Global Transmission Fluids Market

Global Transmission Fluids Market is projected to grow at a CAGR of 4.39% from 2017 to 2025

Transmission fluids are used to lubricate various parts of the transmission system of a vehicle. These fluids are used specifically in the automotive sector due to change in transmission speed and gears whereas, in the industrial sector, these fluids are marketed as gear oils with a change in viscosity. Transmission fluids are highly characterized by the multiple benefits and for delivering optimum performance to a vehicle’s transmission. There is an increase in global demand for vehicles which would drive the market for transmission fluids.

End-User Landscape (Consumer Profile): Transmission Fluids Market

Companies such as the Fuchs Petrolub SE, Royal Dutch Shell plc, and Total S.A. among others are investing extensively in the manufacturing and sale of transmission fluids, which presents a huge opportunity to transmission fluid suppliers. The report provides a detailed list of end-users operating across the world. The end-user landscape includes consumer contact details, geographical presence, revenue, product portfolio, organic, and inorganic growth strategies among others.

Mineral oil based transmission fluids is estimated to account for the largest share in 2017

Rapid urbanization and population growth in developing countries coupled with an increase in employment opportunities is fuelling the demand for transmission fluids. The low-cost factor of mineral base oil is the major factor for their largest share in the global transmission fluids market. Mineral base oils are derived from hydrocarbons and they do not possess a diverse viscosity range whereas, synthetic base oils have a much wider viscosity range and are priced in a much higher range.

Through technical developments, semi-synthetic base oils are gaining momentum in the transmission fluids market due to their advantages over mineral and pure synthetic oil based transmission fluids. Semi-synthetic base oils offer durability and high-temperature resistance of pure synthetic base oils at a lower cost. This has led to change in market dynamics and automotive manufacturers along with end-users are inclined towards the better life-efficiency of their vehicles by using semi-synthetic oil based transmission fluids.

Automatic Transmission Fluid (ATF) is projected to grow at the highest CAGR in transmission fluids market in the coming years

According to OICA, out of the total vehicle production statistics in 2016, 76% of the vehicles manufactured fall under the passenger car segment. The consumers in the developed economies favour having an automatic transmission vehicle in place of manual transmission due to convenience. Europe and Asian countries are majorly dominated by manual transmission vehicles whereas people in American countries prefer having an automatic transmission. The inclination of younger population towards the easy-to-drive automatic transmission vehicles is fuelling the growth of automatic transmission fluids in the passenger vehicle segment. Also, ATF offers additional benefits like enhanced durability, increased drain intervals, and improved life-efficiency of engine and transmission components with less wear of machine component. On the other hand, in the commercial vehicle segment such as in construction and agriculture, the consumers are still sticking to the manual transmissions due to better operating efficiencies.

Automotive Industry accounted for the largest share of the global transmission fluids market in 2016

The increasing population across the globe, rising per-capita spending on luxury products and higher standard of living are the major factors for a huge demand of vehicles in every household. According to Bureau of Transportation Statistics, an average household has 1.9 number of vehicles. The consumers prefer to drive their own car for better convenience while commuting to work through public transport. The increasing demand of vehicles has significantly increased the market share of automotive industry globally. However, rise in construction expenditure especially in India and China along with strong growth in infrastructure activity is boosting the demand for transmission fluids. The use of heavy vehicles in the construction industry caters to the specially designed transmission fluids for carrying huge loads and deal with higher temperature stability.

Asia Pacific Transmission Fluids market is projected to grow at the highest CAGR in transmission fluids market during the forecast period (2017-2025)

The growing automotive and construction sectors in Asian countries such as India and China along with the adoption of rapid technological advancement has significantly boosted Asia-Pacific’s Transmission Fluids market. Also, government’s spending on boosting the agricultural output has led to an increase in specially designed products such as universal tractor transmission oil which works as a transmission as well as gear oil in agricultural machinery.

North American Transmission Fluids market is dominated by the U.S. which has seen tremendous increase in construction spending along with growth in automobiles sales in the region which should boost Transmission Fluids product demand. This is because, the infrastructure in the region is ageing which needs rehabilitation to strengthen the structures already built. Also, the vehicle population in the region is high, majorly occupied by the aged vehicles. This has led to the replacement of old vehicles with the new ones which is further boosting the demand of transmission fluids. Presence of major automotive industries in Germany and France should drive European Transmission Fluids market in the region.

Transmission Fluids Market Opportunities

• The increasing popularity of semi-synthetic transmission fluids over traditional mineral based transmission fluids acts as an opportunity for the market growth
• Automatic transmission fluids segment is expected to continue its lead in the coming future.
• Technological development coupled with increased durability and longer drain intervals, should positively influence the industry growth
• Agricultural and construction industry is growing rapidly in the emerging economies, leading to huge growth prospects for transmission fluids used in the heavy machineries used in these sectors.

Competitive Landscape:

Exxon Mobil Corporation, Total S.A. and Royal Dutch Shell Plc. among others account for the major share in Transmission Fluids market. Companies are investing in innovation/R&D, brand building, and fostering strong relationships with customers to support their competitive position.

Please note: This is not an exhaustive list of companies profiled in the report.