May 25, 2024

Automotive Transmission Systems Market is gaining traction by increasing demand for efficient transmission

 

Automotive transmission systems are an integral component of vehicles that transfer rotational power generated by an engine to the driving wheels. Transmission systems help in smoothly changing the gear ratios as per the requirements including varying speeds, acceleration, torque, and power delivery. The primary types of transmission systems used in automobiles include automatic transmission, manual transmission, automated manual transmission, continuously variable transmission, and dual-clutch transmission. Automatic transmission systems are gaining more popularity as they provide superior fuel efficiency and driving comfort compared to manual transmission vehicles.

The Global Automotive Transmission Systems Market is estimated to be valued at US$ 43.40 Bn in 2024 and is expected to exhibit a CAGR of 6.3% over the forecast period from 2023 to 2030.

Key players:
Key players operating in the automotive transmission systems are ZF Friedrichshafen AG, Aisin Seiki Co., Ltd., BorgWarner Inc., and Eaton Corporation plc. ZF Friedrichshafen AG is one of the leading automotive suppliers globally known for its automatic transmissions.

Growing demand:
The growing demand for fuel-efficient and high-performance vehicles coupled with stringent emission norms is propelling the automotive transmission systems market. Automatic transmission systems are becoming increasingly popular with their smooth gear shifts and improved fuel efficiency compared to manual transmissions.

Global expansion:
Leading automotive transmission system manufacturers are expanding their operations globally to cater to the rising vehicle production across countries. For instance, ZF Friedrichshafen AG has manufacturing facilities in over 30 countries worldwide. The company focuses on expanding its presence in emerging markets to leverage opportunities.

Market key trends
The adoption of cutting-edge technologies such as automated manual transmission, dual-clutch transmission, and continuously variable transmission is growing in the automotive transmission systems market. These technologies provide seamless gear shifts, refined driving experience, improved acceleration and fuel efficiency. Also, the integration of transmission control units, sensors and electronic control modules is enhancing the functionality of modern transmissions. Product innovations to meet the demanding performance and efficiency standards will continue to influence trends in the automotive transmission systems market going forward.

Porter’s Analysis
Threat of new entrants: Entry into Automotive Transmission Systems Market  manufacturing requires huge capital investment which prevents new players to enter easily.

Bargaining power of buyers: Due to availability of numerous transmission options, buyers can negotiate on price.

Bargaining power of suppliers: Supply chain of transmission involves several components manufacturers, giving suppliers a moderate bargaining power.

Threat of new substitutes: Technology shift towards hybrid and electric vehicles poses a threat to automatic transmissions.

Competitive rivalry: Intense competition exists among existing players on the basis of technology, price and service.

Geographical Regions
In terms of value, Asia Pacific region accounts for more than 40% share of the global automotive transmission systems market led by China, India, and Japan. North America and Europe are other prominent regions for automotive transmission systems market owing to high vehicle production and sales.

Fastest Growing Region
Asia Pacific region is projected to witness highest CAGR during the forecast period. Favorable government policies promoting auto industry growth along with increasing disposable income pushing vehicle demand in countries like China and India are driving automotive transmission systems market in Asia Pacific region.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it