Global Transmission Fluids Market by Application (Automotive, Off Road Vehicles), by Product (Manual, Continuously Variable) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global transmission fluids market was worth USD 10.1 billion in 2019. It is projected to grow at a compound annual rate (CAGR of 3.8%) between 2020 and 2027. The market is expected to grow due to rising demand for advanced vehicle technologies that offer high fuel economy and ease-of-use. Key manufacturers have made significant technological advances that have led to many reforms in both the automotive and off-road vehicle development sectors. Modern drivetrains are proving to be more efficient and comfortable than ever. They offer a quicker shift, better fuel economy, reduced exhaust emissions, and much more. Fluids for CVTs provide exceptional fuel economy because of their ease-of-use transmission range. This indicates minimal fuel consumption.

The transmission series of vehicles has seen significant improvements, which have also resulted in many innovations in off-road vehicles. These vehicles are used for heavy-duty tasks. High-performance ATF and MTF products are required for construction vehicles such as earthmovers and agricultural utility vehicles such as tractors. Modern ATFs include a variety of anti-wear additives and corrosion inhibitors, viscosity improvers. anti-foam additives and petroleum dye. Based on the vehicle specifications, the Dexron or Mercon series of this product is used. Some synthetic ATFs are available as aftermarket brands, which provide greater performance and a longer life span for the vehicle.

The key regions that will continue to drive the global market are North America and Asia Pacific. ATVs are expected to increase the demand and boost the market's future growth. They provide customers with longer vehicle operating life, easier automatic transmission, and greater fuel efficiency. These oils are expected to grow due to government regulations in the Middle East, Africa and Asia Pacific for infrastructure development.

Due to the recent pandemic in global circulation, supply networks around the world are being disrupted by a reduced vehicle movement, low demand from OEMs and aftermarkets, and discontinued oil and lubricant production, including transmission fluids. The main reason for disruption is temporarily stopped vehicular production. This is what generates most of the product demand. Due to low demand from global manufacturers, additive manufacturers also experienced temporary discontinuation of product manufacturing.

The second quarter of 2020 saw a slower pace of vehicle production than the first quarter 2020. This has resulted in a slight stabilization in product availability across the global marketplace. It is expected that this will continue to improve gradually as the supply chain stabilizes. To gain more market share in the highly competitive automotive industry, global automakers have focused on improving customer interaction, including automatic transmission. These factors will all be expected to increase over the forecast period.

Product Insights

With a market share of 54.2%, manual transmission fluid products dominated in volume with a market share of 56.2% in 2019. MTF is specifically used in manual transmission vehicles. This segment is constantly innovating as the main concern is fuel efficiency and noise suppression. Over the forecast period, technological advancements and innovations in motor upgrades are expected to increase product demand. MTF has seen significant growth in Europe and other regions due to increasing demand for manual transmission vehicles.

The segment will be driven by innovations in MTF such as how to deal with dirt and dust from off-road vehicles, especially for agriculture and construction. In order to create green housing projects and renovate existing buildings in the emerging economies of Asia Pacific and Central America, as well as the Middle East, a number of government initiatives have been taken. These initiatives have resulted in an increase in the production of off-road manual transmission vehicles. This will further boost the demand for MTFs in these regions.

The CVT fluids contain unique anti-wear additives, stable viscosity improvers, and oil film preventers. Because CVT technology is able to provide exceptional fuel economy and smoothly shift between gears, they are used in many vehicles made by Nissan, Mitsubishi and Dodge. Because of the constant innovation by automakers in Asia Pacific, CVTF has a large market share.

Market growth will be affected by volatile raw material supplies and strict regulatory guidelines about emissions from motor vehicles. CVTF is expensive, but its eco-friendly qualities drive its demand. The high demand for CVTF in North America is due to strong product demand from the construction and automotive industries. In addition, the market has shifted its focus towards the improved performance of passenger cars and heavy-duty vehicles. These factors will all contribute to the steady but slow growth of the global market for CVT fluids over the forecast period.

Application Insights

Off-road vehicles applications dominated the market in terms of volume with a share exceeding 55% in 2019. Fluids for off-road vehicles such as construction vehicles or agricultural machinery are used to provide optimum on-road power and wear protection for transmission parts, which in turn will increase vehicle life. Different oils are required for different applications, such as construction, agriculture, and forest equipment. This product is crucial for many equipment and off-road vehicles that are used in construction. Backhoe loaders, for example, which push tons of earth, need frictional stability, elastomer compatibility and hydraulic pump performance to ensure smooth performance and a longer life span.

The growth of the construction industry in emerging countries like China, India and Brazil is expected to continue to drive demand for off-road vehicles worldwide. Due to the expansion of the construction industry, Asia Pacific is one the most important regional markets for off-road vehicle application. The demand for oils in different vehicles is increasing due to the growth of infrastructural development around the world. The U.K.'s housing sector is growing at a rate of 6% per year. This means that there is more opportunity for fluids to be used in off-road vehicles.

The product is also widely used in the automotive industry due to its innovative technology in vehicle technology, such as drivetrains, transmission ease, fuel flows to the engine, and other aspects. In the next few years, the auto application market will grow due to the rising demand for automatic vehicles. Each vehicle has a unique transmission setup, which has resulted in innovation across the globe. Different passenger cars, such as sports cars, luxury vehicles and economy-class car segments, require different transmissions and engine power, which requires different oils.

The segment will continue to grow in North America and Europe, as more automakers in these regions demand high-performance fluids that are specific to their needs. Due to its easy access to skilled labor and sufficient land availability, Asia Pacific has become a hub for many automakers. Automotive manufacturers have also been able to capture a large market share in Asia thanks to increased consumer spending on modern technology vehicles for everyday utility. These factors will increase global demand for automotive applications over the forecast period.

Regional Insights

Asia Pacific was the dominant market, accounting for 53.9% global volume in 2019. This shift in production towards emerging economies, especially China and India, is responsible for the market dominance. There are many rapidly growing industries in the region, including construction, mining, and automotive. This presents tremendous potential for transmission fluid producers. In the coming years, overall product demand will be driven by an increase in construction spending due to the need to build sustainable infrastructure.

Furthermore, off-road vehicle use in Asia Pacific is expected to increase, as well as the need for transmission fluids to fuel them. This will lead to an increase in product consumption. Because of their unhindered transmission enabling characteristics, heavy-duty vehicles will likely consume both MTFs and ATFs. Due to the large investments made by Southeast Asian countries, Asia Pacific is the fastest growing region in terms of infrastructure construction. Automobile sales will be fueled by the expected rise in per capita incomes in countries like India and China.

Europe is also witnessing a low cost flight revolution. Europe has active connections from many global airports to its airports. This is expected to increase the tourism sector. The Italian government encourages foreign investment, especially in rural areas. It also offers grants for rural property reform to support rural tourism. The Italian government provided USD 2.7 billion in 2013 for the improvement and expansion of regional highways and rail networks and other infrastructure developments. These factors have fueled the demand for commercial vehicles within the region.

North America's market is concentrated by the presence of many multinational automakers such as General Motors, Chrysler LLC, Ford, and General Motors. The key driver for the market's growth is the development of the regional automotive industry. The market is also showing positive signs, especially for off-road vehicles that are used for construction. ATF demand is expected to rise in North America due to the shift from manual transmission vehicles to ATVs driven primarily by consumer preference. ATVs are easier to drive than traditional manual transmission vehicles and offer higher fuel economy and lower emissions.

Market Share Insights & Key Companies

A few multinational companies are highly integrated in the market, offering their wide range of products worldwide. These multinationals have extensive distribution networks, innovative product portfolios, and are well-known for their extensive R&D operations. This allows them to serve all types of applications globally. BASF SE, for example, has its own range of innovative products for heavy duty vehicles. Its products are well-known for their longer maintenance intervals, increased fuel economy, and better overall performance. Live product testing by the company before launching on the market gives it an advantage over its competitors. Chevron Corporation products are known for their exceptional anti-wear properties, which ensure a smooth transmission that lasts year after year even when subject to severe loads. The following are some of the leading players in the transmission fluids industry:

• Royal Dutch Shell

• ExxonMobil Corp.

• Total S.A.

• British Petroleum P.L.C.

Up Market Research published a new report titled “Transmission Fluids Market research report which is segmented by Application (Automotive, Off Road Vehicles), by Product (Manual, Continuously Variable), By Players/Companies British Petroleum PLC, Royal Dutch Shell, Total SA, ExxonMobil Corp”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Transmission Fluids Market Report Segments:

The market is segmented by Application (Automotive, Off Road Vehicles), by Product (Manual, Continuously Variable).

Transmission Fluids Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Transmission Fluids Market

Overview of the regional outlook of the Transmission Fluids Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Transmission Fluids Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Transmission Fluids Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Automotive

                2. Off Road Vehicles

                1. Manual

                2. Continuously Variable

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Transmission Fluids Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Transmission Fluids Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.