Global Automotive Transmission Market Overview, 2024-29

Market Dynamic

Market Drivers Stringent fuel economy and emissions regulations: one of the most significant drivers for the Global automotive transmission market is the enforcement of increasingly stringent fuel economy and emissions regulations by governments around the world. Regulatory bodies like the us environmental protection agency (epa) and the European union's directorate-general for mobility and transport (dg move) are setting ambitious targets for reducing vehicle emissions and improving fuel efficiency. This compels car manufacturers to invest in advanced transmission technologies that optimize power delivery and minimize energy losses within the drivetrain. As a result, the demand for transmissions that contribute to improved fuel economy and reduced emissions is expected to remain a key driver within the Global market. Growing demand for automatic transmissions in emerging market: A significant driver for the Global automotive transmission market is the rising demand for automatic transmissions in emerging markets. Historically, manual transmissions dominated in these regions due to their affordability. However, factors like increasing disposable incomes, urbanization, and a growing preference for comfort and convenience are driving a shift towards automatic transmissions. This trend is particularly evident in countries like China and India, where the burgeoning automotive industry is witnessing a surge in demand for automatic-equipped vehicles. This presents a significant opportunity for transmission manufacturers to cater to the evolving needs of consumers in emerging markets. advancements in transmission control systems and software: The Global automotive transmission market is being driven forward by advancements in transmission control systems and software. Modern transmissions often utilize sophisticated electronic control units (ecus) that manage gear selection, torque converter operation, and overall transmission behavior. These ecus can be programmed to optimize performance for various driving conditions, further contributing to improved fuel efficiency and smoother gear changes. Additionally, advancements in software development are enabling the integration of transmission control systems with other vehicle technologies, such as engine management systems and driver-assistance features. This level of integration allows for a more holistic approach to vehicle operation, further enhancing performance, efficiency, and safety. Market Challenges • Rising raw material costs and supply chain disruptions: The Global automotive transmission market faces significant challenges due to rising raw material costs and potential supply chain disruptions. Transmissions rely on various raw materials, including steel, aluminum, and specialty alloys. Fluctuations in the Global prices of these materials can significantly impact production costs for transmission manufacturers. Furthermore, geopolitical events and trade disputes can disrupt the flow of critical raw materials, leading to production delays and shortages. Mitigating these challenges requires implementing robust risk management strategies, diversifying supply chains, and exploring alternative materials with potentially lower price volatility. • High development costs for advanced transmission technologies: The development of advanced transmission technologies, such as multi-speed automatic transmissions and those specifically designed for evs, necessitates significant investment in research and development (r&d). These advanced transmissions often utilize complex control systems and lightweight materials, pushing the boundaries of engineering and manufacturing capabilities. The high development costs associated with advanced transmission technologies can pose a challenge for smaller players within the Global automotive transmission market. This can lead to a consolidation within the industry, with larger players potentially acquiring smaller ones to gain access to cutting-edge technologies and spread the r&d costs. Furthermore, collaboration between car manufacturers (oems) and transmission suppliers is crucial for cost-sharing and ensuring successful integration of advanced transmissions within new vehicle models. • The rise of electric vehicles and the uncertainty surrounding future transmission needs: The burgeoning electric vehicle (ev) market presents both an opportunity and a challenge for the Global automotive transmission market. While some evs utilize single-speed gear reduction units, the specific transmission needs of the future ev landscape remain uncertain. The development of multi-speed transmissions for evs is ongoing, but their long-term viability compared to simpler gear reduction units depends on factors like battery range, motor efficiency, and overall vehicle design. This uncertainty surrounding future transmission needs poses a challenge for manufacturers, requiring the m to be adaptable and invest in research to cater to the evolving needs of the electric vehicle market. Market Trends Rise of advanced automatic transmissions (ats) with more gears: A significant trend in the Global automotive transmission market is the surging popularity of advanced automatic transmissions with an increasing number of gears. Traditionally, automatic transmissions offered a limited number of gears compared to manuals, potentially sacrificing fuel efficiency for convenience. However, advancements in transmission technology have led to the development of sophisticated ats with 8, 9, or even 10 speeds. These transmissions offer smoother gear changes, wider gear ratios, and improved engine performance across the rpm range. This translates into a more engaging driving experience for consumers while simultaneously achieving better fuel economy and reduced emissions, making the m a compelling option for both car manufacturers and drivers. Integration of advanced driver-assistance systems (adas: The Global automotive transmission market is witnessing a growing integration of advanced driver-assistance systems (adas) with transmissions. Adas features like adaptive cruise control, lane departure warning, and automatic emergency braking rely on sophisticated sensors and computing power to function effectively. Modern transmissions are increasingly incorporating electronic control units (ecus) that can communicate seamlessly with adas systems. This allows for real-time adjustments to gear selection and engine torque based on road conditions and traffic patterns, optimizing vehicle performance and enhancing overall safety. The integration of adas with transmissions presents a unique opportunity for market players to develop innovative solutions that contribute to the advancement of autonomous driving technologies. Focus on lightweight materials and design optimization: A crucial trend within the Global automotive transmission market is the emphasis on lightweight materials and design optimization. As fuel efficiency regulations tighten and environmental concerns escalate, car manufacturers are striving to reduce vehicle weight. Transmission manufacturers are responding by developing transmissions that utilize high-strength, low-weight materials like aluminum alloys and magnesium. Additionally, advancements in computer-aided design (cad) and simulation software allow for optimized transmission designs that minimize weight while maintaining structural integrity and performance capabilities. This trend towards lightweight transmissions not only contributes to improved fuel economy but also translates into a lower environmental footprint for vehicles throughout their lifecycle.

Key Development

• May 2024: the 2025 Honda civic eliminates the manual transmission option for several trim levels, including sport and sport touring, previously available with a 6-speed manual and a 2.0-liter four-cylinder engine. This move signifies a potential decline in manual transmission offerings within the compact car segment, catering to a broader consumer preference for automatics. While the standard civic retains a continuously variable transmission (cvt), the introduction of a new hybrid powertrain with an automatic transmission in the sport and sport touring trims reflects a strategic shift towards fuel efficiency and broader market appeal. • January 2024: a recent development in the Indian automotive transmission market is the introduction of the first-ever cng cars with automatic manual transmission (amt) technology. Tata motors unveiled the tiago and tigor icng amt models, marking a significant step towards offering increased convenience and fuel efficiency in the cng vehicle segment. Traditionally, cng vehicles have been offered with manual transmissions. This launch caters to a growing consumer demand for automatic gearboxes, particularly in urban areas with stop-and-go traffic. The new icng amt models are expected to broaden the appeal of cng vehicles in India. • September 2023: German automotive parts manufacturer zf achieved a significant milestone by producing its one-millionth traxon transmission unit. Notably, the traxon is an automated manual transmission (amt) designed specifically for heavy-duty commercial vehicles like long-haul trucks and tractors. This news signifies the growing popularity of amts within the heavy-duty commercial vehicle segment, potentially indicating a trend towards increased adoption of these transmissions due to their ability to combine the efficiency of automatics with the performance of manuals. Also, zf is gearing up for the series production launch of the traxon 2, the successor to the millionth unit traxon. This suggests continued innovation and development within the amt space for heavy-duty commercial vehicles.