Automotive Transmission Systems: A Global Strategic Business Report
San Jose, California (PRWEB) April 16, 2012
Follow us on LinkedIn – As an important system that enables operation of an automobile, automotive transmission systems represents a robust market with opportunities closely following automotive production trends. An assembly of gears, automotive transmission system is an important part of the engine system that transmits the engine’s power output to the driving axle. The transmission system is designed to transmit power from the engine to the wheels in accordance to a wide range of operating speeds. i.e. the systems supplies torque at narrow operating speeds by reducing the higher engine speed in sync with the slower wheel speeds. The system also provides maximum power required when the vehicle is operated at high speeds.
Growth in the market will be driven by stringent emission norms implemented by governments worldwide to reduce pollution, which in turn will create opportunities for advanced fuel efficient transmission systems such as CVT, IVT, AMT, IHAT and DCT. Technology developments in powertrain electronics including (engine and gearbox combination) will help benefit the automotive transmission market. Dramatic improvements in efficiency of automatic transmission, particularly through developments in torque converter, additional gear speeds and in start-off and shift quality through electronic control, have already increased the appeal for automatic transmission. Application of electronic components, especially semiconductors, in engine and transmission is escalating each year and is shaping the future of transmission systems, driving the market acceptance of advanced automatic transmissions such as AMT, CVT and IVT. Sophisticated electronic controls in transmission systems such as CVT and AMT ensure improvement in engine efficiency, smoother ride and lesser emission rates. Electronics has also become critical for reducing carbon-di-oxide emission rates in automotive vehicles.
Automatic Transmission systems (ATS) represents the second largest product segment in the global automotive transmission systems market, closely following the manual transmission systems segment in terms of volume sales. Adoption of ATS will be driven by the need to improve fuel efficiency in the face of mounting oil prices, higher usage of turbochargers and chain-driven engine timing systems, increases in sales of all-wheel drive vehicles, and need to reduce road vehicle emissions (especially CO2), among others. In North America, ATS represents the largest product segment. In the US, where the market for automatic transmission vehicles has saturated, further growth is expected from the emergence of new automatic concepts, as technology evolves along with the cost/benefit ratio. The technology, which has always been a major revenue contributor in the automotive transmission systems market in the US, Canada and Japan, is now fast gaining market share in Europe, Asia-Pacific and Latin American markets.
While the automotive industry the world over is recovering from the 2007-2009 recession, the industry in Europe is running into fresh set of challenges. The industry in the region currently continues to vacillate between optimism and fear, marring sentiments in an otherwise recovering market. Nervous over the play out of the sovereign debt crisis drama, the domestic industry is facing immediate hurdles, such as, credit restriction, consumer indecisiveness, fears of slowing vehicle sales, high labor costs, and possible collapse of consumer confidence in the event of escalation in the severity of the debt crisis. The heat raised by the Euro debt crisis in the auto industry in the EU is reflected by the growing concerns voiced by auto majors like Ford, General Motors, Fiat, over the volatile and fluctuating profits being recorded in the region. At the extreme pessimistic end of the spectrum, bearish market sentiments indicate that multiple defaults by debt ridden economies could trigger a collapse of the Euro as a common currency. The return to local currency, although currently not seen as likely, can spell doom pushing the automobile industry into a complete meltdown like the one witnessed during the 2007-2009 recession.
Currently however, despite all the economic risks carried by the debt crisis and the numerous potential outcomes of the crisis, immediate term outlook remains positive, mirroring the guarded optimism prevailing over the financial bailout strategies designed to restore market confidence. While no easy and immediate solutions exist for Europe’s macroeconomic imbalances, current economic data leaves room for hope. For instance, Germany’s relative resilience in handling the euro zone crisis is helping strengthen confidence levels. Encouraging economic data such as comparatively lower levels of unemployment, better trade surplus accounts, and stable industrial output and manufacturing indices, indicate that the real German economy has not yet been impacted by the crisis as feared. Market sentiments are additionally strengthened by the fact that the sovereign debt crisis has not yet been transmitted to the real economy as is indicated by the relative stability of the value of the Euro currency.
Against this backdrop, consumer spending which continues to remain a key pillar of growth in the automotive & automotive related industries, which although currently jittery and sensitive to vacillating market sentiments, is nevertheless expected to hold up in the year 2012. Immediate production cutbacks in the region are not seen as likely, given the yet patchy slowdown in auto sales. For instance, there continues to exist pockets of strength in regions, such as in Germany and the UK alongside the quarterly weakness witnessed in France, Spain and Portugal. The odds are in favor of the automobile industry given the current guarded optimism over the government’s latest attempts to rein in the debt crisis, which in effect discounts the impact of a possible Eurozone crisis, which is still not confirmed as a technical recession. Also, the 2007-2009 recession inspired adoption of leaner inventory holding strategies and restructured cost bases, and shrewd expansion into developing countries to minimize risk exposure in domestic markets, now has the automotive industry in the region better equipped to weather a possible Eurozone slowdown. Nevertheless, auto makers in the region remain concerned and are continuing to lobby for a quicker intervention of the European leaders in resolving the debt crisis. Currently, however production continues to hold up even in the face of weaker than expected growth and optimism remains with no downgrade in the outlook for auto production.
As stated by the new market research report on automotive transmission systems market, Asia-Pacific represents the largest market worldwide in terms of unit sales. The region also represents the fastest growing market trailing a projected CAGR of 8.6% over the analysis period 2009 through 2017.
Major players in the marketplace include Aisin Seiki Co. Ltd., Allison Transmission Inc., BorgWarner Inc., Eaton Corporation, Fuji Heavy Industries Ltd., Honda Transmission Manufacturing of America Inc., JATCO Ltd., Magna International Inc., Ricardo Plc, Torotrak Plc., Torvec Inc, and ZF Friedrichshafen AG.
The research report titled “Automotive Transmission Systems: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in volume sales for major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia & Rest of Europe), Asia-Pacific, Latin America and Rest of World. Key Product segments analyzed include Manual Transmission Systems, Automatic Transmission Systems, Automated Manual Transmission Systems, and Continuously Variable Transmission Systems, among others.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Global Industry Analysts, Inc.
Web Site: http://www.StrategyR.com/