The automotive transmission market size was USD 132.2 million in 2015. Evolving transmission systems according to the performance requirements across several vehicle type including passenger cars and Heavy Commercial Vehicles (HCVs) are expected to drive the market over the forecast period. Automotive manufacturers are adopting advanced systems such as Automated Manual Transmission (AMT) with minimized CO2 emissions and fuel consumption without compromising the performance.
Further, rapid technological advances in automotive transmission manufacturing will spur the demand. Rising adoption of Dual Clutch Transmissions (DCT) and Continuously Variable Transmission (CVT) technologies over manual and automatic systems owing to the shift in demand for fuel efficient products with increased performance is anticipated to drive demand over the forecast period.
Manufacturers in the industry are striving to offer cost efficient solutions without compromising on the performance of the vehicle through their product offerings. They are adopting several growth strategies to meet the rising demand for transmission systems across the automotive industry. For instance, Aisin Seiki Co., Ltd. is focusing on production capabilities and consolidating development for Toyota Motor Corporation’s manual transmission products under Aisin AI. Consolidated overlapping capacities at both the companies, will enable them to meet global demand and strengthen the competitiveness of the manual systems business.
Moreover, manufacturers in the industry are required to abide by the stringent regulations. In August 2006, NHTSA announced a formal agreement with the Alliance of Automobile Manufacturers and the Association of International Automobile Manufacturers to make certain that every vehicle with automatic transmissions sold in the U.S. will be equipped with "brake transmission system interlocks.”
Asia Pacific Automotive Transmission Market Revenue by Transmission Type, 2014 - 2024 (USD Million)
Transmission Type Insights
The manual transmission segment dominated the industry with a revenue share of over 60% in 2015. However, the industry is currently witnessing a rapid decline in the sales of manual owing to the rising adoption of the automatic segment. Factors such as increasing road congestion, demand for highly fuel efficient vehicles have led to the growing adoption of electronic systems worldwide.
The high price of automatic transmission segment may challenge its growth in the countries such as India and Mexico. However, increasing purchasing power and changing preference of the customers of the countries including India are expected to drive the demand over the forecast period. In April 2016, Hyundai Motor India Ltd (HMIL) launched an automatic transmission variant of its popular compact SUV Creta in the petrol fuel option contributing towards the segment growth.
Fuel Type Insights
Diesel segment dominated the industry with the revenue share of over 40% in 2015, which is expected to grow further with the CAGR of nearly 7.6% over the forecast period. Recent advancement in diesel engine with emission control technologies and introduction of ultra-low sulfur diesel are expected to increase the segment demand globally for clean diesel vehicles.
Gasoline segment is expected to witness a substantial growth with a CAGR of over 7.0% from 2016 to 2024. Innovations and advancements in gasoline engines provide better efficiency, high performance and reduced noise and air pollution which are expected to drive the segment growth.
Vehicle Type Insights
Passenger cars (PC) segment dominated the industry with over 25% of the overall share in 2015. The major contributors to the demand for passenger vehicles are the countries in Asia-Pacific region which will continue to dominate the worldwide market in future. Innovation in the transmission technology in passenger cars segment from four-speed automatic transmissions to 8-speed and 9-speed is enhancing the overall comfort, driving experience and fuel efficiency of the vehicle.
Heavy commercial vehicle (HCV) segment captures a significant share with over 12% share in 2015. The advanced technologies such as autonomous driving, connected safety systems, and driver related technologies are expected to offer massive growth opportunities.
The Asia-Pacific accounted for over 28% in 2015, growing at a CAGR of over 8.5% from 2016 to 2024. Stringent regulations across Asia Pacific are expected to fuel the demand for efficient systems. For example, In China since 2010, new gasoline-fueled passenger vehicles have been designed to comply with China IV requirements i.e. based on Euro 4 standard. Taiwan and Korea have adopted stringent U.S. and Europe-based standards for gasoline and diesel vehicles.
North America is expected to grow at a CAGR of over 7.2% from 2016 to 2024. Increasing demand for AMT across the region is anticipated to spur the industry growth over the future.
Competitive Market Share Insights
Key participants include Allison Transmission Inc., Aisin Seiki Co., Ltd., Continental AG, BorgWarner Inc., Eaton Corporation PLC, GKN PLC, Getrag, Jatco Ltd., Magna International Inc. and ZF Friedrichshafen AG. Manufacturers in the industry are adopting several growth strategies including mergers and acquisitions to sustain in the changing technological environment.
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