Automotive Transmission Systems Market to grow by USD 53.2 Billion (2024-2028), driven by increased adoption of automatic transmissions, with AI shaping trends - Technavio

NEW YORK, Dec. 4, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The global automotive transmission systems market  size is estimated to grow by USD 53.2 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 6.08%  during the forecast period. Growing adoption of automatic transmission in vehicles is driving market growth, with a trend towards development of auto-shift manual transmission systems with adaptive transmission control. However, erratic gear shifts resulting in whining and grinding noise due to wear and tear  poses a challenge. Key market players include Aichi Machine Industry Co. Ltd., AISIN CORP., Allison Transmission Holdings Inc., Bonfiglioli Riduttori Spa, BorgWarner Inc., Continental AG, Eaton Corp. Plc, General Motors Co., GKN Ltd., Honda Motor Co. Ltd., Hyundai Motor Co., Magna International Inc., Marelli Holdings Co. Ltd., Nissan Motor Co. Ltd., Renault SAS, Schaeffler AG, Volkswagen AG, WeiChai Holding Group Co. Ltd., Xtrac Ltd., and ZF Friedrichshafen AG.

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Key Market Trends Fueling Growth

The Automotive Transmission Systems Market is witnessing significant trends in response to global concerns over carbon emissions and the shift towards renewable energy. Developed countries are implementing the Green Deal and phasing out coal-fired boilers in favor of industrial boilers powered by steam, hot water, oil, gas, or biomass. Incentives and subsidies are driving the adoption of renewables, biofuels, and biomass boilers in industrial facilities. Despite these advancements, industries face challenges such as inflation, oil prices, and downtime due to damaged boilers, which result in heavy expenses and closure of commercial spaces. Boiler efficiency and running costs are crucial factors in the selection of fuel type and boiler horsepower. The petrochemical industry, refineries, and metal manufacturing plants are major consumers of steam generating boilers. The transition towards carbon neutrality necessitates the production of boilers that use clean fuels like natural gas, hydrogen, and biomass. The application segments, including refinery, chemical, food processing, pulp & paper, primary metal, and power, are undergoing rapid industrialization, leading to stringent laws against harmful emissions from fossil fuel segment counterparts. Installation costs, labor costs, miscellaneous expenses, and downtime are significant concerns for industries. Industrial boiler efficiency, operating cost, and energy efficiency are essential factors in the decision-making process. Fuel type, fuel price, and availability also influence the choice of boiler. In developing nations, the focus is on reducing CO2 emissions from coal plants and promoting the use of non-fossil fuels like biomass, hydrogen, and natural gas. The textile, FMCG, and agribusiness industries are adopting steam generating boilers for their production processes. The application segment includes distilleries, craft distilling, and petrochemical plants, which require specialized boilers. Equipment dealers and brokers play a crucial role in the market by providing solutions tailored to the unique needs of various industries. The market is expected to grow, driven by the increasing demand for energy efficiency and the shift towards cleaner fuels. 

The automotive industry experiences significant advancements, driven by innovative transmission technologies. CVT and DCT systems are gaining traction, replacing traditional hydraulic automatic transmission systems. These modern technologies offer smoother gear shifts and improved fuel efficiency. Furthermore, auto-shift manual transmission systems are emerging, combining the advantages of automatic and manual transmissions. Utilizing shift-by-wire electronic control systems, these systems eliminate the need for manual gear shifting levers, promising flexibility and enhanced performance. The global automotive market is witnessing in demand for these advanced transmission systems. 

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Market Challenges

• The Automotive Transmission Systems Market faces various challenges in the current business landscape. Carbon emissions are a significant concern, with renewable energy and steam emerging as viable alternatives. Inflation and oil prices impact the operating costs, making industrial efficiency a priority. The European Green Deal aims to phase out coal-fired and industrial boilers, offering incentives and subsidies for renewables, biofuels, and biomass boilers. Fuel type and boiler horsepower are crucial factors in the decision-making process for industries, including the petrochemical industry, refineries, and power plants. Industries in developed countries grapple with stringent emission control laws, high installation and labor costs, miscellaneous expenses, and downtime due to damaged boilers. Heavy expenses from electricity bills and closure of industries pose a threat. Industrial facilities in developing nations face similar challenges, with additional hurdles like carbon neutrality targets and the need for energy efficiency. Steam generating boilers find applications in various industries, such as refinery, chemical, food processing, pulp & paper, primary metal, and textile. Running costs and energy efficiency are essential considerations, with steam generating boilers offering advantages over coal-based counterparts. Natural gas and biomass are popular fuel types, with hydrogen firing gaining traction. Fuel costs, running costs, and environmental emissions are critical factors for industries. The application segments include distilleries, craft distilling, petrochemical plants, and petroleum refineries. Steel mills and fossil fuel segment industries face challenges from deformation, stress corrosion, welding issues, and hydrogen embrittlement. In conclusion, the Automotive Transmission Systems Market faces numerous challenges, including carbon emissions, renewable energy, inflation, oil prices, Green Deal, coal-fired boilers, industrial boiler efficiency, operating cost, water-tube boilers, hot water boilers, oil fired boilers, fuel type, boiler horsepower, petrochemical industry, gas boilers, coal plants, CO2 emissions, clean fuels, hydrogen firing, developing nations, industrial facilities, positive environment, industries, installation costs, labor costs, miscellaneous expenses, downtime, damaged boiler, electricity bills, closure of industries, commercial spaces, production of boilers, carbon neutrality, natural gas, feedstock, steam generating boilers, application, refinery, chemical, food processing, pulp & paper, primary metal, fuel, running costs, energy efficiency, coal-based counterparts, metal manufacturing plants, chemicals, rapid industrialization, food and beverage, petrochemical, power, pipes, fuels, oil and gas, fossil, non-fossil, biomass, textile, FMCG, industrial plants, mega power projects, boiler rules, environmental emissions, materials, deformation, stress corrosion, welding issues, hydrogen embrittlement, application segment, distilleries, craft distilling, petrochemical plants, petroleum refineries, steel mills, fossil fuel segment, non-fossil fuels, biomass fuel, bagasse, sugarcane, sorghum stalks, automotive, agribusiness, Parker Boiler, equipment dealers, and brokers.
• Automatic Transmission Systems (ATS), specifically Advanced Manual Transmission systems like Dual Clutch Transmissions (DCT), present unique challenges in diagnosis due to their complex design and functionality. A common issue is contaminated transmission fluid, which can cause transmission slipping. In a DCT system, planetary gears are utilized for gear shifting, connecting to input and output shafts. The gear shift occurs through a dual-clutch system and bands, which rely on DCT fluid activation. Worn-out clutches or bands result in harder gear shifts and extended engine revving. As a professional, it's crucial to address these issues promptly to ensure optimal vehicle performance.

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Segment Overview 

This automotive transmission systems market report extensively covers market segmentation by

1. Vehicle Type
• 1.1 Passenger
• 1.2 Commercial
2. Type 
• 2.1 Manual
• 2.2 Automatic
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Passenger-  The global automotive transmission systems market is experiencing steady growth in the passenger cars segment. This growth is driven by rising consumer demand for advanced transmission systems, particularly automated gearboxes like CVTs and DCTs. These systems offer advantages such as improved fuel efficiency and smoother, quicker gear shifts. The passenger cars segment dominates global automobile sales due to urbanization and increasing disposable income in emerging economies. As disposable income rises in countries like Brazil, India, China, South Africa, UAE, Qatar, and Saudi Arabia, the demand for passenger cars follows suit. However, increasing vehicle numbers lead to pollution and emissions, prompting regulatory pressure on automotive OEMs to reduce vehicular emissions. In response, OEMs are implementing lightweighting strategies, reducing vehicle weight through fewer components and lightweight materials. Advanced transmission systems contribute to improved fuel economy, making them a key adoption driver in the passenger cars segment. This trend is expected to continue, fueling market growth during the forecast period.

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Research Analysis

The Automotive Transmission Systems Market is experiencing significant changes due to various factors. With the growing concern for carbon emissions, there is a shift towards renewable energy sources for powering transmission systems in industrial facilities. Steam transmission systems are gaining popularity as they offer a positive environment impact and are more energy-efficient compared to traditional systems. However, inflation and oil prices pose challenges to the market, increasing installation costs, labor costs, and miscellaneous expenses. Downtime due to maintenance or damaged boilers can result in heavy expenses. Industries such as food and beverage, petrochemical, power, and oil and gas are major consumers of transmission systems, but stringent laws against harmful emissions are driving the need for more efficient and cleaner technologies. The complex network of pipes and fuels used in these systems adds to the complexity and cost of operation.

Market Research Overview

The Automotive Transmission Systems Market is experiencing significant changes as the global focus shifts towards reducing carbon emissions and embracing renewable energy. Traditional steam transmission systems are being replaced with more efficient and eco-friendly alternatives. Factors such as inflation, oil prices, and stringent environmental regulations are driving this transition. The European Green Deal, for instance, aims to make the EU carbon neutral by 2050, leading to the closure of coal-fired and industrial boilers in favor of cleaner fuels like natural gas, biomass, and hydrogen. Industrial boiler efficiency and operating costs are crucial considerations in this transition, with water-tube boilers, hot water boilers, and oil-fired boilers being popular choices based on fuel type and boiler horsepower. The petrochemical industry, refineries, chemical plants, food processing, pulp & paper, primary metal, and various other industries are adopting steam generating boilers to meet their energy needs. The application segments, including refineries, petrochemical plants, steel mills, and fossil fuel segment, are transitioning towards non-fossil fuels like biomass, bagasse, sorghum stalks, and hydrogen firing. The transition towards carbon neutrality comes with heavy expenses, including installation costs, labor costs, miscellaneous expenses, downtime, and damaged boiler repairs. Despite these challenges, industries are investing in this positive environmental change, with incentives and subsidies playing a significant role in the adoption of renewable energy and eco-friendly transmission systems.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Vehicle Type
• Passenger
• Commercial
• Type
• Manual
• Automatic
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio