Europe Automotive Transmission Market Outlook, 2029

The European automotive transmission market represents a mature and dynamic sector, playing a crucial role in the efficient and smooth operation of vehicles across the continent. A strong emphasis on fuel efficiency, stringent environmental regulations, and a diverse car manufacturing base contribute to the unique characteristics of this market. Beyond these well-known aspects, the European automotive transmission landscape presents some fascinating intricacies when it comes to aftermarket considerations, reshoring efforts, and the rise of electric vehicles (evs). The European automotive transmission market is characterized by a robust and well-established aftermarket sector.

This is due in part to the large population of vehicles on European roads, many of which rely on automatic or automated manual transmissions that require periodic maintenance and potential repair over their lifespan. A network of independent repair shops, parts suppliers, and transmission specialists caters to this aftermarket demand. Furthermore, the concept of remanufactured transmissions has gained significant traction within the European market. Remanufactured transmissions involve the process of meticulously disassembling, cleaning, inspecting, and replacing worn-out parts in used transmissions.

This process can offer a cost-effective and environmentally friendly alternative to purchasing entirely new transmissions, particularly for older vehicles. The presence of established remanufacturing facilities and a growing acceptance of remanufactured transmissions contribute to the unique dynamics of the European automotive transmission aftermarket.

The European automotive transmission market is witnessing a growing trend towards reshoring of production facilities. This phenomenon is driven by several factors. Firstly, rising labor costs and potential supply chain disruptions in some traditional manufacturing hubs have prompted European car manufacturers to re-evaluate their sourcing strategies.

Secondly, government initiatives in some European countries offer incentives to encourage the reshoring of manufacturing capabilities, particularly for critical automotive components like transmissions. This focus on domestic production aims to bolster supply chain security, create jobs, and potentially reduce reliance on overseas suppliers. Additionally, reshoring efforts can facilitate closer collaboration between car manufacturers and transmission producers, leading to more efficient development cycles and potentially faster integration of innovative transmission technologies within European vehicles. The rise of electric vehicles (evs) presents a unique consideration for the future of the European automotive transmission market.

While traditional transmissions are not required for pure evs powered by electric motors, some hybrid and plug-in hybrid electric vehicles (phevs) utilize specialized transmissions to optimize performance and efficiency. The development and production of these next-generation transmissions necessitate a focus on innovation and collaboration within the European market. By fostering a strong domestic supply chain for ev transmissions, coupled with continued investment in research and development, Europe can position itself as a leader in this evolving automotive landscape. In conclusion, the European automotive transmission market is more than just a sector focused on new vehicle production.

According to the research report, the Europe automotive transmission market is expected to add more than USD 54 billion from 2024-2029. A defining aspect of the European automotive transmission market is the stringent regulatory environment. European union (eu) regulations mandate strict emission reduction targets for new vehicles. These regulations, along with national-level fuel efficiency standards, exert a significant influence on the types of transmissions offered by manufacturers. For instance, the growing popularity of dual-clutch transmissions (dcts) in Europe can be partly attributed to their ability to deliver exceptional fuel efficiency while maintaining a sporty driving experience.

Furthermore, the EU mandates that all new cars sold within the region come equipped with start-stop technology, a feature that functions most effectively with automatic transmissions. Understanding and complying with these regulations is paramount for transmission manufacturers seeking to gain a foothold in the European market. Beyond the initial vehicle sale, the European automotive transmission market extends into the realm of aftersales considerations. The concept of extended producer responsibility (epr) plays a significant role, mandating car manufacturers to take responsibility for the end-of-life management of their vehicles and components, including transmissions.

This regulation incentivizes the design of transmissions with longer lifespans, easier serviceability, and the use of readily available spare parts. Furthermore, the established network of authorized repair shops and independent garages across Europe necessitates a robust supply chain for genuine transmission parts and remanufactured components. Remanufacturing of transmissions has emerged as a sustainable and cost-effective solution within the European market. This process involves refurbishing used transmissions to meet stringent quality standards, offering a reliable and eco-friendly alternative to new transmissions.

Manufacturers and parts suppliers that can cater to this growing demand for remanufactured transmissions are well-positioned to gain a competitive edge within the European market. Marketing strategies for automotive transmissions in Europe require a nuanced approach to price segmentation. While premium car manufacturers may equip their vehicles with high-performance, feature-rich automatic transmissions commanding a higher price point, cost-consciousness remains a significant factor, particularly in budget-oriented segments.

For these segments, manufacturers may offer base-level automatic transmissions or even continue to provide manual transmissions as an option to cater to price-sensitive consumers. Subscription-based service models for advanced transmission features, such as connected functionalities that monitor transmission health and optimize performance, may also emerge as an attractive option in the future European market.

Market Drivers:

• Stringent emissions regulations and the rise of eco-automatic transmissions: The European automotive transmission market is heavily influenced by the continent's stringent emissions regulations. The European union (EU) enforces some of the world's strictest co2 emission targets for new passenger cars, pushing car manufacturers to adopt technologies that improve fuel efficiency and reduce overall vehicle emissions. This has fueled the rise of eco-automatic transmissions within the European market. These advanced automatic transmissions (at) are specifically designed to optimize fuel economy and minimize energy losses. They often feature a higher number of gears, improved control systems, and lightweight materials, enabling smoother gear changes and a wider range of gear ratios for efficient engine operation across various driving situations. The growing popularity of eco-ats caters to the European consumer's desire for comfort and convenience while adhering to stricter environmental regulations, acting as a significant driver for the European automotive transmission market.
• Growing popularity of suvs and dual-clutch transmissions (dct): The European automotive landscape has witnessed a surge in the popularity of sport utility vehicles (suvs) in recent years. These larger, heavier vehicles often require transmissions that can handle increased torque loads and deliver smooth power delivery. Dual-clutch transmissions (dct) have emerged as a popular choice for European suvs due to their inherent advantages. Dcts combine the efficiency of an automatic transmission with the performance of a manual transmission, offering quick gear changes and a more engaging driving experience. Furthermore, advancements in dct technology have addressed concerns regarding drivability and fuel efficiency, making the m a compelling option for European suv drivers seeking a blend of comfort, performance, and fuel economy. This growing demand for dcts within the suv segment is a significant driver for the European automotive transmission market.

Market Challenges:

Competition from low-cost asian manufacturers and counterfeit parts: The European automotive transmission market faces competition from low-cost asian manufacturers, particularly for replacement parts and remanufactured transmissions. These offerings may be significantly cheaper than those from established European brands. While cost-conscious consumers may be attracted to these options, the quality and reliability of such parts can be questionable, potentially leading to safety concerns and increased repair costs down the line.

Furthermore, the presence of counterfeit parts can pose a challenge, as they often fail to meet safety and performance standards. Combating these issues requires stricter enforcement of regulations, increased consumer awareness regarding the importance of genuine parts, and continued innovation from European manufacturers to deliver competitive pricing alongside high-quality transmissions.

High cost of advanced transmission technologies and integration challenges: The European automotive transmission market faces a challenge due to the high cost associated with developing and integrating advanced transmission technologies. Eco-automatic transmissions, x-by-wire compatible systems, and advanced dcts often utilize complex control units, lightweight materials, and intricate manufacturing processes. This translates into higher production costs for transmission manufacturers.

Furthermore, the successful integration of these advanced transmissions with various vehicle systems and powertrains presents an additional challenge. Car manufacturers and transmission suppliers need to collaborate closely to ensure seamless integration and optimize overall vehicle performance, requiring significant investments in research, development, and testing.

Based on the report, the automotive transmission market is segmented into manual, automatic, automated manual transmission (amt) and others (cvt, dct)

Automatic transmissions (at) hold the leading position within the European automotive transmission landscape. This dominance can be attributed to several factors. Firstly, a growing consumer preference for comfort and convenience, particularly in urban environments with stop-and-go traffic, has fueled demand for automatics. Secondly, advancements in automatic transmission technology, like multi-speed gearboxes and improved fuel efficiency, have addressed historical concerns about performance and fuel economy. Thirdly, the rise of powerful yet fuel-efficient engines has diminished the relative advantage of manual transmissions in achieving optimal fuel efficiency, particularly for larger vehicles. However, automatics are not without drawbacks.

Their higher upfront cost and potentially increased maintenance requirements compared to manuals can be a deterrent for some budget-conscious European car buyers. Despite the dominance of automatics, manual transmissions (mt) continue to hold a significant share in the European market, particularly in certain regions. Eastern Europe and southern Europe exhibit a stronger preference for manuals due to their lower cost, perceived simplicity, and driver engagement. Additionally, the traditional association of manual transmissions with fuel efficiency remains a factor, especially for smaller, budget-oriented vehicles. However, the future of manual transmissions in Europe appears uncertain.

Stringent emissions regulations and the increasing adoption of driver-assistance technologies may gradually erode the market share of manuals in favor of automatics with their inherent ability to optimize engine performance and fuel efficiency. Beyond automatics and manuals, the "others" segment within the European automotive transmission market encompasses two emerging technologies: continuously variable transmissions (cvt) and dual-clutch transmissions (dct). Cvts offer smooth gear changes and potentially better fuel efficiency compared to traditional automatics. However, their "rubber band" effect during acceleration can be a turn-off for some European drivers who prioritize a more dynamic driving experience.

Dcts, combining the efficiency of an automatic with the responsiveness of a manual, are gaining traction in the European premium car segment. Their ability to deliver quick gear shifts and sporty performance appeals to a niche market of driving enthusiasts. While both cvts and dcts offer potential benefits, their higher production costs and complexity compared to traditional automatics limit their widespread adoption within the European market at present.

According to the report, the automotive transmission market is segmented into passenger vehicles, lcvs and hcvs

Passenger cars, traditionally equipped with internal combustion engines (ices) and automatic or manual automotive transmissions, continue to dominate the European automotive transmission market. However, stringent EU regulations aimed at reducing greenhouse gas emissions are driving a rapid transition towards electric vehicles (evs). Evs, which rely on electric motors and battery packs for propulsion, do not require traditional automotive transmissions. This presents a challenge for established automotive transmission manufacturers, necessitating strategic investments in research & development (r&d) to cater to the growing ev market.

Technologies like single-speed reduction gears or multi-speed automotive transmissions specifically designed for evs are gaining traction. Lcvs, encompassing vans and light trucks used for commercial and personal applications, are experiencing a surge in demand across Europe. This growth is fueled by the burgeoning e-commerce sector and the increasing popularity of home delivery services. Lcvs typically utilize manual or automated manual automotive transmissions (amts) due to their focus on cargo capacity, fuel efficiency, and affordability. However, as these vehicles become heavier with larger payloads, a trend towards automatic automotive transmissions for improved drivability and driver comfort is emerging.

Additionally, the rise of electric lcvs mirrors the passenger car segment, with manufacturers developing specialized electric powertrains and automotive transmissions optimized for urban delivery routes. Heavy commercial vehicles (hcvs), including trucks and buses, represent a crucial segment within the European automotive transmission market. Traditionally, hcvs have relied on robust and reliable manual automotive transmissions to handle the high torque demands of heavy loads. However, the increasing adoption of automated manual automotive transmissions (amts) and automated automotive transmission technologies like dual-clutch automotive transmissions (dcts) is gaining momentum.

These advancements offer improved fuel efficiency, reduced driver fatigue, and smoother gear changes, contributing to overall operational efficiency for fleet operators. Additionally, with the nascent development of hydrogen fuel cell and electric powertrains for hcvs, entirely new automotive transmission technologies are being explored to optimize performance and range for these alternative fuel options.

Based on the report, the major countries covered include Germany, the uk, France, Italy, Spain, Russia, and the rest of Europe

Within the European automotive transmission market, Germany asserts itself as the undisputed leader, boasting a dominant market share and a rich history of automotive innovation. This leadership position stems from a confluence of factors. Firstly, Germany is home to a well-established and globally renowned automotive industry, encompassing leading car manufacturers like volkswagen group (vw), daimler, and bmw. These manufacturers prioritize advanced and efficient transmission technologies, driving research and development efforts within the German transmission market. Secondly, Germany possesses a highly skilled workforce with a strong engineering tradition.

This expertise translates into a robust supply chain for transmission components and manufacturing capabilities that cater to the specific needs of domestic and international carmakers. Furthermore, consumer preferences in Germany favor premium and high-performance vehicles, often equipped with sophisticated automatic transmissions. Automatic transmissions are generally considered more convenient for navigating the denser urban environments common in many European countries. Additionally, stringent fuel-efficiency regulations in Europe have spurred advancements in automatic transmission technology, leading to the development of fuel-saving features like multi-gear transmissions and automatic start-stop systems.

German manufacturers have been at the forefront of these advancements, offering efficient automatic transmissions that meet the demands of both consumers and regulators. However, Germany's leadership is not without challenges. The rise of electric vehicles (evs) disrupts the traditional transmission landscape. While some evs utilize single-speed reduction units, many higher-performance models are still adopting multi-speed transmissions, presenting an opportunity for German transmission manufacturers to adapt their expertise to the evolving needs of the automotive industry. Additionally, the increasing popularity of car-sharing services and a potential shift towards smaller, more fuel-efficient vehicles in urban areas could put downward pressure on the demand for high-performance transmissions typically favored in the German market.

Years considered in this report:

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in the report:

• Automotive Transmission market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendations

By Transmission Type:

• Manual
• Automatic
• Automated Manual Transmission (AMT)
• Others (CVT, DCT)

By Vehicle Type:

• Passenger Vehicles (passenger cars, Two wheelers, Suv,..)
• LCVs
• HCVs

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, the analysts made primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once they acquired the primary data, they started verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Automotive Transmission industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

Keywords:

Automotive Transmission, Manual, Automatic, Automated Manual Transmission (AMT), Others (CVT, DCT), Passenger Vehicles (passenger cars, Two wheelers, Suv,..), LCVs, HCVs.