Automotive Transmission Market size is estimated to cross USD 98 Billion by the end of 2033, witnessing around 6% CAGR during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of automotive transmission was USD 60 Billion. The growth of the market can primarily be attributed to the growing demand for vehicles worldwide. Furthermore, the global demand for cars is rising as a result of factors including population expansion, urbanization, and economic expansion. As populations and economies continue to grow, more people can afford and desire personal vehicles. Urbanization also drives demand for automobiles as people living in cities often rely on cars for transportation owing to limited public transportation options. In addition, factors such as increasing disposable income and a growing middle class in many countries are also contributing to the growing demand for automobiles. Particularly in emerging nations, these demographics are more inclined to own vehicles. The growing demand for automobiles also creates opportunities for the manufacturing and sales of cars, as well as the development of related industries such as parts suppliers, and maintenance and repair services. For instance, more than 82.5 million vehicles were sold worldwide in 2021.
Automotive transmission is what moves the power from the engine to the wheels. Transmissions are necessary for any motor vehicle to prevent the engine from destroying itself. Most car engines would shake themselves to pieces or overheat without a gearbox system. Furthermore, any car without a transmission would be unable to harness the engine’s speed, capping its maximum velocity. With rising sales of vehicles as well as cars, the demand for automotive transmission is on the rise amongst car users, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive transmission market during the forecast period. For instance, nearly 2 million total cars sold were in China in 2020.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 60 Billion |
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Forecast Year Market Size (2033) |
~ USD 98 Billion |
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Regional Scope |
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Engine Type {Internal Combustion Engines (ICEs), Electric Engines}
The global automotive transmission market is segmented and analyzed for demand and supply by engine type segment into internal combustion engines (ICE) and electric engines. Amongst these segments, the electric engines segment is anticipated to garner the largest revenue by the end of 2033. Transmission systems in electric cars (EVs) are frequently significantly simpler than those in conventional internal combustion engine vehicles. There is no need for gears to boost torque at low speeds since, unlike internal combustion engines, electric motors can create their full torque from a complete stop. Owing to this, the majority of EVs only have a single-speed gearbox. An electric vehicle employs a gear reduction system, sometimes known as a gearbox, in place of a conventional transmission to convert the high-speed rotation of the electric motor to the slower revolution of the driving wheels. This gear reduction system can either be a direct drive system—integrated directly into the electric motor—or a separate component. Therefore, backed by the growing fleet of electric vehicles along with the surge in the sales of electric cars worldwide, the segment will boom. For instance, the electric car fleet is expected to become more than 300 million in 2030 with electric cars accounting for 60% of new car sales globally.
Vehicle Type (Passenger Vehicle, Light Commercial Vehicle, Heavy Commercial Vehicle)
The global automotive transmission market is also segmented and analyzed for demand and supply by vehicle type into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. Out of these segments, the light motor vehicle segment is projected to produce the most revenue by 2033 and garner the largest market share. Vehicles that are generally lighter and smaller in size and weight and are intended for personal transportation are referred to as light motor vehicles. Typically, this market sector consists of passenger automobiles and light trucks such as pickups, SUV, and vans. Light motor vehicles are preferred for urban use and personal transportation since they are typically thought to be more efficient and simpler to operate than bigger vehicles. Many people worldwide are buying cars with rising disposable incomes and choosing the safety and security that a car provides. Hence, it is projected that there will be over 255 million light motor vehicles in the U.S. alone by 2030.
Our in-depth analysis of the automotive transmission market includes the following segments:
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By Type |
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By Engine Type |
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By Vehicle Type |
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APAC Market Statistics
The Asia Pacific automotive transmission market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033, backed by the large production volume of control parts for automobiles manufactured in the region, and a growing value of drive, transmission, and control parts of automatic transmission systems manufactured. For instance, in 2020, the overall production value of the automatic transmission system with many of its parts in Japan amounted to over USD 19 billion. Apart from that, rising income levels and the societal status of the Indian people are also expected to drive the market in the region. The popularity of EVs in the subcontinent is also booming, as it is projected that EVs will account for a third of the total vehicles on the road in India by 2030.
Allison Transmission Inc. - announced that Isuzu has introduced its new medium-duty FVR 18.5T truck featuring the Allison 3000 Series 6-speed fully automatic transmission in Taiwan.
ZF Friedrichshafen AG - unveiled EcoLife CoachLine, the second generation of its proven six-speed automatic transmission suitable for coach applications, whether operating in a city, inter-city, or even a challenging, steep mountain track.
Author Credits: Harshita Srivastava, Saima Khursheed
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