Press release
Automotive Transmission Market Size is Estimated to Reach USD 243.6 Billion by 2030
The Global Automotive Transmission Market is expected to grow at a CAGR of around 5.8% from 2022 to 2030 and reach the market value of over US$ 243.6 Billion by 2030.Asia Pacific has the largest share of the automotive transmission market. Because of high vehicle production and rising adoption of automatic transmission in mid-size and compact cars, Asia Pacific will continue to be the largest region. This is one of the most important factors driving the growth of the automotive transmission market in the APAC region. Apart from that, the majority of automotive OEMs have established manufacturing facilities in China due to low labor costs, which cater to the region's growing demand from the automotive sector.
Furthermore, macro factors such as low labor costs and favorable government policy in favor of the automotive industry are factors that contribute to the growth of automotive transmission in APAC regional market. Furthermore, because of the presence of developing countries such as India, China, Japan, and South Korea, APAC is the largest producer and the largest transmission market in terms of value. Such factors help to drive the growth of automotive transmission in the Asia Pacific region.
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Europe and North America, on the other hand, are expected to show significant growth in the automotive transmission market in the coming years. This is due to rising consumer demand for manual transmission for comfort, fuel efficiency, and stringent emission norms, which further propels the growth of the automotive transmission market in the European region.
The rise of light-weight vehicle, increasing demand for fuel-efficient vehicles, and the desire for a smooth driving experience are all major factors driving the North American automotive transmission market. Furthermore, strict regulatory norms are one of the key factors responsible for the phenomenal growth of automotive transmission in the North America regional market. Furthermore, growing emphasis on transmission-related R&D activities, as well as high demand for low-carbon-footprint technologies, is fueling the growth of the automotive transmission market in North America.
Market Drivers
The introduction of more efficient automatic transmissions and increased demand for hybrid and dual clutch transmissions, the rising trend has a direct impact on the growth of the global automatic transmission industry. This is one of the primary factors driving the growth of the global automatic transmission market. Passenger car demand is increasing in the global automotive transmission market, as is demand for compact, mid-size, and luxury vehicles. Furthermore, demand for electric vehicles will skyrocket in the coming years, as government initiatives and involvement in promoting electric vehicles and the adoption of e-CVT systems are at an all-time high. Such factors fuel the growth of the global automotive transmission market.
COVID-19 impact on the global automotive transmission market
The majority of automakers have shifted their focus to digitalization due to the fear of infection, private vehicles have been preferred by the majority of consumers. To some extent, the auto industry was relieved when governments in some countries announced recovery packages for vehicle manufacturers. Manufacturing resumed in July as restrictions were eased, but sales did not recover to pre-COVID levels. With the economy steadily improving, automakers anticipate that the government will relax emission regulations. For example, it is likely that certain European countries have been incentivizing electric vehicle adoption for a longer period of time in order to ease emission laws. The Bank of Canada cut interest rates by 1.5% in a similar move. Sellers in various markets have been offering discounts and low interest rates to entice buyers.
Segmental Outlook
The global automotive transmission market is segmented as transmission type, fuel type, and vehicle type. Transmission type is classified into manual and automatic. Further, fuel type is segmented as gasoline, diesel, and among others. Vehicle type is segregated as passenger cars, LCVs, and HCVs.
Competitive Landscape
Key companies profiled in this report involve Aisin Corporation, Allison Transmission, BorgWarner Inc., Continental AG, Eaton Corporation plc, Magna PT (GETRAG), GKN Ltd, JATCO Ltd, Magna International Inc., and among others.
Some of the key observations regarding the automotive transmission industry include:
• In February 2021, ZF announced investing in North America regional market for commercial vehicle transmission manufacturing. ZF announced investment of about US$200 Mn in commercial vehicle transmission manufacturing in North America for the production of ZF Powerline 8 speed automatic transmission at the company's state-of-art manufacturing facility.
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