Dual Clutch Transmission (DCT) Market Analysis

Dual Clutch Transmission Market Analysis

Dry clutch segment is set to hold more than 80% of dual clutch transmission market revenue share by 2027. Increasing popularity in passenger vehicles is boosting the market growth in terms of volume. The system is superior in terms of providing fuel efficiency and strikes an ideal balance of performance & efficiency, which is due to the absence of hydraulic equipment that is present in its wet counterpart.

The passenger cars segment is anticipated to generate USD 40 billion in revenue by 2027. These vehicles contribute to the majority of retail four-wheeler automotive sales, as these transmission systems are increasingly incorporated into passenger vehicles as technology becomes increasingly commercialized and widely available. The increasing inclination of consumers toward automatic transmission solutions is boosting the market demand.

In 2020, the segment captured about USD 30 billion in dual clutch transmission market impelled by the developing technology of combustion engine systems and its adoption in hybrid vehicles. Currently, the internal combustion engines segment is dominant in terms of existing vehicles and new vehicle sales.

The OEM subsegment is poised to account for around 90% of the dual clutch transmission share by 2027 led by OEMs having long-term supply agreements and contracts with existing automobile manufacturers to ensure a smooth supply of spares. The other factors include the nature and complexity of the solution as the component is not frequently replaced & requires low maintenance compared to other vehicle components. Therefore, distribution in aftermarket is limited to replacement of accidental, and mechanically damaged transmission components.

North America dual clutch transmission market size surpassed USD 600 million in 2020 and is slated to observe significant growth through 2027 driven by increasing consumer preference toward automatic vehicles. The region is witnessing a consistent decline in stick shift systems, thus resulting in limited penetration of automatic dual clutch transmission systems. Governments across the region are also increasing their share of interest in incorporating fuel-efficient technologies into their vehicles to meet tight climate deadlines and obligations. The presence of major manufacturers also contributes to the increasing product demand.

Europe market is predicted to show significant growth from 2021 to 2027. The region is home to several large-scale and big-name manufacturers, such as Volvo, ZF, Daimler, Magna International, Continental AG, etc., engaged in the development and deployment of these systems. Furthermore, the region is also home to extensive research operations with many companies having research operations in countries such as Germany, France, and the Netherlands.