Automotive Transmission Market- A Business Outlook
Automotive Transmission Market is expected to be driven by the increase in automotive sale. An automotive gearbox is placed between engine and clutch to maintain a required torque ratio, the overall setup is known as automotive transmission. According to market research, A transmission system provides a convenient drive by transmitting the optimal power from the engine to the wheels through the gearbox. As every automobile segment uses an automotive gearbox, automotive sector growth is directly proportional to the automotive transmission industry growth.
A country with a well-developed automobile supply chain and human resources always attracts firms to boost up their production. This was the very reason a major auto player is opening its next big factory in Berlin, Germany, only second to china. The benefits of matured supply chain and talent group will outweigh the factor of high cost.
Classification and analysis
According to market research, based on the type of transmission, the gearbox is classified as Automatic Transmission, Manual Transmission, Dual Clutch Transmission, and Continuous variable transmission. Market research tools show the share of an automatic transmission is rising. It has 30% of the global market share. Manual transmission is popular in Europe and has a market share of 37%.
As the number of gear in an engine transmission increases, the speed ratio increases accordingly. The higher number of gear allows the engine to perform at an optimum level. Vehicles with 8 gear have better fuel efficiency, better durability, and help in minimizing CO2 emissions.
Lesser gear combinations are used in semi-luxury and passenger cars. The passenger car segment is growing at a steady-state, so is its gearbox market. Sales of SUVs and light commercial vehicle are growing. Market research tools signify the status symbol associated with SUV as a growth promoter and increased urban transportation in LCV.
The popularity and general acceptance of electric vehicles are growing. Favorable government policies like government subsidies and strict government emission norms are helping the sector grow.
Technological aspect of Automotive Transmission Market
According to the Global market database, based on the mode of operation gear transmission is segmented into automatic transmission, manual transmission, dual-clutch transmission, and continuously variable transmission. The automatic transmission consists of a complex setup of torque ratios that are computer-controlled to give the perfect gear ratio for a given speed. They provide smooth. They are most commonly used in the North American market. According to market research, due to their complexity, they are expensive, increasing the maintenance and replacement charges.
Manual transmission is one of the simplest and oldest modes of transmission. Since it’s simple in design, the cost of maintenance is low so is the cost of replacement. The market share is steadily declining due to the wider adoption of automatic transmission. According to market research tools, Europe is the biggest market for manual transmission.
According to the market database, Dual-clutch Transmission is the hybrid between automatic and manual transmission, even and odd gears have two separate clutches which allows faster shifts. Operations can be fully automatic or manual; they are mainly used in race cars and high-end sports cars. They are extremely complex resulting in frequent failures and replacement is costly. Dual clutch-type segment has 14% of the global automotive transmission market share.
Continuous Variable Transmission (CVT), The Drive experience of Continuous variable transmissions is the same as that of automatic transmission. But the principle behind is different, CVT uses a pulley system to maintain the gear ratio, car speed, and its computer adjusts the pulley ratio. According to market research tools, the primary advantage is the fuel economy
Market factors
According to market intelligence platforms, due to covid-19, there is an inclination among individuals to own personal cars. The passenger car segment is anticipated to grow rapidly. Due to growing awareness of climate change and favorable government policies aimed at faster EV adoption is further expected to drive the market. According to market research, The Netherlands has the highest EV adoption thanks to pro-electric policies. The market share of a manual transmission is expected to fall significantly due to growing interest in automotive transmission. Firms are offering automatic transmission in the passenger segment to attract customers.
According to the Global market database, The automotive transmission market is heavily dependent on the global automobile market. The auto market is seriously affected due to covid-19. But the demand is expected to catch up soon. As customer inclination towards personal vehicles increases, the market is projected to boom. Hybrids and EVs are other high growth potential areas.
European Market Perspective
According to the Global market database, Market penetration for the automatic transmission is low in Europe when compared to America. Fuel efficiency is critical in most European markets. The continent is home to some of the biggest auto players and has a well-established market. The passenger car segment is expected to be the major driving factor for the market. According to market research, EV acceptance is huge in Europe, this has attracted many outside players aiming to exploit the market. A major Chinese Electric car maker is eyeing Europe as a major market. A major American car player has a deadline to go all-electric by 2030. The future market projects look healthy in Europe.
