The transmission fluid market is expected to witness a CAGR of over 4% during the forecast period. The primary factor driving the market studied is the rapidly growing demand for transmission fluid from the automotive industry. On the flip side, the volatility in crude oil prices and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- Growing demand for less carbon emission control vehicles is likely to offer various opportunities for the growth of the market over the forecast period.
- Transmission fluid from the automotive industry is expected to dominate the market studied over the forecast period.
- Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period owing to the increasing consumption from countries, such as China, India, and Japan.
Key Market Trends
Growing Demand for Transmission Fluid from the Automotive Industry
- Transmission fluid is a slippery fluid that acts as a lubricant for the entirety of the moving parts inside your transmission and fluid fills in as a coolant and a thick liquid that transmits power from the motor to the transmission.
- The transmission fluid is optimized in the automobile industry for the unique requirements of a transmission, such as a valve operation, brake band friction, and the torque converter, as well as gear lubrication.
- For over 70 years, the oil aftermarket has produced both licensed and non-licensed formulations of automatic transmission fluids (ATF).
- Transmission fluids are highly recommended in automobile vehicles to avoid hydraulic pump wear out and the gear getting stuck in neutral, which leads to the immobility of the vehicle.
- Hence, owing to the factors mentioned above, the application of transmission fluid from the automobile industry is likely to dominate during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market for transmission fluid during the forecast period. The rising demand for transmission fluid from the automotive industry and growing application in industrial machinery in developing countries like China, Japan, and India are expected to drive the demand for transmission fluid in this region.
- The largest producers of transmission fluid are located in the Asia-Pacific region. Some of the leading companies in the production of transmission fluid are BASF SE, Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell, and BP PLC.
- The Indian government aims to make automobile manufacturing the main driver of ‘Make in India’ initiative, as it expects the passenger vehicles market to triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-2026.
- In April 2019, the Government of China invested around USD 73 billion for constructing key transportation projects, including railways, highways, waterways, airports, and urban rail.
- The market for transmission fluid in the Asia-Pacific region is expected to grow significantly during the study period due to the factors mentioned above.
The transmission fluid market is partially consolidated in nature, with only a few major players dominating the market. Some of the significant companies are BASF SE, Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell, and BP PLC, among others.
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