Global automotive transmission systems market analysis and insights
The global Automotive Transmission Systems market estimated at US$159.1 billion in the year 2022 is now projected to grow at a CAGR of 5.19% and reach US$226.7 billion by 2028. The global market is influenced by several growth drivers that continue to shape the industry and offer promising opportunities for the future. One major driver is the ongoing evolution in consumer preferences towards automatic and advanced transmission systems. The demand for enhanced driving comfort, convenience, and fuel efficiency has led to a surge in the adoption of automatic transmissions, continuously variable transmissions (CVTs), and dual-clutch transmissions (DCTs). The automotive industry is responding to this shift by investing in the development of sophisticated transmission technologies that offer seamless gear changes, improved fuel economy, and better overall vehicle performance.
Looking forward, the future growth potential of the automotive transmission systems market is closely tied to the rise of electric and hybrid vehicles. The global push for sustainable transportation has accelerated the development of electrified drivetrains, requiring innovative transmission solutions to optimize power delivery and efficiency. The advent of electric vehicles (EVs) has introduced unique transmission challenges and opportunities, including the development of single-speed transmissions and even gearbox-less drivetrains. As the automotive industry transitions towards electrification, the demand for advanced transmission systems tailored for electric powertrains is expected to surge. Additionally, the integration of smart technologies, such as artificial intelligence and connectivity features, in transmission systems will further contribute to the market’s growth, providing opportunities for manufacturers to create intelligent, adaptive, and efficient transmission solutions for the next generation of vehicles.
Automotive transmission systems regional market insights
North American automotive transmission systems market is expected to grow significantly over the forecast period 2022-2028. This growth can be attributed to the continuous technological advancements, along with the presence of major automobile manufacturers in the region. United States contributed around 78% of the total North American automotive transmission systems market. It is estimated to have a market value of US$36.02 billion in the year 2022. Among the other noteworthy geographic markets are Canada and Mexico, each forecast to grow at 4.54% and 2.65% respectively over the 2022-2028 period.
Asia Pacific automotive transmission systems market is anticipated to witness an upsurge owing to the increasing production and sales of vehicles in countries such as China, India, Japan, and South Korea. Furthermore, the growth of the market is driven by high R&D expenditure by major players, combined with efforts to commercialize automotive transmission systems at affordable prices. China is expected to dominate the Asia-Pacific market and reach a market size of US$43.38 billion by 2028.
Within Europe, Germany, France, Italy and the U.K. are the key countries responsible for the significant growth of the regional market. Germany is expected to grow at a CAGR of 4.42% over the forecast period.
Meanwhile, the Middle East & Africa is expected to show limited growth due to the strong presence of under-developed countries in Africa who are still struggling to meet technology standards. However, any growth that the region experiences is expected to come from developing Middle Eastern nations such as Qatar, U.A.E, and Oman due to a similar growth pattern as the Asia Pacific.
Key players
key players profiled in the report include Aisin Corporation; BorgWarner, Inc.; Eaton; FPT Industrial S.P.A.; General Motors; Renault Group; Honda Transmission Manufacturing of America, Inc.; Hyundai Motor Company; JATCO Ltd.; Magna International Inc.; Oerlikon; Ricardo; Shaanxi Fast Auto Drive Group Company; Subaru Corporation; Volkswagen Group; Xtrac Limited and ZF Friedrichshafen AG, among others.
Competitive Landscape
September 04, 2023 – LG Magna e-Powertrain, the Joint Venture (JV) between LG Electronics (LG) and Magna (Magna) formed in 2021, announced at IAA Mobility 2023 that it is expanding its footprint with a new facility in Miskolc, Hungary. The facility will be in Miskolc’s industrial area which features well-developed infrastructure and is strategically located near OEM customers and other Magna facilities throughout the region. The company has also received strong support from both the Hungarian government and local authorities.
Nov. 18, 2022 – Ricardo, a global strategic environmental and engineering consulting company with specialisms in niche manufacturing and industrial engineering has announced a long-term, multi-year partnership with British supercar company McLaren Automotive to manufacture its next-generation V8 power unit.
Automotive transmission systems market scope
- By transmission technology
- Manual transmission (MT)
- Automatic transmission (AT)
- Automated manual transmission (AMT)
- Dual clutch transmission (DCT)
- Others
- By transmission system component
- Forward gear
- Single-speed transmissions
- Multi-speed transmissions
- Clutch plate
- Shift linkage
- Shafts
- Flywheel
- Others
- Forward gear
- By propulsion
- IC engine
- Gasoline
- Diesel
- Natural gas
- Others
- Electric
- Battery electric vehicles (BEVs)
- Hybrid electric vehicles (HEVs)
- Fuel cell electric vehicles (FCEVs)
- IC engine
- By end-use
- Passenger vehicles
- Commercial vehicles
- Light commercial vehicles
- Heavy commercial vehicles
- Others
- By distribution channel
- OEM
- Aftermarket
- By region
- North America
- South America
- Europe
- Asia Pacific
- Middle East and Africa
| Report Attribute | Details |
| No. of Pages | 238 |
| Published | October-2023 |
| Forecast Period | 2022-2028 |
| Estimated Market Size in 2022 | US$159.1 billion |
| Forecasted Market Size by 2028 | US$226.7 billion |
| CAGR | 5.19% |
| Regions Covered | North America, South America, Europe, Asia Pacific, Middle East and Africa |
| Companies Mentioned | Aisin Corporation; BorgWarner, Inc.; Eaton; FPT Industrial S.P.A.; General Motors; Renault Group; Honda Transmission Manufacturing of America, Inc.; Hyundai Motor Company; JATCO Ltd.; Magna International Inc.; Oerlikon; Ricardo; Shaanxi Fast Auto Drive Group Company; Subaru Corporation; Volkswagen Group; Xtrac Limited and ZF Friedrichshafen AG, among others. |
The research report provides a comprehensive review of market trends (Technology, Product and Application analysis), market growth drivers, PEST Analysis (Political, Economic, Social and Technological Analysis) Market growth inhibitors, and strategic industry activities and SWOT Analysis of key players in the market. The report provides market estimates and forecast for geographic markets such as the North America (United States, Canada, Mexico and Rest of North America), South America (Brazil, Argentina Chile Colombia Peru Venezuela Ecuador and Rest of South America), Europe (Germany, France, U.K., Russia, Italy, Spain, Sweden, Netherlands, Poland, Austria, Belgium, Finland, Norway, Switzerland, Denmark, Czech Republic, Portugal and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Taiwan, India, Australia, Indonesia, Philippines, Malaysia and Rest of Asia-Pacific), Middle East (Iran, Turkey, Kuwait, UAE, Israel, Oman, Bahrain, Saudi Arabia, Qatar, Egypt and Rest of Middle East) & Africa.
Research Methodology
