The top three players operating in the global automotive transmission market are Continental AG, ZF Friedrichshafen, and Allison Transmission, observes Transparency Market Research in a new study. These players collectively held a share of 64% in the global market as of 2014. The leading players have consolidated their leading position via strategic alliances and intense research and development activities to develop transmission systems pivoted on fuel efficiency and driving comfort.
“Companies need to keenly focus on developing technologically sound products that deliver high performance,” says the lead author of the report. Products such as ZF’s novel 9-speed automatic transmission are a step in this direction. Such developments along with transmission systems that match up to the international quality standards will be the key strategies adopted by players during the forecast period to tread a progressive trajectory during the forecast period.
Demand for Automatic Transmission in Developing Countries Bolsters Market Growth
Automotive transmission systems are critical components of vehicles, largely determining their fuel efficiency. The escalating fuel prices have propelled the demand for automotive transmission in the recent past as consumers are seeking enhanced solutions to achieve maximum fuel efficiency. Thus, the technological advancements seen in the invention of 9-speed automatic transmission, dual shafts gearboxes (DSG), and continuous variable transmission (CVTs) have collectively fueled the global market in the past decade.
The global market has also been thriving on the integration of automatic transmission in entry-level cars. This trend is being emphasized by vehicle buyers in developing countries such as Mexico, Brazil, and India. Comfort and convenience offered by automatic transmission are augmenting the demand for such vehicles in these countries. Furthermore, growing preference for simpler driving techniques on congested roads is also propelling the demand for automatic transmission market.
Lack of Awareness about Advanced Transmission Holds Back Market Growth
The global market is being hampered by the lack of awareness about the benefits of advanced transmission technology in the volume markets. Thus, a market such as India is still dominated by manual transmission vehicles, making it difficult for manufacturers to produce and sell advanced transmission at lower prices.
Furthermore, the high cost of technologically advanced transmission systems is also expected to restrain the market during the forecast period. However, the development and emergence of CVT will offer a plethora of opportunities to the global market as these promise maximum fuel efficiency to vehicles.
Passenger Cars to Put Automotive Transmission Market in Top Gear during Forecast Period
According to TMR, the global automotive transmission market will represent an opportunity worth US$181.8 mn by 2021 as compared to US$119.7 mn in 2014. The global market is expected to rise at a CAGR of 5.9% between 2015 and 2021. The passenger car segment will lead the global market due to higher sales of passenger cars across the globe. This segment of the global automotive transmission market will be worth US$81.5 mn by 2021. In terms of geography, Asia Pacific is expected to take the lead with a robust CAGR of 6.6% during the forecast period.
This review is based on Transparency Market Research’s report, titled “Automotive Transmission Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2021.”
- Global automotive transmission market expands at a CAGR of 5.9% between 2015 and 2021
- Passenger cars segment estimated to reach US$81.5 mn by 2021, making it the leading segment
- Asia Pacific automotive transmission market to emerge as key contributor, to exhibit CAGR of 6.6% 2015-2021
Key segments of the Automotive Transmission market:
Automotive Transmission Market: By Transmission Type
Automotive Transmission Market: By Fuel Type
Automotive Transmission Market: By Industry Application
- Passengers Cars
- Off Road Vehicle
- Construction Equipment
- Defense Vehicles
- Farm Tractors
Automotive Transmission Market: By Geography
- North America
- United Kingdom
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Rest of the World
- South America
- Middle East
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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