|Base Year Market Size
|USD 46.12 Billion
|Forecast Year Market Size
|USD 78.12 Billion
|Fastest Growing Market
The global transmission control system market size was worth USD 46.12 billion in 2022. It is projected to reach USD 78.12 billion by 2031, growing at a CAGR of 6.1% during the projected period (2023-2031). The market for transmission control systems is projected to witness growth as a result of the increasing consumer demand for automated transmissions in the automotive industry.
A transmission control system refers to a computer module that is tasked with the regulation and execution of shifting and clutch operations in the automatic transmission of a vehicle. This is achieved through the processing of electrical signals received from the electronic control unit (ECU) and a range of sensors, including accelerometers, brake pedal position sensors, and transmission fluid temperature sensors. The input parameters of the transmission control system encompass various components such as the cruise control system, vehicle speed sensor, wheel speed sensors, and fluid pressure sensors. Moreover, the output parameters of the system comprise the torque converter clutch (TCC), pressure control solenoids, and shift lock.
The shift from manual to automatic transmission is driven by the need for greater comfort and safety. Driving with an automatic transmission is safer, more comfortable, more fuel-efficient, and all-around better. The automatic transmission eliminates the need for a driver to shift gears or clutch, which is incredibly comfortable, particularly in cities with stop-and-go traffic. In order to guarantee optimal performance, the transmission control unit also takes information from an engine control unit (ECU) and input from car sensors.
Additionally, the availability of automatic transmissions and all associated parts from top automakers encourages the use of these systems in cars with automatic transmissions and transmission control units. For example, the car manufacturer Bosch provides a wide range of systems and parts for both fully and semi-automatic gearboxes. Therefore, the market for transmission control systems is expected to expand due to the growing demand for automatic transmissions in automobiles.
Autonomous vehicles have been increasingly popular in recent years because of developments in connected infrastructure, enhanced safety, and decreased traffic congestion. LiDAR, RADAR, a camera, and GPS are just some of the sensors that can be found in an autonomous vehicle. Both long-range (giving details of high-speed oncoming cars) and short-range (offering details of moving things near the vehicle) sensors allow the vehicle to detect any object or impediment in its path, thereby rendering accidents impossible. Congestion could be reduced with the help of autonomous vehicles as well.
A 2017 study from the University of Illinois demonstrated that an autonomous vehicle might reduce traffic jams by managing its speed and outperforming other vehicles in the same situation. While fuel consumption rises as cars slow down or accelerate again, it also decreases with autonomous vehicles. Transmission control systems are crucial when shifting gears based on the circumstances and traffic. As a result, the market for transmission control systems is expanding due to the growing popularity of autonomous vehicles.
The transmission control system resembles an electronic control unit; however, it assumes the crucial role of ensuring the efficient functioning of a contemporary transaxle or transmission. Many of the sensors used to provide output to transmission components and receive input to guarantee the best possible transmission performance are expensive in the current market. Moreover, the engine control unit (ECU), which is quite expensive, provides the transmission control unit with some information in addition to direct input from sensors.
Furthermore, the replacement cost of the transmission control unit is between USD 600 and USD 750, and the transmission control module is priced between USD 580 and USD 610. Thus, the high cost of transmission control systems and related components is anticipated to hinder the market's growth.
Major automakers are devoting considerable resources to perfecting automatic transmissions with active shift control. Hyundai Motor Group, a car manufacturer, is one such company that has pioneered the use of hybrid and active shift control (ASC) transmissions. By tracking gear changes as frequently as 500 times per second and modifying the gearbox's coronation speed as needed, this revolutionary transmission system maximizes transmission efficiency. This technology also aids in enhancing the fuel economy of vehicles by reducing the time of gear shifts by 30%.
Additionally, ASC technology enables hybrid vehicles to take charge of shifting gears by introducing novel software logic to the HCU. As a result, the electric motor can be adjusted for optimal gearbox-to-engine alignment, facilitating a more rapid and smooth gear change. As a result, manufacturers of active shift control transmission systems can look forward to a significant growth opportunity.
Region-wise, the global transmission control system market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant global transmission control system market shareholder and is estimated to exhibit a CAGR of 7.4% during the forecast period. Asia-Pacific includes countries such as China, India, Japan, South Korea, and the rest of Asia-Pacific. The Asia-Pacific region holds the dominant position in the worldwide market. The regional companies are expected to sustain their competitive advantage during the projected timeframe due to the introduction of novel vehicles equipped with advanced technologies, such as automatic transmission control systems. Moreover, the rise in demand for automatic transmission in vehicles and the production of active shift transmission is anticipated to propel the market's growth and offer remarkable growth opportunities for the players in the transmission control system market.
Europe is estimated to exhibit a CAGR of 5.5% during the forecast period. Europe includes the UK, Germany, France, Italy, and the Rest of Europe. The development of vehicles focusing on features such as automatic transmission, owing to increased fuel efficiency due to precise timing in gear shift, boosts the growth of the transmission control system market in Europe. Moreover, prominent players in the automotive industry are offering a novel lineup of automobiles equipped with autonomous capabilities, including automatic transmission, which is expected to propel the expansion of the market. For instance, a German automobile manufacturer, Volkswagen, introduced the new Arteon R-Line Edition, which offers a seven-speed, dual-clutch automatic transmission.
North America is the third largest region. The countries analyzed under this region are the U.S., Canada, and Mexico. The rise in demand for vehicles with automatic transmission features is anticipated to propel the growth of North America's transmission control system market. Likewise, leading luxury automobile manufacturers in the region are introducing a new range of vehicles with automatic transmission control modules, which, in turn, is expected to propel the growth of the transmission control system market in North America. For instance, in January 2020, a multinational automobile provider, BMW, launched the new BMW X2 xDrive25e, which has a six-speed Steptronic automatic transmission.
|By Vehicle Type
|Continental AG Robert Bosch BorgWarner Delphi Technologies Denso Corporation Dana Limited Infineon Technologies Eaton Allison Transmission Inc. ZF Friedrichshafen
|U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
|China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
|Middle East and Africa
|UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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The global transmission control system market is segmented based on installation and vehicle type.
On the basis of installation, the global market is divided into integrated and stand-alone.
The integrated segment dominates the global market and is estimated to grow at a CAGR of 5.31% during the forecast period. An electronic set and electrical components, including a transmission control unit, sensors, solenoids, and a hydraulic valve body, are incorporated into a single module to form an integrated transmission control system. The automatic transmission's oil pan houses this transmission system, which is regularly purged with transmission fluid to maintain its coolness. In addition, leading engineering companies are introducing a new range of commercial vehicles with the addition of features such as integrated transmission control systems. For instance, in December 2019, Sandvik, an engineering business, unveiled a novel size-class integrated transmission to enhance productivity and attain optimal speed and efficiency across diverse operating situations.
By vehicle type, the global market is categorized into passenger vehicles, commercial vehicles, and electric vehicles.
The passenger segment owns the highest transmission control system market share and is estimated to grow at a CAGR of 5.8% during the forecast period. Passenger car is the largest segment in the vehicle type, owing to the demand for vehicles with automatic transmission and higher sales of passenger vehicles compared to other vehicles. Leading luxury vehicle manufacturers are launching a new range of luxury passenger cars, which, in turn, is anticipated to propel the growth of the transmission control system market for the passenger car segment. For instance, in January 2019, Audi, a luxury vehicle manufacturer, launched its new Audi Q8 in India, which has an eight-speed automatic transmission.
Commercial vehicles installed with the automatic transmission system are studied under this scope. The rising trend of truck platooning and autonomous vehicles boosts the growth of this segment. In addition, the market for transmission control systems in commercial vehicles is expected to have notable expansion due to the introduction of commercial vehicles equipped with automatic transmission capabilities. In August 2019, the British automotive company MG introduced a new model, namely the MG Extender pickup truck, with rear-wheel drive and a 6-speed automated transmission.