Transmission Fluid Market Size, Share, and Trends 2024 to 2033

Transmission Fluid Market (By Product: Manual Transmission Fluids, Automatic Transmission Fluids, Dual Clutch Transmission Fluids, Continuously Variable Transmission Fluids; By Application: Off-Road Vehicles, Automotive) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033

  • Last Updated : July 2024
  • Report Code : 4639
  • Category : Chemical and Material

Transmission Fluid Market Size and Forecast

The global transmission fluid market size was USD 9.18 billion in 2023, estimated at USD 9.53 billion in 2024 and is expected to reach around USD 13.38 billion by 2033, expanding at a CAGR of 3.84% from 2024 to 2033. The rising demand for enhanced performance of vehicle transmission systems drives the market's growth.

Transmission Fluid Market Size 2024 to 2033

Transmission Fluid Market Key Takeaways 

  • Asia Pacific led the transmission fluid market with the largest revenue share of 56% in 2023.
  • North America is expected to witness the fastest growth during the forecast period.
  • By product, the manual transmission fluid segment dominated the market with the largest market share in 2023.
  • By application, the off-road vehicles segment dominated the market in 2023.
  • By application, the automotive segment is expected to grow at the fastest rate in the market during the predicted period. 

Asia Pacific Transmission Fluid Market Size and Growth 2024 to 2033

The Asia Pacific transmission fluid market was valued at US$ 5.14 billion in 2023 and is expected to be worth around US$ 7.56 billion by the end of 2033, at a CAGR of 3.93% from 2024 to 2033.

Asia Pacific Transmission Fluid Market Size 2024 to 2033

Asia Pacific led the transmission fluid market with the largest market share in 2023. The growth of the market in the region is increasing owing to the rapidly evolving population and industrialization, both of which require a higher demand for personal and commercial vehicles for their transportation. The increasing demand for the smooth operation of vehicles in the personal and commercial sectors is driving the demand for transmission fluids, which enhances the overall performance of the vehicles and gives them a longer life cycle. The rising industrialization, such as construction, logistics, and supply chain industries, in developing economies like India, China, and Japan are driving the demand for off-road heavy-duty vehicles, which also contribute to the increasing demand for the transmission fluid market across the region.

Transmission Fluid Market Share, By Region, 2023 (%)

North America is expected to witness the fastest growth during the forecast period. The growth of the market in the region is rising due to the rising number of personal vehicles owned by the people of developed countries like the United States and Canada, which is driving the demand for transmission fluid for the increasing overall performance of the vehicles. The rising availability of the major market players in the regional countries and the rapid expansion of electric vehicles are further propelling the growth of the transmission fluid market in the region.

Market Overview

Transmission fluid is one of the major factors of the automobile; it plays a major role in the operations of the vehicle's transmission system. Transmission fluid acts as both the coolant and lubricant, keeping all the moving parts running smoothly and preventing overheating. It reduces the friction between the various components inside the vehicle’s transmission system. It decreases heat in the transmission system and ensures the higher temperature does not cause any damage to the vehicles. Transmission fluid provides the hydraulic pressure inside the system that offers a smooth gear shift. It provides the power transfer from the engine to the wheel by offering resistance against stalling or slipping. The automatic transmission system vehicle requires the ATF (automatic transmission fluid), while the manual transmission vehicles require either ATF or manual gearbox oil. The rising demand for personal and commercial use in the automobile industry is driving the growth of the transmission fluid market.

Transmission Fluid Market Growth Factors 

  • The increasing population, the rising demand for the automobile industry, and the technological advancements for enhancing the comfort of vehicles are driving the growth of the transmission fluid market. 
  • The rising demand for technological upgradation in the unique drivetrain, which delivers efficiency in driving and fuel economy, raises the performance of the vehicles, driving the growth of the market. 
  • The rising demand for enhancing the performance of off-road vehicles and heavy-duty vehicle applications requires a high-performance and modern drivetrain that enhances the demand for transmission fluid. 
  • The rising demand for transmission fluid from the construction industry for heavy-duty vehicles such as agricultural utility vehicles, earthmovers, tractors, etc., is requiring high-performance ATF and MTF products for a longer vehicle life and enhanced performance. 
  • The rising construction activities and the increasing investments and spending on automobiles by the people are contributing to the expansion of the transmission fluid market.

Transmission Fluid Market Scope

Report Coverage Details
Market Size by 2033 USD 13.38 Billion
Market Size in 2023 USD 9.18 Billion
Market Size in 2024 USD 9.53 Billion
Market Growth Rate from 2024 to 2033 CAGR of 3.84%
Largest Market Asia Pacific
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered Product, Application, and Regions
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Transmission Fluid Market Dynamics

Driver

Rising demand for the automobile industry

The growing population globally is driving the demand for passenger and commercial vehicles for personal travel and business transportation. The major developing and developed economies depend on the transport industry. Vehicles are an essential part of human life for personal as well as commercial prospects. The rising demand for heavy-duty and off-road vehicles by the construction industry, logistics, and supply chain industry for moving goods from one place to another. The construction industry is one of the largest consumers of off-road vehicles for moving construction materials from one place to another. Additionally, the rising trend of having one's own vehicle in the population due to the elevated lifestyle and needs due to the rising disposable income and surging spending on lifestyle are boosting the sales of personal vehicles. Thus, all these factors are contributing to the expansion of the transmission fluid market.

Restraint

Fluctuating raw material

The fluctuating prices of crude oil have a significant impact on the transmission fluid market. Since crude oil is a key ingredient in the production of transmission fluid, changes in its price directly influence the overall production costs. When crude oil prices are high, the cost of manufacturing transmission fluid increases, leading to higher prices for consumers. Conversely, when crude oil prices are low, there may be downward pressure on transmission fluid prices. This volatility makes it challenging for manufacturers to plan and price their products consistently, and it creates uncertainty for both producers and consumers in the transmission fluid market.

Opportunity

The rising consumption of EVs and hybrid vehicles

The rising demand for electric vehicles and hybrid vehicles by the population due to the rising awareness about environmental pollution is driving the sale of electronic vehicles. Although EVs run on electric energy, they also need some kind of lubricant to enhance the performance of the vehicles, which contributes to the higher demand for transmission fluid. Additionally, there is rising government participation in the development and adoption of fully electric and hybrid vehicles with supportive policies and subsidies. The major industry players are adopting the electric vehicles manufacturing as seen the future opportunities in the automobile market. Thus, all these factors are collectively contributing to the growth of the transmission fluid market. 

Product Insights

The manual transmission fluid segment dominated the transmission fluid market with the largest market share in 2023. The growth of the segment is attributed to the higher implementation of the MTF (manual transmission fluid), as the transmission oil in the vehicles enhances their performance, driving the demand for the segment. MTF is the specialized transmission fluid used in the manual transmission system that acts as a lubricant in the engine and reduces the friction between the internal components of the transmission system. Manual transmission fluid (MTF) is generally thicker than automatic transmission fluid (ATF) and designed to work under various temperatures and conductions. It is formulated with various additives such as anti-wear agents, extreme pressure agents, and friction modifiers to enhance the performance of the vehicles, prevent them from damaging the transmission system, and increase the life of the vehicle. Thus, all these factors are contributing to the higher demand for the MTF segment.

The automatic transmission fluid segment is expected to grow significantly in the market during the forecast period. The growth of the segment is attributed to the rising adoption of automatic vehicles over manual vehicles. ATF plays an important role in the transmission system, from lubricant to coolant. It provides the connection between the engine and transmission system with the hydraulic coupling known as a torque converter. It maintains the overall engine performance and increases the life of the engine and transmission system of the vehicle for a longer period. 

Application Insights

The off-road vehicles segment held the largest transmission fluid market share in 2023. The growth of the segment is attributed to the rising adoption of transmission fluids in off-road vehicles to maintain heavy-duty performance. The rising demand for off-road vehicles by the construction industry for off-road tasks in the construction sites. The off-road vehicle requires high performance and efficient lubricant of different formulations of oil for transmission and the use of a high-pressure hydraulic system. The transmission fluid is the most important in off-road vehicles for smooth hydraulic operations and is used as a backbone loader for pushing tons of load. The rising construction activities and the logistics industry that needs a heavy-duty vehicle for the transportation of goods are driving the growth of the transmission fluid market.

The automotive segment is expected to grow at the fastest CAGR during the predicted period. The growth of the segment is attributed to the continuously rising automotive sector with the launch of the latest personal and commercial vehicles. The rising technological development in the drivetrain, fuel flow, engine, and transmission system over the period is propelling the demand for the automotive sector. Transmission fluid is an essential part of the vehicle's transmission system to protect against damage caused by overheating and friction of the components.

  • For instance, with sales expected to reach over 10 million in 2022, the market for electric vehicles is expanding rapidly. Electric cars made up 14% of all new car sales in 2022, up from less than 5% in 2020 and around 9% in 2021. Three markets lead the global sales figures. China leads the globe in electric car sales, accounting for over 60% of global sales. More than half of all-electric cars on the road today are found in China, which has already surpassed its 2025 new energy vehicle sales target. Sales of electric cars rose by more than 15% in 2022 in Europe, the second-largest market, indicating that more than one in five vehicles sold there were electric. The third-largest market in the world, the United States, saw a 55% growth in electric vehicle sales in 2022, with a share of 8%.

Transmission Fluid Market Companies

  • Royal Dutch Shell
  • ExxonMobil Corp.
  • Total S.A.
  • British Petroleum P.L.C.

Recent Developments

  • In March 2024, Lubrication Engineers (LE) announced their latest launch of the ‘Enhanced Lubricant™’: 9705 – 9707 SYNPAG™ gear lubricants. This lubricant is based on synthetic polyalkylene glycol (PAG), which is known for its extreme pressure (EP) properties and prevention of micropitting.
  • In March 2024, Lubrication Engineers (LE) announced the launch of their new ‘Enhanced Lubricant™’ for the mining market. The new product replaces the ALMASOL® Vari-Purpose gear lubricant: the 1601-1609 DUOLEC™ Vari-Purpose gear lubricants (DVPGL).
  • In March 2024, HollyFrontier Lubricants & Specialties introduced the SENTRONTM SP 30, Petro-Canada Lubricants; it is a high-quality and performance SAE 30 stationary gas engine oil and its first category approved for meeting M 3271-2 and MAN Truck & Bus AG’s latest M 3271-5 specifications.
  • In April 2024, SKF Lincoln launched the latest Mityvac MV7455 and MV7454 gear engine oil dispensing units for industries such as construction, agriculture, automotive, maintenance facilities, machinery repair, and industrial fluid handling. 

Segments Covered in the Report

By Product

  • Manual Transmission Fluids
  • Automatic Transmission Fluids
  • Dual Clutch Transmission Fluids
  • Continuously Variable Transmission Fluids

By Application

  • Off-Road Vehicles
  • Automotive

By Geography

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • Middle East & Africa

Frequently Asked Questions

The global transmission fluid market size is expected to increase USD 13.38 billion by 2033 from USD 9.18 billion in 2023.

The global transmission fluid market will register growth rate of 3.84% between 2024 and 2033.

The major players operating in the transmission fluid market are Royal Dutch Shell, ExxonMobil Corp., Total S.A., British Petroleum P.L.C., and Others.

The driving factors of the transmission fluid market are the rising demand for the automobile industry and rising demand for enhancing the performance of off-road vehicles.

Asia Pacific region will lead the global transmission fluid market during the forecast period 2024 to 2033.

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