The global automotive hydro-mechanical variable transmission system market to grow at a CAGR of 66.95% during the period 2016-2020.
Global Automotive Hydro-mechanical Variable Transmission System Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market. To calculate the market size, the report considers the revenue generated from the sales of automotive hydro-mechanical variable transmission systems.
Technological advancements in enhancing HVT systems will be a key trend for this market. HVT manufacturers are aggressively involved in enhancing the technology and making it more reliable and efficient. For instance, Dana Rexroth has pioneered the concept and is enhancing the product through innovations and development of new products.
According to the report, one driver bolstering growth in this market is the potential use of HVT systems in other applications. HVT systems have been offered in tractors as a standard fit or as an option. Recently HVT has shown considerable demand from other applications, especially heavy-duty off-road vehicles. The growing need to reduce fossil fuel consumption and vehicular emissions has pushed manufacturers to develop advanced, sophisticated, and efficient propulsion systems. This has led to the development of several automatic transmission technologies, such as AMT and CVT, which help to improve drivability, comfort, and productivity.
Further, the report states that one challenge that will negatively impact market growth will be the high cost and design complexity of HVT systems. HVT systems account for approximately 20% of the entire vehicle's cost. OEMs face difficulties in maintaining profitability because the cost of installing such systems remains high. HVT replacement or repair is always associated with high component and labor costs. In addition, the cost of components used to manufacture HVT systems and the design and quality control costs of HVTs are expensive - these factors add to the overall cost of production.