May 21, 2024

Automotive Transmission Pump Market Poised to Witness High Growth due to Advent of Electric Vehicles

A transmission pump is an important component of the automatic and continuously variable transmission system in vehicles. It helps in maintaining hydraulic pressure for smooth gear shifting and transmission of power from the engine to the wheels. Transmission pumps today are increasingly being engineered for enhanced performance to handle higher operating pressures and improve transmission efficiency.

The global automotive transmission pump market is estimated to be valued at US$ 40.42 Bn in 2024 and is expected to exhibit a CAGR of 25% over the forecast period from 2024 to 2030.

With the rising adoption of electric vehicles worldwide, the demand for transmission pumps is projected to accelerate at an exceptional pace over the next few years. While conventional internal combustion engine vehicles still constitute a major share of the global vehicle fleet, the pivot towards electric drivetrains presents lucrative opportunities for transmission pump manufacturers.

Key Takeaways
Key players operating in the automotive transmission pump are Facebook, Inc., Kiwi, Inc., Astute Solutions, Google, Inc., Pandorabots, Inc., Haptik, Inc., Yahoo Inc., Helpshift, ToyTalk (PullString Inc.), Imperson Ltd., Slack Technologies, Inc., Kasisto Inc., and Microsoft Corporation.
The key opportunities in the market include growing aftermarket demand for transmission pumps and expansion into developing automotive markets in Asia Pacific and Latin America. Technological advancements such as the development of compact and efficient electric transmission pumps, and pumps with longer lifecycles will further augment growth.

Market Drivers
The rapid adoption of electric vehicles worldwide is a major factor driving the demand for Automotive Transmission Pump Market Size . EVs rely on sophisticated automatic transmission systems to optimize performance, which incorporate advanced transmission pumps. Stringent fuel efficiency and emission regulations coupled with the rising consumer preference for fuel-efficient vehicles are also propelling the need for efficient transmission pumps. With vehicle production increasing consistently, especially in developing economies, the requirement for transmission pumps is anticipated to rise substantially over the next few years.

Current Challenges in the Automotive Transmission Pump Market

The automotive transmission pump market is facing several challenges currently due to rising raw material costs and supply chain disruptions caused by the ongoing pandemic. Aluminum, steel and plastic prices have significantly increased over the past year making it difficult for pump manufacturers to maintain profitable margins. Additionally, lockdowns and restrictions across major automotive manufacturing hubs have affected the smooth dispatch of components between suppliers resulting in delays. Labor shortages coupled with limited production capacities have also constrained the ability to fully meet the recovering demand from automakers. Strict emission norms coming into effect meanwhile add to design complexities that require heavy investment in R&D. Intensifying competition from local players further pressures established brands on pricing.

SWOT Analysis
Strength: Long-established manufacturing capabilities and brand reputation among major OEMs.
Weakness: High reliance on fossil fuels makes the industry vulnerable to energy security issues and carbon emission regulations.
Opportunity: Growing electronic vehicle market opens up opportunities to supply advanced transmission systems optimized for EVs.
Threats: Threat from new local players especially in emerging automotive hubs of Asia and shift towards automobile electrification may disrupt existing business models over the long-term.

In terms of value, the automotive transmission pump market in Asia Pacific is currently the largest concentrated region globally accounting for over 35% share. This is driven by the presence of leading automotive manufacturing nations including China, Japan and India. Rapid urbanization and rising disposable incomes have supported strong vehicle sales growth which in turn has benefitted transmission pump demand. Moving ahead, the market in Central and South America is anticipated to emerge as the fastest growing regional segment through 2030 on account of resurgent automotive investments into Brazil and Mexico.

Despite the challenges, automotive transmission pump suppliers remain cautiously optimistic about prospects in key developing automotive powers of southeast Asia and central Europe aided by expanding production capacities of global OEMs looking to tap into new growth markets. Localization initiatives by pump manufacturers will be critical to fortifying positions beyond mature regions.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it