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The global automotive transmission market size was USD 91.48 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with automotive transmission witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of -13.03% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 96.98 billion in 2021 to USD 146.57 billion in 2028 at a CAGR of 6.08% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
As far as passenger cars are concerned, the trend of personalized design has caused a strong breakdown of many vehicle classifications. This has also led to large-scale diversification in gearbox design, individualized solutions, and competition concepts: manual, automatic, automatic manual transmission (AMT), continuously variable transmission (CVT), dual-clutch transmission (DCT), and hybrid drive.
In Europe, AMT has achieved success in the field of heavy commercial vehicles. Their path goes from semi-automatic design to entirely automatic transmission. The rise of integrating sub-modules and peripheral parts into automotive transmission results in more compact, lightweight, and more reliable combinations.
Automotive Transmission Market to Show a Downfall amid COVID-19 Pandemic
The COVID-19 pandemic has uncovered the weakness of concentrating such countless sources to an area, which is far away from basic business sectors in Europe, North America, and Latin America. China represents major exports of auto parts and renowned players of auto transmission have fabricating activities in the influenced districts (about 20% income share in China). A worldwide inventory network disturbance has sped up the stoppage of vehicle production because of a lack of parts, especially in braking, electrical, lighting, engine, and interior parts. Over the top, delays in shipment due to blockages at ports are additionally prone to affect the assembling of vehicles globally. This, in turn, is expected to slow down the growth of this market momentarily.
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Emerging Automotive Transmission Technology is a Prominent Maret Trend
The automotive transmission containing the computer, sensor, and solenoid is still relatively new. The TEHCM unit basically combines the functions of the valve solenoid, transmission control module, and pressure and temperature switches into one unit. The terms "Mechatronics" and "TEHCM" (Transmission Electro-hydraulic Control Module) are used to describe this situation. Domestic manufacturers use TEHCM, and European manufacturers use mechatronics. Every year, more and more manufacturers are using TEHCM technology to integrate functions. Therefore, the demand for replacing TEHCM units continues to grow. These factors are also expected to drive the market growth during the forecast period.
Growing Demand for Automatic Automotive Transmission to Drive Growth
The quick selection of trending advanced technology in the car business is driving the development of the market. Automatic transmission is generally utilized by traveler vehicles attributable to the rising interest for consolation, more prominent comfort, and simple use. Likewise, the surging traffic across the globe is impelling buyers to purchase vehicles with automatic system. Key car-producing organizations are spending a high rate on exploration to create systems to meet the developing requirement of eco-friendly and a happy driving experience. Automatic vehicles are acquiring the fascination of the youthful population attributable to superior and simple driving. The rising fame of robotization, superior, and innovatively advanced vehicles are making a positive effect on the development of the market.
Rising Adoption of AMT in Commercial Vehicles to Drive Growth
Globally, increasing urbanization, industrialization, and improved road infrastructure are driving the development of the logistics industry. In addition, the evolution of the IT sector, the construction industry, the mining industry, and the ever-increasing population are contributing to the growth of commercial vehicles. The AMT has a dual slant. This means that the driver can customize the automatic or switch to the manual system when required by pushing the gear lever and upshifting, then pulling it back to downshift. The AMT has a gearbox. However, it does not use a clutch pedal. This system contains a single clutch and a dual-clutch. The dual-clutch system has superior performance in terms of smooth shifting and fast throttle response. All these factors are likely be increase demand for such component.
Increasing Adoption of Electric Vehicles May Hamper Growth
The car industry worldwide is encountering a move from traditional fuel vehicles to electric vehicles. An electric vehicle doesn't need gears as the electric engine conveys a bigger force at zero RPM when contrasted with the conventional fuels burning inside IC engines. The electric engine is persistently producing an attractive field that causes a pivot of the engine, which further moves the driving wheel of an electric vehicle. Accordingly, the electric vehicle may not really need the grasp system.
Besides, the vehicle emission brought about by the fuels of these vehicles is prompting air contamination and an unnatural weather change emergency. Car manufacturing organizations are leaning more towards the feasible wellsprings of energy by spending a high rate on exploration to create electric vehicles with cutting-edge innovation. The spending tendency of individuals towards zero-emission vehicles and the public authority appropriations given to the auto business may increase the electric vehicle portfolio. This may adversely affect this market during the forecast period.
Growing Sales of Passenger Cars Worldwide to Boost the Demand for IC Engine Segment
The market has been segmented based on engine into IC engines and electric engines. The IC engine emerged as the prominent segment in the global market owing to the increasing number of IC engine-enabled vehicles on roads. This segment is likely to show good growth over the forecast period. Moreover, increasing sales of vehicles shall further boost the market demand for this segment. Also, as electric vehicle sales are growing tremendously, owing to this, the electric segment is also anticipated to show exponential growth rate over the forecast period.
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Automatic Segment to Account for Largest Market Share
On the basis of type, the market is fragmented into manual, automatic, automated manual transmission (AMT), and others (CVT, DCT). The automatic segment dominated the market owing to its increasing usage in passenger cars. The AMT segment is also set to show significant growth in this market owing to the increasing adoption of this system in light and heavy commercial vehicles. The AMT segment is expected to show slow growth in this market backed by its only remaining adoption in heavy commercial vehicles. The others (CVT, DCT) segment is also anticipated to grow steadily due to the rising usage of this components in hybrid vehicles.
Passenger Cars to Continue to Dominate Over the Forecast Period
The market has been segmented based on vehicle types into passenger cars, light commercial vehicles, heavy commercial vehicles, and electric vehicles. The passenger car segment accounted for the largest automotive transmission market share in 2019, mainly driven by rising demand for such vehicles in developing countries. The light and heavy commercial vehicle segments are also expected to show good growth in this market owing to the increasing urbanization, which would further result in rising logistics operations, transportation, and mining activities. The electric vehicle segment is also expected to show exponential growth in this market over the forecast period stoked by the increasing adoption of these vehicles due to their zero-emission and eco-friendly properties.
Asia Pacific Automotive Transmission Market Size, 2020 (USD Billion)
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The Asia Pacific market accounted for USD 51.62 billion market size in 2020, the market is growing steadily as China & India arse increasingly exporting related components worldwide. The COVID-19 had a severe impact on this market, mainly on the supply chain, which resulted in delayed production. The European market is expected to witness significant growth; as major key players are situated in the region. Growing EV sales in the region are expected to boost market growth. An increase in demand for AMT-enabled commercial vehicles in North America and the Rest of the World is expected to further grow the market over the forecast period.
Magna International Inc. to Remain at Forefront in the Market
Magna International Inc. is the market leader in the industry. The company is a supplier to almost all major automotive manufacturers. The company focuses on new product development and geographical expansion as key business strategies. It has also won one of the largest contracts for supplying transmission to BMW Group in 2019. Other players in this market are focusing on manufacturing automatic systems to gain market share. Supplier network is a key success factor in this industry.
An Infographic Representation of Automotive Transmission Market
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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, it offers insights into the automotive transmission market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors contributing to the market's growth over recent years.
Value (USD Billion) & Volume (Thousand units)
By Vehicle Type
Fortune Business Insights says that the global market size was USD 91.48 billion in 2020 and is projected to reach USD 146.57 billion by 2028.
In 2020, the Asia Pacific market value stood at USD 51.62 billion.
The market is projected to grow at a CAGR of 6.08% in the forecast period (2021-2028).
By type, the automatic segment is expected to lead the market during the forecast period.
The rising demand for automatic transmission is the key factor driving the global market.
Magna International Inc. is the major player in the global market.
Asia Pacific dominated the market in terms of share in 2020.
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