The global automotive transmission market was estimated at US$ 150 billion in 2022 and is expected to reach US$ 259.88 billion by 2032, poised to grow at a CAGR of 5.70% from 2023 to 2032.
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The Asia Pacific automotive transmission market was estimated at US$ 48 billion in 2022 and is expected to reach US$ 83.16 billion by 2032, growing at a CAGR of 5.70% from 2023 to 2032.
Based on the region, the Asia-Pacific segment dominated the global automotive transmission market in 2022, in terms of revenue. The market growth is projected to be aided by rising electric vehicles sales in the region. The automotive transmission market is expected to rise due to an increase in demand for automatic manual transmission (AMT) enabled commercial vehicles in Asia-Pacific.
On the other hand, the North America is estimated to be the most opportunistic segment during the forecast period. The growing demand for commercial vehicles in North America is also major driver for the global automotive transmission system. Furthermore, North America is a key market for luxury vehicles and sports vehicles, and are expected to develop at a consistent rate during the forecast period. The North America have high demand for aftermarket transmission systems, which might boost the automotive transmission market.
The automotive transmission market is fueled by a variety of benefits for users, including a smooth driving experience and rapid acceleration. It also had more usable power and uses less fuel than manual transmission systems. Furthermore, the advantages of automotive transmission include achieving maximum speed at low engine speeds, resulting in fuel savings, and efficient ploughing drive with accurate work at the power take off.
The automotive transmission market is being driven by an increase in the number of passenger vehicles and light weight commercial vehicles, as well as a growing need for fuel-efficient vehicles and a consumer desire for a comfortable driving experience. Furthermore, the automotive transmission market expansion has been aided by strict regulatory standards, particularly in developed regions such as North America and Europe.The expensive cost of enhanced transmission systems, on the other hand, is a major hurdle to market expansion.
The automotive transmission market expansion is projected to be aided by rapid technological developments in automotive transmission production. Moreover, owing to the shift in demand for zero-emission products with increased performance, the market is expected to be driven by the increasing adoption of Dual-clutch Transmission (DCT) and Continuously Variable Transmission (CVT) technologies over manual and automatic systems during the forecast period. In addition, the Asia-Pacific region is registering substantial growth in the countries such as India and China.
Automotive Transmission Market Share, By Vehicle Type, 2022 (%)
|Vehicle Type||2022 (%)|
|Light Commercial Vehicle||20%|
|Heavy Commercial Vehicle||5%|
Based on the engine, the Internal Combustion (IC) engine segment dominated the global automotive transmission market in 2022, in terms of revenue. To improve fuel economy, internal combustion (IC) engines are now combined with hybrid electric vehicles. These engines are also used in conjunction with plug-in hybrid electric systems to broaden the range of plug-in electric vehicles. These advantages are expected to provide opportunities for the growth of internal combustion (IC) engine segment in the coming years.
On the other hand, the Electric Engine segment is estimated to be the most opportunistic segment during the forecast period.The market demand of electric engines has increased as a result of increased urbanization and increased demand for electric automobiles. The electric engine segment will benefit from the growth and expansion of the automobile sector, as well as increased personal disposable income. The electric engine segment expansion will be aided by rising global power consumption and the use of electrical equipment.
Based on thetype, the Automatic Manual Transmission (AMT) segment dominated the global automotive transmission market in 2022, in terms of revenue and is estimated to sustain its dominance during the forecast period.The automatic manual transmission (AMT) segment is driven by rising demand for fuel-efficient transmission system. The change from mechanical to automated driving technologies is creating huge market opportunity. Thus, the automatic manual transmission (AMT) is widely used in the market.
On the other hand, the Continuously Variable Transmission (CVT) segment is estimated to be the most opportunistic segment during the forecast period. Continuously Variable Transmission (CVT) allows for maximum speed at low engine speeds, saving fuel and allowing for more efficient ploughing. Continuously Variable Transmission (CVT) systems are favored by vehicle manufacturers around the world because they are light in weight, small in size, and have fewer moving components.
Based on the vehicle type, the passenger vehicle segment accounted 66% revenue share in 2022. The demand for passenger vehicles is influenced by volatile fuel prices and road infrastructure. The improving economic outlook in developing nations is likely to boost the demand for passenger vehicles in the market.
On the other hand, the electric vehicle segment is estimated to be the most opportunistic segment during the forecast period. The technological advancements are resulting into surge in demand for automotive transmission systems during the forecast period.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting different marketing strategies, such as new product launch, investments, partnerships, and mergers & acquisitions. The companies are also spending on the development of improved products. Moreover, they are also focusing on competitive pricing.
In December 2020, the LG Electronics announced the joint venture with Magna International Inc.
The various developmental strategies such as business expansion, investments, new product launches, acquisition, partnerships, joint venture, and mergers fosters market growth and offers lucrative growth opportunities to the market players.
Segments Covered in the Report
By Vehicle Type
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