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Automotive Transmission Market Size
Automotive Transmission Market size valued at over USD 236.4 billion in 2019 and is estimated to exhibit around 4.3% CAGR from 2020 to 2026. The transmission system provides a smooth and comfortable drive by transmitting the optimal power from the engine to wheels through the gearbox. As it is used in every vehicle, automotive sector growth is directly proportional to the automotive transmission industry growth. Growing automotive production across the globe is anticipated to boost the transmission system demand.
The automotive industry has been experiencing growth in demand from past several years on account of increasing urbanization and disposable income in emerging economies such as India, Bangladesh, Vietnam, etc. However, the recent outbreak of COVID-19 will hamper the automotive transmission market growth to some extent. Lockdowns across major economies resulted into the closure of manufacturing facilities and disruption in automotive parts export and import.
Automotive is one of the highly affected industries by the COVID-19 pandemic and is likely to take some time to recover from it. However, due to the COVID-19, people are expected to prefer private cars instead of public transport, which will propel the market demand in coming years.
| Report Attributes | Details |
|---|---|
| Base Year: | 2019 |
| Market Size in 2019: | USD 236.4 Billion |
| Forecast Period: | 2019 to 2026 |
| Forecast Period 2019 to 2026 CAGR: | 4.3% |
| 2026 Value Projection: | USD 281.3 Billion |
| Historical Data for: | 2016 to 2019 |
| No. of Pages: | 300 |
| Tables, Charts & Figures: | 348 |
| Segments covered: | By Transmission (IC{Manual Transmission, Automatic Transmission, Automated Manual Transmission, Dual Clutch Transmission, Continuous Variable Transmission} EV{Single Speed Transmission, Multi Speed Transmission}) By Engine (IC, EV) By Vehicle (Passenger Cars, LCV, HCV) By Gear(Less Than 5, 5 to 6, 7 to 8, Above 8) By Distribution (OEM, After Market) |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Automotive Transmission Market Analysis
The automatic transmission system will be generating more than USD 80 billion revenue by 2026 driven by its advantages over other transmission systems. It is easier to use and more comfortable for drivers compared to manual transmission. Regions, such as North America and Europe, will generate major demand for automatic transmission compared to other regions as it is more expensive. On the other hand, Asian and Latin American countries are expected to see more demand for manual transmission due to low cost.
Automotive transmission market size for electric & hybrid vehicles was over USD 4 billion in 2019 and is projected to observe growth of 15% through 2026. Electric vehicles demand is likely to grow at a very high CAGR during 2020-2026. With new evolving manufacturing technologies, the cost of production will reduce further in future, which will contribute to the increasing demand for electric vehicles. Hybrid and electric vehicles are in the news and in the forefront, every time gasoline increases. Fuel prices are anticipated to grow after reopening the economies, growing fuel prices coupled with increasing environmental concern shall boost the hybrid & electric vehicle demand.
Increasing preference for private vehicles due to COVID-19 will accelerate the passenger vehicle demand. Instead of travelling in crowded public transport, people are preferring to buy private vehicles to travel due to safety concerns. Moreover, increasing living standards will have a positive impact on the passenger vehicle demand.
5 to 6 gears speed transmission segment accounted for over 30% share in 2019 and is forecast to register 4.4% CAGR between 2020 and 2026. Many cars in Europe and North America, which previously had less than five gears now have 5 to 6 gears. Manufacturers are opting for more speed transmissions/gears owing to fuel economy and performance. Due to increasing environmental regulations, automobile companies are under constant pressure to improve their corporate average fuel economy numbers, greenhouse gas, and carbon numbers, while consumers are demanding better performance.
The automotive transmission market is traditionally dominated by OEMs as vehicle owners rarely replace the transmission system. But now many people are preferring to use old vehicles instead of buying new ones due to cash constrains and some due to attachment they have with the vehicle. The after-market share of automotive transmission crossed USD 4 billion in 2019 and is poised to witness 3.5% growth rate up to 2026.
The Europe automotive industry spends 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. These innovations are more customer-centric owing to which European vehicles are known for their class and comfort worldwide have more demand instead of their high cost compared to that of Japanese and Chinese counterparts. Moreover, electric vehicle penetration in the region is growing rapidly from the past few years. The growing demand for electric vehicles will spur the demand for single speed and multi speed transmission in Europe.
Automotive Transmission Market Share
Major players in operating in the industry are focusing on innovations to get an edge over the competitors. Recently Hyundai launched iMT systems for its SUV, and Kia is planning to inculcate iMT transmission into some upcoming variants.
Prominent companies working in the automotive transmission market include:
- Eaton Corporation
- Aisin Seiki
- Continental AG
- Allison Transmission
- ZF Friedrichshafen AG
- BorgWarner Inc
- Getrag.
This market research report on automotive transmission includes in-depth coverage of the industry with estimates & forecast in terms of volume in thousand units and revenue in USD million from 2016 to 2026, for the following segments:
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Market, By Transmission
- IC
- Manual Transmission
- Automatic Transmission
- Automated Manual Transmission (AMT)
- Dual Clutch Transmission (DCT)
- Continuously Variable Transmission (CVT)
- EV
- Single speed transmission
- Multispeed Transmission
Market, By Engine
- IC
- EV
Market, By Vehicle
- Passenger Vehicles
- Light Commercial Vehicle’s
- Heavy Commercia Vehicle’s
- Others
Market, By Speed Transmission/Gears
- Less than 5
- 5 to 6
- 7 to 8
- Above 8
Market, By Distribution
- OEM
- After Market
The above information is provided on a regional and country basis for the following:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Malaysia
- Indonesia
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- South Africa
- GCC
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