DUAL CLUTCH TRANSMISSION MARKET ANALYSIS

Market Challenges And Opportunities

Global Dual Clutch Transmission Market - Restraints:

Electric vehicles to hamper the global dual clutch transmission

Increasing demand for electric vehicles is expected to hamper the global dual clutch transmission market growth over the forecast period. The electric vehicles have witnessed significant demand in the recent past, in order to adhere to stringent fuel efficiency regulations and mitigate the risk of oil price volatility. According to Coherent Market Insights’ (CMI) analysis, the global electric vehicle technology market is exhibited a CAGR between 15% and 20% from 2014-2020. Moreover, electric vehicle technology offers a perfect substitute for conventional fuels and hence EV technology poses a major threat to DCT.

High costs to hinder the global dual clutch transmission

High costs related to DCTs are expected to hinder the global dual clutch transmission market growth during the forecast period. The high costs associated with DCT technology are a major threat to its penetration in vehicles, particularly in small and medium-sized vehicles in emerging economies. Moreover, India and Malaysia have exhibited high sensitivity towards product pricing.

Global Dual Clutch Transmission Market - Drivers:

Stringent regulatory policies regarding emission control are expected to drive growth

Stringent regulatory policies regarding emission control are expected to drive growth of the global dual clutch transmission market during the forecast period. Governments in developed as well as emerging economies such as the U.S., U.K., Brazil, China, India, and Singapore have enforced strict regulations and policies to reduce CO2 emissions. For instance, many countries in Asia Pacific and Europe follow the Euro 2, 3, 4 or 5 emission control standard. Moreover, in the U.S., the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) have finalized standards to extend the light duty vehicle GHG national program for model years 2017–2025. The agencies have adopted the first-ever GHG regulations for heavy duty engines and vehicles.

Advancements in technology are expected to propel the growth.

Advancements in technology regarding DCT are expected to propel the global dual clutch transmission market growth over the forecast period. Suppliers of automotive DCTs and automotive OEMs are focused on introducing innovative DCT technology, in order to enhance driving experience and increase fuel efficiency. Furthermore, DCTs have become more compact, durable, and fuel efficient with each innovation. As a result of this, they are being integrated into small cars as well. The demand for small and medium-sized cars is increasing in emerging economies such as India and China due to the penetration of DCT technology. BorgWarner has partnered with Maruti Suzuki to develop compact-sized DCTs for small cars. Moreover, compact DCTs will be used in small-size vehicles in India.

Global Dual Clutch Transmission Market - Opportunities:

Automotive companies are expected to grow in Europe and Asia Pacific

 The global automotive industry’s yearly growth rate is expected to exceed by 5.5% from 2010 to 2015, reaching a value of over US$ 5.1 Tn by FY 2015. Moreover, the industry is expected to witness significant research and development activities, representing an investment of around US$ 85 Bn (FY 2013). Since the economies in Europe and Asia Pacific are expected to improve, the automotive industry is expected to benefit thereby boosting the demand for DCTs in the near future.