LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global automated manual transmission market in commercial vehicles to grow at a CAGR of close to 10% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global automated manual transmission (AMT) market in commercial vehicles for 2016-2020. To calculate the market size, the report considers the total units of commercial vehicles in the medium and heavy segments equipped with AMT technology.
| With stringent environmental regulations in place and a high demand for fuel efficient vehicles, the global AMT market in commercial vehicles will experience rapid growth. Vendors from all over the globe are coming up with new technologies to ensure optimum torque delivery and lower carbon footprint. Original equipment manufacturers (OEMs) will widely adopt ATM vehicles due to their improved fuel efficiency and |
The market penetration of this technology is highest in Europe, followed by the US. Vendors are shifting their manufacturing bases to countries like India and China as manufacturing costs are comparatively lesser. This move also gives them some traction for market penetration to the large customer base in the region. The major reason for popularity of ATM vehicles over their fully automated counterparts are lower initial costs for procurement and higher mechanical efficiency.
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Technavio analysts highlight the following four factors that are contributing to the growth of the global AMT market in commercial vehicles:
- Growing demand for fuel-efficient transmission systems
- Increasing use of commercial vehicles in Asia
- Rise in demand for low emission vehicles
- Growth in national freight shipments in America
Growing demand for fuel-efficient transmission systems
Talking about the increasing need for fuel-efficient systems in commercial vehicles, Praveen Kumar, one of the lead analysts at Technavio for powertrain research says, “Fuel consumption is one of the highest operating costs for commercial vehicles serving the world economies. Transmission systems are the main units in vehicles that help in fuel efficiency, and the AMT system is effective in providing the right gear at the right time. AMTs provide 5%-8% miles per gallon savings compared with manual transmissions subject to the kind of usage of vehicles and drivers driving skills.”
Inexperienced drivers can also ride AMT vehicles, without substantial impact on the fuel consumption due to its high fuel economy. AMT technology provides an optimal balance between the cost and fuel economy of the vehicles. Efficient technology will result in a longer life cycle, giving more value to the money invested. With many suppliers entering the market, AMT manufacturers tie up with OEMs to increase the global demand for their technology.
Increasing use of commercial vehicles in Asia
According to Technavio analysts, Asia will account for nearly 66% of the market by 2020. China is the largest global manufacturing hub responsible for more than 50% of the global commercial vehicle production. China, India, and Japan are the three main countries driving the ATM market in the region. The demand for ATM vehicles is likely to increase in the region due to increase in truck manufacturers entering the market space.
Other countries like South Korea and Singapore have seen significant growth in commercial vehicles with an increased level of competition from global players. Singapore is an established trading center and will see an increase in demand for high-end tractors used for shipment of heavy materials. This made Bieber trucks, a Chinese truck manufacturer, to increase the exports to Singapore.
Rise in demand for low emission vehicles
The transport industry as a whole is coming together to decrease carbon emissions. The US Environmental Protection Agency and the European Commission have introduced stricter emission regulations for commercial vehicles. Greenhouse gas (GHG) Emission Regulations for 2014–2017 applies to all on-road vehicles with gross vehicle weight rating (GVWR) > 8.5 tons. The US 10 regulations must be followed where a reduction in fuel consumption ranges between 6% and 23%. These regulations have made OEMs shift from automatic transmission to AMT to be more fuel efficient and to adhere to the emission standards.
Growth in national freight shipments in the Americas
“The increase in commercial vehicles sales coupled with stringent norms by the Environmental Protection Agency will drive the AMT market in the Americas. The US has been the highest contributor to the AMT market in commercial vehicles in the Americas. A large amount of freight operations between America and Canada and America-Mexico provides an opportunity for OEMs to increase the AMT penetration of commercial vehicles and to increase the in the AMT market,” says Praveen.
The revival of the economy in the Americas and the fast technology adopting nature of the region gives an edge for the AMT market in commercial vehicles in this region.
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