Dual clutch transmission (DCT) also referred to as twin-clutch transmission is a hybrid of manual and automotive transmission. DCT is more resemblance to manual transmission though it uses two clutches to synchronize the gear change. These transmissions eliminate the need for the driver to manually change gears, as the entire process is automated. The major difference between DCT and automatic transmission is that it operates odd and even gear numbers individually thereby preventing the engine from being disengaged from interrupted power flow whenever gear’s changed. Moreover, unlike conventional automotive transmission, DCT does not use a torque converter. DCT is typically used to satisfy strict emission norms, for fuel efficiency and enhanced performance.
The global dual clutch transmission market is estimated to be at US$ 16,316.3 Million in 2021 and is expected to exhibit a CAGR of 6.26 % over the forecast period (2021-2028).
Global Dual Clutch Transmission Market: Driver
Constantly changing consumer preferences are expected to boost the global dual clutch transmission market growth during the forecast period. Generally, consumers prefer vehicles with high-performance, comfortable driving experience, ease of operation, and fuel efficiency. These are the major factors fueling the demand for dual clutch transmission worldwide. Furthermore, DCTs provide drivers to enhance driving experience by facilitating smooth fear shifting and enhanced acceleration. For instance, Eaton has developed a new line of medium-duty dual clutch transmissions that deliver 8-10% fuel efficiency. The company will be launching this technology in North America in 2015.
Global Dual Clutch Transmission Market: Opportunity
Global economic revival is expected to present lucrative growth opportunities. According to the data published by World Economic Outlook (WEO), April 2014, the global economy is currently improving and the economic scenario is projected to improve further in the two years, with developed economies holding the dominant position in the market. According to the same source, inflation is expected to remain in control from 2014 to 2020. For instance, the global inflation rate is projected to reduce to 2.4% in 2016 from 2.6% in 2014. In Europe and North America, factors such as supportive monetary conditions, robust labor market and improvement in consumer confidence have strengthened domestic demand, thereby resulting in higher consumption. Moreover, decrease in oil prices since 2014, is helping to improve macroeconomic conditions.
Global Dual Clutch Transmission Market: Recent Developments
Global Dual Clutch Transmission Market: Restraint
Lack of awareness regarding benefits of DCT technology is expected to restrain growth of the global dual clutch transmission market over the forecast period. Low technical awareness among consumers regarding DCT technology is the major factor restricting growth of the market. As a result of this, DCT technology will not be able to surpass other transmission technologies such as manual or automatic transmission in the near future. According to Coherent Market Insights’ analysis, the global penetration of DCT is around 5% as compared to 50.3% and 32.6% for MT and automatic.
Global Dual Clutch Transmission Market - Impact of Coronavirus (Covid-19) Pandemic
The global dual clutch transmission market has been massively impacted by the COVID-19 pandemic outbreak. Many industries, including automotive OEM manufacturing have witnessed significant decline due to stringent regulations on physical distancing. Manufacturers were compelled to shut down their production activities, in order to curb spread of the virus. Besides, economies activities across the globe have slowed down due to disruption in global supply chain activities and countries adopting lockdown policies, which has further impacted the market in discussion. However, manufacturers are optimistic as many countries are gradually relaxing the COVID-19 restrictions and allowing international travel, which could aid the market to go further.
In North America, drivers prefer traditional automatic transmission over any other type of transmission technology. Currently, consumers in North America prefer CVT transmission technology over DCT transmission technology. Increase in penetration of DCT technology in the regional automotive industry is challenging due to biased consumer preference. Moreover, automotive are integrating automatic transmission technology for light duty vehicles, and manual transmission has lesser contribution in light vehicle segment.
In Eastern Europe, automotive OEMs are focused on manufacturing enhanced DCTs, in order to meet strict carbon emission policies. Moreover, automotive OEMs are investing in research and development activities, in order to innovate DCT technology. This trend is expected to continue during the forecast period.
Key players operating in the global dual clutch transmission market are BorgWarner Inc., AVL, Punch Powertrain, Magna International Inc., Eaton Corporation, Getrag Inc., Ricardo plc, Continental AG, ZF Friedrichshafen AG, Schaeffler AG, and Fiat Powertrain Technologies.