Market Trends of Automotive Transmission Industry
This section covers the major market trends shaping the Automotive Transmission Market according to our research experts:
Automatic Transmission Segment is Expected to Hold Major Share in the Market
Automated transmission technologies is an upgraded form of manual transmission that eliminates the need to contact the clutch pedal while shifting gears. Additionally, the increasing need for fuel-efficient transmission systems, as well as the elimination of the driver's behavioral effect on the vehicle, is driving the demand for automated manual transmissions (AMTs) and automatic transmissions (ATs). The growing move from mechanical to automated driving systems presents a significant opportunity for the market expansion of new transmission technologies. The ease of the AMT over the manual transmission is crucial since using the clutch is not part of the diver's work, which lowers fatigue. AMT is more fuel-efficient than automatic transmission, allowing more energy to travel to the wheels.
- In February 2021, ZF announced a USD 200 million investment in commercial vehicle gearbox manufacturing in North America. Beginning in 2023, ZF will manufacture the ZF Powerline 8-speed automatic transmission in Gray Court, SC, at the company's cutting-edge manufacturing plant. ZF also obtained a roughly USD 6 billion axle contract in July 2021 for the Marysville, Michigan factory to provide beam axles and axle drives for pick-up trucks until 2027.
Asia-Pacific is Expected to Witness the Fastest Growth Rate
The Asia-Pacific region is expected to lead the automotive transmission market, with China playing a significant role in the industry's growth. Asia-Pacific is the largest market for automotive equipment. With rising vehicle production in countries like India and China, as well as manufacturers' emphasis on improving production capacity, demand for automotive gear is expected to rise dramatically in the coming years.
Rising car demand entails increased emissions from the transportation sector. As a result, players in the automobile sector are working on optimizing vehicle performance to reduce emissions and provide sustainable mobility. The primary emphasis is on improving fuel economy and lowering emissions.
