In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
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.
An automobile transmission is a key element of an automobile. It helps to control the power generated by the engine and transfer it to the wheels. The main purpose of the transmission is to provide smooth functioning of the engine at various speeds. That is why a lower gear is used from the transmission when moving slowly, and a higher gear is used when driving more swiftly. Transmissions come in many forms and are built to fit the primary purpose of any vehicle type. For instance, in most modern passenger cars, an automatic transmission is used, which utilizes sensors, computers, and actuators to regulate the clutch at the ideal moment based on the current speed, the amount of accelerator pressure applied, and other parameters rather than relying on human control. Another very common form of automotive transmission is a manual transmission. With manual gearboxes, the driver must use the clutch and gearshift lever to manually change gears. Semi-automatic transmissions are also an option when buying an automobile, and they employ an automatic gearbox with the option of manual shifting. CVT or continuously variable transmission uses a belt and pulley system in place of gears to provide smooth gear ratio changes.
Apart from that, various other forms of gearboxes and transmissions, involving anywhere between 3 to 8 gears are available with various other specifications such as the single or double-clutch options to choose from.
Base Year |
2022 |
Forecast Year |
2023-2033 |
CAGR |
~6% |
Base Year Market Size (2022) |
~ USD 60 Billion |
Forecast Year Market Size (2033) |
~ USD 98 Billion |
Regional Scope |
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The global automotive transmission market is estimated to garner a revenue of ~USD 98 billion by the end of 2033 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 60 billion in the year 2022. 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.
Get more information on this report: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.
Rising Demand for Gearboxes -A transmission allows you to harness your vehicle’s engine energy when necessary. Through applying proper gear as per the need of speed, the transmission allows you to benefit from more of your car's power, rotating the wheels more slowly or quickly. The rising sales of gearboxes are expected to boost the automotive transmission market in the projected period. It was found that the sales volume of gearboxes and their parts for motor cars, tractors, and other motor vehicles, in 2018, amounted to more than 7 million sold items in the United Kingdom.
Increasing Number of Wheels – The use of transmissions is spreading as more wheels are seen on the roads across the world. For instance, there are an estimated 37 billion wheels worldwide as of October 2022.
Upsurge in the Production of Light Vehicles – Most consumer cars fall under the light motor vehicle (LMV) category, as their unladen weight does not exceed more than 5-7 tons. It is also projected that ~99 million light vehicles will be produced worldwide by 2025.
Growing Volume of Autonomous Vehicles – AI-powered vehicles which may be self-driving, and perform various other operations such as navigation, are expected to account for around 12% of global car registrations by 2030.
Rising Production of Truck Trailers – With strengthening supply chains, trucks are getting more powerful and fuel-efficient as they pull bigger trailers. The production of trailers was found to reach over 1 million units around the world in 2021.
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.
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, SUVs, 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 global automotive transmission market includes the following segments:
By Type |
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By Engine Type |
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By Vehicle Type |
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Ans: Upsurge in the sales of vehicles as well as rising number of wheels along with surge in the demand for autonomous vehicles are some of the major factors anticipated to drive the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2033.
Ans: Requires huge investment as the cost of various components required in a transmission system is high are some of the factors estimated to hamper the market growth.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Allison Transmission, Inc., ZF Friedrichshafen AG, Eaton Corporation plc, Aisin Corporation, Borgwarner Inc., Magna International Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, engine type, vehicle type, and by region.
Ans: The electric engines segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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