According to the latest research report titled “Dual Clutch Transmission Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to grow from US$ 12,576.10 million in 2021 and is projected to reach US$ 20,372.75 million by 2028; it is estimated to grow at a CAGR of 7.1% from 2021 to 2028.
Increasing Concerns About Fuel Economy and CO2 Emission to Drive Market During Forecast Period
A DCT combines the convenience of an automatic transmission with the fuel efficiency of a manual transmission. The 21st century has observed refinement in vehicle design in terms of problems relating to aerodynamics. As per the US Department of Transportation (DoT) figures, the US has approximately 276,100,000 vehicles running on the roads as recorded during 2018. Furthermore, few hundreds are added every day. It is also worth noting from the Department of Energy (DoE) statistics that 16% of the energy produced in the US is consumed in overcoming the drag of road vehicles. The global scenario is not much different. Therefore, there is enormous scope for improving the aerodynamics of cars to conserve depleting oil reserves. Dual clutch transmissions (DCTs) refer to the double friction clutches; they are designed and operated fully automated in vehicles.
North America is among the worst-hit regions by the COVID-19 pandemic. The US, Canada, and Mexico have witnessed a significant rise in the number of COVID-19 infected patients. The continuous growth of infected individuals has led the North American governments to impose lockdowns. The majority of the manufacturing plants are shut down, municipalities are functioning slowly compared to the past, and the automotive industries are halted. The COVID-19 outbreak has negatively impacted the automotive sector in the region. Assembly plant closures are adding to the intense pressure on an increasingly distressed North American supply base in the US. Companies are at risk of defaulting on covenants, potentially requiring banks to step in. Further, according to the Accenture website data, sales forecast for the US estimated a decline of 9% annually as consumers are not buying new vehicles due to the pandemic. Thus, limited supply of vehicle parts, shutdowns of manufacturing plants, supply chain disruption, and drop in new vehicle sales have negatively impacted the North America dual clutch transmission market.
However, in 2021, with the relaxation of lockdown restrictions and the beginning of vaccination processes, automotive production has started again, and people are looking for purchase, which will help create a favorable scenario for the North America dual clutch transmission market.
Several companies have adopted different strategies to continue their operations and increase their annual sales statistics. Magna International Inc. has received its largest production order for transmission technologies from BMW Group. The contract includes all front-wheel-drive dual clutch transmissions, including hybrid transmission variants. Magna International Inc. manufactured a new dual clutch 8-speed transmission for Ferrari SF90 Stradale, Ferrari’s first plug-in hybrid and one of the most powerful sports cars. This new transmission system aims to provide improved torque and shifting.
Key Findings of Study:
The global dual clutch transmission market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). North America is expected to hold a significant share of the market, owing to the region’s government policies for its automotive sector, coupled with one of the largest transportation infrastructures across the world. As per the International Organization of Motor Vehicle Manufacturers (OICA), the US is the largest manufacturer of commercial vehicles worldwide. In 2020, the country manufactured 8,156,769 units of new commercial vehicles. Further, the commercial vehicle transmission system in APAC is expected to grow at a notable rate as the region is witnessing rapid industrialization and urbanization, causing infrastructure development and rising demand for commercial vehicles. As per the OICA report, China is the second-largest country in the world to manufacture commercial vehicles. In 2020, the country manufactured 208,747 new commercial vehicles and is expected to dominate the market in the coming years. The market growth in Europe is attributed to the significant use of dual clutch transmission in the automobile industry. Also, the MEA and SAM are contributing significantly to the global dual clutch transmission market growth.
