The global Transmission Fluids Market reaches a valuation of USD 8.0 billion in 2023, with a projected CAGR of 4.1% from 2023 to 2033. By 2033, the market is anticipated to reach USD 12.0 billion.
Key Highlights
Soaring Demands for Passenger and Commercial Vehicles in Emerging Economies
The escalating demand for passenger vehicles in emerging economies, such as India and China, driven by rising disposable incomes and urbanization, is expected to contribute significantly to the growth of the transmission fluids market.
As these countries continue to expand their automotive industries, the need for transmission fluids for OEM vehicle production and aftermarket servicing will increase.
Cruising Toward the Future Through Exploration of the Global Transmission Fluids Market
As the automotive industry experiences a paradigm shift toward sustainable mobility solutions, the transmission fluids market is adapting by focusing on environmentally friendly formulations. This includes the development of transmission fluids with enhanced biodegradability and reduced environmental impact, aligning with global sustainability goals and regulations.
| Transmission Fluids Market Estimated Value (2023) | USD 8.0 billion |
|---|---|
| Transmission Fluids Market Estimated Value (2033) | USD 12.0 billion |
| Transmission Fluids Market Value CAGR (2023 to 2033) | 4.1% |
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The transmission fluids market is undergoing a profound transformation from 2023 to 2033, diverging significantly from the growth observed between 2018 and 2022, where the market secured a 5.6% CAGR from 2018 to 2022 compared to a 4.1% growth rate from 2023 to 2033.
The central catalyst behind this shift is the rapid electrification of vehicles, particularly the rise of electric vehicles (EVs). This transition is reducing the demand for traditional transmission fluids used in internal combustion engines and ushering in a new era of specialized transmission fluids tailored for electric power trains.
| Transmission Fluids Market Estimated Value (2018) | USD 6.1 billion |
|---|---|
| Transmission Fluids Market Estimated Value (2022) | USD 7.6 billion |
| Transmission Fluids Market Value CAGR (2018 to 2022) | 5.6% |
Sustainability concerns and regulatory pressures are driving the development of eco-friendly transmission fluid formulations, emphasizing biodegradability and reduced carbon footprints.
As the global market expands, particularly in emerging markets like China and India, the industry is poised for consolidation and increased collaboration among key players and stakeholders to navigate the evolving landscape effectively.
Challenges such as supply chain disruptions and regulatory complexities persist but also present opportunities for innovation and agility in response to market shifts. The 2023 to 2033 period represents a pivotal market decade characterized by adaptability, innovation, and sustainability in the face of electrified mobility trends.
Principal Consultant
The below highlights the market growth by key countries. China is the leader in the market, with an absolute dollar growth of USD 784.8 million. The next leading market is the United States, with a CAGR of 4.0% through 2033, followed by Japan.
FMI estimates that Asia Pacific represents an overwhelming regional opportunity due to the emerging countries in automotive, such as India.
The forecast period is expected to witness China's hegemony in the transmission fluids industry, with an anticipated market share of USD 2.4 billion by 2033, advancing at 4% CAGR from 2023 to 2033.
| China Market Size for 2033 | USD 2.4 billion |
|---|---|
| CAGR (2023 to 2033) | 4.0% |
China is also home to leading transmission fluid producers, including BASF SE, Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell, and BP PLC. Currently securing the first market position in terms of growth, this standing is anticipated to continue in the foreseeable future.
In April 2019, the Chinese government invested around USD 73 billion in critical transportation projects, including railways, highways, waterways, airports, and urban rail, further stimulating the demand for transmission fluid in the region.
The market share of transmission fluid in India is expected to reach USD 1.9 billion by 2033. Growing demand for transmission fluid in the automotive sector and its increasing use in industrial machinery is projected to be a key driver of this trend.
| India Market Size for 2033 | USD 1.9 billion |
|---|---|
| CAGR (2023 to 2033) | 3.0% |
The ‘ Make in India’ initiative played a key role in the success of the automotive industry in the country. For instance, in 2021, Power Grid Corporation of India Limited (POWERGRID) made it possible for Electric Vehicles Charging Stations in Meghalaya, Shillong. The project is developed under FAME (Faster Adoption and Manufacturing and Electric Vehicle).
Similarly, Toyota Motors developed and launched a hydrogen fuel cell battery electric vehicle, Toyota Mirai, in 2021. The project aims to create a green environment in the country by reducing emissions, along with a minimum refueling time.
The United States transmission fluids market is characterized by its concentration of multinational automakers. It includes Chrysler LLC, General Motors, and Ford, which is swaying the market outlook of the country positively, thereby catalyzing the expected growth rate of 4% from 2023 to 2033.
| The United States Market Size for 2033 | USD 2.2 billion |
|---|---|
| CAGR (2023 to 2033) | 4.0% |
The growth of the transmission fluids industry in the United States is primarily driven by developments in the automotive industry. In the United States, consistent annual growth in construction sector investment is contributing positively to the market, particularly for off-road vehicles utilized in construction.
The United Kingdom transmission fluids market is expected to grow by 3.8% from 2023 to 2033. A shift in consumer preference from manual to automatic transmission vehicles (ATVs) is expected to boost the country's demand for automatic transmission fluids (ATF).
| The United Kingdom Market Size for 2033 | USD 424.9 million |
|---|---|
| CAGR (2023 to 2033) | 3.8% |
ATVs offer advantages such as ease of operation, improved fuel efficiency, and reduced emissions compared to traditional manual transmission vehicles. The key players in the United Kingdom driving the market's growth include Royal Dutch Shell Plc, Exol Lubricants Limited, and BP Plc, among others.
In January 2022, TotalEnergies, a global player in the lubricants market, and NEXUS, an expert in heavy-duty parts distribution, extended their five-year strategic partnership. As per the partnership, TotalEnergies expanded its presence in booming regions, trading with more than 170 global distributors.
The market in Japan recorded a valuation of USD 768.2 million and is expected to reach USD 2.4 billion by 2033. The market is witnessing steep growth in the country due to the automotive and heavy equipment industry.
| Japan Market Size for 2033 | USD 2.4 billion |
|---|---|
| CAGR (2023 to 2033) | 4.0% |
Considering the strategic expansion of transmission fluid manufacturers in Japan represents an additional growth opportunity in the regional market. Furthermore, the existence of smaller players in these nations has the potential to drive revenue growth in the market in the coming years.
The lubricant market in Japan was dominated by the automotive industry in 2021, where the leading companies recorded a share of 83%. This includes Cosmo Emergy Holdings, ENEOS Corporation, Idemitsu Kosan, and others.
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As per the transmission fluids market analysis by FMI, the automotive sub-segment is likely to emerge as the prominent one in the industry at a predicted 3.8% growth rate during the forecast period.
| Top End Use | Automotive |
|---|---|
| CAGR % 2018 to 2022 | 5.2% |
| CAGR % 2023 to End of Forecast(2033) | 3.8% |
The automotive industry represents a substantial and continuously growing consumer base for transmission fluids, with vehicles requiring regular maintenance and fluid changes.
The global shift towards electrification and the production of electric vehicles (EVs) has opened up new opportunities for specialized transmission fluids in EV power trains. Additionally, the demand for more efficient and environmentally friendly transmission fluids, driven by stringent emissions regulations and sustainability initiatives, further bolsters the automotive segment.
The automatic transmission fluid segment dominates the market with a growth rate of 5.4% from 2018 to 2022. The market sensed a fall in the forecast period compared to the historical period, although the segment still decodes the strategies for growth with 4% from 2023 to 2033.
| Top Type | Automatic |
|---|---|
| CAGR % 2018 to 2022 | 5.4% |
| CAGR % 2023 to End of Forecast(2033) | 4.0% |
The transmission fluids market is segmented into automatic transmission fluid (ATF) and manual transmission fluid (MTF). The category is further segmented into dual-clutch and continuously variable transmission fluid, which falls under other segments.
The high recommendation of transmission fluids in automobile vehicles to avoid hydraulic pump wear out is driving the ATF segment. Moreover, the surge in industrial machinery in developing countries raises the demand for automatic transmission fluids.
The market is characterized by a high degree of consolidation, dominated by a handful of leading multinational corporations that offer a wide array of products on a global scale.
These industry leaders possess extensive distribution networks and innovative product portfolios and are renowned for their substantial research and development efforts, allowing them to serve diverse application sectors worldwide.
For example, BASF SE boasts an extensive range of innovative solutions tailored for heavy-duty vehicles, renowned for their extended maintenance intervals and enhanced fuel efficiency in the vehicles where they are applied.
The company's rigorous live product testing before market release provides it with a competitive advantage. Chevron Corporation's products are distinguished by their outstanding anti-wear properties, ensuring trouble-free, smooth transmission performance throughout the year, even under heavy loads.
Recent Developments in the Market for Transmission Fluids:
Key Players:
The projected market value is estimated to reach USD 12.0 billion by 2033.
The industry in the United Kingdom is expected to advance at a CAGR of 3.8% till 2033.
During the forecast period, the industry in Japan is anticipated to grow at a rate of 4.0%.
The market size of the transmission fluids was USD 6.1 billion in 2018.
The automotive segment is projected to lead the market for transmission fluids.
1. Executive Summary
2. Market Overview
3. Market Background
4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type
5.1. Automatic
5.2. Manual
5.3. Other Types
6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-Use
6.1. Automotive
6.2. Off-Road Vehicles
7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
7.1. North America
7.2. Latin America
7.3. Western Europe
7.4. Eastern Europe
7.5. South Asia and Pacific
7.6. East Asia
7.7. Middle East and Africa
8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
15. Key Countries Market Analysis
16. Market Structure Analysis
17. Competition Analysis
17.1. Afton Chemical Corporation
17.2. Amsoil, Inc.
17.3. BASF SE
17.4. BP PLC
17.5. Chevron Corporation
17.6. Evonik Industries AG
17.7. Exxon Mobil Corporation
17.8. Fuchs Petrolub SE
17.9. Gulf Oil Corporation Ltd.
17.10. Millers Oils Ltd.
17.11. Pennzoil
17.12. PetroChina Company Limited
17.13. Petroliam Nasional Berhad (PETRONAS)
17.14. Royal Dutch Shell PLC
17.15. SINOPEC Group
17.16. The Lubrizol Corporation
17.17. Total SA
18. Assumptions & Acronyms Used
19. Research Methodology
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Transmission Fluid Market
