Automotive Transmission Market Trends

Growth Drivers

• Rising Demand for Gearboxes -A transmission allows you to harness your vehicle’s engine energy when necessary. Through applying proper gear as per the need of speed, the transmission allows you to benefit from more of your car's power, rotating the wheels more slowly or quickly. The rising sales of gearboxes are expected to boost the automotive transmission market in the projected period. It was found that the sales volume of gearboxes and their parts for motor cars, tractors, and other motor vehicles, in 2018, amounted to more than 7 million sold items in the United Kingdom.
• Increasing Number of Wheels – The use of transmissions is spreading as more wheels are seen on the roads across the world. For instance, there are an estimated 37 billion wheels worldwide as of October 2022.
• Upsurge in the Production of Light Vehicles – Most consumer cars fall under the light motor vehicle (LMV) category, as their unladen weight does not exceed more than 5-7 tons.  It is also projected that 99 million light vehicles will be produced worldwide by 2025.
• Growing Volume of Autonomous Vehicles – AI-powered vehicles such as autonomous cars are gaining traction at a faster rate across the globe. These cars may be self-driving, and perform various other operations such as navigation. For instance, the ratio of autonomous vehicles is expected to account for around 12% of global car registrations by 2030.
• Rising Production of Truck Trailers – With strengthening supply chains, trucks are getting more powerful and fuel-efficient as they pull bigger trailers. The production of trailers was found to reach over 1 million units around the world in 2021.

 Challenges

• Requires Huge Investment
• High Cost of Various Components Required in a Transmission System
• Volatility in Material Cost – A transmission assembly is made of various electric and mechanical components. Price surges in raw materials such as steel, silicone, and other metals hamper the production of these products, which may stagnate demand and drive losses