Transmission Repair Market
Transmission Repair Market Overview
The Transmission Repair Market is forecast to reach $292.1 million by 2026, growing at a CAGR of 3.9% from 2021 to 2026. Transmissions play a major role in a vehicle’s operation, hence the significant growth in automotive production is set to impact the market growth rate. The significant adoption of periodic maintenance services for the power transmission systems in vehicles in order to increase the vehicle age is set to boost the market growth rate during the forecast period 2021-2026. The hybrid Transmission Market primarily is driven by the growing demand of hybrid electric vehicles. The hybrid electric vehicles provide several benefits such as low harmful gases emission, less usage of gasoline, and others. The increasing prices of gasoline and global warming are driving the use of electrified vehicles. Moreover, governments of different countries are also promoting the use of electric vehicles, by providing relaxation in taxes, which is going to boost hybrid transmission for both transmission general repair and transmission overhaul market. Additionally, companies such as BAE Systems, BorgWarner Inc., Continental, Delphi, DENSO are working on improving the efficiency and reducing the cost of hybrid and internal combustion engine transmission systems which is going to boost the hybrid transmission market.
Report Coverage
The report: “Transmission repair Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Transmission repair market.
By Repair Type: Transmission general repair, Transmission overhaul
By Vehicle Type: Passenger car, light and heavy commercial vehicles
By Vehicle Fuel Type: Electric Vehicle, Hybrid Vehicle, Diesel Vehicles, Petrol Vehicles and Others
By Component: Fly wheel, Clutch plate, oil pump, axle, gear, pressure plate, fluid, O-ring, gasket and seal, transmission filter
By Geography: North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, South Korea and Others), South America(Brazil, Argentina and others), and RoW (Middle East and Africa).
Key Takeaways
North America is analysed to dominate the market owing to the rising sales of the passenger as well as commercial vehicles in the region.
The significant growth in the average miles driven by a vehicle is set to be the key driving factor for the transmission repair market
Transmission Repair Market Segment Analysis - By Repair type
Transmission general repair dominates the market in 2020 with 79.2% share, owing to the rising adoption of periodic maintenance to increase the life cycle of the vehicle. As the periodic transmission repairs increase the vehicle age and also fuel efficiency, the users tend to opt for transmission general repair thereby contributing to the growth of the market.
Transmission Repair Market Segment Analysis - By Vehicle Type
Passenger cars is analysed to hold highest market share in 2020 at 68.4%. As stated by OICA, the number of passenger cars accounted for 67.2 million units whereas the commercial vehicles accounted for 24.6 million units. Adding to this, the growing production plants for passenger cars is also set to escalate the market growth rate. In January 2020, Toyota has announced to invest $700M in the expansion of its production plant in US. In September 2019, Toyota Motor Corporation has announced to expand its facility in Brazil with an investment of $190M to increase the production. The increasing demand of fuel efficient and eco-friendly vehicles is boosting the hybrid transmission market. As more complex transmission is widely used in electric vehicle, which is going to provide huge growth to transmission repair market.
Transmission Repair Market Segment Analysis - Geography
APAC is the dominant region in 2020 with a market share of 35.9% owing to the high production base in the region, followed by North America and Europe. The large market share is majorly attributed to the presence of large production bases in China and India. In March 2020, China Association of Automobile Manufactures has announced that vehicle production and sales volume reached 3.47 million and 3.67 million units. It has also stated that the commercial vehicles have declined than that of passenger vehicles. In December 2019, Morris Garages, a British automobile brand has announced its plans to invest $ 429.25 million. In 2019 According International Energy Agency (IEA), China held the major share 45% of global electric vehicle market, which is increasing rapidly and going to provide huge growth to hybrid transmission market. Additionally, in countries such as India, Japan and others, the demand of electrified vehicles is increasing, which will boost the transmission repair market.
Large Vehicle Parc
The automotive production has significantly risen in the past few years owing to the rising economic standards and affordability in many nations. As stated by OICA the commercial vehicles production has risen by 2% in 2019 compared to 2018 before a decline in 2020 due to Covid-19. Hence the growing vehicular production in various countries is significantly impacting on the transmission repair market.
The increasing demand of electric vehicles is going to boost hybrid transmission market. The demand of electric vehicles is increasing day by day, as electric vehicles offer several benefits such as low harmful gases emission, low maintenance cost and others. The electric vehicles manufacturers are going to use hybrid transmission widely in hybrid electric vehicles (HEV). The hybrid transmission uses a combination of electric motor and combustion engine substantially, which reduces the vehicle's fuel consumption, which is going to boost the hybrid transmission market.
Transmission Repair Market Challenges
Increasing adoption of Electric vehicles
The significantly rising developments impacting the increasing production of the electric vehicles due to its demand is set to hamper the market growth rate during the forecast period. The electric vehicles fundamentally shatter the maintenance industry owing to their high efficiency and features. In November 2019, Volkswagen announced the expansion of the electric vehicle manufacturing plant with an investment of $800M in US.
Transmission Repair Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Transmission repair market. Transmission repair driver market is expected to be dominated by major companies such as Allison Transmission, ZF, BorgWarner, Schaeffler, AAMCO, and Continental among others.
Acquisitions/Technology Launches/Partnerships
In March 2020, ZF Friedrichshafen AG and Wolong Electric Group Co Ltd has announced joint venture on Electric components, which is going to increase the features of hybrid transmission and going to boost hybrid transmission market.
In July, 2019, Schaeffler has announced its partnership with TruckOn, Continental’s digital booking platform for commercial vehicle repairs and services.
