Global Automotive Automatic Transmission Market - Growth, Trends, and Forecast (2018 - 2023)
The automotive automatic transmission market is forecasted to witness a 9.5% CAGR. Growing adoption for automatic transmission vehicles in major automotive markets, like China, India etc. is anticipated to drive the market.
Ease of driving experience
The automatic transmission has many advantages apart from performing the simple purpose of transferring an engine's power to the wheels. It increases the ease of driving by eliminating the need of constant shifting of gears by the driver especially in heavy traffic conditions. Automatic transmission systems are receiving acceptance among consumers worldwide, particularly from developing economies, as heavy traffic and overcrowded streets. In addition, the reduced maintenance cost of these systems compared to manual systems is also an added advantage.
The spike in the number of women drivers has prompted carmakers to innovate and design vehicles to suit women’s preferences. As women have become more involved in decision-making when buying a car, they want the car ride to be smooth and performance oriented. For women, safety features are more important than price. Automatic transmission, Anti-Lock Braking System (ABS) and run-flat tires are the key factors for women car buyers, therefore, building the market for the manufacturers of the automatic transmission to develop the ways to ease the driving experience.
Transmission system manufacturers are also motivated to provide cost-effective solutions without compromising on the performance of the vehicle. Dealers are focusing on globalization and evolving products to obey emission norms. For this reason, dealers are working with native partners, and OEMs are associating to develop new technologies to save improvement costs and at the same time offer effective technologies in the transmission market.
The other main reasons for opting for this technology are fuel efficiency, augmented power requirements, growing demand for vehicle performance and increasing comfort levels. OEMs are also accepting efficient technologies to fulfill various regional emission norms in developed economies. The above-mentioned factors have driven the R&D of transmission technologies. The growing vehicle production, rising demand for reduced carbon footprint technologies, improved driving experience in terms of gear shifting, better acceleration, rise in fuel efficiency provided by these systems, and reduced CO2 releases by the vehicle have compelled progress of the market. However, higher preliminary cost and low implementation rates in high volume markets have restrained the development of new technologies.
Geographical Market Analysis
In terms of geographic regions, the Americas will be the major revenue contributor to the automotive AT system market throughout the forecast period. The US and Canada are the two crucial automotive markets for performance-driven cars in North America. The high demand and sales of sports sedans and high-performance cars is expected to drive the growth of the market in the region.
The Mordor Intelligence analysis on the global automotive automatic transmission (AT) system market identifies that the rising popularity of the AMT system in the developing economies to be one of the major factors that is expected to have a positive impact on the growth of the market. The AMT system has emerged as a cheaper and less sophisticated alternative to hydraulic systems from potential developing economies of Asia, such as India and Myanmar. Numerous global automakers are offering such technologies even in their entry-level cars, considering the demand for such systems as these economies are facing traffic issues for a long period of time. Japanese automakers, such as Suzuki and Honda, are offering AMT systems as an option in most of their product portfolios. Moreover, the technology is around 40%-50% cheaper than the other hydraulic systems. The manufacturers of the AMT technology are particularly focusing on capturing the automotive market that is driven by lower-middle class and middle-class families in the developing economies.
Major Players: DAIMLER AG, CONTINENTAL AG, EATON CORPORATION, AISIN SEIKI, DELPHI AUTOMOTIVE amongst others.
Key Developments of the Market:
March 2018: Jaguar Land Rover India launches Range Rover Evoque Convertible with automatic transmission system
Reasons to purchase this report
Provides latest insights into the Automotive Automatic Transmission Market
Gives a detailed analysis of key competitors in the Automotive Automatic Transmission Market
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
Detailed analysis on the region that is expected to witness the highest growth
Identifying the latest developments, market shares, and strategies employed by the major market players
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