The automotive transmission pump market size is estimated to be valued at US$ 34.16 Bn in 2023 and is projected to reach US$ 49.39 Bn by 2030, exhibiting a compound annual growth rate (CAGR) of 5.4% from 2023 to 2030.
The growth of the automotive transmission pump market is driven by the increasing demand for automatic cars, rise in preference for automation by inexperienced drivers, and increase in traffic congestion in developing and developed countries. Technological advancements in automotive pump industry have resulted in the maximization of the influence of automotive transmission pump in boosting the efficiency of vehicles.
The automotive transmission pump market is segmented into type, vehicle type, transmission type, sales channel, material, end user, and region. By type, the market is segmented into Gear pumps, Vane pumps, Centrifugal pumps
Automotive Transmission Pump Market Regional Insights
- Asia Pacific: The Asia Pacific region is the largest market for automotive transmission pumps, accounting for a 43% share of the global market in 2022. This is due to the high demand for cars in the region, especially from China and India. The increasing adoption of automatic transmissions in the region is also driving the growth of the market.
- North America: North America is the second-largest market for automotive transmission pumps, accounting for a 23% share of the global market in 2022. The growth of the market in this region is being driven by the increasing demand for fuel-efficient vehicles.
- Europe: The European market for automotive transmission pumps is expected to grow at a CAGR of 21% during the forecast period. This growth is being driven by the increasing demand for passenger cars and light commercial vehicles in the region.
Figure 1. Automotive Transmission Pump Market Share (%), By Region, 2023
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Analyst Viewpoint of the Automotive Transmission Pump Market: The automotive transmission pump market is expected to grow steadily over the forecast period. Rising vehicle production across major markets like China and India will drive the need for transmission pumps. Further, consumers increasingly prefer vehicles with automatic transmissions which use more than one transmission pump. This growing preference for automatic transmission is a major driver for the industry. However, rising popularity of electric vehicles may pose a challenge. Electric Vehicles (EVs) do not require a transmission pump as they do not have a transmission like internal combustion engine vehicles. Europe is expected to remain the dominant region due to the presence of leading automakers. Meanwhile, Asia Pacific will observe the fastest growth led by China.
Automotive Transmission Pump Market Drivers
- Rising adoption of automatic transmissions: Automatic transmissions are becoming more popular due to their ease of use, smooth gear shifts, and improved fuel efficiency. Automotive transmission pumps play a crucial role in the operation of automatic transmissions by providing hydraulic pressure for gear engagement. Increasing adoption of automatic transmissions globally drives the demand for transmission pumps.
According to the International Organization of Motor Vehicle Manufacturers, In 2022, the share of automatic transmissions in new passenger car registrations increased from about 55% in 2010 to over 70% in 2020.
- Growing focus on fuel Efficiency: With the increasing emphasis on reducing emissions and improving fuel economy, automakers are developing vehicles with more efficient powertrains. Transmission pumps play a vital role in optimizing powertrain efficiency by ensuring proper fluid flow and lubrication within the transmission system. The demand for transmission pumps is driven by the automotive industry's efforts to enhance fuel efficiency and meet regulatory standards.
According to Intenational Energy Agency, in 2022, the growth in global energy demand has seen a significant drop, and it is anticipated to be approximately 1% for the year. This follows a 5% surge in the previous year, thereby marking one of the most substantial annual increases in the past five decades.
Automotive Transmission Pump Market Opportunities
- Advanced transmission technologies: The automotive industry is witnessing advancements in transmission technologies, such as dual-clutch transmissions (DCTs), continuously variable transmissions (CVTs), and automated manual transmissions (AMTs). These technologies offer improved fuel efficiency, smoother gear shifts, and enhanced performance. Each of these transmission types requires specific transmission pump designs, thereby creating opportunities for manufacturers to develop specialized pumps for these advanced systems.
According to International Energy Agency, In 2022, swift advancements in energy efficiency have played a pivotal role in curbing the increase in energy demand stemming from data centers and data transmission networks, both of which contribute to approximately 1-1.5% of the world's total electricity consumption.
- Emerging markets: Developing economies, particularly in Asia, Latin America, and Africa, is experiencing rapid urbanization, rising disposable incomes, and a growing middle class. This leads to increased demand for automobiles in these regions. As these markets expand, there is an opportunity for transmission pump manufacturers to cater to the growing automotive production and aftermarket demand.
According to data provided by the World Bank In 2022, the personal disposable income levels in India increased by 35% from 2020 to 2022.
Automotive Transmission Pump Market Report Coverage
| Report Coverage |
Details |
|---|
| Base Year: |
2022 |
Market Size in 2023: |
US$ 34.16 Bn |
|---|
| Historical Data for: |
2017 to 2021 |
Forecast Period: |
2023 - 2030 |
|---|
| Forecast Period 2023 to 2030 CAGR: |
5.4% |
2030 Value Projection: |
US$ 49.39 Bn |
|---|
| Geographies covered: |
- North America: U.S. and Canada
- Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
- Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
- Middle East And Africa: GCC Countries, Israel, South Africa, North Africa, Central Africa and Rest of Middle East
|
| Segments covered: |
- By Type: Gear pumps, Vane pumps, and Centrifugal pumps
- By Vehicle Type: Passenger cars, Light commercial vehicles (LCVs), and Heavy commercial vehicles (HCVs)
- By Transmission Type: Manual transmissions and Automatic transmissions
- By Sales Channel: Original equipment manufacturers (OEMs) and Aftermarket
- BY Material: Cast iron, Aluminum, and Composite materials
- By End User: Passenger cars, Commercial vehicles, Off-highway vehicles, and Specialty vehicles
|
| Companies covered: |
Aisin Seiki Co., Ltd., GKN Automotive Limited, Eaton Corporation, Denso Corporation, JTEKT Corporation, BorgWarner Inc., Schaeffler AG, ZF Friedrichshafen AG, Valeo SA, Magna International Inc., Bosch Limited, Aisin Seiki Co., Ltd., and Hitachi Automotive Systems. Ltd.,
|
| Growth Drivers: |
- Rising adoption of automatic transmissions
- Growing focus on fuel efficiency
|
| Restraints & Challenges: |
- Volatility in raw material prices
- Stringent emission dtandards
- Shift towards electric vehicles
- Limited technological advancements
|
Automotive Transmission Pump Market Trends
- Shift towards electric and hybrid powertrains: The automotive industry is witnessing a significant shift towards electric and hybrid powertrains. This trend is driven by increasing environmental concerns, government regulations, and advancements in battery technology. As a result, there is a growing demand for transmission pumps designed specifically for electric and hybrid vehicles or for hybrid systems in traditional internal combustion engines.
In 2020, according to the United States Department of Energy, hybrid electric vehicles made up around 2.1% of total annual U.S. vehicle sales. The share is projected to grow to 3-5% over the next three years (2022- 2024) as fuel efficiency and emissions regulations tighten along with declining battery costs for automakers.
- Continuously variable transmissions (CVTs): Continuously variable transmissions (CVTs) are gaining popularity in passenger vehicles due to their smooth and seamless gear shifting capabilities. CVTs offer improved fuel efficiency by continuously adjusting the gear ratio, thus eliminating the need for traditional stepped gears. As CVTs become more prevalent, the demand for transmission pumps that are optimized for CVT systems is expected to increase.
According to the International Energy Agency, electric vehicles now account for approximately 10% of new passenger vehicle sales as of 2022, indicating growing usage of efficient powertrains including CVTs especially in internal combustion engine vehicles.
Automotive Transmission Pump Market Restraints
- Volatility in raw material prices: The automotive transmission pump industry relies on various raw materials, such as metals, plastics, and rubber components. Fluctuations in the prices of these raw materials can impact the manufacturing costs of transmission pumps. Volatility in raw material prices can pose challenges for manufacturers in terms of cost management, pricing strategies, and profit margins.
Counterbalance: Companies can diversify their supply chain by sourcing raw materials from different suppliers and regions. This can help to mitigate the risk of price volatility from a particular source or region.
- Stringent emission standards: Governments worldwide are imposing increasingly stringent emission standards to address environmental concerns and reduce greenhouse gas emissions. These regulations require automakers to improve fuel efficiency and reduce emissions from vehicles. While transmission pumps contribute to fuel efficiency improvements, meeting stricter emission standards may necessitate the use of advanced transmission technologies or alternative powertrains that may not require traditional transmission pumps. This can impact the demand for conventional transmission pumps in the long run.
Counterbalance: Complying with stringent emission standards often requires manufacturers to invest in new technologies or modify existing designs, which can increase production costs.
- Shift towards electric vehicles: The rapid growth of electric vehicles (EVs) poses a challenge to the automotive transmission pump market. Electric vehicles typically employ direct-drive systems or specialized electric powertrains that do not require conventional transmission pumps. As the adoption of electric vehicles increases, the demand for transmission pumps may decline in this segment, thus affecting the overall market.
Counterbalance: Electric vehicles typically have simpler transmission systems or none at all, thereby reducing or eliminating the need for transmission pumps. This could lead to decreased demand for automotive transmission pumps.
- Limited technological advancements: While there have been notable technological advancements in transmission pump design and efficiency, the pace of innovation in this market segment is relatively slower as compared to other automotive components. Limited advancements in transmission pump technologies can restrict the overall growth potential and may result in a lack of differentiation among products offered by different manufacturers.
Counterbalance: Without ongoing technological advancements, the market may become stagnant. This can limit opportunities for growth and make it difficult for companies to differentiate their products from competitors. So, technological up gradation needs proper attention in this regard.
Recent Developments
- Aisin Tohoku Co., is a Japan-based company primarily engaged in the manufacture and sale of automotive parts. In December 2020, announced that it’s expansion of the factory to begin production of small and medium-sized motor products, mainly electric water pumps, by 2022.
- In Oct 2023, GKN Automotive, a leading global provider of drive systems, has introduced a innovative plug-and-play eDrive concept. This concept is specifically engineered to cater to the increasing demand from specialized electric vehicle manufacturers and companies involved in electric vehicle conversions. The goal is to provide modular electric drive technology that can easily integrate with diverse electric vehicle platforms.
Key Strategic Initiatives
- In 2022, Bosch, is a German multinational engineering and technology announced that it acquisition of the steering and transmission pump business of Fidelium Partners, is a private investment firm that specializes in acquiring and growing businesses in a variety of industries. This acquisition gave Bosch a strong foothold in the growing market for electric vehicles, as Fidelium is a leading supplier of pumps for electric power steering and transmission systems.
- In 2021, Denso, an automotive manufacturer, had acquired the North American transmission pump business of JTEKT. This acquisition gave Denso a larger share of the North American market for transmission pumps, which is expected to grow significantly in the near future.
- In 2020, Aisin AW, is a global supplier of automotive components acquired the transmission pump business of Mahle, multinational company that produces a variety of automotive parts including engine systems. This acquisition gave Aisin AW a wider range of transmission pump products, which helped it to better meet the needs of its customers.
Figure 2. Automotive Transmission Pump Market Share (%), By Type, 2023
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Top Companies in Automotive Transmission Pump Market
- Aisin AW Co., Ltd.
- GKN Automotive Limited
- Valeo SA
- Eaton Corporation
- Denso Corporation
- JTEKT Corporation
- BorgWarner Inc.
- Schaeffler AG
- ZF Friedrichshafen AG
- Magna International Inc.
- Bosch Limited
- Aisin Seiki Co., Ltd.
- Hitachi Automotive Systems, Ltd.
Definition: Theutomotive transmission pump market refers to the industry segment that focuses on the manufacturing, distribution, and sales of pumps specifically that is designed for use in automotive transmissions. These pumps play a crucial role in maintaining proper fluid circulation and pressure within the transmission system, thus ensuring smooth and efficient operation. The market includes various types of transmission pumps, such as gear pumps and vane pumps, which are essential components in both manual and automatic transmission systems of vehicles.
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