileage because the gear shifting may be manually regulated to reduce fuel consumption
"Amongst vehicle type, Passenger Car segment dominated the market in 2020.”

Based on vehicle type, the market is segmented into Passenger Car, Light Commercial Vehicles, and Heavy Commercial Vehicles. The Passenger Car segment generated the highest revenue in 2020 and is expected to grow at the fastest CAGR during the forecasted period. The demand for passenger automobiles is influenced by volatile fuel prices and transit infrastructure. The improving economic outlook in the United States and many developing nations, such as China and India, is likely to boost global demand for passenger automobiles. Furthermore, advancements in transmission technology in the passenger car segment, from 4-speed automatic transmissions to 8-speed and 9-speed automatic transmissions, have resulted in improvements in overall comfort, driving experience, and fuel efficiency, boosting segment growth
"Amongst Fuel Type, Gasoline segment dominated the market in 2020”

Based on the fuel type, the market is segmented into Gasoline and Diesel. The Actuator segment generated the highest revenue in 2020 and is expected to grow at the fastest CAGR during the forecasted period. Almost all pollution criteria are met by gasoline cars. When compared to diesel engines, they are more efficient and emit less gas. Over the projected period, the segment is expected to rise due to rising gasoline demand in nations such as the United States, China, and India. According to the International Energy Agency (IEA), gasoline demand is expected to rise in the next years as a result of fast-growing markets in Asia, Central and South America, Africa, and the Middle East, which will account for almost 70% of world demand growth in 2021
"Asia Pacific represents the largest market.”

In 2020, Asia Pacific had the greatest revenue, and it is expected to maintain its dominance while increasing at the quickest CAGR during the projection period. The presence of several important vehicle manufacturers and ancillaries in the region is driving market expansion. Companies in the Asia Pacific have been driven to implement efficient transmission networks by stringent rules. Furthermore, rising vehicle sales, particularly in countries such as China, India, Japan, and South Korea, are expected to boost regional market growth throughout the projection period. Many OEMs are eager to establish manufacturing operations in this region, particularly in growing economies like China and India. During the projection period, North America is expected to be the second-largest market. The sector is predicted to increase because of the rising demand for automatic manual transmission (AMT) across the region. Furthermore, the industry's expansion is likely to be bolstered by sophisticated manufacturing centers and a technologically advanced market. Some of the major players operating in the market include Eaton Corporation PLC, Aisin Seiki Co., Ltd., BorgWarner Inc., ZF Friedrichshafen AG, Allison Transmission, Inc., Continental AG, Magna International Inc., Jatco Ltd., Schaeffler AG, GKN PLC, etc.

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