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Aging Vehicle Parc and Rising Number of Continuously Variable Transmissions are Expected to be Key Drivers of Revenue Growth
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This study covers an analysis of the Class 1–3 vehicle replacement transmissions aftermarket in terms of volume (in Million units) and value ($ Million) across the United States and Canada. It discusses the unit shipments, revenue, average price, and distribution channel share for 3 replacement categories: remanufactured, rebuilt, and used. It also includes a discussion on the market shares of remanufactured and used transmissions as well as on the torque converters market. The base year for analysis is 2019, and the forecast period is from 2020 to 2026.The North American replacement transmissions aftermarket is expected to record marginal unit shipment growth in the coming years. Increasing Vehicles in Operation (VIO), rising average age of vehicles, and growing share of continuously variable transmissions (CVTs) in the installed base are the primary factors that are expected to drive unit shipments during the forecast period. Average prices are expected to increase due to the growth of high-speed transmissions, greater penetration of electronic components, and increasing share of remanufactured replacement. With an increasing average price per unit, revenue is also expected to grow.In the North American replacement transmissions aftermarket, the remanufactured and used segments are expected grow, whereas rebuilt transmissions are poised for marginal decline. By product type, manual transmissions are expected to decline due to their shrinking installed base.A growing shift among vehicle manufacturers toward high-speed transmissions (such as 6-, 8-, and 10-speed transmission), the increasing penetration of CVTs, and the rising use of electronic components are major factors impacting the transmissions replacement aftermarket. Participants across the entire value chain—from part manufacturers to installers—need to update themselves and increase their knowledge and technical know-how with these technological advances, which will be a major differentiator in this market. Factors such as application coverage, part availability, delivery time, programming capabilities, and core return policies will also be major success factors.
Key Issues Addressed
Author: Vasanth Raj
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